The Savannah morning news., 1901-12-24
RUSHING To COURT
INTENDING BANkRUPTS ANXIOUS
TO TAKE ADVANTAGE OF LAW.
IT MAY BE REPEALED.
OR MATERIALLY MODIFIED AT
CURRENT SESSION OF CONGRESS.

Those who Are Tired of Owing
Debts They Can't Pay Are Filing
Their Applications to BE Adjudged
BankruPts and to Receive Dis
charges From Their Liabilities.
Edward G. Black, Jacob Birnbaum
Most Recent-LocaI Merchants the
Sufferers.
The recent outburst of popular dis
approval of the present bankruptcy
law, which has found expression in
trade journals and newspapers
throughout the country and which was
the subject of a recent article in the
Morning News, is having one very per-
ceptible effect in Savannah. 1t is in
ducing those who have had in con-
temptation applying for relief from
their debts to file their applications in
court.
There is a strong impression that
the bankruptcy law will be either re-
pealed or materially modified at the
current session of Congress and it is
practically certain that a strong effort
to accomplish one of these ends will
be made. There are a number of cred
itors who feel that the present law
makes it too easy for a man to get
rid of his debts, no matter how small
in amount or what relation they bear
to the amount of his annual income. AS
the law has been construed by the
courts an applicant for a discharge who
surrenders all his property has right
to relief, no matter how few and small
his debts or how large his income.
The business world is registering a
very decided protest against the law
and the expense of it's administration.
1t is commonly stated that the expense
of administering the assets of a bank
rupt estate in bankruptcy ranges from
80 to so per cent. of their total. AS
the assets are usually much less than
the liabilities, if this assertion be
| correct 1t can easily be seen that the
creditors do not stand much chance of
collecting any very large part of their
claims. In fees to various officers of
court and to counsel the assets are
| consumed.
A noticeable effect of the current dis
cussion and expressed objections to
the bankruptcy law, so far as Savan-
nah and this division of the district
| are concerned, are the number of pc
titions for relief that are making their
| appearance in court. In most of these
cases the bankrupt says either that
| he has no assets at all or the assets
| scheduled are nominal in amount.
| Edward G.. Black filed his petition in
the office of the clerk of the District
| Court yesterday. He gives his occu~
| patton as a real estate broker and
shows that he owes debts amounting
to $10,5S2.24 and has no assets.
| The liabilities are due to Savannah
people almost entirely and individually
range in amount from a, few dollars to
| 900. The latter amount is due a
relative of the bankrupt, from whom
it was borrowed. Claims for borrowed
money, in amounts of $25 to 500, are
| scattered all through the schedule of
| liabilities. Merchants and professional
| men are stuck for goods sold and ser
vices rendered and the newspapers for
advertising; two of the local banks are
also named in the list of creditors.
though for comparatively small
| amounts.
Jacob Birnbaum, a travelling sales
man. is another of the applicants to be
| adjudged bankrupt and to receive re-
| lief from his debts. His liabilities
amount to $4,394.42 and he has no as
| sets. Two or three of his creditors are
residents OF other cities, but the great
! majority of them live in Savannah.
In the last two or three weeks there
have been almost as many bankruptcy
cases as there had been in the two or
three months Immediately preceding.
| BY the officers of the court this is
taken to indicate that the fear the
bankruptcy act will be repealed or
modified is widespread and general and
| that those who are anxious to rid them
selves of encumbering debts are TAX
ing advantage of the present oppor-
| tunity.