Mineral Point tribune. (Mineral Point, Wis.) 1869-1938, 1898-08-04

tecl creditor or a dishonest debtor
and prosecute him as we'll as recover
and reach his property.
The law is expected TO compel cred
itors to exercise great caution In max.
ing loans or advancing goods. The
personal competency, liability and
standing of the intending debtor n,
vendee will be subjected to rigid in.
vestigation and only the best class
OF applicants will be accommodated
The result ought to be a wedding out
Of heavily obligated business men who
are menace to the honest dealers q,
every community. 1t is said thar
business houses all over the country
are shortening up credit and will now
use more care in dealings. This an
plies especially to wholesale houses
doing business with smaller trades
men. Cbattel mortgages Will he
taken by many houses on all goods
let out. The act will naturally slim.
ulate bankers to look better TO securi.
ties.
1t is by no means an Isolated opip.
ion that the law will not cause much
good in its initial results, that the IN
shot will be that debtors will use the
law as a sand-bag to force creditors
TO a settlement. That is the dishor-
est debtors or others pinched for
money. Creditors will be able 10
say, Either accept so cents Oh a dol
lar or | will file a petition for bank
ruptcy," and someone will get the
worst of it. A discharge in bank
ruptcy will release the bankrupt from
all provable debts except such due 40
taxes, judgments in action for fraud.
and debts created through embezzle-
ment. All debts not tainted
by fraud are finally eff
fected by a discharge under the law.
Another predicted result of enforce
ment of the law will be the abandon
ment of the judgment note. The law
provides that "a lien created by or OBJ
tanned in or pursuit to any suit or pro-
ceeding at law or in equity, including
an attachment upon mesne process or
a judgment by confession, which was
begun against a person within four
months before the filing of a petition
in bankruptcy by or against such per-
son, shall be dissolved by the adiudi-
cation of that person to be BANKRUPT
if it appears that said lien was OBJ
tanned and permitted while the defen-
dant was insolvent. and that its exist
ence and enforcement will work pre-
ferment." The section embraces other
provisions, the effect of which is to
nullify all liens obtained through
fraud or with the intention to defeat
the purpose of the law by obtaining
preferences.
The referee is an ofilcer of the court
His tenure is during the pleasure of
the appointing judge. AS many as
necessary will be appointed in such
described districts as shall be deemed
wise. The referee must be able to
handle the legal end Of the business
while the duties Of the trustee ap-
pointed by the creditors are purely Of
a business nature. The trustee trans
acts the business of the estate and
reports to the referee who directs and
approves Of the trustees actions and
directs the distribution Of the div
idends. The compensation of the ref
cree is $40 for each case and one per
cent. of the total amount Of the div
idends which the estate will pay
The fee of the trustee is S. for each
case, and not TO exceed three per
cent. Of the dividends in cases IN
yolying $4,000 or less, and a lesser
graduated commission for larger es-
tates. Thus far only two referees
have been appointed in Wisconsin
and it is not p. obabla that any more
will be in the absence Of a panic
that may produce an epidemic o.
bankruptcy, II. NJ. Lewis of Madi-
son is the deputy judge for the
western district and D, Lloyd Jones
Of Milwaukee for the eastern.
The new bankruptcy law is the
fourth in the history Of the national
Legislation. The first was passed IN
1902, the second in 1910 and the LAST
in 1867 The first two acts were
short-lived and the third was re-
pealed after a trial Of eleven years.
The chief objection 70 the act OF 1895
was that estates We're dissipated py
registrars, who were paid in fees ana
who conniyed with ayarici9us cred
iGors in making dividends Of bankrupt
estates. The present act had ~
origin in bills pending in congress
for a number Of Years, and was passs'
as a compromise measure. 10 mani
respects It differs widely from ias
preceding act; it is much more A2-
eral to debtors and the fees are grea.-
ly reduced. The law Is long ana
rules Of procedure have yet been is.'
down by the supreme court 81 ,A
United States. and consequently ioc"i
federal courts viii have to proceed IL
the matter as they deem dearest coI
rect until they receive Instructors
from time to time such as the exec"
ton of the statute is sure to Iehae'
inevitable.
HAIL DAMAGES CHICAGO.