The morning news. [volume] (Savannah, Ga.) 1887-1900, 1898-06-29
TO HELP HONEST DEBTORS.
prS1NEss INTERESTS PLEASED
WITH THE BANKRUPTCY BILL.

Hinder 1t the Merchant who Fails
souareIy Can Get Rid of the Crush
inn Load of Obligations and Start
Aeafn in Life Free From Claims.
Precautions Taken to Prevent
Fraud by Dishonest InsOIvents.
preferences Knocked in the Head.
savannah business men will be well
nleased if the House of Representatives
concurs in the work of the Senate and
passes the national bankruptcy bill This
bin is largely based on the noted Torrey
bill efforts to pass which have been made
for several years. In common with the
sentiment of mercantile classes through
out the country, the merchants of this
CITY have been heartily In favor of some
national legislation on this vitality inn
portant question.
Largely signed petitions have gone up to
Washington from here and the Board Of
Trade is understood to be on record in
favor of legislation of this character. Sa-
vannah business men have become more
and more impressed with the advisa biity
of laws being secured which win protect
the honest bankrupt, lessen loss from dis
honesty, and tend TO secure some uniform
ity of action in case of business misfor-
tune The bill as it passed the Senate
was the finished result of a joint confer
ence committee, and there is reason to be-
lieve it win pass the House and be signed
by the President within a few days.
When the bill becomes law the district
courts of the United States will have il
risdictlon in bankruptcy cases, with con-
current jurisdiction la the Circuit CourG.
Trustees viii be appointed by the court to
administer the assets of a bankrupt, these
trustees beng aided in their administ~a-
ton BY referees also appointed by the
court. n petition for voluntary BANKRUPT
Vy can be filed at any time and one month
after a man has been adjudged bankrupt
he may file application in the court Ioc a
discharge. This application will be heard
by the Jucge before whom the bankruptcy
proceedings were instituted. The consent
of creditors is not required, nor is it ne
Cessary tlat a bankrupt should pay any
certain percentage to creditors, to secure a
discharge. If satisfied that the bankrupt
is honest that he mas not done anything
unlawful, such as eoncealing his true
financial condition, fIaudulenuy hidug
part Of his assets, etc. The judge may dis
charge him from all further oblga ton
This gives a man an opportunity to start
Hfresh i'll life without The terrible burden
forever from attaining any commercial
success.
Both the voluntary and the involuntary
bankrupt are protected in the homestead
and exemption provided by the laws of
the state. A wage Garner or person en-
gagged in farming or the tlllage of the soil
as also excepted from involuntary bank
ruptcy.
When a person is froeed into involuntary
bankruptcy all preferences given within
four months prior to institution of bank
ruptcy proceedings viii be wiped out.
This will be somewhat of a quietus 10 the
giving of mortgages, bills of SALE etc,
relatives, friends or chosen creditors on
various claims, and will put all creditors
on the same footing before the court. The
mere giving of such a preference is in it
self, under this law, ample ground for
creditor to proceed to force an involun-
tary bankruptcy. The law specifies that
conveying, transferring, concealing or Ie-
moving any part of the property, with IN
tent to hinder, delay or defraud creditors,
or any of them; or the trans
ference of any property, while insolvent,
to one or more creditors for the purpose
of preferring such creditors, shall be cuff
Client ground on which to begin proceed
ings in the United States court to force
the party into bankruptcy. Such proceed
lngs may be stated any time within four
months after such act on the part of
the debtor, and, as stated, all such prefer
ences become void.
There is a strong feeling in business
circles that the giving of preferences has
been greatly overdone, and that the pres
ent system permits of gross abuses, by
which advantage has sometimes been
taken of creditors by bankrupts of dis
honest proclivities. If a merchant fails
honestly, surrenders his property to his
creditors and does all that he can to pay
off his Indebtedness, it is generally believ-
ed that he should not be further harass-
ed with judgments hanging around his
neck like millstones. Frequently a man
who has failed and been absolutely hon
est in his dealings with his creditors could
get another start in business life through
friends, were ii not for the judgments
piled up against him in the courts. The
new law win protect the honest bankrupt
from this cruel experience in the future.