The morning news. [volume] (Savannah, Ga.) 1887-1900, 1899-08-06
BANKRUPTCY LAW A SUCCESS.
.r,~r,GEs OF ACT COMMENDED
ny REFEREE MACDONELL.


roSsesScd Serious Defects and
,,,oir Lives Were ShOrt-The Pres
Inv in Need of some Minor
c,anres That Congress Is Expect
to ,loI<e-HOw 1t Works Around
nd In Savnnnah-Its Advantages
overbaIance Its Shortcomings.
r... nresent bankruptcy law has now
49,, in operation for few days more than
,.sar. having gone into effect by virtue OF
t,sct.pg cause, Aug. l, 1898. The exper-
,..o.e of a year has demonstrated that the
Ia, when properly and judiciously inter
rrsted by the courts and their officers, is
i.ro5uerive of a vast deal of permanent
good.
referee A. II. MacDonell. through whose
hands passes the bankruptcy business for
cpatbam and eight other counties of this
d..,-ict. was seen yesterday and asked 10
ri,e his experience and opinion of the
n,ac6cal benefits of the Jaw and the ex-
tent 10 which delinquent debtors had
ey3lel themselves of is provisions.
$50 far as the law itself is concerned,
ssd Judge MacDonel, lit is by far the
b..fof the four that have been adopted by
Congress- in the history of the country and
comes much nearer answering the pur-
poses and providing for the emergencies ii
Is intended to meet. There are minor de
fe.,s. Of course, that it will require add
ito al legi lation 10 remedy, but these wele
to have been expected and Congress will
doubtless see 10 it that an of them will be
removed in the near future.
"On three occasions previous to the en-
actment Of the present law, Congress en-
acted laws governing bankruptcy matters
namely. April l. 1900. August 10. 1871. and
March p 1861 owing to serious inherent
defects the lives of these were limited to
three, TWO and eleven years, respectively.
The act of 1861, however. was more nearly
equable as between debtor and creditor
and came nearer meeting tne wants of the
people, but owing to the enormous ex-
pense incident to litigation and the admin
is,raton of the law, more than all else,
il was repealed June 7, 1873, to take ef-
feet on Sept. l. of that year.
The present law is a vast Improvement
over previous legislation on the subject
Its compilers have prohted by the expert
ence gained under the earlier laws ana
Their good features have been retained
While many important and valuable pro
VISIONS have been added to meet the pres
ent need and demands of the people. The
system as found In this law is most com
pete, even TO many of the minutest de-
tails although some minor amendments
nave already been suggested and others
VIII be, as the actual working of the law
commensurate the necessity therefor
throughout the country the law has
demonstrated that the applicants for re-
lief have been found in every walk of
HE, irrespective of class, occupation or
locality and it can hardly be said that one
cass more than another has availed itself
OF ITS privileges 1t has also demonstrated
another thing, which the advocates of the
law so prominently pressed, namely. that
lhe large class of men who have been I'M
fortunate ~ business and have had hang
ing over them obligations they were un-
aoie TO meet, and that prevented them
rom renewed business activity, are avail
ING themselves of the relief afforded"
ms TACT, said Judge MacDonel. "has
peen especially evidenced in this state and
secNon, where men of all classes who
nave been burdened and oppressed by
~esnt OF debt hat they were unable TO
w. nave gone into the bankruptcy court,
lad their estates administered and been
paced IN a position where they might if
IeN would begin life anew. Since the
Jaw went into effect, in August of last
year l have had thirty-six cases referred
TO me, many of which have been wound up
ono the bankrupt discharged and some of
when are stA pending before me. 1t can
scarcely be said that particular class of
QUEENS mas contributed more largely than
aa2lher TO make up this number
NHe feature of the present law that l
t'ee among its wisest provisions is the
cause by which the election of a trustee
W manage the estate of the bankrupt is
iO' III the hands of his creditors. The
GoS'ee mus chosen is directly and through
unrest the agent of the creditors and is
guch more likely to regard them and 10 h.
S.Hseht N the collection of debts due the
vauNiupt and in bringing the largest pos
so-e amount of available assets into court,
NAN III ne were permanent officer, as mas
.s1u me case under previous laws This
"SleIh mas worked well in practice. in nv
APetlehce ana the trutees who have been
1oseh py the creditors have invariably
5DNeh themselves worthy of the conf
'.Iee reposed in them"
=. ~ course, concluded the referee, some
r, a-D VIII necessarily creep in. when a
-g"07 OF this kind is placed within the
deh OF the dishonest debtor-it cannot be
ll'3 Every possible safeguard, how
mas peen thrown around the creditor
nus protection, and ii is most difficult
"ie debtor to defraud those whom he
10y seeking a discharge in bankrupt
~, N"hout making elaborate preparations
49,, 10 uths before and thus putting his in
TL,llsd victims on their guard. Debtors
'-o"S"out The country, who, under The
IONS of the present law. have tried
r, ooose have found the scheme inn
r', I,a'Ie and been compelled to give up
,i'' laey had to discharge their liabili-
VI, ~ 'ne ether hand. the honest debtor,
i,,- US mace every effort 10 pay his cred
Ike Ha+ net been abe to succeed and IS
wig under load Of debt that he can't
e., Is enabled 10 find relief and 10
~ ID NE anew. The productive ability
.' community is thus enhanced ana m
hive are ie"er oI-hes III me
d. I-e amount of business has been
No., 3D. the bankruptcy court for the sec
rli- 0'J cent 70 Savannah since the enact
a. ne law, nut rol nearly so much
of S ne1h transacted in other sec ions
r.. S'1lo The Old conservatism Of this
Coy The wo.ld has heeu EVIDENCED IN
r.., % etAer cases and ne debtors have
,,, '-" over each other II he effort to get
XXI. 3it and have themselves given
rH