The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1899-09-29
BANKRUPT LAW.
The Proposed Amendments to tho
Measure = Necessity IL Keeping
Them Within Narrow Limits

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Measure = Necessity IL Keeping
Them Within Narrow Limits.
Washington dispatch 70 New York
journal OF Commerce: Reports from
the referees under the bankruptcy law
have been reaching the department Of
justice for some time for the six months
ending March 81. The letters request
ing these reports went out somewhat
late. and the results shown have not
yet been fully iabulated. In the mean
time, however. the approach Of The
close Of another half year with the end
Of this month has been the occasion OF
sending out a new set Of blanks. calling
for reports for the six months ending
with September 50. SIR. E. c. Branden-
burg. who has bankruptcy matters In
charge at the department Of Justice. be-
lieves that the returns for both half
years will be In the hands OF the de-
partment within the next two months,
and that the gross results can be em-
bodied In the annual report Of the at
torney general. The referees are re-
l.
reports to the clerk Of the district court
under which they act, and the latter is
directed to forward them promptly to
the attorney general. The blanks call
for information as to the nature OF the
petition for bankruptcy. whether vol
untRFy or involuntary; the assets, la
bilities and dividends paid: the eS-
penses of administration, and whether
the bankrupt has previously taken nd
| vantage Of state ins0lYent or assign
lnent laws, and II so in what year
While the complete results have not
yet been tabulated. the examination OF
the reports received throws consider
Able light upon the operntions Of the
bankruptcy law during the first SIX
months Of its operation.
One OF the most obvious exhibits OF
the reports 10 the extent TO which the
law has been awaited OF by very small
debtors TO close up old obligations and
begin business life anew. In Alabama
and other states, where the laws relAt-
ing to punishment are somewhat Sc
we're, the federal bankruptcy law has
been avalled Of BY many Of the col0fed
people to settle with their creditors
finally upon the basis Of their re-
sources. Otherwise the state laws
sometimes permit the perpetual pur-
suit OF a debtor by his creditor until
costs and Interest transfer his whole
property into the keeping OF the credi-
tor for claim originally very small. So
largely has the federal law been avail
ed Of. both in these classes Of cases
and In cases where the debtor could not
reach finnl settlement, that Mr. Bran
denburg and other students Of the sub
ject are disposed to doubt the wisdom
OF the amendments which have been
suggested. for limiting the privileges OF
the federal law to cases where linblllt-
leS exceed 800. Among the amend
ments which Mr.. BrandenburE Is most
DESTROYS OF securing are some relating
to discharges generally and discharges
where fraud occurs. He does not favor
requiring the payment Of a definite div
ldend of % per cent OF any other sum in
order to enable a debtor to obtain a
discharge He believes. however. that
such a test might properly be applied TO
the second bankruptcy Of the same
debtor under the federal law The fact
that business man has failed once
might. In his opinion. Justify the re-
Qulrement Of a certain security for his |
creditors when he again embarked In |
business. Mr.. Brandenburg. who VIII |
probably be summoned before the Ju-
dietary committee Of the house after |
the meeting Of Congress, also favors q |
limit upon the exemptions granted to |
bHnkrupts, which would put them upon |
q more nearly equal footing in the diff
ferent states.
Out OF the difficulties which the
friends OF the bankruptcy law fear II
they open the door too Wide for amend |
ments Is that the enemies OF the sys-
tenn will take advantage OF the oppor- |
tunity to smuggie provisions into the |
bill which will impair its value. For |
this reason the commercial law league. |
In their convention at Asbury Park at /
the close OF July, decided to limit their
demands for amendments to q very few
which were considered essential TO the i
proper working of the law. The second |
resolution reported by the bankruptcy |
committee declared, That many Of the /
apparent antiquities In the present act |
are likely to be IN a short time resolved
by judicial construction" They did not
recommend any action regarding ex-
emptions, but limited their recommen.
datIons to a slight change in section
II. In order to make clearer the treat
ment OF fraud. and a provision that "a
second or subsequent discharge should /
not be granted unless the bankrupts
estate shall pay dividend OF at least 20
per cent. unless upon special and extra
ordinary circumstances. appearing to
the satisfaction Of the court. SUCH DIS
charge may be granted without the
payment Of a dividend" Some such
provision as this Is likely to be made
by the new Congress. The more simple
the suggestions for amendment which
are presented by the legal fraternity
the more likely is Congress to act upon
the subject. General Henderson. OF To-
wa. who was chairman of the Judiciary
committee which reported the bank
tIptcy law, will be speaker OF the new
house. and VIII make an eastern man
chairman Of the committee. who Will be
disposed to give the bankruptcy law a
fair trial with such amendments az are
desired by lis friends. The greatest
trouble In passing the biIi was encoun-
tered IN the senate. but Il r. believed
that the senators Will consent TO rPa-
sonable amendments designed to give
efficiency to the Law without essentially
changing its scope.