Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1898-02-21
CONGRESSMAN RIXEY ON THE
BANKRUPTCY BILL.

opinion Us to the pr0priety of bank
ruptcy legislation into three classes ::
First, those who are opposed to iegi.-
lation for bankruptcy Of any kind :;
secondly, those who favor legislation
for voluntary bankruptcy alone, and
thirdly, those who favor that kind of
legislation provided it has attached to
it an involuntary feature. The posi-
ticn OF those who are opposed TO any
system of bankruptcy legislation is per-
tectly plain. They will vote against
this bill, and they would vote against
any bill which might be offered in this
House. The position of those 10 the
third class, those who will only vote
FIR voluntary bankruptcy bill provid-
ID it has the Involuntary feature at
tache6 to il, take ii, is in favor of this
dill. Tne question, then, remains,
How will large membership OF thi>
House who sre 10 favor OF a bill which
provides for voluntary bankruptcy
alone vote?
The present bill provides for voluu
tary bankrup cy in its broades: sense:
ANY person, except u corporation,
who owes debts may become 3 bank
rupt.
And all exemptions allowed by the
State are reserved to the debtor. Thee
provisions are VI qutstionably sails
factory to the most ultra advocates Of
voluntary bankruptcy.
It's involuntary feature is not so brond.
While farmers and laborers can take
the benefit of the bankrupt law, they
cannot be forced into bankruptcy for
any cause whatsoever. If an iuvolun
tary feature is to be had, this bill seen
to provide as we'll for the protection OF
The debtor as it is possible 10 do.
OF the eight reasons for which per
son can be proceeded against in invol-
untary proceedings, noue of them ar-
ply TO the honest debtor unless he is
iusolvent. In all such cases toe creditor
is required to give bond with good Sc
curity for all expenses, including cou'-
sci fees and damages incurred bv the
debtor for the wrongful institution OF
proceedings. The debtor may demand
a Jury as to whether he is insolvent and
has committed al act OF bankruptcy,
and the burden will be upon the cred
tor, not merely to prove the acts OF
bankruptcy committed by the debtor,
but, if he Is an honest debtor, to prove
that he is insolvent. If the creditor
fails to prove both propositions, the
court is to proceed on said bond in the
most summary manner, without issue
of process, against the creditor and his
sureties, and upon the verdict of jury
ascertaining the amount of the costs
and damages, enter judgment against
the creditor and his sureties for the
mount.
What conservative lawyer would un-
der such circumstances advise his client
to institute involuntary bankruptcy
proceedings against the honest debtor =?
AS to this class OF cases the provisic
for involuntary bankruptcy is likely to
prove dead letter. No solvent, hon.
est debtor can be forced into back
ruptcy against his will.
Creditors will be slow, indeed, to eX-
pose themselves 10 suits for damages
when they have the right now to col
lect their debts 10 the State courts
without giving bond and without being
mnlcted in damages.
1t seems to be conceded by those who
oppose this bill that its provisions for
courts and the details for proceeding in
bankruptcy are as just and as reasona-
bic as can be provided. Every provl
sion seems 10 be guaranteed for an ecc-
nomical and speedy settlement OF the
baUkrupt's estate. The oble ction OF
those favoring bankruptcy legislation
il LODGED solely against the involuntary
feature of bill. The officers provide d
for in this bill would still be necessary
if it were confined to voluntary bank
ruptcy alone. ,.r
II | had the framing of the bill, l
would make no provision for involun-
tary bankruptcy for any cause, not even
for the cause assigned in the Nelson
bill. State courts are open to oil cree
itors for the enforcement of their debts,
aud so long as the debtor has property
those courts can do full justice to cred-
itor and debtor IL is only when the
creditor has exhausted the debtors
property without the full payment OF
his debt that the State courts become
poweriess to grant relief.
Some are opposed to this bill because
it gives jurisdiction to the federai
courts. l am as much in favor OF re
serving to the States every righ1 noV
Granted to the federal government as
suvone else, but jurisdiction in bank
ruptcy cases is expressly given the gen
eral government, and it seems to me 4s
thst Il 81 t This objection is not we'll taken. 1t
10 ;naS as mncb our duty to concede to the
federal e courts the matters properly per.
tanning TO that system as it is to insist 81 u
that they shall not encroach upon the
rights of the States. .,,o
By the constitution no State is allow.
ed to pass law relieving an insoiVenV
debtor. Only Congress can 90 tnis, Is,
and to this alone would cohnhe i'I
LEGISLATION in favor OF bankruptcy.
would 90 further than many of those
o,l,o,o tb;s hill would not al