The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1901-10-20
DEFECT IN The LAW
CREDIT MEMS ASSOCIATION DIS
CUSS PROPOSED AMENDMENTS
TO BANKRUPTCY ACT
BANQUET IN MINNEAPOLIS
Two Important Changes Ably Adso-
Gated by w. A. Prendergast, Sec
rotary of the National Assoc
citation of Credit Men.

What are regarded as the two most
important proposed amendments to the
national bankruptcy act We're discussed
before the credit men of the Twin Cities
by William O. Prendergast, OF New York,
secretary of the National Association OF
Credit Men, in Minneapolis last evening
The gathering was signalized by a ban
quet rendered at the Commercial club by
the Minneapolis Credit Mems association
TO President f. A. Young, of the ma
tional association. Secretary Prendergast
and the members of the st. Paul Credit
Mems association. There were seventy
three present. Edwin j. Fisher, president
OF the Minneapolis association, off1ciated
as POSTMASTER.
After extending a cordial welcome to
the national president and secretary and
to the credit men of ST. Paul, Mr.. Fisher
introduced tt II. Green, of Minneapolis,
and recently of Sioux City. Mr.. Green
spoke briefly merely outlining the pur-
poses of the National Credit association
and citing statistics showing that the
association had led to the establishment
oe better credit conditions and a material
reduction in the number Of business fail
ures
E. A.. Young, of ST. Paul. president
of the national association, addressed the
assemblage on the Benefits Resulting
from Credit Associations" Mr.. Young
recounted the growth of the ASSOCIATION
during the past four years, and stated
that it was only in the past five years
that such an organization had been made
nossihle Now confidence had been c3eap-
Iished between the buyer and wholesale
men and consequently the best interests
of both were being conserved. lie al
luded briefly to the subject OF the even
ing. the bankruptcy laws. ana saad that
credit men all over the country oid not
want the bankruptcy regulations abso-
I1,telve repealed, but icy did desire some
;mnortant amendments, which would be
discussed later.
ADDRESS OF w. A PRENDERGASf.
Tho address of the evening was then
delivered by W. A. Pendergast, of New
york secretary of the National Associa-
tion of Credit Men. The amendments
which were referred TO as partlculariy
urgent We're two in number Inc Llse'
stated in general terms, was the neces-
sity for more stringent provisions re-
sard;ng the discharge of bankrupts. As
the law is now loosely worded, 1t IS nee
essary to produce evidence OF apsolcte
fraud before the discharge OF a Dank--
rupt can be prevented. By taking adj
vantage of this, many dishonest people
go through the prescribed formaHtleS
and escape payment of their just debts,
which, in many instances, they are per-
fectly able to pay, if proceeded against
in the proper manner.
The second and most important amend
ment was in relation to Section 81, u,
of the present act Under it a creditor
who has received a partial payment from
an insolvent firm within a period of four
months prior to bankruptcy, must pay
the amount he so received back to the
estate and file claim for the whole
amount if he desires to obtain any more
from it This was held to be manifestly
unjust What was needed was a provis-
ion enabling creditors to retain any In
nocent partial payments and sue or put
in a claim for the remainder. 1t should
lie so worded that there can be no posi-
bility of COLLISION between debtor and
creditor in the matter. But because a
man has innocently received partial
payment on his claim and the debtor
goes into liquidation within four months
thereafter, he should not he compelled
to turn the account of such payment into
court or lose the rest of what is right
fully coming to him. The alternative of
retaining the money already received
and taking no further action was equally
unsatisfactory
Other interesting addresses were deliv-
cred. and the gathering dispersed after
profitable session.