The Portland daily press., 1898-07-19
THE BANKRUPTCY LAW.
Judge Nathan Webb Comments Upon the
Changes 1t Will Make.

In regard to the new bankruptcy law
just passed by the United States Con-
/ gress, Maine attorneys and court officials
are vastly interested, owing to the
changes which will occur in the proceed
ings in insolvency throughout the state.
Heretofore judges of probate have found
very handsome portion of their re-
Enumeration in the insolvency business
which came to their courts. BY tho
national law this source of revenue will
be wholly arrested, and the amount of
value attaching to the office will be
greatly reduced.
Under the new law Judge Nathan
Webb of the United States district court
will be the official head of the bankrupt
cy system. He was seen at his residence
by Bangor Commercial reporter, and
spoke freely of the change.
sit is SO entirely new to u.s. he said,
sits language in some places is so mex
plicit and we have SO little of its nature
in the way of precedent to guide us, that
l can hardly say what I shall do with it.
l have recently met and consulted with
several of the district judges of New Eng
land. All l can say to you is that am
at work on the law daily, trying to deal
as best may with some of it's problems.
Between now and the first of August l
shall have organized the Maine system, as
the law allows me, and shall hope to see
| d smooth assumption of these new duties
in tho district COURT
'The new law is not perfect. Its
| language is not always plain. The
difficulties which it presents are not al
ways slight. yet this may be the case with
! any law and Is not ground for criticism.
There are sufficient advantages in
national law which will make it desirable
| to hold to this new form as adopted by
Congress. Repeal is not necessary because
the law proves inadequate in certain Sec
tions. We can let the new law stand the
test of all actual trial, and then, under
standing its weaknesses, If any there are
can so modify and amend as to finally
| make it sufficient for the uses of the
| whole country, without friction.
GAS to the advantages of Lhe law, l
should say they are great. For one great
thing, the national law will make in
solvency proceedings in one state good in
another. Under the old state system,
creditors in another state than That in
which the insolvency case was brought,
had no part in the proceedings unless they
chose, and their claims were not affected
by discharge allowed by the probate
judge in the other state. This often acted
to the distinct disadvantage of the debtor
and sometimes to that of the creditor.
again, should say that the new law
would secure more even distribution of
assets amongst the creditors, as part of
the point which I but just referred to.
out the country, too.
Judge Webb referred briefly, also, to the
new offices of trustees and referees created
by the bankruptcy law. The referee is a
regular seated official holding office for
two years. The trustee corresponds to the
assignee in the state insolvency proceed
ings.
"The office of referee" said Judge
Webb, twill not be of great value, though
the fees are guaranteed. The law is ex-
lplicit on this point of stipend. Referees
receive $40 in every case, with small
percentage on dividends declared by them.
This percentage, however, in view of the
generally small amounts of Maine in
Isolyency proceedings, win not produce a
great revenue. In Cumberland county,
and I think in the others, 1 do not APP
prehend that the insolvency cases have
run above $4,000 as an average of their
amounts. Many of them are probably be-
low that figure; few are above it. Thus
the percentages will be di1ninutive.
"Probate judges would be eminently
fitted : by practice for the work of the
referee, yet the law says plainly th at
persons holding posi- tions OF emoIument
under the state or federal governments
may not accept this new duty, That
removes the probate judges from the con-
sideration. Again, there are other gem
tlemen whose experience would fit them
admirably for referees in bankruptcy,
who are yet so employed as to be ineligi-
ble to the office. l can only say that I
possible with what can. 1 am now
engaged in looking over the state with
view to selecting the proper men.
"a gain, there arises question as to
how many referees shall be appointed.
Shall there be "a referee in every county
of the state, or more than one. or less
than one apiece per county. Some of
The counties of the state are very long
much spread out. How shall they best he
accommodated? Suppose a referee is
called away from his town on private
business, or wishes to go to California for
pleasure.
appoint referees in such manner as to
nroyide for these difficulties which might
proye to be great in the actual working
pf the law. In some of the extended
counties single referee might not be