The Providence news. (Providence [R.I.]) 1891-1906, 1897-02-06
Statute on Subject Care.
fully Explained.
Valuable Paper by Colonel
Cyrus NJ. Van Slyck.
r. !. Business Mems Association
Holds Its Monthly Meeting.

| Island Business Men Association was h'lu an
| the office of the secretary, George A. Little
! field Esq, in the Industrial Trust Company
building, last evening. There was good at
tendance OF members and the explanation OF
| the insolvency laws of Rhode Island was
| careful and decidedly instructive one and one
of special interest tp the members or the or
| canization. f. II. Boococlx of New York also
| delivered an address.
| Owing to the absence Of President Knight,
L. c. Belcher, the first vice-president, pre-
] sided. Secretary Littlefeld told Of the annual
banquet, which romises u be mp TO the past
| standard of such affairs held under the aus
| pices tf the association. II was announced
that at the meeting in April increased postal
| facilities for this city would be discussed
The presiding officer introduced Colonel Van
| SlyclS in pleasant terms, who, after saying
| that there was but little pleasant about the
! consideration OF insolvent laws, said be came
| TO the consideration of his subject not as
law reforme-, hut simply TO state the main
| points of the laws and explain what in bis
| opinion certain sections meant, which mlght
| require judicial interpretation.
| He said IL was important 30 consider that
| the new ch pter. 27i, General Laws, bad two
| IDEAS in vicw-the management OF the msol-
| vent estate for the benefit Of creditors and TO
| give honest but unfortunate debtors relief
| Insolvent petitions were either voluntary or
| involuntary that IS, the law may be set in
! motion by tho Cebtor himself or by his crcdi'
! tors. I'm cases Of voluntary petitions schedule
! of liabilities assets ana residence OF creditors
| must De filed. he must then be- declared insol'
| vent. In an involuntary proceeding creditors
starting, IL must control one-fourth of the
| debt, and the other creditors may join, but
| the proceedings once started cannot be stop
ped without notice TO all parties interested
There H. some doubt whether debts due 10
parties outside the State are TO be taken into
accouot in considering whether the creditors
fling the petition hold the necessary amount,
II is probable they would, ana creditors may
oppose the motion made by other creditors to
have "A debtor declared insolvent.
1t seems that unless man pays his debts
pretty promptly be may be declared insclvent.
There are proy isions in tho law giving right
of jury trial whom desired and providing for
punishment for false ami malicious efforts TO
harass debtor 10y insolvency proceedings
The speaker then referred 20 the appoint
ment Of registers in insolvency and the REASON
for their appointment, saying they were APP.
pointed because the Appellate Court had nj
ready a great deal to do. Next the procedures
being the choice by creditors Of an assignee,
ana then the proof OF claims. in doing which
nos resident creditors must be satisfied with
the dividend obtained as the result Of the pro-
cecdings debior FRONT out the state, sthat
is, caunot take the dividend and then cay, IL
have got this much account; when get
him in my State ] will get the rest"
The subject of liquidate debts, Colonel Van
slyck thought, wouli require settlement by
the court, but he thought If the contract con-
cerning which the debt arose was eniere
into before the insolvency proceedings it
could be proved. Another important point
was that while tort actions could not bo lalxen
into account, yet, IL n in gment had been OBJ
tsincd IL could be proved and the acceptance
Of n dividend would discharge the insolvent.
The holIer of preferred claim has hal his
rights changed, as under the decision OF the
Appellate Court he might under the old law
take his dividend from the assignee and then
avail himself OF his security. Now such
creditor can only recover for the balance
above his security.
Next the filing of proofs before the register
or clerk was dealt with in detail. In case the
register decides claim not good, the speaker
thought the court in bankruptcy having gen
eral supervision over the register: would hear
and decide on the correctness of the decisions
OF its officers.
Tho assignor must turn over not only his
property in this State. but n lso all he owns in
any other State or in any foreign country.
This must.b done within 20 days, or his cred.
itors may elect 10 distribute his property, but
the debtor will not get his discharge. A sec
ond thing that the creditors may do in case
property is not conveyed is they may obtain
an order from the court for the conveyance, a
dis obedience of which order would be pun
ish.d Iy the court as contempt. The statute
namcs this punishment which may be- very
severe for the court can fine or they can i'm.
prison. and could keep debtor In Jail until
he made the deed.
In clear language. tho duties Of the assignee
were dwelt upon. and the improvements in
tho present law over the old one in regard 30
the holding OF that position by competent and
trustworthy persons were pointed out.
The provision in regard TO the 30 per cent.
compromise was explained; attention being
| called to cases under the old law where a man
| who owe money and could get from friends
| enough to pay 20 per cent, but some small
| creditor would hold on {, thinking that by
reason Of his opposition and the smalncss OF
| his claim he would be apt Co get about 100
| cents ON the dollar. Now n compromise OF 20
| cents, II agreed 10 by two-thrds, the other
| third will have 10 take the dividend
Colonel Van Slyck then devoted consider
| able iimc 90 the consideration of the proyis'
! ions of the law that were for the advantages
o Z the debtor Tho principles Of the so-callod
now iusolycnt law were not new they were
! i'm the main the same ~ SEie last national
| bankruptcy Inv, tho bankrupt laws Of other
States and insolvent laws in general, and they
are founded two just PRINCIPLES were
among the concluding remarks OF the effective
speaker
r. r. Boococz OF Now York, secretary of the
National Association of Credit Men. spoke of
the object Of this organization, which. he said
was formed 20 have greater uniformity IN
the laws for the bcncd; of creditors Ho SAID
that such hcnoilts could only be obtained by
united action.
A collation. was served nj tho conclusion ~
the address ~ Mr.. Boocock. and rising vote
| ~ fhanks was vfven h,fh f,lor,l Van Glx.l,