New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1898-02-16
BANKRUPTCY LEGISLATION.
ErATr-RFs OF THE VARIOUS BILLS ON
THE SUBJECT NOW BEFORE
CONGRESS.

8 whitney Dunscomb. IT,. in The New-York Law
Journal
The action OF the judiciary Committee OF tho
House Of Representatives in reporting to that pody
the Henderson Bankruptcy bill which is IN SUD
stance the bin prepared by Colonel Jay l. Torrey
OF wyoming and commonly known AS the Torrey
bill has awakened interest in the subject OF ma
not be Knapp; opriate this time on the purpose OF
bankrupt laws IN general, the necessity l9r a IA
position in Congress TO the passage OF the tender
son bill. and the most important or the defects IN
former laws which II seeks TO remedy.
Legislation this subject should not be IN the
interest OF any one class OF The community heiin5r
but should be general In It's application, ana LOT
the mutual benefit OF all classes, in sirene henng
credit by facilitating the collection or debts. ana
a. Inc or ~ st. inc,bns Of debt that he may
resume his business with untarnished name and
give 10 bis family and the public at large the dement,
II was in this respect that the first two American
bankrupt acts we're defective The act OF ~ ben-
and that Of 1874 benefited the debtor at the cred
There are two broad PRINCIPLES upon which
bankrupt law should be based namely to divide tn.
debto~'s property equally among his creditors. and
debis The former OF these principles rests upon
strict justice ana Is anHerg eS tfs - uel
States. The latter rests upon grounds on Pu31hc
policy and expediency as well as humanity, and Is
by no means go generally adopted
NEED OF A GENERAL LAW.
A National bankrupt law is necessary, because
though quiescent during the operation Of the Con
it, repeal In 1875 from either point OF view
necessarily inadequate In the first place, such
laws cannot enforce equality among the creditors
1t has been quite generally the doctrine OF tne
American courts that domestic creditor who has
attached his debtors property IS 10 be preferred 10
the trustee or assignee Of foreign Oankruptcy
even though hs attachment was secured suose-
quenty 10 the adjudication Of the foreign panh-
ruptcy. and for this purpose me states OF me
Union are foreign 10 one another IN inc second
place discharge granted by a State law does not
release the debtor from debts 10 foreign CREDITORS
unless they have come within the jlrisol rton anu
proved their claims in bankrupt V This Is equiva-
lent 10 saying that In many cases discharge I'M
der a State insolven' law is virtually worthless.
throughout all the States or the Union. such as the
trainers of the Coustitu ion deemed wise 10 give
and 0bga lions the debtor and mis- creditors can
he determined with justice to both All the CIVILIZED
countries OF Europ have FOR years mad laws OF this
The opposition 10 tho Henderson b.n mas come
mainly from those sections Of tho country which
buy credit ana sell for cash. ami has been d.
rected sgainst the provision made FOR Involuntary
bankruptcy. or. I'm other words. bankruptcy result
Ing from he petition OF the creditors. This they al
may be used Cypress unfortunate debtors They
advocate purely voluntary system that Is 70 say.
have introduced several substitute bills for IN
stance the Culbers0r and Bailey hills-emtodying
TEN lies in the opportunities II offers 10 dishonest
debor commit frauds. and the lack Of protection
II affords the creditors. man knowing that his in
solvency is immnt pr may deliberately prepare FOR
bankruptcy Win the connvance OF friends ana rela-
tives ne may convey away his property confess iudg
ments suffer them 10 be procured agains, him In
such acts may be attacked-two 10 six m0nths-has
expired he petition for vol 1n airy bankruptcy. AMI
a discharge is refused him. his assets have been
spirited away and HIS creditors who trusted him.
I'm system which does not afford reciprocal rene
dies 10 debtor and creditor.