Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1905-04-26
THE aRuLK SALES" LAW.

A law csllcuiateQ 10 eIflpdfIdSS, II
not abolish, the profitable practice OF
putting property in the wife's name"
and other forms of property transfers.
made for the purpose of avoiding pay
ment of just debts has successfully
defended it's constitutionality in the
xNew York court of appeals. The law
known as the bulk sales law pro-
| ivides that the buyer of stocks of mer-
schandise, etc, in bulk shall inquire of
ahe seller the names and addresses of
his creditors, with amounts due to
each, and shall then notify the credi-
Aors, either personally or by registere1
lmail, a certain number of days before
have laws enforcing these require
sments. The New York law further
Iprovides that the purchaser shall give
notice to each creditor of whom the
buyer can get knowledge at least five
days in advance, this notice to be ac-
Golnpanied by an inventory, showing
seller, also the price which the buyer
Proposes to pay; in default Of this.
sthe sale shall be held void as against
the creditors, and the seller may be
convicted of nnisdemeanor for any
false information.
In the case decided failure to comply
with these provisions was charged,
kut a. demurrer was interposed, in
(which the constitutionality of the act
I was attacked. The trial court overruled
this demurrer. The majority opinion
cited the principle that the police.
power Of the state may be exercised
to somewhat restrict the liberty Of the
Individual for the common good. The
act in question was designed to pre-
vent debtors from fraudulently dispos-
ing of their assets upon which creditors
have at least moral lien.
At least twenty-one states have en-
acted such laws, some Of which are
almost identical with the one under
review. Transactions In the ordinary
course of business, the course con-
templated when the original owner
parted with his goods upon credit, are
not aimed at; nor does the law attempt |
in the unusual method Of in bulk =
1t merely requires certain formalities.
otherwise the sale will be void as
against. creditors. Yet the act does not
even make nom compliance with these
requirements a punishable neglect. If
.ssr3e vendor pays his debts the sale
lands and he is subject to no penalty,
hough he has not complied with the
tatute; it is only when he does not
pay that the transaction is open to at
lack In Massachusetts,, Washington,
sConnecticut, Tennessee, Maryland and
Wisconsin, says the court, substan-
TALLY the same provisions have been
held constitutional; but in Ohio and
Utah similar legislation has been de-
clared unconstitutional, in the former
state as being discrimination in favor
of a class of creditors and a restriction
upon trade. The New York court, how
ever, sees no unconstitutionality and
considers the object wholesome AMI
the provisions not unreasonable. 1t
merely puts a substantial obstacle i'll
the way of a dishonest vendor who
wants to dispose Of his stock in an
unusual manner, in order that he may
I've the proceeds, to the exclusion
is creditors; nor can it be success
Gy claimed that there is discrimina-
ions for sit is sufficient if statute
hpplies equally and uniformly, as this
one does, to all citizens who are SIM
dlarly circumstanced."