Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1898-07-29
THE BANKRUPTCY LAW.

The man who wishes to become a bank
| rupt, or fears that he will have bank
ruptcy thrust upon him, need hardly ash
| the newspapers for advice. He would
better go to the lawyers at once. II
would take several hours to tell one al
that the new law provides, and the bill
itself, IL printed would cover one side
of this paper. AS published officially in
| Washington, in pamphlet form, 1t re-
quires twenty-six pages, which demand
| the most careful reading. And it Is need
| less to say that many outside questions
| will arise In connection with the statute.
After a bird's-eye view of the new law.
which really does not go into practical
operation for good while yet, we hardly
feel qualified 10 pass judgment upon It..
From the debtor standpoint it has
many good points, though creditors may
not regard 1t in the same charitable
light.
Both voluntary and involuntary bank
ruptcy is provided for, and special pro-
visions are made to check fraud and
waste of assets. The fees paid are mode
rate. Senator Knute Nelson, the author
of the far-reaching measure, felicitates
the country at large on its good luck i'm
securing a law which entails so little
expense upon the interested parties.
Along this line he says:
Under the old law there was a regis
ter In bankruptcy. He had a monopoly,
and got rich out of II. He had a harvest
under that law. We have Teferring to
the present legislation in place of the
register a referee; but the court is au-
thorized, and 1t is made the duty of the
court, to appoint referees in every county
where there is any business to be done,
so that no man gets monopoly OF the
business, and the referee. being practi-
cally a Judge in chambers, attending to
all interlocutory and default business, by
these means the bankruptcy court is
brought right home to mans door in
his own county"
We hope the Senator Is right. Certainly
he and his associates could hardly have
passed a bill which would create more
widespread dissatisfaction than the old
bankrupt law. Though that measure has
been sleeping the sleep of the just, or I'M
just, for fifteen years, its memory still
evokes the most lively abuse.
The Chicago Chronicle asserts that the |
businessmen of the Windy City are not |
at all satisfied with the new law, and it |
run, 1t will really prove conducive to the |
best interests of trade In the opinion OF |
many merchants all the benefits will be |
reaped by the debtor class, and hence
they predict that after its operations
have been carefully noted, creditors will
exercise extreme caution in making loans
and giving credit for goods. 1t is said
hat "the personal competency, liability,
and standing of the intending debtor or
,endee will be subjected to rigid investi-
cation, and only the best class of appli-
ANTS will be accommodated. The result
will be a wedding out Of heavily-obligated
usually of the 'shopkeep-
ng Glass;"
This theory is very much akin to that
leld by the late John b. Minor, in regard
o those statutes which, as he says "are
tyled, in bitter but unconscious mockery,
poor mans laws" Their aim Is to ex-
nerate man from a large proportion
f his debts. but In the long run they
njure him and utterly deprive him OF
redit.
The editor Of the Chronicle, in philoso-
hiking over the remarks Of the Chicago
lerchants. endeavors to take a cheerful
lew of the bankrupt law. 1t says:
1T Is by no means certain that the Gre
II system as We have II, beneficial as IL
J in some respects, is an unmixed good.
Is by no means certain that 1t Is not |
roductive of almost as much harm as
God. At any rate, II is quite certain that
is susceptible OF much Improvement
Without seriously impairing it's useful
ess some Of the great evils now connect
with ii may be mitigated, If not wholly
'moyed. by the voluntary action of Gre
tors. The businessmen OF Chicago, Who
Ave expressed themselves in regard to
lie new bankruptcy law, admit that ii Is
'ssible TO exercise sounder discrimi- .
alton In giving credit. And that is pretty
'ident to all competent observers with
1t the aid Of admissions from those who
ave had experience in giving credit"
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