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


Representative Ray Of New York,
Chairman Of the Committee on the Ju-
dietary, yesterday introduced 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 a series OF blanks containing questions
I 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.
4 two of them from the so-called Henderson
/ bill in the last Congress. viz: Obtaining
property on credit upon a materially false
statement in writing. and making a prefer
ence though the bill makes il necessary
that the creditor, relying upon this objec-
ton shall prove that the preference was
fraudulent
One from the bankruptcy law OF 1867. the
making Of a fraudulent transfer Of prop
erty. One from the English bankruptcy
law. that the bankruptcy was materially
contributed 10 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 at 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 coun-
Try comes the complaint that bRnkrupts,
when hard pressed by their creditors re-
fuse to answer proper questions, on the
ground that such answers viii tend 70 in
eliminate them.
The trainers OF the bill from their ex-
perience as administrators Of the law,
are convinced it is necessary to increase
the compensation Of trustees Their bill,
il adopted will accomplish some import
ant changes as for instance, increasing
commissions in small estates. besides
filing fee of so. instead of s.; also
rgss.
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 voluntary receivership of an
insolvent corporation under the State
laws shall be an act of bankruptcy. This
would bring all mercantile corporations
within he 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. -a-.H.. 'f.s
The other changes are not so vital
though OF considerable importance. Much
complaint has been lodged against the
law by creditors because IT takes so long
10 secure an adjudication Of involuntary
bankruptcy. The bill would shorten the
time from twenty-five days 10 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 a competent witness as to
transactions with her husband she cannot
as the law is now phrased. be examined as
10 such transactions. The bill would make
her a competent witness. irrespective OF
the laws OF the State The bill also strikes
a. two evils which have grown out Of the
exemption section by requiring that in
getting at a fair valuation OF the bankTupt's
property where insolvency is alleged all ox-
empt property shall be deducted. and also
by providing that the trustee shall not be
obliged 70 paw taxes upon exempt home
stesds
Il is stated that the bill will be followed
by an elaborate report which has been pre-
pared ny the referees committee and that
this report not only gives reasons in detail
for the changes which have been sug-
gested. hut sets out many suggestions not
thought Of sufficient value 10 warrant
amendments al 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 nuhlic document