St. Johnsbury Caledonian. [volume] (St. Johnsbury, Vt.) 1867-1919, 1900-11-28
Operations of the National Bank
ruptcy Law in Vermont and Mas
SachusettS.

There has been much question among
those who have watched the operations
of the national bankruptcy law in Yer.
mont during its year and half, or
thereabouts, OF existence, as to whether
it was beneficial law or as to whether
it was imposing unjust conditions upon
honest people. There has been much
question as to whether it was not put
ting dishonesty at premium, making it
altogether too easy for men of small
business integrity to get out from under
their just Obligations. The fact that in
this state about a thousand bankrupt
cies have taken place in IS months seems
to substantlate such a claim. 1t is an
unusually large, almost appalling, num-
Der for tidy, thrifty little state like
Vermont.
1t is of interest, therefore, and of profit,
to note what men who have closely
studied the whole bankruptcy subject
think of the law. James M Olmstead of
Boston, one oil the referees in bankruptcy
for Massachusetts, and one Of the best
posted men in the state on the law,
made an address on it the other night
before the Boston credit mems assoCia-
ton, which will be of good deal of gen
eral interest. Mr. Olmsl cad gave very
lucid and interesting analysis of the new
law, which he considers the best, in its
main features, ever placed on our statute
books. In defining the true object of the
legislation, the speaker said that there is
a general impression that it makes things
a little too easy for the debtor. The che
feature OF the new law. however, is no.
the discharge OF the debtor, but thu
equitable distribution of assets.
Uuder the present law, argued Mr.
Olmstead, the man who becomes truste,
of bankrupt in one state takes title tt
: his property in whatsoever part of tn,
country it may be found, thus obviatine
the necessity of separate recevershiI
in different states. About the time TIL
, law was enacted by the last Congress
Senator Lindsey stated that, in hi
opinion, this measure was one of tn
most thoroughly analysed pieces of legis
lation he had ever seen. To some it ma,
seem as if this characterization has no
been fully borne out by the actual work
! ings of the law, but all thinking peopl
must admit that, even with it's defects
1t is maniiestly a great improvement
5 over former conditions.
l Among its important advantages
that of economy. The provision wit
regard to corporations, and especial
/ that making possible the. preservatio
of it's good will, is an especially wise ont
Mr.. OImstead took up various othe
. provisions of the law and went on to sa
q that the new system has superior adval
tages over the old voluntary assigl
ment process, for the latter gives tt
= creditor none of the safeguards to whic
he is entitled.
S Concerning the matter of preference
= which has been much discussed in bus
6 ness and legal circles, Mr.. Olmstead too
. the ground that aninnocent payment b
l. merchant does not constitute prefe
a ence. He expressed his dissent with Il
famous Fort Wayne decision, and sal
IL that this question is now before the S
e preme Court of the United States, ar
n will probably be decided against Il
- Fort Wayne judge. Even if it does no
the law will be amended in manner