Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1911-10-30
BANKRUPTCY EVILS
To Be COMbATED
BY ORGANIZATION
National Legal Reform Associa4
ton to Follow Up Cru
SADIE of STAR.
MANY PROMINENT MEN
INTERESTED IN WORK
Attorney General Wickersham
Is Closely Identified With
Latest Movement.

As the result of the disclosures made
by the STAR concerning the bank
ruptcy practises here and in other
cities, and the apparent existence of a
bankruptcy ring" a movement that
will remedy these conditions has been
started with the aid of Attorney-Gen-
eral Wickersham and cooperation of
prominent men all over the country.
This movement takes the form Of an
organization which will insure cleanli-
ness in bankruptcy matters and abol-
ish the cause for the numerous protests
made against bankruptcy practises
through the STAR.
That the situation is a grave one is
fully demonstrated by the drastic
action recommended in the following
objects of the organization:
I~.-ConpIete investigation by the Fed
erai Department of Justice of fraudu-
lent and coIlusive pracfises against
the Federal laws In all states. aud
bankruptcy abuses In particular.
2.-PromuIgation by the United states
supreme Court of rules Tor by amend
ment of the, bankruptcy actD govern
Ing the selection of trustees and Mt
torneys In bankruptcy, to prevent
wv
notice TO all creditors and throwing
out of claims on technicaIities not
affecting the merits.
3.-PromuIgation by the United states
supreme Court of rules Cor by amend
ment to the bankruptcy nett reguIat-
Ing the fees of attorneys and trustees
In ha~nkruptcy according 10 law gov
erBing attorneys fees In general,
business reasons and Justice. prevent
Ing excessive fees and preventing fees
without due and Just consideration.
4.-Preycntion of ba~nkruptcy by CO.
operation Of the irnde associations In
all lines with their members, simitnr
TO banks In times of panic tor by
amendment 20 the bankruptcy act
through n bureau of adjustment with
out bankruptcy. to tide over and
make settlements in each line of
trade through experts. who can Sc
cure better results for creditor and
debtor than lawyers whose only re-
course In their ignorance of the bust
ness II destruction; educating busi-
ness men 10 appeal 10 their assocla-
tioDs. To avoid and resist the efforts
Of attorneys seeking aud soliciting
claims 10 throw business concerns
into bnnkrUptcy, wRntonly destroying
credit and propert. values, when they
could he saved with ordinary i%ntcIII-
gent business management
Is Natonn Association.
The National Legal Reform Asso,
citation is the title of this new organiza-
ton. Designed to act nationally the
scope of its organization is such as
to insure that it will delve into ever
the smallest matters and will turn
its white light into corners the dark
ness of which has been of the order
to positively demand such an organiza-
ton ii VIII be directed by mon ma
~ritoasify~ knowT, who have been aroused
by the evidence presented to them of
evil conditions in the bankruptcy
courts.
These men will serve in the presi-
dency, in five vice-presidency chairs
in an executive council which is to
be formed of representatives of thirty
commercial bodies. ON a judicial and
legal council, composed OF fifteen
judges and fifteen lawyers, and on a
national conference board, made up OF
five delegates from each State.
Although a reform in bankruptcy pro
cedure is not the sole object of the as
ISOLATION. its platform of objects minees
no words in showing practically that
almost the only reason for the existence
of the organization lies in the matter
of bankruptcy reform As a matter of
fact, Charles Freeman johnson, who
is the present director of the a%ssocia-
ton, has indicated hat the cohesion
of this legal reform movement has
been brought about by readiness that
was manifested to do something to
overcome the bankruptcy evil 1t
was on this account, he said, that At
torney-General Wickersham interested
himself so largely in furthering the
move
The closeness of the attorney-ge gen.
erals interest is evidenced by the fact
that his son, Oscar, is to be one Of those
who is to be actively identified with It.
Also numbered among the officers of
the organization are probably to be
Elihu Root, jr.. Chief Magistrate Will
lam McAdoo, of the board of city mag
istrates of New -ork; James M. Reilly.
secretary of the Newark Board of
Trade; DR.. Addison B. Poland. city SUI
perintendent of schools, and John Cot
ton Dana. librarian of the Newark Free
rublic Library.
Pays Tribute TO STARS Work.
Mr.. Johnson, director of the a~ssocia-
ton. has paid tribute to the STARS
work as being responsible for the wide
spread interest which he has found in
the new organization.
Washington" he said. st was as
sured by the Department of Justice
that whenever cases of abuse against
any federal laws were presented they
would be given immediate attention.
THE STARS articles on conditions
attending bankruptcy cases in Newark
and its remarkable tabuiated state
ment of 200 bankruptcy cases, showing
112 cases controlled by a favored clique
who seemed to have been able to OBJ
tain advance tips, have created COM
ment throughout the country and have
made it comparatively easy for me to
interest prominent men in the associa-
ton and the prosecution &C its OBJ
jects.,
There seemed to be to them in this
table a most astonishing repetition of
the names of Harry V. Osborne. Bilder
& Bilder. ]. Tracy Horton and the rest
of them The recent publication in the
STAR of a defense of his practise in the
bankruptcy court by Mr.. Osborne was
also presented to me by some of those
%nationall.- known, who have seen ii
as a most remarkable document. And
in this co ection j am reminded of