Ottumwa semi-weekly courier. [volume] (Ottumwa, Iowa) 1899-1903, 1900-02-15
THE BANKRUPTCY LAW.


act, seems TO be that the relief afford
ed by such a measure should be period
ical, and not something obtainable ut
s all times bv the victims of commercial
misfortune. There is something to be
said in favor of this contention. When
relief thru bankruptcy is afar off peo-
q pie may hesitate longer than they
! might otherwise before engaging in
hazardous ventures on borrowed capt.
tai; and those already embarked in
such ventures may struggle harder and
longer to carry them thru. But the
+ population of the union is so great,
I and the number of meritorious cases
occurring each year is SO large, where
the benefits of national bankruptcy
law are imperatively demanded to pre-
vent the loss of individual energies
! valuable to the community, that the
absence of such a law would be ca
lamity. Then. too, a repeal of the pres
emit act would revive the discordant
/, operation OF forty-fve diverse state
4 laws, which was such an embarrass-
nlent to the settlement of insolvencies
Z before the enactment of the former.
Furthermore, the existence of the
I present law has a wholesome effect in
causing closer scrutiny than before
OF the record and character of individ-
uals seeking credit, thus raising the
standard of business morality. That
the proportion Of business failures to
4 the number of firms in business, and
/ to the vorume of trade, has been small
er in the past year than ever before.
is probably not due merely to the
general prosperity" but also, in no
small measure, to this closer scrutiny
q Of credits. The most Objectionable
feature found in the operation OF the
bankruptcy law is something that has
been read into it by the decisions OF
y several lower United States courts,
that bankrupt called upon to testify
what has become of his means cannot
/ be compelled to so testify if he fears
he will "incriminate himself" and vet
i may get his discharge. 1t is doubtful
whether, if an appeal against this de-
cision were carried to the supreme
4 court, it would be sustained. The
trainers of the law had no intention
4 that it should be thus made a refuge
for rascafs. 1t would be easy to So
amend it as to cut off from it's bene-
fits every man unwilling to answer
honestly and satisfactorily every reas-
enable question as to the whereabouts
or use made Of any means once in his
hands. But to repeal the entire law
in order, to avoid the effect of an I'M
expected Judicial ruling might not be
wise.
Speaking the other night before the
Al ~rchants' club of Chicago, Mr.. Dolli-
Yer went somewhat into detail con-
corning the. abuses of the present
bankruptcy law. Among other things
he said:
a sincere and laborious effort was
undoubtedly made by those who franz
ed that law to avoid the most vicious
features of previous bankruptcy legis-
latiop. It is my conviction that a sys-
tenn of bankruptcy is in itself worth
less and injuries addition to the ma
chinery OF modern business. On that
account have felt it my duty to in
troduce into the house OF representa-
. lives a. bill to repeal the act of July 1,
1898. The things which I complain of
relate to the principle involved and
not to the details of the measure it.
self.
But the bankruptcy laws of the
United States today present a standing
invitation to the young men of the
United States now free from debt and
about to embark in business, to plunge
into whatever speculation they please,
with the assurance that their country
stands ready to wipe out all their obi
cations, it at the end Of their exploits
= they have enough money left to file
petition in bankruptcy. Against such,
an infamy as that appeal to the in
telllgence and judgment of the mercan-
tile community of America. cannot
s i 10 &ho+ 4, =
OF the United States, the clean and
upright men who manage our great az
fairs, are willing for the doubtful adj
vantages of the federal collection law
to thus corrupt the very fountains Of
the national integrity. 1t is one thing
to wipe out an old slate; it is another
thing to put American business for all
time to come on the basis that nobody
need pay what he owes unless he
wants to.
Il denounce it in the name OF COM
mon honesty and I ask the great
commercial community to Join in an
effort to put an end to a national
scandal.
Franklin syndicates, doing business
with desk room only, have demon
strated the possibility of drawing in
millions OF dollars without expanding
nickel beyond the price OF prospec-
tus. Unless the business world can in
some way put check upon this fever
of speculative investment which has
already found expression in the crea-
tion of huge bogus corporations which
wait only for the touch of adversely
to engulf the whole community in
panic and bankruptcy, evil days are
before us, and, in my judgment, not
very far before us"
"------=
THE NON-PARTIsAN CONFERENCE.
1t was hoped by many people that
the Chicago anti-trust conference,
which widely advertised itself as al
strictly non-partisan affair, would be
productive Of some good by bringing