Evening star. [volume] (Washington, D.C.) 1854-1972, 1902-06-17
To Amend Bankruptcy Act.

The House then entered upon the con-
sideration of The bill to amend the bank
ruptcy act
Mr.. Ray, in charge of the bill, said that
20OOO resolutions and communications from
manufacturing and producing industries,
merchants, credit mems and other business
associations, lawyers, judges and business
men generally, approving the existing bank
ruptcy law, asking its retention and APP
proving the amendments suggested by, the
bill, had been before the judiciary commit
tee. The amendments proposed, he Said
were not numerous, but were such as
perience demonstrated to be essential for
the more efficient execution of the law ard
the protection of all interests involved.
Mr.. Ray said that 80 per cent of the re-
plies to inquiries he had sent broadcast
over the country favored the retention of
the present iaw, per cent desired it re-
pealed or amended in accordance with the
provisions of the pending bill and 3 per cent
desired 1t amended. He explained fifteen
amendments proposed to the law the most
important of which, he said, remedied a
defect in the present law regarding prefer
ences. Under the Supreme Courts decision
in the case of Pirie against Chicago Title
and Trust Company the court held that
payments made in good faith after actual
insolvency, though in due course of trade
without Intention of making preference
who received such payment could prove
the balance Of his debt. This never was
intended by the trainers of the act Mr.
Ray said, and was the cause Of 90 per cent
of the objections to the law.
Mr.. Clayton (Ala.), In opposing the BILL
declared that the present act was the most
drastic and oppressive law ever enacted, so
far as the unfortunate debtor was con-
cerned. He suggested that nearly all the
circular letters sent out by the chairma n
of the committee had gone to wholesale
merchants and jobbers, referees in bank
ruptcy and other court officials Interested
in the cost features of the law He believed
the law shrould be repealed instead of be-
Ing amended, and gave notice that at the
proper time the minority would offer as a
substitute a bill to repeal the existing law
in toto. He did not think there was any
necessity or general public demand for the
longer retention of the law upon the statute
books, and he believed the public interests
would be subserved by its repeal
Mr.. Clayton criticised the amendment
which proposed to give corporations the
right to go into voluntary bankruptcy.
Mr.. DeArmond Favors Repeal.
Mr.. DeArmond (Mo) also opposed the bill
and favored the repeal Of the present act.
He said he was one of those who believed
that any bankruptcy law should have a
limited life and that no law should be en-
acted except after periods of depression to
relieve those overwhelmed with debt I'm
der no circumstances did he believe bank
ruptcy law should be created to enable
creditors to bear down upon debtors. 5
MIR. DeArmond at the conclusion off his
remarks offered an amendment to strike
out all after the enacting clause and to
substitute a provision for the repeal of the
existing bankruptcy law.
Mr.. Ray made the point of order that the
amendment was not germane.