Ottumwa semi-weekly courier. [volume] (Ottumwa, Iowa) 1899-1903, 1900-09-18
ABOUT BANKRUPTS.
Changes Recommended for Protec-
tion Of Creditors.
OF INTEREST TO COMMERCIAL WORLD
Recent Convention Of American Bar
Association, of Which e. e. McEiroy
Was Member, Recommends That
Law Be Made Permanent.

Law Be Made Permanent.
The recent meeting Of the Ameri-
can Bar association at Saratoga, New
York, of which E. E. McElroy, OF this
city, was member, had something
to say concerning an amendment to
the bankruptcy law known as the
Ray bill which had failed to pass the
last Congress, but is still on the cal
ender. The convention gave It's I'M
qualified endorsement to the bill,
which looks to the establishment of
a permanent bankruptcy law rather
than temporary measure of relief,
and to it added suggestions OF their
own. The belief was prevalent in the
convention that If the greatest meas
ure of protection consistent with
general law was afforded the credl-
tor, that it would result in establish
ing a more rational basis for CONNER
cial credits. With these ideas in
view the committee made report
which was adopted by the conven-
ton, which will be read with interest
by the commercial world especially.
After discussing the merits Of the
Ray bill and setting forth its proyi-
sions, the committee says that it
hopes the bill will pass, but that they
do not believe that it is the end OF
desirable bankruptcy legislation, and
further on in the report recommend
a few amendments. OF the Ray bill
they say that ut furnished an avenue
thru which an honest but unfortunate
debtor may seek and promptly obtain
the present application of his prop
erty toward the payment of his debts
and the discharge Of his future earn
ings or acquisitions from all liability
4 for them. 1t furnishes all the safe
guards which experience has found
to be available to protect a commune
j ty from a dishonest debtor who
seeks to obtain his discharge without
giving up his property, 1t furnishes
a machine which can be used effec-
| lively and economically for the adj
ministration of the estate Of an insol-
vent person. We believe that with
the Ray bill amendments the debtor
has nothing to ask Of the bankruptcy
law. But what of the creditor?
"A one sided bankrupt law can
never become permanent part of
American jurisprudence. A law which
/. is intended only to allow debtors to
| escape from the payment of their
debts, will never permanently COM
mend itself to the fair minded people
of the United q States. A bankrupt
U law, to be Termanent must be just
land to be Just ut must be law for
4 the honest creditor as well as the
honest debtor.
Credit Is the condolences which q
fair minded creditor reposes in an
4 honest debtor. The voluntary part OF
la bankrupt law which gives relief ia
the debtor when the creditor becomes
4 over-exacting or demands impossible
ties, and the involuntary part of the
law should be just as effective tt
give relief to the creditor when the
confidence which he has reposed il
. the debtor has found to be misplaced
ut is our opinion that the bank
ruptcy law as it now stands. and a!
is will stand If the Ray amendment
: are adopted, does not furnish suh
? Gent compensation to the creditor TO
. the loss that he suffers in beinl
:. obliged to give up his remedy agains
the future earnings and acquisition
!, of the debtor. We believe the bank
!. ruptcy law, as it now stands and g
, it will stand with Ray amendment
. added, to be one-sided-to be del
tors law rather than a debtors an
, creditors Iaw--to be law for tn
? benefit of one class in the communit
. rather than for the benefit OF al
classes.
> ut Is class legislation.
cit interferes with the laws of trad
: only by making them more unjust.
: interferes with commercial credit
, by taking away the basis of all cree
a it's and substituting nothing satisfa'
: tory in its place. 1t adds an add
- tional peril which the creditor ha
;. to take into account when he is col
sidering the question Of giving cred
to a debtor 1t makes credits NOR
unsafe than before, and so restrict
!, the giving of credits. 1t takes ava
. the ability of the debtor to obtai
!, credit by making it unsafe for tn
: creditor to grant it,
"The first part of section three {
J the Bankrupt Act, as amended by til
j. Ray bill, will read as follows:
e Section 3.-Acts of Bakruptc
y Acts of bankruptcy by person sha
a consist of his having
e CD Conveyed, transferred, or +
> moved, or permitted to be conceale
t. or removed, any part of his propert
:, with intent to hinder. delay, or d
u fraud his creditors, OF any of then
n or
"(2.) Transferred, while insolven
L any portion of his property to one {
$ more of his creditors with intent
It prefer such creditors over his 9TH
., creditors; or
IS "(3.) Suffered or permitted viii
r insolvent, any creditor to obtain
l. Interference thru legal proceeding