The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1905-06-21
Senator Nelson on the Bank
ruptcy Law. =, 5->se..

The present bankruptcy law went
into effect July l., 1898. 1t was de-
vised and enacted following She depres-
sion beginning in 1898 and was intend
ed to clear up the wrecks of the period
Of stress and disaster thru which the
country had just passed. l. has now
been in operation. seven years, and the
clearing-up process has been pretty
thoroly done. The question now is
whether this bankruptcy law should be
repealed or modified, or whether liqui-
dation by insolvents should be done
under state laws ~ ~
Senator Nelson, who was the author
of one of the bankruptcy bills debated
5 by the house and senate IN 1897 and
I 1898, and to whose bill ths compro-
mise bears closer resemblance than to
any other, addressed the Minnesota
Bankers association today on the sub
ject Of the bankruptcy law. A synop-
Sis of his address is given In another
column. =.
: In his usual thoro and exhaustive
style Senator Nelson went at consid-
cradle length into the history Of bank
{ ruptcy legislation in this country, be-
ginning with the first bankruptcy act
, passed in 1900. He traced the history
of legislation on this subject down thru,
the acts Of 1S41 and 1867 to the pres
emit time, and concluded by..contending
for the maintenance Of a national bank
ruptcy law.
This, he says, Is the custom Of all
the great commercial nations Of the
world-to have a general system and
"to remit the large commercial, manu-
featuring and financial interests of our
great country to forty-fve different
state insolvent laws, is not only, from
a broad national standpoint, compared
with other nations, humiliating, but ii
is also unjust and disadvantage and
drawback to these great interests" ~
He called attention to the abuses
which are possible under orr state in
solvent laws, to the tendency to allow
enormous fees to receivers and attor
neys, out Of all proportion to the rea
service rendered, and to the fact thai
in this state district judges have ever
resigned their places for the sake Of
being receivers or attorneys Of insolvent
estates. The interest Of the creditor
he contends, is altogether on the side Of
liquidation Of the insolvent in fedora
court of bankruptcy rather than thru
proceedings in our state courts.
The federal system is the only ont
which provides for fair and Impartial
distribution Of assets among CREDITOR
and the loopholes of escape for the dis
honest debtor are less numerous and ac
cessible under federal regulation. TIL
interests involved are not limited b,
state lines but require that broade
and more general view be taken for tn
protection Of claimants for whateve
part Of the country they may presen
themselves @
The question is one Of great import
ance thruout a great country who's
commercial and financial operations pa
no attention to state lines but are cor
Quoted as if the whole country wer
one field Of commercial operations
The currents Of traffic and trade,
said the senator, I" throb to the utter
most limits Of our country and we ar
all sharers to greater or less exten
in the general prosperity. Uniformit
and certainty in the administration 0
insolvent estates ought to prevail thrr
out our entire country. This is to tn
interest of commerce In general and
best secured thru national banl
ruptcy law