New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1897-01-28
BANKRUPTCY LEGISL AIION.
THE OLD FIGHT TO BE RENEWED iN
CONGRESS SOON.
PROVISIONS OF THE TORREY AND THE ''"
puJs-FR,ENps OF THE LATTER MEAS

IRE ACTIVELY At WORN
fpy TELEGRAPH TO THE rRIBuNEl
,,,1,u,o, Ian o7-It ia expected that as soon as
tho Nicaragua canal bill has been disposed OF '"e
Senate will renew the old fight over the aueSNo" %
IN whether or not Congress shai pass .,
bankruptcy law. provided by the 'ohS'''u
Only three such laws have ever been OF the s'''"'
hooksone I'm 1900 one in l&l and the last one IRON"
1861 II 1875 Two measures are before the senate oe
Il VOL known 10 the debtors and creditors OF the
country-the Torrey Bankruptcy bill. as modineu ny
the Committee on the Judiciary of the House OF f'p
rcsentatives and passed by that body the other
comparative stranger. The friends OF the former Dill
contend that Il contains all Of the provisions for con-
stltutional comprehensive bankruptcy. II emoohies
complete fair voluntary bill and complete far IN
voluntary hill That IL say. ali Of the equitable
rights Of both debtors and creditors are preserved
therein II is intended az permanent law, such as
was contemplated by the Federal Constitution AS
Of fact. the only distinction between vo.un-
tary and Involuntary bankruptcy relates simply to
who files the petition Uhe debtor his CREDITOR and
the proceedings before the adjudication. After the
judgment has been rendered the defendant is bank
rup; aud his creditors have certain rights: these
rights are identical in both voluntary and involuntary
cases
The so-cslled Bailey bill provides that the law
shall he partly administered in the State courts and
partly in the Federal courts 1t is designed to re-
main in force only two years The part OF 1t which
Mr. Bailey advocates provides only for voluntary
bankruptcythat is to say 1t provides that debtor
may file his petition. but II he were depicting
his estate with view of doing so II would not af-
ford TO his creditors any right TO interfere and pre-
vent the consummation of the proposed wrong. 1t
Is unlike any law In force in this or any other
country 1t has been held by many good lawyers
that II It should be enacted 1t would prove to be
unconstitutional. Judge Wolverton Of Pennsyl-
vana. formerly a member OF the House judiciary
n mil al I'm no m
report from his committee in which he showed
that this bill If passed would be worthless because
of its unconstitutionaty in many respects No at
tempt has been made by Mr. Bailey or any OF
his friends reply to that report
The origin and history of the socalled Bailey bill
are Interesting 1t was first drawn by Senator
George. OF Mississippi. not as bankruptcy bill,
which 1t desirable TO pass, but as an amend
ment to the Lowell BILL and designed simply to Kill
that measure. That Senator and others who SYM
pathized with him In his opposition to any bank
ruptcy legislation made what seemed at first glance
to be plausible argument. that they were opposed
TO the enforcement of creditors rights against
debtors In bankruptcy, but were in favor or ena-
bling any insovent debtor who so desired to file his
petition and secure discharge from all Of his
debts The plan succeeded far that Sena or
George induced tho Senate to pass motion when
the Lowell bill under discussion some years
striking all provisions in it relating to in
Culberson. of Texas. introduced the amendment OF
Senator George 5 above explained as a voluntary
bill in the House. and sought to use IL against the
Torrey bill for the same purpose for when senator
George had used II. but was unable TO succeed
therein. When Mr.. Bailey came to Congress he In
trodaeed The bill and now claims to De urg,me II as
the history and purposes OF the bill simply smile at
his attitude
Mr. Bailey has far succeeded that he secured
its passage in the LID Congress when the House
Democratic. and has secured n favorable, re-
port of II modified in the Senate as substitute
for the Torrey BILL as passed by the House Ills
influence In the Senate thus far seems phenomenal
h. htc nlCft-
tute for the committees bill the time the latter
was under discussion, only forty members stood
with him in sustaining the demand for a yea and
nay vote Under the leadership OF Judge Culberson,
the Texas Representatives, with single exception,
voted solidy in opposition to the Torrey bill Under
the leadership of Mr.. Bailey these conditions are
changed. and he and two others were the
only Texas Represen atives who voted against the
sentatives. Judge Culberson has become con-
WINGED that the people entitled to enjoy their
constitutional rights under bankruptcy law, and
he made speech In the last House in favor OF the
amended Torrey BILL as introduced and advocated
by General Henderson, OF Iowa. chairman OF the
Judiciary Committee Unless the friends OF this
bill bestir themselves II may be lost. since the
Bailey bill to have active friends In Congress
Mr. Bailey in recent newspaper interview said
that II any bill should be passed II would only be
after compromise had been made with him. The
friends OF the House bill say that Mr.. Bailey has
nothing on which to found compromise; that II
the friends Of voluntary bankruptcy are in the ma
jority they Will pass the voluntary part OF the Tor
rey BILL and II they are not the bill will be passed
complete.
The fact that a voluntary bankruptcy law has
never been In force In this or any other country
except I'm connection with an involuntary law ia
cited by the friends Of the House bill as sufficient
reason why none but a comprehensive measure
should now be passed