The times. [volume] (Washington [D.C.]) 1897-1901, 1900-03-23

Representative Ray of New York,
Chairman OF the Committee the Jul
dietary, yesterday introduced a bill to
| amend the BANKRUPTCY law drafted as the
| result of an investigation made during the
past three months by what is known as
the National Association of Referees In
| Bankruptcy, of which referees Hotchkiss,
of Buffalo; Eastman, of Chicago; C.app, q
Omaha, Grayson, of Chattanooga, Blair Of
| Pittsburg; Crittenden. of Kansas City, and
Littlefeld, of Providence, are the eXecu-
tive committee in charge.
Their investigation has been carried on
by series of blanks containing questions
intended to call out suggestions. These
have been sent in by the hundreds. Most
of the suggestions have been put aside for
further consideration, and the more i'm
portant only incorporated in the bill.
The bill would amend ten sections Of the
! bankruptcy law, though the amendments
really cover only six subjects viz: Dis
/ charges of bankrupts, compensation of
| trustees, bankruptcy Of corporations, pro-
cedure in voluntary cases. testimony by the
bankrupt and his wife, and two changes 10
! prevent injustice in States where home
stead exemptions are in force.
! BY far the most important changes are
six additional objections to a discharge,
( two of them from the so-called Henderson
/ bill in the last Congress, viz: Obtaining
properly on credit upon materially false
statement in writing, and making prefer
/ ence, though the bill makes it necessary
1 that the creditor, relying upon this objee-
! ton. shall prove that the preference was
I fraudulent.
/ One from the bankruptcy law OF 1867, the
making of fraudulent transfer of prop
i nrf,- n,a he Itch hon lyrItr f.tr
| law, that the bankruptcy was materially
contributed TO or brought on by gambling,
! and two which are entirely new. First,
and probably most important, that dis
charge shall be refused TO anyone who has
previously been discharged within six
years; and, second, that discharge shall
be denied to anyone who refuses. in the
course of the proceeding, to answer any
question approved by the court.
The two last are aimed al evils which
! have developed under the present law: the
/ first emphasized by the fact that men al
| ready discharged under the law are again
seeking discharges. and the second from
the fact that from all parts of the couri-
try comes the complaint that bankrupts
when hard pressed by their creditors. re-
fuse 10 answer proper questions, on the
ground that such answers viii tend to in
eliminate them.
The trainers of the bill. from their ex-
perience as administrators Of the law,
are convinced II is necessary to increase
the compensation of trustees Their bill,
il adopted, will accomplish some inpoft-i
ant changes as for instance, increasing
commissions in small estates, besides a
filing fee of so. instead of S5;'1 also
that if the trustees conduct business
or manage a manufacturing plant, they
may be allowed extra compensation for
this work. The bill also provides that
mercantile corporations may be adJudged
voluntary bankrupts, after receiving the
consent thereto of a majority OF their
stockholders; but that such a proceeding
on the part Of the corporations shall not
release its officers or stockholders from
any liability under the laws of the State.
Also, that a voluntary receivership of an
insolvent corporation under the State
laws shall be an act of bankruptcy. This
would bring all mercantile corporations
within the terms OF the law. They can
only be adjudged in involuntary bankrupts
now, and, as a rule escape the more
drastic procedure in bankruptcy by apply
ing for friendly receiverships in State
courts. Hosrfld.s -.i-~frH
The other changes are not 50 vital.
though of considerable Importance. Much
complaint has been lodged against the
law by creditors because 1t takes so long
10 secure all adjudication of involuntary
time from twenty-five days to ten days
when default is made and also provide for
a short service by publication where the
debtor has absconded Creditors have also
criticised the law because in States where
the wife is not competent witness as to
transactions with her husband. she cannot,
as the law is now phrs sed, be examined as
TO such transactions. The bill would make
her a competent witness. irrespective OF
the laws OF the State The bill also strikes
al two evils which have grown out of the
exemption section by requiring that in
getting at a fair valuation of the bankrupt's
property where insolvency Is alleged all ex-
empt property shall be deducted. and also
by providing that the trustee shall not be
obliged to pay taxes upon exempt home
steads.
1t is stated that the bill will be followed
by an elaborate report which has been pre-
pared by the referees committee and that
this report not only gives reasons in detail
for the changes which have been sug-
gested, but sets out many suggestions not
thought of sufficient value TO warrant
amendments at this time. This report will
also. it is stated. contain a summary of
the workings OF the law as shown by the
experience of the referees. and should make
valuable public document.
AGAIN IN THE HOSPITAL.