The Brunswick news. [volume] (Brunswick, Ga.) 1906-2016, 1910-03-06
BRUNSWICK IS
INTERESTED IN
BANKRUPT LAW
AMENDMENTS HAVE
ATTRACTED ATTENTION IN
THIS CITY.
A More Uniform Measure Should be-
Adopted Seems to be the General
Opinion-Some of the Proposed
Amendments.

Brunswick lawyers are interested in
the o~eIley Dni, pending before the
present c.n5le.,s, LAe oOJec, ot which
Is TO amend the banifU. .tcy lA,v. The
->atloual Association Ut U.eu-t Men,
which association Is on rcu--l DIS De-
ing in favor OF the le,entiCl .! ,e law
dGter elete years eAYe- Iel.U. VI It's
operation, bGJ believe II c4n DG .Jel-
tered by tne amend .uens ......sed.
Hhe Sherley bill has been repor ed Ia
Vcra6ly by the judiciary committee of
the house. Congressman Brdntley, OF
this city, is member " .--. lit
tee so reporting.
One of the most valuable of the pro
posed amendments is to allow com
position, or settlements, between deb
tor and creditors previous to any ad-
Indication, under the superintendenca
of the court, and without the stigma
of actual bankruptcy. 1t is taken from
the English bankruptcy act of 1896.
which provides for what are tecni-
cally called schemes of arrangement"
and stimulate ofliial settlement, COM
pulsory upon all creditors, when a civ
Ell proportion in number and am unt
shall have assented. Very often the
leading creditors and the debtor are
willing to enter into such voluntary ar
rangements which provide for exten-
sions, etc., outside of court but these
are difficult to bring about because
there are always some creditors who
demand full payment and refuse to
enter into such arrangements. 1t
/ leaves it in their power to kick out
of the traces and precipitate a bank
/ ruptcy which is disastrous to the gen
eral creditors.
The proposed amendment will per-
after the filing even of an involuntary
petition, accomplish it in a speedy
manner and greatly decrease the cost
of court administrator.
I Another amendment is to reduce
and confine the compensation of re-
/ ceivers to a commission basis, and
/ this is to be reckoned on the actual
assets and net on the inventory value.
{ Another amendment broadens the
present law s. far as it affects cor
porations AS that law now stands,
creditors can proceed against only
corporation engaged principally in
manufacturing, trading, printing,
publishing, mining or mercantile per
! suits" There is no good reason for
these distinctions and they have led
to much litigation, confusion in de-
cisions and wasting of assets. In
New York, for instance, a corporation
which constructs bridges and piers is
liable to bankruptcy, but in Virginia
such a corporation is not. A hotel
corporation, which also runs a bOr-
room, is amenable, but restaurant
corporation, which does the same
thing, has been held not; a laundry
company which launders new shirts
collars and cuffs for company that
manufacture them is amenable, bu'
a smaller company, doing a general
laundry business, is not; while it has
been held that a company which buys
and reservoirs water fcr distribution
to it's customers cannot be adjudSed q
bankrupt, and yet a company which
gathers and buys ice for the same pur
pose may be.
To correct these varying interpre-
tations of the act the amendment pro
vides tnat ANY monied business, OF
corporation, except municipal, rail
road, insurance or banking corpora
ton may be adjudged an involuntary
bankrupt.