News and citizen. [volume] (Morrisville, Vt. ;) 1881-current, 1903-04-22
The RankruntcY Law.


ruptcy law. The United States gov
eminent has passed four such laws,
most of which were not on the stat
ute books long enough for the people
to realize whether they would retain
popular favor or not The first act
was passed in 1900 and repealed in
1903. The second act, passed Aug.
10, 1871, was repealed March Sd,
1S43, i'll less than nine months. The
third act, passed in 1867, was re-
pealed in 1873. The present law was
passed in 1898 and stood four and
one-half years before an amendment
was made thereto.
Erroneous impressions areliable to
gain Roadway of any new law placed
upon the statutes. Forinstance, the
present Bankruptlaw. tits thought
by many to be very expensive way
to close up an estate, and the burden
OF such expense must be borne by the
state, and indirectly by the creditors,
as there will be just so much less to
be paid in dividends. The facts are
that one end the trainers of the pres
ent law had in view was to cut down
so far as possible the cost of admin
istration. The assignee, or trustee,
as that officer is known in bank
ruptcy parlance, is chosen by the
creditors; the filing fee of the trustee
is five dollars; he is allowed necessary
actual expenses and a small per cent,
on disbursements, which is fixed by
the act itself. 1t is within the iuris-
diction of the court to authorize the
business OF bankrupts to be conducted
for limited periods by the trustee, if
necessary, by the best interests oft the
estates.
The Trustee is vested with title to
all property of the bankrupt, which
prior to the filing of the petition he
could by any means have transferred
or which might have been levied upon
and sold under judicial process
against him. The Trustee and all Of
hcers of the court are under bonds.
The law provides that at the first
meeting of creditors, and at such
other times as the court shall order
the bankrupt shall Submit to an
examination concerning the conduct
ing OF his business, the cause of his
bankruptcy, his dealings with his
creditors and other persons, the
amount, kind and whereabouts ofhis
property, and in addition, all mat
tiers which may affect the admins
tration of his estate;" and if having
concealed while bankrupt, or af-
ter his discharge, from his Trustee
any OF the property belonging to his
estate in bankruptcy" he shall be
punished upon conviction by impris-
onment for period not exceeding
two years, and refused discharge.
There are many commendatory
features of the present law, which
cannot be enumerated here, that
make this one of the best, if not the
best, bankrupt laws ever enacted. 1t
is true that all laws meet with some
opposition, but that this law is held
in favor by the business men of the
country can hardly be doubted. In
speech by Mr.. E. A. Young, of St.
Paul, Mimi, former president of
the National Association of Credit
Men, delivered at Milwaukee in Au-
gust last, latter four years under this
law he remarked that "the entire
influence, so far as it has amounted
to anything, of the four thousand
members of the National Association
of Credit Men has been in favor of
the retention of a bankrupt law" In
speech by Mr. H. M. Battin, Presi-
dent of the Milwaukee Credit Associ-
alton, at the same time and place, he
remarked " A federal bankruptcysys-
TEN, in our opinion, and from our ex-
perience in every respect, is the best
method for the administration of in
solvent estates. 1t not only gives
better control of assets of creditors,
is less expensivein it's administration,
prevents the possibility ofpreferences
and other frauds; butt also prevents
failures for the reason that under
some assignment laws it was posi-
BILE for creditors to force preferences,
which conduct is now prevented un-
der the bankruptcy system, and such
creditors are thus obliged rather to
assist and uphold an unfortunate
debtor than cause his faiiure-such
action practically being the means of
leading to eventual success such un-
fortunate debtor. Dividends realized
are more equitably divided. "