The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1898-07-20
applied well-known rule Of evidence which

prosecutions for penalty for doing an t
which the statutes do not permit to be done
by any persons, except those who are duly
licensed therefor, as for selling liquors, ex-
e1cising trade profession, and the like
Here the party IL licensed. can Immediately
show 1t without the least inconvenience,
whereas II proof of the negative were re-
qured the Inconvenience would be very
great"
apply TO the rule invoke: Gale VS.. Christie,
La, 295; King VS.. Atkins, SO La, LOGS; Car
roll vs. Malone. 2S Aa 525; Wolne VS.. Nol.
62 Ala. 25.
We have simply applied this well-known
rule Of evidence to this case for the reason
that we have adopted new rule Of insol-
yency.
l will now briefly answer the senator from
Alabama as to why it is that the bill pro-
vides that any man who makes an honest
and general assignment shall be put into
bankruptcy. l might say that the house
conferees insisted very much on this clause.
and for the life of me | could not see that 1t
general assignment for the benefit Of his
creditors, 1t simply means, to use slang
phrase, that he has thrown up the SPONGE
that he is insolvent The creditors are de-
TINS ground for the reason that they think
that there may be cases where a man who
some near and dear friend. who may stand
OF and annoy, harass and delay creditors
especially those at distance That is heir
view of the case.
But there is one advantage to which wish
to call the attention of the senator from
Alabama. If man has made general as
slgnment under state law or under common
law for the benefit of his creditors, he can
not get a general discharge from all his
debts. His estate is distributed. but lie Is
still holden for the unpaid debts; whereas.
If he goes into bankruptcy and has in other
respects complied with the law. he ge;s a
complete discharge. Whatever little burden
from Alabama and others of that way Of
thinking in putting man in that condition
into bankruptcy. 1t is more than made up
in my mind by the fact that in bankrup cy
he can get entire release from all his
debts and obligations and begin life over
again free man.
In respect to the matter of Imprisonment
there were four grounds in the house bill
authorizing the Imprisonment of the bank
rupt. We have reduced the grounds to two
The first is where a bankrupt has concealed
his property from his trustee after proceed
ings have been instituted. That is a species
of embeZzement The other case is where a
bankrupt has committed perjury in his state
ment. has sworn falsely to an account. do
not think it was necessary to incorporate that
in this bill, for we have general statute in
relation to perjury, but it is put into The
bill for the purpose of extra precaution and
because the house conferees desired it.
We have provided punishment for the ref
cree for maladmIn stratic, and 50 for the
trustee. Then We have provided punish
ment in a case where a creditor makes a
false claim. That is nothing but form Of
perjury.
have made it criminal for anybody to at
tempt to extort money for acting or for
bearing to act in bankruptcy proceedings
In other words. we do not want it to be in
the power OF a creditor or a shyster lawyer
to go to the wife or the relatives or friends
of a bankrupt and say, Here, l will tut
your relative or friend into bankruptcy un-
less you pay me 80 and so. unless you te-
come responsible for his debts." I'VE have
made it criminal offense in order to pre-
vent thing of that kind. So that, II man
10 mfr rty, nat oh 70 hp nd
liable to bankruptcy proceedings, no uncGn-
scionable creditor or shyster lawyer can go
to his wife, if she has little property, or to
his mother or father and say, Il will put
him into bankruptcy unless you respond and
settle I'D his debts" We have made 1t d
penal offense to do that.
Coming, in the next place, 20 the matter
g discharges, which. TO NY mind, is very
important matter, oankrup:,y Jaw that Is
not liberal in the matter of DISCHARGES Is
fraud and delusion. The house tIl con-
tanned nine grounds for denying man MS
discharge in bankruptcy. Many of them re-
lated to acts committed before the petition
was filed against him; in fact, If we had
adopted all those grounds for denying a man
his discharge, under the conference bill as
we have framed it, with its limited ground OF
involuntary bankruptcy, no man who is put
his discharge; but in the conference bill We
have removed seven of those grounds and
reduced the grounds simply to two for deny
ing man his discharge.
First, if he has committed an offense pun
ishable by indictment; and l have. already
shown the two offenses. The next is, If he
has kept fraudulent books, for the purpose
of defrauding and cheating his creditors, so
that they can not find out his true condi-
ton. In other words. il bankrupt has not
concealed his property from the trustee, if he
has not committed perjury in the proceed
ings, and if he has not kept fraudulent books.
he is entitled to his discharge. These are
the only grounds on which man can be
denied his discharge. no matter whether he
pays much or little on the dollar. or does
not pay a single cent. If he has not been
guilty of committing those offenses. he is
entitled to his discharge at all events.
Under the old bankrupt law of 1857 there
were nine or ten different grounds for deny
ing a bankrupt his discharge; and then. in
addition to those, a man could not get his
discharge unless he paid so cents on the
dollar except by the consent of majority in
amount and number of his creditors That
fill
l venture to say that it is not possible
to have bankruptcy bill with any fnvolun-
tary provisions in 1t more liberal than those
contained in this bill Anybody can go into
voluntary bankruptcy except a corporation,
anybody who owes any debts. no matter how
large or how small-any man can go into
voluntary bankruptcy.
In respect to involuntary bankruptcy. no
farmer or wage-earner can be put into bank
ruptcy, no national bank or bank existing
under state laws or incorporated banks, but
private banks may, and then certain corpor-
atoms. corporations engaged exclusively in
manufacturing and mercantile pursuits, in
printing and publishing, be put into
Neither a farmer nor a wage-earner. neither
a national nor a state bank, can be put into
bankruptcy, and no other corporations
cent the ones I have indicated.
We have made the charges, fees and COM
missions limited and so low compared with
the old bankruptcy law that I think they
ought to satisfy everybody. Under the old
law there was register in bankruptcy. He
had sort of monopoly and got rich out Of it.
He had harvest under that law. We have.
in place of the register, referee; but the
court is authorized 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 practically
judge in chambers. attending to all inter
locutory and default business by these means
the bankruptcy court is brought right home
to a mans door in his own county
The fees substantially these: The
referee gets a fee in every case of So Then,
in addition to that. he gets a commission
of per cent on all dividends distributed In
is no fund to be distributed-and there will
be many Of those cases-he only gets So
The trustees are nominated by the credi-
tors. There may be from to three. but
if there be three. the three combined can
get no more fees than one would. They are
entitled TO a fee Of S. in each case and not
to exceed per cent on the first $1,000, and
2 per cent on the next S. 00O and per cent
on sums in excess of $4,000 distributed as
dividends. These are substantially all the
material provisions In respect TO the mar
shals and the clerks. they the same as
in other cases.
There is another provision. I might say
and that is that poor bankrupt who has
no means get-rid of paying the fees. He
can go into bankruptcy and get his discharge
without any fees if he makes showing
that he is a paurer or poor and unable to
pay.
will turn To mage % of the last print of no