The Providence news. (Providence [R.I.]) 1891-1906, 1906-03-22
BARROWS TALKS
or BANKRUPTCY
Law Designed TO Protect Both
Creditors and Debtors.
SQUARE DEAL ITS THEORY
0InsyMle Business Mems Association LIS.
tened 10 Able Adde'S and Appointed
Important Committee
SQUARE DEAL ITS THEORY

There was large attendance at the
meeting OF the Olneyvilie Business Mems
association last evening, when Chester W.
Barrows gavo an interesting address on
the bankruptcy laws, in which he gave
the association much valuable advice and
stated that a movement was on foot TO
draft federal bankruptcy system Mr..
Barrows spoke in part as follows:
"All nations have some dominant trait
and We are no exception TO the rule. No
keen analysis is needed TO discover that
feature which especially marks our peo-
pie With aptness for many things. the
talent of the American people has taken
for its special province the development
OF commerce and trade. Into this channel
has been poured the quick wit and the
inventive genius and the executive power
Of the best element OF the American man
hood
This genius for business explains our
tremendous industrial development and
the present problems arising therefrom
arc the natural result Many are the
methods proposed to solve the business
questions confronting US. hut diverse az
are the means suggested, all have the
same objective end namely, the fullest
opportunity for the development OF the
individual consistent with the welfare of
all.
1T may be assumed. then that all laws
relating To the business should seek TO
attain an equal chance foT all competitors.
No human law can be drafted which In
every case Will prove satisfactory, nor
can any law be enforced which rises much
higher than the average moral sentiment
OF the business world. Our problem, there
fore ia 20 have such laws and to keep
them In such condition by amendment
that they will constantly represent the
highest development OF commercial in
tegrity.
"As long as business is done there will
be failures. They are like death, un-
pleasant 10 contemplate, but just as cer-
tain TO occur They will arise from In
competence. inexperence. negligence,
sickness, dissi patton, dishonesty and other
causes. some within and some beyond the
debtors control
There are two traits i'm human nature
10 consider I'm its solution: First. the in
stinct OF self-preservation In the debtor
and the desire OF the creditor to protect
himself. Creditors no less than debtors
are often willing TO adopt measures and
methods approaching closely 10 the verge
OF dishonesty, and 10 feel that the end
tustlfes tho means. III s the old struggle
OF the individual against society. The inn
portance, the necessity and the extent OF
credit are we'll known 20 you. The great
problem from the standpoint OF the credi-
tors OF the insovent is how best TO secure
an equal distribution OF the estate among
the creditors. There arc but three meth
ods possible OF distributing TO the cred-
tors the assets OF the insovent person.
The first is by compromise. tho second is
by what Is known as the common law as
signment. and the third is the bankruptcy
law either uniform like our national law
or state such as existed in about 13 states
prior 20 1895.
"In trying to reach the answer there arc
s.g, - ..g.tz
borne in mind. They are first, tho square
deal as between the debtor and his credit
ors. uniformity and certainty I'm the laws
controlling business failures. and public
ity In handling these matters. Which Us
tho better way TO settle the estate OF an
insolvent, the common law assignment or
tho bankruptcy law? We must have one
OF these two in order 10 answer our aues-
tion and show what good u bankrupcy
law really Is. Every one familiar with the
securing OF legislation is aware that n is
impossible 10 get a uniform law upon any
subject through all the legislatures OF the
country
The assignee is always the choice OF
the debtor. His interests arc nearly al
ways akin to those OF the debtor rather
than those OF tho creditors whose prop
crty he Is administering II Is for him 20
say whether or not the creditors shall
receive the information as 90 handling
tho estate and how much. lie has no au
thority 20 grant the debtor n release nor
has he any right to compel the debtor 10
answer tho questions properly put 10 him
by the creditors. Tho assignee Is thus
seen 10 be IN some respects an autocrat
and in others 20 be a helpless child We
have not I'm this country been able 10
learn from the experience OF other coun-
tries but Il Is 90 be hoped that we are
growing wiser.
mo one will claim that the law is per- !
feet and works eauitably I'm every instance |
but II is claimed that II Is built upon |
basically correct principles. namely pro- |
tectlon for the creditors and for the |
debtors on the voluntary ode ~ the act. !
any person who owes debts, be they great