The sun. [volume] (New York [N.Y.]) 1833-1916, 1899-10-15
THE NEW BANKRUPTCY LAW.
Wage Farmers and Business Men now Able
to Escape Harvesting Creditors.

WAS HINGToN, Oct IA The operation OF the
new Bankruptcy law has been watched with in
terest by the Department Of Justice. For tho
first six months after tho law went into effect
there were filed II, 900 voluntary and 1900 in
voluntary petitions In bankruptcy, total Of IL
800 Ono OF the most interesting facts developed
Is tho large proportion Of petitioners who are clerks
or mechanics or farmers. and have taken
advantage OF the law to escape tho harassment
Of persistent creditors. whose methods mako IL
impossible for the debtor to earn a living or to
retain his employment, TO say nothing OF paying
his debts Speaking Of this phase OF bankruptcy
proceedings, E. C. Brandenburg, tho bankruptcy
expert of the Department Of Justice. said:
MY attention was drawn to the use Of the Bank
ruptcy law by mechanics and clerks during
recent trip to Connecticut in which State tho
earnishment laws are freely used to collect
debts whenever an employee falls behind in his
payments The employer usually objects TO the
bother OF garnishment. which Is sometimes con-
siderable After this sort Of thing happens once
or twice the employee is dI6nissed. Many per-
sons have thus lost employment In New England,
where the railroads have rule that If an employee
is twice garnished he shall DO discharged from
the company's service This condition OF affairs
has resulted in the filing Of q large number OF
petitions In bankruptcy by wage earners, who
legations saved from garnishment and made 60
cure in their employment The fact that debt
Is discharged in law does not mean, however
that It will never be paid. Many persons thus
relieved of their legal obligations nevertheless
feel themselves bound morally to meet Them
and will eventually do so.
Substantially tho same conditions exist else-
who's in New England and bankruptcy pro-
ceedings for the relief Of earners are reported
from most OF the States In Chicago such pro-
ceedings have been noticeably frequent In
Alabama another class Of cases has arisen Hero
the list Of debtors has been swelled by scores
Of negroes and small plAntera These men.
many Of them, owe debts for tho necessaries Of
life for which they have been unable to pay and
have been compelled to submit to usurious rates
Of interest; 40 that in course OF time by COM
pounding interest, tho debt. originally small
has become very large and the debtor finds him
self utterly unable to satisfy his creditor. In
certain parts OF Alabama a large number Of poor
negroes and others who have been harassed by
creditors have taken advantage Of the law be-
cause Of their inability to pay debts incurred
many years ago To these poor people the law
has been a boon, enabling them to get on their
feet again and make new start.
"One very important and valuable feature
OF the Jaw il that il will rehabilitate many useful
business men relegated To inactivity or 10 clerical
employment because Of business reverses Such
a man under the old conditions was unable to
regain financial standing because any effort
on his part To resume business usually resulted
In legal proceedings against him by some Of his
creditors Unless some one stood sponsor for
his obligations or he was released by his creditors
he was financially doomed; there was nothing
left for him but some subordinate employment,
upon the salary Of which no and his family must
depend 4 typical instance Of this kind was
reported by referee in bankruptcy in one of
our largest cities 4 merchant who had been
unfortunate in business, was compelled to take
mental employment in business establishment
His salary was garnished and he lost his place
He found another only TO lose ii in the same man
ucr and because Of tho frequent garnishment
Of his salary. ost one place after another that
at last he without means Of obtaining liveli-
hood for himself and family, and in desperation
was compelled to file petition in bankruptcy
notwithstanding his firm desire 10 pay his cred
tOTs as hest he could out OF his small salary.
Such merchant may now obtain discharge
from his obligations that Is coeXtensive with
the limits Of the United States, enabling him
10 make purchases beyond mis- own State, with
out risk Of attachment. and to resume business
free from the annoyance Of creditors
The law seems 10 he meeting with general
approval, although there las been some criticism.
With the exception Of few large wholesale house