El Paso daily herald. (El Paso, Tex.) 1881-1901, 1898-07-30
The New Bankruptcy Law.
Atlanta Constitution


Editor CONSTITUTIONAL week or ten
days ago read most admirable sum-
mary OF the new bankruptcy law iurn-
ished to the Constitution by Judge
Hopkins That summary was wholly
from a lawyers standpoint. 1t has Oc-
Cured to me that, inasmuch as the
people so long desired an enactment
Of that kind, more general review OF
the act would be acceptable to your
readers.
This law comes, as the Mosaic law
operated. TO give freedom to men over
whelmed by debt. 1t comes to eradi-
cate old scores, so to speak, and to give
to every man whom examination deter
mines to be deserving it discharge in
full from obligations. which in his
crippled condition have all these years
been to him infinitely worse than the
burden which the "Old Man of the
Sea- is presumed to have imposed. 1t
comes, after suitable and searching pro-
cedure at law, to put on their feet and
in possession of their names men who.
in spite Of business ability, tact and
activity, went down within the past
twenty years during some one OF
the storms that swept over our COM
mercial centers, visiting disaster alike
upon the Just and the unjust.
| regard this the very best piece OF
work that the ffty-fifth congress accom-
plished. Like all laws. the measure is
the result of compromise, this being
one between the advocates of the Tor
rey-Nelson-Hender bills. 1t pro-
vides for voluntary and Involuntary
bankruptcy.
The procedure is easy as to those
who, overburdened by debts which
they cannot possibly pay and beset by
judgments they cannot meet, wish to
avail themselves of the benefits of the
act. Throughshis attorney such one
must file his petition, to be adjudged
bankrupt. with the clerk or deputy
clerk of the United States court for
the district in which he has bis domi-
Gle. A schedule of his property, if he
e possessed of any amount, kind and
location together with list of his cred
itors ,givinff amount due each, with re-
sidence or postoffice address, must
accompany the petition This sche-
dule must be written in triplicate so
that the clerk of the court, the referee,
and the trustee may each have copy.
Having brought his case to the at
tention of the referee. and having
proved himself a bankrupt. he may
apply for discharge thirty days after
his case has been adjudicated favor
ably to himself. In any event, the ap-
plication of discharge must be filed
DOT later than twelve months after he
has been adjudged a bankrupt. There
is six months grace to be granted by
the court If it be made to appear that
the bankrupt was unavoidably prevent
ed from filing the required petition.
II man be in position to do so, he
may after he has been examined in
court, i. e , before the referee, offer his
creditors composition, or, in other
them IN IN HU
cents on the dollar cash, il they will
agree that this shall be q cancellation
of his indebtedness. Such compost
ton, having been accepted by the
creditors and confirmed by the court,
will operate ipso facto to discharge the
debtor. Each debtor is entitled to y 9
exemptions authorized and provided
| for by the laws of his state. The APP
plicant must see to it that his list of
creditors and amounts due each be full
and accurate: for discharge will free
| him as to listed debts. judgments, etc.
only. The law does not contemplat
release from taxes.
Having been granted a discharge,
| the man may return to business life
buying and selling in his own name.
| In thousands of instances these men,
| their feet having been taken out OF the
| miry clay and set on a rock. will readl-
1 ly be given credit aud will be enabled
| in few years not only to win another
fortune, but volun tsrily to pay off dol
lar for dollar, debts that were Cancelled
| by the bankruptcy law.
| Congress gave much study to the
question of involuntary bankruptcy
1 The new law refuses to regard man
/ insolvent who finds it impossible &c
pay promptly his debts in the ordinary
course of business. So long as a man :
property, at a fair valuation, equals
his Indebtedness, he is solvent
| Very properly the law requires
ample bond for costs, damages, etc. a
the hands of any one who may desire
to file petition that debtor of his be
declared a bankrupt. 1t goes further
and makes it criminal offense on the
part of any creditor or attorney TO en-
deavor to compel debtors wife, faith
err or mother to see that the bit due
De paid else he will force the debtor
into bankruptcy.
| In a case where proceedings are in
stituted TO declare a debtor insolven'
and adjudge him an involuntary bank
Irupt. the burden will rest on the deb
tor to prove himself solvent. More
over such debtor shall be granted
trial by jury upon filing proper peti
tion therefor.
The officers of the law unuer con
sideration are referees and trustees
The judge of the United States cour
will appoint referee for such terri
tory as the latter may be able to man
age. Creditors, in cases where pro
perty is turned over or recovered i,
their interest. appoint one trustee o
three trustees to administer the same
The referee will receive fee of $40 il
each case and commission of one pc
cent on dividends and one-ha
OF one per cent o1 com
positions. The fee must il
each case he left with the clerk at tn,
time the petition for relief is filed. Tn
trustees will be entitled to fee of s
per case and a commission of per cen
on the first 81, ZOO realized.in cash - pc
cent on the second 5000 and l pc
cent on sums in excess of $4,000 [
there be more than one trustee the fee
will be prorated. The law become
operative July 3Ist. instant. but q
that date falls on Sunday petition
will begin to be filed August lst prov
imo.
Respectfully, MARTIN V. CALVIN.