Custer weekly chronicle. [volume] (Custer City, S.D.) 1890-1931, 1898-07-09
Considered a Very Fair Measure
and Will Have Executive
Approval.
MANY COMPROMISES WERE MADE
Claim Is Made for 1t That 1t Will
Protect the Honest
Debtor.
THE INVOLUNTARY fEATUR
SENATOR Hoar, Who Has Been Press
ing for a Bankruptcy Law for
Years, Says tho Meas
ure Is Good.

Washington, July What the
president may do with the bankruptcy
bill is not known, but the general be-
lief Is that he will sign it. 1t took a
long time to bring it about, but the
senate and house were finally agreed
on the voluntary features of bankrupt
cy, whereby a debtor who feels that
the burden of his debts is too heavy to
carry may yield up all his property to
his creditors and obtain a discharge
from his debts.
The senate was unwilling to allow
the creditors Of a man who showed
himself unwilling or unable to pay all
his debts to throw him in bankruptcy
against his will and secure a fair divi-
sion of his assets. This the Torrey or
house bill provided for.
The compromise bill, which passed
the senate, allows proceedings in in
voluntary bankruptcy to he instituted
in the following cases:
/. Where a man has disposed of his
property with intent to defraud.
2. Where he has disposed of his prop
crty to one or more creditors with in
tent to give a preference to them.
3. Where he has given n preference
through legal proceedings.
A. Where q man has made n voluntary
assignment for the benefit of his cred
itors generally, and
8. Where n man admits in writing
that he is bankrupt.
Must Solicit bankruptcy.
A merchant, banker, broker, manu-
facturer or trader who fails to meet his
obligations and stops payment on his
commercial paper cannot be adjudged
a bankrupt under the bill unless he
himself solicits it. No person is to be
regarded as insolvent 50 long as his
property under a fair valuation is suf-
ficient to pay his debts. There is an
apparent equity in this, as it protects
men in panic times when there is a
sudden but temporary shrinkage in
values, when creditors are clamorous
and liquidation is difficult.
In compromising on such n measure
the result may not be a harmonious
whole, but Senator Hoar has given this
bill his approval, and his endorsement
is entitled to much weight. Senator
lIoar has been q champion of n bank.
ruptcy bill for fifteen years, and in dis,
cussing the measure just passed by
congress he said:
"The present bill is a compromise.
1t will undoubtedly be found that in
getting it through we have been
obliged to leave in it some crudities
and imperfections which must be
remedied by subsequent legislation.
1t is quite likely that the fees of
clerks, referees and trustees will be
found to be too low. One of the great
objections was hat under the old law
the estates were eaten up by costs and
that the creditors got little or moth
ing. So we have pared to the quick in
that particular.
"Instead Of the long list Of crimes,
there arc only two for which a bank
rupt is to be punished-one, willfully
making a false answer in the bank
ruptcy proceedings the other, embez-
element OF the property of the estate.
The terms of discharge, too, are eX-
ceedingly liberal, and it is provided
that farmers and wage earners will
not be the subjects of involuntary
bankruptcy, which extends in general
to merchants, manufacturers, bank
ers, printers and publishers, etc.
Some Fraud May Remain.
There are some possible cases of
fraud which the law will not prevent.
But the objection to a s~tricter one
was so great that it was not thought
best TO risk the success of this bill,
which, as it were, has been saved rs
by fre-by standing out for a perfect
rule TO he applied to cases which
would not occur once in n thousand
times.
a.uI-- I.Il s,a,,,e 70 Nc n rpnni Inn1
better than that known as the Torrey
bill in two particulars-one, that the
settlement cannot be delayed by ap
I peals to the supreme court Of the Unit
ed States except in two cases: First
where a federal question is involved
and, second, where a decision of the
supreme court is needed for uniform
ity OF construction throughout the
country; and next in the provision fol
q summary application to a court Of
appeals in an introductory way tc
correct mistakes as the proceedings
90 on instead, of waiting until the
final decision in the court below and
then keeping the whole estate tied
I'M until after a final decision i'm the
higher court
1.-THE public is especially indebted tC
Senator Nelson of Minnesota and Mr.
Raw Of New York of the house of rep.
resentatives for diligent labor in con
ference extending through the whole
winter.
"The bill, with many imperfections
is submitted to the considerate judg'
ment of the professional and the bust
ness men of the country. 1t will en-
able from $50, 900 to 100000 bsnkrupts
to get on their feet again. 1t will en-
able manufacturers and merchants tC
get q fair division of their debtors
property, and will prevent a great dea
of fraud, embezzlement and wastefu
dealing with property.
Objections TO Torrey Bill.
"Ihe board Of trade and ether bust
ness associations of the great CONNER
cial cities and of the manufacturing
states have for many years urged upor
congress a bill known as the Torre1
bill. This bill covered more than l2'