Ottumwa semi-weekly courier. [volume] (Ottumwa, Iowa) 1899-1903, 1900-01-18
REFEREE JOHN ". LEWIS VIEWS
lawyers Say tho Law Undoubtedly
Lessons TAeir Business-Two Argue
ments Used, One by Debtor and
the other by Creditor.


Z proposition fits in majority of cases
and is what the act is intended for but
lsin some cases it might be dishonesty
taken advantage of. There is some dis
scussion in certain quarters looking to
the repeal of the act, but in the opin-
don of Referee John w. Lewis it has
not yet been given a fair test and is
too soon to talk of taking any action.
Lawyers say that it unquestionably
has hurt their business because small
\ creditors refuse to itigate or try to
collect small claims against doubtful
debtors. Formerly the creditor did
mot hesitate to sue for the claim, and
IN some cases by supplementary ex-
I, summation of the debtor, take the
J. chance Of making him ''dig up some
ssof the hidden assets. The lack of liti-
CATION is especially noticeable in the
justice courts where creditors with
amounts to collect under $100 would
sue on the claim and transcript it to
the district court where it was made a
S1ien on the homestead of the defend
ant. If he possessed no other proper
;aaty 1T was a menace to him for great
I many years and in large number OF
Dases the time arrived when settle
sment had to be mades This is prac-
I time. There is nothing on the statute
hooks to prohibit it and probably new
\ er will be, but some cause has operat-
& ed to lessen the number of cases filed.
Referee John w. Lewis was seen
in regard to the proposed repeal of
the law and said:
AS a lawyer | would welcome the
repeal of the act because it undoubt-
.edly lessons the business of the frater-
nifty, especially those who have any
commercial business of any conse-
quence. Yet it is too soon to talk of
repeating it. 1t has not yet been given
~ fair trial and should be given "a
chance to demonstrate what good there
!, As in its taking into consideration the
greatest good to the greatest number.
Between creditor and debtor there are
Two sets of arguments, one for and the
other against the measure. The cred
itor says TO the debtor you take adj
q vantage of the act to beat me out of
/ my bill. You initiate your assets and
when il comes to declaring a dividend /
get measly 10 per cent on my claim
when the schedule would lead me to,
think 4 would be paid in full. The
debtor plies that he has done nothing
ct the kind. That he has taken adj
creditors might all share alike instead
of one getting it all with an attach
ment. 1t also prevents, in large
measure, a debtor giving some of his
relatives chattel mortgage on all his
stock when he sees inevitable ruin
staring him in the face and thereby
beat the other creditors out of their
lust dues. AS / said before there are
1.-TWO sets of arguments, one for and
the other against the measure. OF the
Justice of either have nothing to say.
IT Asf q lawyer, although l am holding a
\ position under the provisions of the
4 act, would be pleased TO see it re-
\ pealed, yet If it's a good thing for the
< people let it remain upon the statute
Il books"
A Demoralizing influence.
The National Bankruptcy News
finds much to commend and much in
4. opposition to the law. In recent is
sue it quotes largely from speech
made by Dorr A. Kimball, of Chicago,
before the ninth annual meeting of
the Illinois Bankers association on
Credit, and the Effects of the Bank
ruptcy Law" A few of the remarks
are quoted: g3
Zone OF the fundamental laws of
credit is that every man should deal
honestly with his fellow men. Any law
which permits man to discharge his
legal obligations by legal process is
exceedingly dangerous to society. The
recent bankrupt law which went into
operation last year enables man to
clear himself of hundreds of thousands
Of dollars OF obligations without any
assets whatever. I know the argument
u
the bankrupt law is based on supposed
public policy. It pre-supposes that
there are thousands OF unfortunate
honest debtors SO crushed to earth by
their existing liabilities that they are
utterly discouraged and disheartened,
and as soon as these burdens are re-
moved they will become active busi-
ness men again; but nevertheless its
experience has proven beyond doubt
that bankruptcy laws have been the
most .demoralizing ever devised by hui
man ingenuity for the corruption
OF commercial honor SO much so that
Chancellor Kent characterized them
/ an 'alluring bait to dishonesty
Heretofore in the history of the
country such acts have only been
passed to relieve debtors, who, without
fault of their own, have been the vic
fins Of some great crisis or calamity
Such was the case after the war of the
# revolution, when the first bankruptcy
law was passed. No one doubted
that it was necessary thing then, yet
after it had been tried, no one denied
that it had most smischievous intlu-
ence on the financial morals of the
mercantile world"
A Year of Jubilee.
Mr.. Kimballs quotes from a recent
speech of Judge c. G. Kohlsaat, Of
Illinois as follows:
d ssThe old bankruptcy law amounted
to no more than absolute confscation
The new law does away with this and
now every man burdened with debts
has a chance to get on his feet again
and make a success of life. However
This law is needed only in cases OF
financial depression. In the Mosaic pc
ried every fifty years there was a ju-
hilee in which debts were Cancelled,