The Scranton tribune. [volume] (Scranton, Pa.) 1891-1910, 1900-08-31
BANKRUPTCY LAW
is DISCUSSED

while insolvent, any portion Of his property to
one or more Of his creditors with intent TO pre-.
fer such creditors over his other creditors or (3)
suffered or permitted while insolvent, any credi.
tor to obtain a preference through legal pro.
ccedngs and not having at least five days be.
fore a sale or final disposition of any property
affected by such preference, vacated discharged
such preference; or (4) made a general assign
ment for the benefit of his crditors, or, II
corporation, applied for or been put In charge
OF receiver or trustee under the laws of
state or territory or of the United States, on
the ground Of insolvency; or () admitted in
writing his inability to pay his debts and his
willingness to be adjudged bankrupt on that
ground"
Amendments Proposed.
Your committee recommends as an amend
men. to section three, two additional acts Of
bankruptcy to be added to the five already
provided for, as follows: "Or Co while insol-
vent risked his money or estate any sub.
stantial part thereof, diminished the Sc
curity Of his creditors by (a) gambling or (b)
speculatng in any securities or property out
side of his ordinary business or (c) waste
fully, recklessly mprovidently managing his
business affairs 10 do substantial injury to his
creditors or impcril the claims Of such credi-
tors. Or ca if a corporation paid, while in
solvent, extravagant salaries to its officers or
employees"
We are well aware of the practical difficulties
in the way Of accomplishing what we seek.
But we believe that the adoption Of this
amendment would do something towards RENE
dying the evil which We have endeavored to
set forth, and would make the bankruptcy act
fairer piece Of legislation. We believe it
would do someshlng-pehaps much--towards
the establishment Of a more rational basis for
commercial credits. We believe it would bcne.
fit the creditor by giving him an additional
remedy against a reckless debtor, and that it
would benefit the honest debtor by giving him
broader basis for the credit that he seeks and
by taking away Of the elements of chance
which the creator has to consider when the APP
plication for credit is before him.
No Remedy for Creditors.
The present "acts Of bankruptcy" give the
creditor no remedy whatever unless the debtor
deliberately seeks to defraud his creditors or
to prefer one creditor over another, OF suffers
or permits such a preference, commits an
overt act in the way OF making an assignment
for the benefit Of his creditors admits in
writing his inability to pay his debts and is
willing to be adiudged a bankrupt on that
ground. There is nothing in the present law
or in the law as amended by the Ray bill that
gives a creditor any remedy whatever against a
reckless or improvdent debtor
The debtor, instead OF using his money to pay
his debts, may gamble with it, may speculate
with it, may it wastefully or mprovidently
as he chooses and the creditor has no remedy
except that when his debt becomes due he may
sue upon it and collect it il he can. 4 man
may have thousand dollars in cash and owe
debts of a thousand dollars which he ought to
pay with that cash; instead, he may go into a
gambling house and bet 1t on the turn OF a
wheel, and the creditor has no remedy. lie
may so into a worse than gambling house on
Wall street, or State street. or Chestnut street,
and bet it on the turn of something more than
wheel, and the creditor has no remedy. He
may indulge in wild recklessness in his business
ventures, or wild extravaganza in his personal
outlays and the creditor has no remedy
1t is the object of our proposed amendments
10 furnish the creditor with a remedy under
such circumstances. When a is in debt
he has no moral-snd we believe he should have
no legal-right TO use the money or the proper.
ty with which alone he can pay that debt, in
such way that the creditor takes all the
chances in case of failure, and the debtor reaps
all the profit in case Of success
Difficulties.
We are not at all unmndfu of the difficulties
in the way Of enforcing such provision in the
statute as we seek TO have enacted 1t may be
that in many cases, perhaps most cases. the
creditor would not discover the wrong that was
| being done him until il was too late to apply
the remedy. The stable door might be locked
| only aff hp horse uls stolen Rut din.