The Southern herald., 1898-03-04

rilh small capital who would pull
Through ifunnolested by The unjust
Cling Of a petition in bankruptcy
BY : creditor at this particular eri-
sis? Remember that the question
Of solveney may turn alone upon
the value placed upon the stock Of
goods Of The debtor by ths court,
subject upon which an erroneous
Judgment might be easily reached.
Our highest aim should be to en-
courage men TO rise above these
difficulties and pay their debts, and
not to encourage scaling down Of
honest obligations On one hand and
the oppression Of the debtor on the
other.
believe, Mr.. Speaker, that if
this bill becomes a law, il will Gre
ate more hazard, more damage, and
produce more trouble than il can
possibly do good. Il will benefit
lawyers, Of course, and benefit
those who would become referees,
trustees, and aasignees. Il will
increase the fees OF clerks and mar
shals, but will hurt and harm very
many people. Both the honest
debtor and the humane creditor
would suffer from the practical
operation of such law, while the
estate would be consumed in fees
and costs.
The report filrd by the minority
Of the Judiciary Committee in 1892
states that the average cases Of in.
voluntary bankruptcy only paid
about Is per cent to the creditors.
The insulvent debtor generally has
his property encumbered. His Sc.
cured creditors are not affected by
proceedings in bankruptcy, and
after they are paid and all the costs
attached, very little remains for
those who are unsecured.
This report further states that the
creditors have received twice a.
much under the insolvent laws Of
| the States as they do in an invol-
untary proceeding under the act
Of bankruptcy.
The passage Of this bill would
neeessitate the appointment OF
more FEDERAL judges and the erec-
tion Of more court buildings, at
great expense to the taxpayers,
1t will greatly enlarge the juris'
diclion of Federal courts, which
should be restricted rather ,hSn
added to, as the far reaching decis-
ions Of some of our Federal courts
have already been cause for alarm,
viz, the injunction proceedings.
Iwould vote for bill which has
purely voluntary features Of bank.
rupicy and involuntary features fol
: actual fraud, that would expire by
limitation after brief period, to
enable those who have been strug.
Cling for the last few years Of de.
preston to get rid Of their debts
and start in life anew. Such a bill
would be a relief measure and
would give new life and encourage
menL to many who are now discour.
aged and depressed; but this even
would carry the tsint Of violation
Of an honest contract.
On the contrary, however, wt
are asked to support a measure that
should lie entitled national col.
lection law. We are told, though
that this bill is more favorable Il
the debtors than many Ofthe State
laws; that the grounds for attach.
ment are fewer in number
While this is true, the debtor
much prefers that bis case should
90 before his own State authorities,
be tried under State laws, and bs
judged by bis own fellow-citizens,
who have better knowledge Of his
surroundings, Ifthe State author,
tiles can not be intrusted with ths
adjudication Of the rights of debt.
ors and creditors, then we may al
well substitute Federal for State
law. The United States courts are
generally remote from the people,
T often many hundred miles, which
makes it very inconvenienl and ex.
, pensive for the poor man to attend
and have bis witnesses on hand fol
; days at great expense.
Under that bill a man may be put
into bankruptcy by one Of three
creditors. 1t is not necessary tC
have a majority of the creditors
, in number or in value to petition
A.. -. L. = III