Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-08-13

Losses representing many millions Of
dollars, traceable to fraudulent meth
DDS in bankruptcy cases and unrea-
sonable lawyers fees. prompt a wide
spread approval of the recommendation
by President Hoover that the law be
amended, and that present methods be
investigated by the Departments of
Justice and Commerce.
THE main weakness of the American
bankruptcy situation is the enormous
economic waste involved in the opera
ton of the law" declares the RocheS-
ter Times Union, while the New Castle
News believes that Changes seem
necessary If the Nations commerce is
to be relieved Of this ruinous Gag,
and the New London Day predicts "a
tremendous saving to business in gen.
eral If the law can be changed so as
to make bankruptcy proceedings more
secure for society, to make bankruptcy
more often genuine and less fictitious"
The ST. Louis Globe-Democrat con-
cludes, IF, in addition to closing loop
holes in the law permitting the escape
of swindling bankruptS, the investiga-
ton, which will cover 10 of the leading
business centers of the country, shows
the way to a substantial reduction IN
bankruptcy costs, 1t will be well worm
the time and effort"
Nv
York Sun, poison the atmosphere In
which bankruptcy proceedings are con-
Quoted there Is a neutral zone In
which the line of demarcatlon between
a conscientious debtors duty and MS
rights Is difficult to establish, partlcu-
larly in the environment OF suspicion
and distrust created by ever-present
scoundrelism. The department
of Justice will not be obliged to go far
to and evidence of abuses; its flles
contain evidence ample to convince
ANYBODY that the law is not perfect.
It remains only to draft a better act.
Fraud. no matter by whom commit
ted" demands the Memphis Commercial
Appeal. should be so severely punished,
it. But even better will it be If the
opportunities for fraud are closed by
improving the law" The Martinsburg
Evening Journal AYERS that, whether
or not law or practice can be devised
that will check the predatory activities
of the bankruptcy courts and their
Immersion may be question, but GER
tainly nothing could be much worse
than the present condition"
The Philadelphia Evening Bulletin de-
scribes the current action as virtually
q sequel to the disclosures at the in
yestigation made in New York last
year" and adds that the hearings "con-
firmed the charges Of evil practices IN
bankruptcy, now possible under the law,
and against which there has been for
sevsIa years q growing volume of COM
plant from commercial interests" The
Scranton Times points out that hardly
a section of the country but has what
Is known as a bankruptcy ring" and
the Jersey City Journal feels that tine
results of the inquiry should prove
beneficial" adding; If there Is any
thing which interferes with a nice,
profitable racket, 1t is to have the
methods, and particularly the names,
Of the operators made known to the
sucker list. The sucker list in thiS
rackel Is astounding in It's length, con-
tanning, as 1t does, somewhere III the
neignborhood Of 100000 people,"
The inquiry, in the opinion of the
Kansas City Times, is calculated to
lay the groundwork for a wholesome
and long-needed reform" The Rich
mond News-Leader states: Behind
some of the petitions Is a tale of heroic
battle against sickness and poverty.
Some men have not yielded till the fight
was hopeless. Others have walked into
bankruptcy and through it, as II it
were O lawful means Of increasing their
spending power. 1t Is a situation, 50
fraught with danger to the weak and
with temptation to the crooked that It
justifies the inquiry the President pro-
poses to make"
; "A thoroughgoing inquiry looking to
revision OF the statute in essential par
ticulars," says the Roanoke World
News, would reassure creditors as we'll
as give needed protection to those In
financial difficulties 1t would tend TO
save both the Federal Government and
the United States Courts from the
growing suspicion that the present
method of procedure in bankruptcy
cases does not in all instances guaran-
tee equity to all the parties at interest
Condemning the "unscrupulous attor-
neys who ret fat fees at the expense of |
the creditors Of the bankrupt" thu To-