Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1898-02-24
The Bankruptcy Bill.

have been acknowledged for the most
part to be entirely Inadequate to 10
justice to debtor or creditor. The laws
of the states differ greatly in this ini-
portant matter. and the need of ma
terial improvement upon the existing
chaotic conditions has been widely felt.
The national House has just passed
the Henderson national bankruptcy bill!
and it remains to be seen what the
Senate will do with it. This bill was
not at all regarded as a party measure.
but on its final passage party lines
We're pretty closely drawn The House
realized the business need of some such
measure. but it was hard to agree upon
it's details In former years ii has been
easier to pass bankrupt bills than TO
keep them on the statute book. One Of
the arguments used against them is
that they invariably become unpopular
and are repealed. 1t would certainly
be a boon to the nation to provide one
that should prove to be permanent.
If the Senate accepts the Henderson
bill. which is not yet assured. it Will
have to thrust aside its own measure.
the Nelson bill passed at the extra SEES
sion The Henderson bill is a modih-
cation in several particulars of the
original Torrey bill, the changes being
made to secure the strength essential
to its passage
The Nelson bill. which the Senate
passed at the extraordinary session,
involuntary bankruptcy. The Torl"y
hill makes both fraud and failure
grounds. while the Henderson bill soft
ems the latter 10y striking out as
ground for bankruptcy the suspension
of payment of commercial paper for
thirty days, and in the other cases Of
mere inability to pay, by throwing ON
the pctitioning creditors the burden Of
proying that the debtor is actually in
solvent or. in other words, that he has
not sufficient assets to eventually dis
charge his liabilities. This is not quite
rigid enough to satisfy the Eastern
members. especially those from New
England. Who feel that tn" Torrey bill
is the best of all proposed. being a
strong safeguard against fraudulent
transactions and not unduly exactinS
in its claims upon honest debtors. Sun
they voted for the Henderson bill
1t is maintained that there is no
mutually or justice in system which
does not afford reciprocal remedies I"
like a business or even a moral axiom,
and Yet il is contention over this very
point that has kept the whole question
in the air for over a dozen years. The
provision for involuntary bankruptcy
embodied in the Henderson bill. pre-
vents any Residences. AS a matter
of precedent. a system of voluntary
unaccompaned by involuntary bank
rlptcy. exists nowhere in Europe, and
there are only four states in this coun-
try which have anything approaching
it. namely. oregon, Wisconsin, Idaho
and New York. on the other hand. The
double system is found in England, all
the Continental countries, and in Cali
fornia, Connecticut. Maine, Massachn-
sets. Maryland Minnesota, Nevada
and Vermont. Among the four excep-
lions stated. New York certainly does
not desire to continue her present
statute and has at this time, we be
lieve. a bill before the Legislature re-
vising her state law approximately
along the lines of the present bill
There are some who oppose any ma
tional bankrupt law whatever, on the
ground that those we have had have
not worked we'll; but that was the fault
of the laws construction, and with
such a patched-up measure as the Mel
son bill we should doubtless continue
to experience trouble. Inc law OF lSti
| made it necessary for onc-fourth of the
creditors in number and one third in
value to unite in the petition to have a
debtor adjudged an involuntary bank
rupt This made the involuntary
clause practically useless. In the sec
ond place. by the delays in proceedings
and the exorbitant fees paid to various
officials. the bankrupt's estate was
wasted and little or nothing remained
for the creditors. The Henderson bill
proposes to remedy the first of these
defects by providing that three or more
persons, whose claims in the aggregate
amount to $500 or over. or if all of the
creditors are less than twelve in num-
Der. one of such creditors, whose claim
equals such amount, may file a petition
to have the debtor adjudged bank
rupt. To correct the second evil the
hill proposes method Of compensating