Evening star., 1901-06-08
THE BANKRUPTCY LAW
REPORTS FROM REFEREES AND
CLERKS OF coukrs.
The Act Meets With Almost Universal
Appreciation - Benefirent to
the Business World.

business conditions prevailing throughout
the United States than the reports of the
practical operation of the bankruptcy law.
made by the referees and clerks of the
federal courts The summary of the semi
annual reports of this business for the
period ended March 81, 1901, recently SUBJ
mitted to the Attorney General by E. c.
Brandenburg. in charge of bankruptcy
matters in the Department of Justice, dis
closes some interesting facts. 1t appears
that during this period 9.516 voluntary pc
titions were filed, as against 5000 for the
preceding six months, 12,12O for the six
months ended March 81, 1900; 10, 124 for
the six months ended September 30, 1899,
and 9052 for the six months ended March
81, 1899. thus showing no appreciable varia-
tion from the average number of petitions
filed since the law went into operation,
though it is over 2,G0O less than for the
corresponding period of last year. For the
same period 1,O76 petitions in involuntary
bankruptcy were filed, this being slightly
in excess of the average for the past two
years and half.
The report shows furthermore, that a
large percentage of those taking advan-
tage of the voluntary feature of the law
are old insolvents, who are seeking this
means of resuscitating themselves in the
business world. though 1t is practically i'm
possible to definitely state the exact num-
Der.
The information obtained for the first
two years operation of the national bank
ruptcy law was necessarily incomplete, by
reason of the fact that it had not been in
operation sufficiently long to enable more
definite information. Reports have now
been supplied by referees throughout the
United States, covering such cases as have
been closed only, and for the past six
months of the voluntary cases 1857 have
been closed. In these the total liabilities,
direct and contingent, have been $S4, ,955, ,O97,
while the net assets realized for distribu-
tion as dividends have been s., 5S1 AT. The
information at hand also discloseS another
interesting fact, and that is that of this
number in 760 cases the total liabilities
were less than $500, in $40 cases between
$500 and 81 600, and in 5000 cases between
$1,000 and 5000, the balance being for
larger sums in varying amounts. 1t also ap-
pears that TAT who filed petitions were
farmers, 3,S43 wage-earners 1877 mer-
chants, 123 manufacturers, lab professional
men. and the balance had occupations Of
a miscellaneous character. OF the invol-
untary cases 325 were closed during the
year. in which the total liabilities were
81 626 94S, while the total assets realized
were $S79,597. In Hawaii but three petit
tions have been filed, two for voluntary
bankruptcy and one for involuntary bank
ruptcy.
Almost Universally Approved.
Mr.. Brandenburg, by reason Of his inti-
mate relation with the subject, has kept
in close touch with the business interests,
and states that it may be safely said that
with one or two exceptions, for which Con-
gress will doubtless make provision at an
early date, the law is meeting with al
most universal Appreciation AS time passes
its superiority over many of the state in
solvency and assignment laws in reducing
the expense of administration to a mini
mum, with the resultant of maximum divi-
dends, together with the disappearance of
preferences, either through legal proceed
irgs fraud, is redounding to the advan-
tagc of the business world. Nearly every
feature of any consequence in the law has
now been interpreted by the federal courts
throughout the country, while the United
States Supreme Court has passed upon
several fundamental questions, thus
placing Congress in a position to act ad-
viSedly upon the question of amendments
when suggested 10 that body at It's coming
session.
Beneficent to the Business World.
The experience gained by the commercial
interests under the present law has af-
forded a keener Insight into its practical
than was expected or could
have been anticipated, and while the ex-
istence of the present law is guaranty
against fraud, or that the dishonest
debtor will not endeavor to use its ma
chinery to his advantage and to the detrl-
yet the opportunities under the various
state assignment and insolvency laws were
so much greater and the frauds frequently
SO much more 1agrant. that the federal
law has come to be looked upon as one of
the most beneficent and advantageous to
the business world that has been placed
upon our statute books for many years
Number of Petitions Filed.
Mr.. Brandenburg adds that. as rule the
number of petitions in bankruptcy vary
with the states having the greatest popu-
lation and amount Of business. Thus the
states showing the greatest number of
voluntary petition filed during the last six
months are: Illinois, 1872; New York,
l ,263 Massachusetts, 1000: Iowa, AGO; Ohio,
439 and Alabama, 422; while the lowest
number are shown in the states of Nevada
where none were fled Arizona and Ha-
wall two each, Delaware five, New Mexico
eight and Idaho ten.
OF the involuntary petitions the greatest
number were filed In the following states:
New York, 230; Pennsylvania, 49,; Illinois,
10; Massachusetts, 81; Kentucky, 80, and
Georgia and Texas, 4s each; while in the
states Of Kansas and Nevada no petitions
were filed, and in Hawaii and New Mexico
one each and Delaware, Indian territory,
North Dakota and Oregon two each.
THE COURTS.