The Providence news. (Providence [R.I.]) 1891-1906, 1905-12-02

state authority. but distinctly as / have
stated above under the common law prin-
ciples.
Fourteen states had insolvency systems.
That Is etate laws controlling distribution.
preventing preferences AID granting limit
ed discharges TO those debtors seeking to
take advantage OF them.
Among these IA states all OF our New
england states were Included. but not
New York, Illinois. New Jersey. Della
ware, ohio. Indiana and Others Of our
great commercial states. II Is 10 be
noted, too, that the laws In the various
states were most radically different.
COULD FAVOR CREDITORS.
In 80 Of the states and territories pro-
ceedings were allowed whereby "A debtor
could select the order I'm which his
creditors or classes OF creditors could be-
paid. and I'm some OF the states this prlvi-
lege even went SO far as TO select tho
individual order I'm which payment should
be made.
An examination OF Mr.. Hotchklss' cd
mirable pamphlet entitled Interstate
Chaos can leave no one In doubt ~ 10
the desirability Of a uniform system, both
OF law ana administration. I'm the various
states and the practical imposslbility OF
reconciling them. II is no answer 20 the
argument for n uniform system through
NN' Al' AVNflAA n W say wv nNA - hNUh
system I'm Rhode Island or I'm New Eng
land. The question for YOU f. was the
system good I'm every state into which
your goods were sent. Business CO.. no
longer be confined within the lines OF one
or seven several states, and IT r. vastly
important 70 every one or us not
0nly 10 know that the law IN these
matters Is satisfactory wherever we
arc doing business. hut also TO know what
that law IL without retaining a lawyer
I'm every state 10 keep us posted. The
futility OF the attempt to agree I'm funda-
montsls I'm so simple q matter ns some
uniform divorce legislation, and the diff
Guilty f. getting n uniform bills and notes
act IL conclusive proof that a uniform law
with so many ramihcations as a bank
ruptcy law could not he gotten through
the various state legislatures. Moreover,
no state can impair The obligations OF con-
tracts and hence cannot discharge q
debtor from his debts II outside the state.
II was 90 bring order out OF this chaos
that n national uniform system came into
being 1t is 10 keep this order that It
should I've preserved.
CHINA HAS NONE.
II is interesting TO note I'm connection
with an insolvency system that there Is
not a civilized country on earth that does
not have n bankrupt system as part Of ite
permanent jurisprudence. China Is one
OF the very few countries which has no
such system. it's law being that a man
who fails for from $500 to 5000 shall he
banished. and one whose failure Is for
over $4,000 shall be beheaded Guadeloupe
and Siam also have no such laws. ! think
we may say with safety the United tates
does not care TO class itself In the group
represented by China. England has had
a bankruptcy law since 1912 without a
break. There arc such laws In Austria
Hungary, Belgium, Bolivia. Brazil, Gotta
Rica, Denmark. France. Germany, Guate-
mala. Haiti. Honduras. Ireland. Italy. 81
IBERIA, Mexico. Netherlands, Norway,
-Roumania.- Russia Scotland,
Spain, Sweden. Turkey and Uruguay.
The United states has had "A national
bankruptcy system from 1900 20 1903, from
is4i ~ ls,3, from 1867 TO 1878 and from
1885 10 the present time. The first two Of
these laws were wrecked by the diff
culties Of travel, rendering the United
States courts inaccessible, together with
the mixing OF the ~desirability OF such a
law with politics.
The act OF 1857 and It's fate because of
tho exorbt,ant fees which were allowed
Continued OF page Five.