The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1905-06-21

one-fourth in number and one-third in
value of his creditors, might obtain dis
charge it HE paid 80 per cent Of his
debts. The involuntary bankrupt might
obtain discharge without consent and
without reference to the. amount paid.
factory, wasteful and detrimental to in
terests Of creditors. 1t was repealed
June Z, 1873. What made this act espe-
cially oppressive was the fact that dur
ing it's life the country was passing
from the infated-paper basis to gold
basis contracting the volume nm and h rails
of this burden fell largely on the debt
ors and aggravated their embarra.s-
ment.
Urged New Measure.
Within few years after the repeal
in 1878 the commercial classes began
to feel the need of national bankrupt
cy law. State insolvent laws were ex-
pensive, unsatisfactory and delusive,
and no two states had similar laws.
State attachment laws involved mere
he who was first got something, while
they who followed often got only costs
and attorneys fees to pay for their
pains. An organized movement was
started for a new law, and the Torrey
bill was drafted at the instance of
| this organization. It had most of the
bad features of the 1867 bill, and s. in
some features was more drastic. Its
| schedule of fees was also too high. 1T
was pending for several years, but
never got enough votes to pass both
| houses.
This bill was pending in the senate
when Senator Nelson first took his seat
him to take hold and aid in the passage
Of an act to relieve unfortunate vic
tins Of the panic, who were helpless
and unable TO gam new fo0thold De-
cause of watchful and merciless credi:
tors. Tt was manifestlY for the good
Of the community to allow these men
to take a fresh start in business. Sen;
atOr Nelson made a canvass and found
that the T'orrey bill could not pass
Neither could the George bill, which en-
braced only voluntary bankruptcy. Sc
he prepared q bill of his own, devoted
manly to- voluntary bankruptcy, but
also containing some provisions for in
voluntary proceedings. He prepared the
he thought it would pass. He intro
duced it, but the Judiciary committee
reported the Torrey bill. On the foo1
he offered the Nelson bill as o substi
tute, and got it accepted. The senate
passed the bill, but the house gave il
no consideration at that session. At the
Torrey bill fer the senate measure, an(
passed it. The bill was then referred
to conference. Judge Ray of New York
one Of the house conferees, and Senator
Nelson were intrusted with preparing
the conference bill, and they drafted {
compromise. It contained the provisions
Of the Torrey bill as to procedure, ant
under which discharge was to b,
granted, penalties, fees and costs, will
additions as to grounds for involun
tary bankruptcy.
Purposes Of Measure.
The chief purpose of bankruptcy Law
is, first, to put all creditors on q, foot
the bankrupt honestly and truly turn
over all his property to his creditors h
can obtain his discharge, SO that he ma,
be able, unembarra ssed, to take new
start. The advantage to the creditor
is that they sequester and secure. tn
entire estate Of the bankrupt on foot
ing of equality without preference t.
is that he gets complete absolution an
can, with freedom, begin anew.
The present law made quite chang
in the provision as to what constitute
insolvency. The 1857 law would fore
a man into bankruptcy, no matter how
much property he had, if unable at tina
time to make payments. The law nov
provides that: is -...
" A person shall be deemed insolven
I whenever the aggregate Of his property
exclusive of any, property which he ma,
d have conveyed, transferred, concealed O
removed. or permitted to be. conceale,
or removed, with intent to defraud, hin
der or delay his creditors, shall not, a
a fair valuation, be sufficient in amour
to Spay his debts''
But for this provision, the crop 0
bankrupts during the panic times woul
have been immense and startling.
: Under the law, no person can now be
, come a bankrupt unless insolvent a
defined in the act. A person, but not
! corporation, may become a voluntar
bankrupt. Corporations are exempte
because in such cases bankruptcy woul
, involve practically dissolution, and
was dangerous to allow the officers @
. corporation to PUT it into bankruptc
without the consent of creditors an
? stockholders. a-s...,"- ~. ..s~r.-. =, d.
a.