Evening star. [volume] (Washington, D.C.) 1854-1972, 1909-02-07
Pleas for Repeal.


Pleas for Repeal.
Mr.. Clayton in speaking to his PROPOSE
ton declared that The bankruptcy law
had served its day of usefulness, and
was the subject OF more complaint than
any federal statute eXtant. He declared
it never was intended TO have perma-
nent bankruptcy law. Should crisis
law to meet it.
Z hope, he said in conclusion and
amid democratic applause. the next four
years will give us an era Of prosperity
and peace and of observance of law. and
that We will have no need for any bank
ruptcy legislation"
Maintaining that everything that
could be accomplished by the law had
long since been accomplished Represent
ativc De Almond of Missouri supported
the Clayton amendment.
Let us vote on the side of mercy
once he exclaimed. let us turn once
SO far as this bankruptcy law is con-
cerned. from the side of Shylock and do
something for Shylock's suffering vic
Tins.
Representative Tirrel of Massa chuSetts
who signed the majority report recon-
mendinS the amendments 10 the bank
ruptcy law. spoke in support of them.
ruptcy law of some kind whose object
was to prevent the ineouita bic distribu-
ton of property by debtors.
Representative Sherley Of Kentucky,
author of the bill containing the amend
ments. took the position that it was his
toricaily inaccurate for any one to say
that the primary purpose Of bankruptcy
law was to provide an avenue of escape
for debtors. He made an exhaustive ar
gument against that contention.
Wh 10
Representatives Kefer tOhio) and STAFF
ford wisconsin,. Those who supported
the Clayton amendment to repeal the
bankruptcy law absolutely were Repre-
sentatives Lands Undiana). Reid CAR
Kansas. Henry CTeXas) and Brantley
Georgia..
Provisions of Bill.
The bill passed yesterday is designed
to correct certain inequalities in the adj
ministration of the bankruptcy law in
various parts of the country, and amends
the law by regulating the duties and
compensation of receivers in order TO pre-
vent excessive fees.
1t also provides that any moneyed bust
ness or commercial corporation, except a
municipal railroad or banking corpora
ton. can file a petition for bankruptcy.
thereby eliminating the discrepancies
which heretofore existed where some
court decisions barred many corporations
in one circuit which would be admitted
into bankruptcy in another. and restores
the language of the act Of 1861, which
has been fully settled by decisions OF the
courts.
II provides further that in any COM
position proceedings il will not be neces-
sary to have an adjudication where a
composition is affected. thereby removing
the stigma of bankruptcy which always
attaches under such circumstances. 1t
prevents a few creditors from forcing. by
involuntary proceedings. debtor into
bankruptcy and then. after receiving Sc
cretly their additional compensation or
otherwise. adjusting their affairs with
bankers, in order to have the petition dis
missed without the knowledge of the
other creditors: it enables a trustee, with
the consent of the creditors. to appear in
their behalf in proceedings in court con-
nected with his discharge. thereby lessen
ing the expense by separating il from the
whole estate.
1t confers ancillary jurisdiction so that
all the assets of the estate can be mar
shaled substantially in one court, there
by obviating the filing of suits in differ
ent courts where the property might
happen to lie. 1t provides, also, that If
a creditor has reasonable cause to believe
that he was receiving a preference that
shall be d bar to the debtors discharge.