New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1898-02-16

The case Of the Unfortunate debtor. guilty OF no
fraudulent conduct. who can Work n.s nra,r9
p GsCatior OF his property by bankruptcy
proceeding O. by the suits Of his creditors
PROVIDED FOR BY THE CONSTITUTION
It has been alleged In opposition to the Hogd1 b
Federal judiciary MS PIopSYS Tbe G"nstltuion OF
nm form law II also gives 70 the tedera '1R"' -
Jurisdiction conferred upon them 10y ,ngi,, tuch
The United States Congress, then IN pa !ns Ia
a law does not extend the jurisdiction OF M r.
eral courts: IT merely enables mem ~ be yiI Of
Jurisdiction conferred upon them py, me ~, 80
The sovereign people expressed through the N'''''-
Furthermore. as a practical matter: a law TO be
uniformly administered must be administered ~ -
SingIe system of courts having A single court OF
hS, ysorf 70 lnternret II in the last instance.
LAW Interpreted and enforced by forty-ive different
systems Of courts would soon cease 20 be UNIFORM
'Tbose who seek 10 limit the jurisdiction OF the
Federal judiciary have presc nted measure n'o"'
both "a The Culherson ana the Bailey bill IL pro.
vides Tor voluntary bankruptcy only. An insoVent
debtor may make an as-e uWent Edllu d. 49, ' Io,i
then existing laws Of his state he may then Pe pr,
ton the United States District Court OF ms distICt
for a discharge. which VIII ne srahltu ~ ~ a +
II satisfied that the assignment has peen Doa n I
other words the proceedings are 10 De mace IN
ca ed and expensive by being conducted party "a
one forum ana partly in another the tedersl, ato
state courts 10 be brought INTO 'onnlcl H.N ~
creditors viii be placed the dsadyantase Of OPP
posing the discharge IN on forum on me stouu W
the debtors conduct while within the JurISuc''o"
Another objection that has been urged against
the pending Bin. wei ~ former laws. IS me m
convenience and expense which "Quld L, esun 10
suito-s who were obliged 70 t.aVs, ios ats C o
arise under the Henderson bill. since II empower.
the courts 10 designate tne .'rS 81 ,c Ar
least one district thus bringing the Federal courts
home to the people.
DEFECTS OF FORMER LAWS.
The law Of 1861 as amended in ls7i contained
two serious defects. which brought it into disrepute
and led TO us repeal IN 100 800 .-..-.h
IN number and one-third IN value Of the cIeoi,ors
to unite In the petition 10 nave debtor adjudesu
involuntary bankrupt. The ditcultles IN ne
way Of procuring the joat action OF so many cred
iOrs rendered the involuntary clause pracucdlS
useless and the law became virtually system OF
purely voluntary bankruptcy. WIN an the eViIs IN
cldent thereto. Rather than submit to 80 much
trouble and delay. creditors preferred 10 rely upon
the ordinary ega! remedies or Judgment ana a.
In the second place by the protracted delays in
the proceedings ana the exorbitant fees paid to the
various officials the bankrupt es'aIe VIZ Ecu
The Henderson bl seeks 70 remedy the nrst OF
sons whose claims in the aggregate amount 10 s."
or over. or II ali ot the creditors are less man
,Iair EQUALS such amount may file petition 10
have the debtor adjudged f bankrupt.
Of his power by Inc cTeditors it provides that the
petiuonne creditors shal Me Pond Condl'i d5
ages costs and counsel fees in case the petition IS
TO Correct the second abuse. the farmer Of the
Henderson bin has adopted a method o. compen-
will reduce the expense to a minimum and make II
10 the Interest Of these officials 10 effect speedy
termination ~ a bankruptcy proceeding.
Referees are receive fun compensation TOT
their service. payable after they are rendered
Zee OF $40 deposited with the clerk at the time the
i.,.iflor Is tled and from estates administered
before them per cent commission on sums 10 be
paid as dividend and commissions, or one-helf OF
] per cent or the amount 20 be paid 10 credltors
on the confirmation OF composition. and In the
further interest Of economy the courts are en-
powered 10 appoint and remove the referees In
their discretion thus making the stan OF referees
an elastic body that will expand or contract In
accordance win the needs OF the service.
Trustees receive a Zee Of s.. and on estates ad-
miristcred before them -Ich com miss orS on SUMS
10 be paid dividends and comm! ssions as may
be allowed by the courts. not 70 exceed per cent
the first 800. per cent on the second $40
and per cent such sums In excess OF 5000.
Their Compensation. also. Is TO be paid after the
services have been rendered.
The trustees are appointed by the creditors and
act az their agents II is right. therefore that
they should be paid by the estate. The referees.
however are Judges. exercising nearly all the
functions OF the Bankruptcy Court. and forming
a regular part Of tho judicial system. Il .wou6
seem proper then that they should be paid BY the
Government. like other Federal judges. and not
hy the suitors In their courts The method OF
percentages adopted by the Henderson bill would.
neverthe ess. form an eXceIen way OF determining
the amount Of their compensation.