Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1906-05-21
BLOW AT DISHONEST DEBTOR
John L. Ksnnedy's Bill Aims to Perfect
Bankruptcy Proceedings.
LAW NOW RECOGNIZED As PERMANENT
business Men, says Omaha Congress-
man, who Formerly stood in Their
own Light Have Come to
See Its Usefulness.
lFrom a star CorresnondentO

From a Stan Correspondent
WASHINGTON, May 0-(special)-A
clear exposition Of the amendments to the
bankruptcy law proposed by him in a bill
introduced in the house last week was
given today by Congressman Kennedy for
the benefit of readers OF The Bee Mr..
Kennedy holds that the bankruptcy law
Is now recognized necessity in the BUSH
ness world, benefiting alike the creditor
and the honest debtor, and his amendments
are designed to make the way of the dis
honest debtor still harder
Asked about the possibility OF the re-
peal Of the present law. Mr. Kennedy said:
The present bankruptcy law is striking
evidence OF the fact that intelligent and
experienced business men frequently stand
In their own light. For many years the
majority OF them persistently opposed the
proposition to enact such a law, and the
passage of the act was made possible only
after long campaign of education. Prior
to its passage the United States was the
only civilized nation without a bankruptcy
law. At the time it was passed the ma
jority OF the business interests OF the
country believed it would serve a tempo
rary purpose only, and then should be re-
peaed In other words, they thought the
bankruptcy courts should be used as so
many clearing nOuSNS TO clean uD the
accumulation of financial disasters and fail
ures, and then they should be closed
again until a new crop had accumulated
Today IS per Ger, Of the business interests
OF the country are in favor Of the\ law
and want it continued as a permanent part
OF the commercial system. This is the
correct theory. Tue bankruptcy law will
not be repealed now, or at any time in the
future
Law IL better Enforced.
"There have been complaints about the
law and its operat ton. but these have been |
traceable not so much TO the law a to its |
execution. When the doors of the bank |
Tuptcy courts were opened, after being |
closed for twenty years, these courts were
filled with debtors camoring for relief |
from their burdens. The majority OF them
had little left but liabilities The law was
new to 1.-The courts, the referees, the
trustees and the attorneys engaged IN the
proceedings. 1t had to be construed. The
Judges, the referees and the trustees were
inexperienced in bankruptcy proceedings.
The business thrust upon them vas so
great that they had little time to invesu-
gate thoroughly the fnan nal affairs of I
the bankrupt and in many cases he was
discharged without having fully accounted
,nly have experience, but they have the
line properly to administer the lAw, aud
hey are getting better results.
Referees Recommend Changes.
"In 1903 the original act was amended in
certain important particulars. and was
greatly strengthened The referees in bank
'uptcy, through their association, last year
recommended certain further amendments,
most or all of which should be adopted
The bill introduced by me in the house TO
urther amend the law deals with four
propositions. 1t provides that IL the bank
'upt makes a false written statement to
obtain credit even though. not made to
he creditor direct, he shall not be dis
'harged If it appears that he made it to
De communicated TO the creditor or TO the
instance II he made it to one
II the commercial agencies. 1t also pro-
'ides that the burden OF proof shall be at
Ill times on the bankrupt TO account for
Ill assets owned by him at the time he
obtained the credit. Both OF these pro-
,osed amendments were recommended by
he referees Taking them together, the
lishonst debtor is caught coming and going
L he has made a written statement sched-
Hing his property, he must either admit
hat the statement was false. or he must
recount for the assets he represented he
ad.
Two New Provisions.
MY bill contains two provisions not ad-
coated by the referees, One is, in effect
hat IL the bankrupt testlies falsely in