Arizona republican. [volume] (Phoenix, Ariz.) 1890-1930, 1899-07-29
Opinions Of Lawyers and Ref
ereeS as to It's Merits.
NO CHANCE TO MAKE A TEST
Commerce Ffusf Wall UnfiI Hard
Times Come Again TO Find Out If
fhe Law Fills the Bill Con-
sfruCfionS by Which Dishonest
Debtors Are Shut Out From Its
Benefits,

New York, July 2S.-Business men
and lawyers are watching with great
interest," the progress of the discus
sions now going on at. Chicago and
Asbury Park of the new bankruptcy
law Now thatit has been actively in
operation for a period Of over six
months, and experience has been had
with its workings. there is oppor-
tunity for lawyers and merchants to
form opinions regarding the law
Some say that the test is not sufficient;
that the last few months aave been
altogether too prosperous for the ad-
vantage or disadvantage of any bank
ruptcy Jaw to show themselves clear
Iy; that commerce must wait until
hard times come again to discover
whether the new law fills the bill.
Nevertheless, public business opinion
has fairly we'll crystallized on the
matter There seem to be two sets OF
views, two opposing camps-one de-
claring that the law works badly and
should be wiped out of existence; the
other that, all things considered, it
looks as if it would turn out we'll and
prove fairly good act.
OF course, courts and referees have
hardly settled themselves to business
yet. That is there are points of prac-
ond ~
decisions and precedents TO be estab-
lished before all can go along
smoothly. Decisions are piling up each
week, and the way is growing smooth
er for attorneys and clients. Though
thousands of bankruDts all over the
Union have Hheen applying for dis
charges ever since January L, there
has been little new bankruptcy husi-
ness. The bulk of the cases were old
ones, of bankrupts of long ago, asset
J less, who simply wanted discharges
and relief from judgments. The free
ing of these was only a form, and as
this new law provided for just such
cases, nearly all who applied obtained
the desired relief. Now that this rush
is over, or nearly SO, and the courts
are settling dcEn into their routine
bankruptcy business, referees are care
fully scrutinizing each case, and many
an application is being refused. De-
spite all that has been said about this
law being almost exclusively debt
or's law, there are ways of constituting
it so that the debtor does not have
everything his own way.
"A notable example in this regard is
The case of Hattie Hyman, on which
Judge Ernest HAN has just handed up
his report. Hattie Hyman Judge
Halls report states, conducting a bus
iness on capital of $4,000, failed to
keep correct books of accounts. and,
leaving all in the charge of her hus-
band, Samuel P. Hyman, as manager,
had no knowledge of her affairs. The
business failed, the capital being
largely dissipated by the husband
manager in Wall street., and Mrs. Hy-
man applied for a bankruptcy dis
charge on the ground that she had no
knowledge of what was going on.
= The case is interesting and import
ant enough to give portions of Judge
Halls opinion.
If a wife can furnish the capital
and establish a BUSINESS and appoint
her husband as manager and agent
without control, and take no part in
+he business, but keep herself in pro- !
found ignorance off all it's affairs. and !
the husband can keep false books of !
accobnt, and so obtain a credit abso- |
lutely unjustif1ed by the real state OF
the business, and can thus escape the |
responsibility imposed upon other |
debtors by the act, the provisions of |
the law, SO far as they relate to |
grounds of refusal OF a discharge. are
nullffied and set at naught, and a pre-
MUM is offered to persons not to do |
business for themselves, but to employ !
agents, who will take all the respon-
sibi'ity and relieve their principals
from all the penalties of the forbidden
practice under the act
"Such, in my opinion, was not the
intention of the act. If the bankrupt
saw fit to keep herself in ignorance OF
the condition os her business, and Of
the manner of keeping books, she
should suffer the consequences; the
business was here and the books were
here, and it was duty which she owed
to creditors to see that the books were
kept so that intend
ing creditors might not be de-
and for failure to do this she
should he held to the penalties pre-
scribed by The act, and should not he
discharged"