The morning news. [volume] (Savannah, Ga.) 1887-1900, 1899-08-05
WANT 1T CHANGED IN PARTS.
REFEREES IN BANKRUPTCY CON-
SIDERED THE LAW.

citation Formed at ChiceEo-COn-
Eress VIII BE Asked to Adopt
Amendments to the Law-It Is De-
sired to Make 1t Less Easy for
Voluntary Petitioner to Secure
Discharge From His Debts-He
should Have to show How His
Money Was Lost.
Mr.. Shelby Mylick. referee in bank
ruptcy, has returned from Chicago, where
he went to attend convention of The ref
erees throughout the country. They met at
the Chicago Beach Hotel, july 25, and re-
manned in convention for three days.
With the results of the convention Mr..
Myrick is well pleased. He says there was
an attendance Of some 400 people. many of
those present being district judges of the
United States court. Their advice and as
s!stance in the deliberations in which the
referees engaged was found of great value.
The idea which took form in The conven>
ton originated with Referee Eastman OF
Chicago. Many of the referees who have
had the widest experiJ nee under the ogera-
ton of The bankrupt laws took part in the
proceedings, and it was the wisdom gained
through those experiences that directed
the convention and induced The referees to
organize what will hereafter be known as
the National Association of Referees in
bankruptcy, of which any duly appoint
ed referee may be member
The object of the association is to pro-
mote the purposes of the national bank
ruptcy law by making the practice in
bankruptcy more uniform and suggesting
desirable and proper mendments. The
association will make a number of sug-
gestions 10 Congress that occur 10 the
referees as desirable, and if the House
sees it as they do the suggestions will be
accepted as amendments TO the orig nal
bankruptcy law.
Mr.. Myrick says 1t was recognized by all
the referees present. that questions of
policy were for the legislative body ana
not for The officials appointed to aid in the
execution of the law; but il was also rec
ognized that the referees, having had
more experience with the law than any
other men, were best qualified to suggest
proper changes looking toward uniformity
in practice and amendments which would
make the law accomplish all Congress IN
tended that it should.
1t seemed to be the opinion OF the ma
iority of those present that the law should
be changed in several important partbcu-
lars. and that minor points that might be
improved upon should be left for later
adjustment The more important changes
desired were as follows
First The practice in involuntary cases
is not summary enough. Delays are so cas-
| ilv accomplished that the attorneys of the
| bankrupt or preferred creditors md 1t
| tempting to tie up estates and force COM
| promises or settlements, which are detri-
| mental to the bulk of the creditors. This
should not be so.
Second 1t is now doubtful where the
| trustee should sue to recover back property
! fraudulently transferred or paid TO rel
! alive or a bank preferentially. The conVen-
| ton seemed unanimously of the opinion
! that there was but one proper forum or
| such suits viz: the federal courts ana that
| this should be specifically settled by an
| amendment to the law. Unless this is
| done il is very doubtful whether it will be
possible to enforce the involuntary provi-
| sions contained in the law.
| Third Some enlargement to the acts of
! bankruptcy specified in the law was sug-
| gested and urged, though the convention
| took no action on that subject. The evils
/ resulting from general assignments and
| failures of corporations through receiver
| shins was commented on. 1t is likely that
recommendation will De made tending to
| cure such evil.
Fourth. The ease with which debtor
can now secure a discharge was reeogniz-
| ed by every referee present, and all were
! IMPRESSED with the necessity of increasing
! the objections to discharges. Among the
| new objections suggested were the giving
| of A preference, as defined in the law IN
\ ability to account for losses; gambling on
| the Board of Trade or elsewhere; IMPROVE
| dent living.
| Fifth. The compensation Of the trustee
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and radical change in the law in this
| particular will probably be urged. The
| CONDENSATION of the referees was not dis
| cussed ct the convention as IL was thought
improper that referees as a body should
express themselves either way on that
| subject.
sixth. Much time was taken In a dis
/ cussion of the orders, rules and forms,
| and of the practice in various parts of the
country Il is likely that the committee
! on that subject will formulate something
| looking toward uniformity throughout the
| whole country thus curing one of the
! marked defects in the present administr1-
/ ton Of the law.
! The referees who attended were unanI-
! NOUS in the opinion that the law, in its
| one year of life, has demonstrated the
| need that existed for It and has shown
! that with some changes, 1t VIII serve
| every purpose for which it was intended
! a
to debtor and creditor alike The expert
/ ence Of a year has indicated the changes
| that are necessary and It will be the duty
! of an executive committee TO take them up
! and present them to Congress in such a
| way as to obtain that body's action. 1t was
! because of the desire, Mr.. Myrick says
| to ascertain just what should be done to
/ make the law just to all in its operations
| that the referees were critical failing to
| pat it on the back, but, on the contrary
/ trying to discover every point that might
be altered to advantage. 1t was this criti-
| cism that led the Chicago press to believe
l. that the referees felt the law failure,
| The officers elected for the new assocla-
| ton were as follows
President-Charles A. Hawlev OF the
| Northern district Of New York
| First Vice Presldent-Jame, NJ. Olm-
| stead of the Northern District Of Massa-
/ chusetts.
Second Vice President-Charles Turner
/ of Alabama.
| Third Vice President-Charles Baldwin
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