Americus times-recorder. [volume] (Americus, Ga.) 1891-current, 1910-02-25
AMENDING THE BANKRUPTCY
LAW.

A bill, drafted by Congressman Sher-
ley, is now before the House, its pur-
pose being to remedy certain imper-
fections in the existing bankruptcy
law and to meet the complaints Of
the business interests generally that
the law as it now exists is unnecessa-
rily expensive in its operations and
unfair to the interests of the creditor
class.
There is a strong feeling through
out the country that the federal bank
ruptcy law should be abolished in its
entirety. The Democratic members Of
Congress are said to be mainly inclin-
ed take this view Of it. They insist
that the legislation was intended to
meet a temporary need, that its pur-
pose has been served, and that the
time has now come to repeal the sta
tute until such time as conditions may
again demand legislation along this
line. Opposed to this are those who
inscist that uniformity Of bankruptcy
proceedings is of vital Importance to
the business interests of the country.
that this has not been secured through
ctate legislation, and that the best
procedure is to meet alleged griev-
ances with notifications of the federal
law as it now stands. This latter
reasoning will doubtless prevail and
some amendments to the law are re-
garded as inevitable.
To meet the chief outcry against the
law as it now stands, that of wastefuI
expenditure of the proceeds of bank
rupts, through too liberal a use of the
power of the courts to pay. receivers.
and other officials living off of bank
ruptcy fees, the new legislation con-
, templates a system of commissions.
based on the moneys realized, limiting
the maximum amounts that judges can
grant instead of leaving compensation
to the unlimited discretion Of the
courts as it has been. In the past. it
is claimed, court favorites have fire.
quently received compensation out OF
all proportion to the services rendered
and the amount of money involved,
the result being that creditors have
received little or nothing from the
bankrupt estates. Once this complaint
is removed the federal system viii
doubtless receive a more hearty sup
port from the commercial interests of
the country.
There is unquestionably good
grounds for the grievance referred to.
In many instances, it is claimed by
those in position to know, almost the
entire proceeds have been squandered
in court fees and other expenses, so
that creditors have seen their claims
entirely dissipated. The injustice of
this is apparent Men who ordinarily
could not command S. or $40 a day
for their legitimate services are paid
almost fabulous amounts because they
have been appointed receivers. In diff
ferent court jurisdictions the fees
have been as far apart as the anti
podes. Lawyers assert that in some
districts the expenses attached to d
bankruptcy case have been twice CT
even three times as much as in other
districts. The proposed amendments
to the law, strictly limiting and defin-
ing the amounts to be paid, will cure
all this and give to the system the I'M
iformity that it should have. The idea
of a bankruptcy proceeding is TO pro-
tect the interests of creditors, but
this seems to have been signally lost
sight of throughout the country if the
complaints are we'll based.