The morning news. [volume] (Savannah, Ga.) 1887-1900, 1898-08-03
BANKRUPTS GETTING READY.
SEVERAL PETITIONS EXPECTED
WITHIN THE NEXT FEW DAYS.

There Can BE Nothing But Voluntary
BanI<rupts Between Now and Nov.
1-Many Savannah Lawyers Have
Clients They Are Coaching for
Bankruptcy AppIicatiOns-LiabIe
to Affect Credits in Some Instances
and in Others NOt--NO Bankruptcy
Papers Yet Filed.
Every day appears to add to the number
of those who intend TO take advantage Of
the bankruptcy law. Several others who
expect TO so on the list were heard from
yesterday, but those consulted will not say
who they were
The trouble here seems to be that all
those who expect to take advantage of the
law are afraid to be the first to appear
with petitions. Nobody seems TO care 10
be the first voluntary bankrupt In Savan-
nah, especially since 1t will probably mean
a loss of all credit at least for sometime
to come.
1t is said that the majority of the lawyers
in Savannah have one or two clients who
are now being coached for bankruptcy
proceedings. one lawyer said yesterday he
had four applicants who intend to take ad-
vantage of the new law, but who are
waiting for a short time to arrange certain
details. There are other lawyers who have
several cases on hand, and it is likely that
It will not be long before the first petition
for voluntary bankruptcy is filed in the
United States Court.
So far no papers have been filed under
the law, nor has any inquiry been made
Of the clerk of the court with regard TO
the matter. Judge A. II. MacDonell who IS
the referee in bankruptcy for this section
said yesterday that several others had
come to him and spoken of presenting pc
titions for the purpose of making them
selves bankrupts. Altogether some eight or
ten parties have spoken to him with re-
gard to the matter, and many others have
been heard Of who have applied to counsel
for advice in the matter.
Under the new law there can be nothing
but voluntary bankrUpts between now and
Nov. l. The law provides that no person
or corporation can be forced into bank
ruptcy for four months after July /, hence
for the present there will be nothing but
voluntary bankrupts. Under the head of
voluntary bankrupts can come any person
who owes debts, except a corpora ton.
Corporations cannot become voluntary
bankrupts and in most instances they can
not be made involuntary bankrupts. Any
natural person may be made an involun-
tary bankrupt after the time indicated
except wage Garner or a farmer. A wage
Garner is defined as any person working
for a salary of less than 81 800 a year
Corporations of many kinds, and private
business houses owing $1,000 or more may
be made involuntary bankrupts, but from
this national and state banks and soma
other classes of corporations are excluded.
The voluntary bankrupt on filing his re-
ttion must deposit certain amount of
costs with the court including $40 for the
referee, S. for the trustee and $40 for the
clerks fee. The act provides for pauper
affidavits In certain cases, but as a sched-
ule of assets is required to be fled a
pauper affidavit does not go unless the vol
untary bankrupt has absolutely no prop
erty and nothing that he can realize on
in any way.
Who will be the first one in Chatham
county TO take advantage of the new law
and have all of his debts wiped out?
That remains yet to be seen, but the Lext
two or three days will tell the story
since from all accounts there are some
fifteen or twenty getting ready to go in
to court
The Morning News had yesterday by tel
egraph from Atlanta an account of the
first suit in bankruptcy filed in the state.
1t was filed by Chas H. Simon, merchant
in Fulton county, before Judge VIM. T.
Newman of the Northern District of Geor-
gia. The petition was a brief one, jndicat-
ing the schedules of assets and liabilities
which have to be attached to it.
A gentleman who has looked into the
matter somewhat said yesterday he did
not think that the law would interfere
with credits to any great extent. He said
he asked some of the large merchants In
the north sometime ago how it was they
allowed credit to a certain class through
out the country who are in the habit of
failing at certain stated periods
THESE merchants all told him that
while they lost sometimes on their
trades, they always found that the
parties who fail, when they get back INTO
business again have excellent credit Tor
two or three years; that is they pay their
bills regularly for thet period of time
They take some chances. it Is true, but IN
the end they are not much the loser.