Evening star., 1933-02-18
HASHNGSEXP[A|NS.
BANKRUPTCY BILL.
Senator. in Forum Talk,
Tells of Effort to Protect
Debtor and Creditor.

vidual and corporate debtors in the
United States, were discussed by Sena-
tor Daniel o. Hastings Of Delaware in
the weekly Radio Forum arranged by
The Washington Star and broadcast
last night over the Nationwide network
Of the National Broadcasting Co.
Dealing with proposed legislative
means of granting, relief to debtors.
Senator Hastings said it was the inten-
ssts of both debtor and creditor.
Creditor Interests Guarded.
Bearing in mind" he said, that the
debtor class is somewhat more seriously
affected than the creditor class, this
bill undertakes to give the debtor some
relief, and those of us who have given
it careful consideration believe we have
done no real harm to the creditor. In
deed, if all of the sections we have
given consideration to could be adopted,
we are satisfied that we have done a
real service. to the creditor as well as to
the debtor"
Relief to corporations and to railroads
was described by the Delaware Senator
as OF vital Importance to the country.
He declared that in providing relief for
corporations the bill not only requires
no expenditure of money, but it tends
to conserve the assets of the corpora
tion IN the interest in many instances,
OF the public generally, but in the par
ticular interests that it serves are the
security holders"
Railroads Considered.
May I say in conclusion" Senator
Hastings said, that while all of us are
anxious to do something that will be
helpful to the individual debtor and to
the farmer, who are in distress, I think
it Is well to remember that the pros
perity of the railroads and the pros
perity of the great industrial corpora
tions are essential in order that we may
protect another great class who will
not make application for relief under
any of these sections"
This class, he pointed out, is COM
posed of those people who have not
been able to even reach the point of
becoming a debtor because their con-
dition has been such that they were
compelled to pay cash for all that they
have received"
The legislation proposed will aid this
class, together with all others, he point
ed out, by bringing about revival of
activities of business in general and
Twill undoubtedly, directly or indi-
IcCtly, lInpIOVc Tile COllu1IlOIlS Ol HILL
lions of our citizens"
Text of Hastings Address.
The text of Senator Hastings address
follows:
During the present session of the
Congress there has been much discus
sion in the public press on bankruptcy
legislation which has been under con-
sideration during this session by sub
committees of the Judiciary Committees
of both Houses.
On February 90, 1882, the President
transmitted to the Congress message
recommending the strengthening of the
procedure in the judiciary system,
together with report of the Attorney
General on bankruptcy law and prac-
bill, prepared by the Department of
Justice, which bill was general revision
of the bankruptcy act of July /, 1898,
and the various amendments thereto.
On March /, 1882, an identical bill
was introduced in the House, SUBJ
committees were promptly appointed by
the Judiciary Committees of the respect
i've Houses of Congress and held joint
hearings during the months of April
and May.
In that bill there was new chapter
to the bankruptcy act, known as chap
ter 8, entitled Provisions for the Relief
of Debtors" 1t contained four sections.
The bill introduced in February,
amending the bankruptcy law, nvolv-
ing many questions of policy, became
very controversial and the Subcommit-
tees have up to the present time made
no reports to their full committees.
Three Features In Bill.
The House on January 80 last passed
o bill under this new chapter having in
1t three paragraphs; one was the relief
of the individual debtor, including the
farmer; the second related to corporate
reorganization, and the third related to
the reorganization of railroads engaged
In interstate commerce.
I have called attention to the fact
that chapter 8 is entitled, Provisions
for the Relief of Debtors"
I can think for the moment of no
single sentence that might be written
that would attract the attention of more
people than that title to this chapter
which I have just quoted. I am very
much afraid that many persons have
been led to believe that the Congress
is about to find some form of relief
from the one thing that has been the
bane of their existence. namely, their
individual debts.
There are two other groups Of people
who are attracted by these words also.
There is the group that is both debtor
and creditor and they begin to wonder
where bill for the 'relief of debtors"
Is going to leave them when the balance
is struck; whether the relief is of
kind that relieves those who owe money
to them and at the same time compels
them to pay the money that is due by
them.
The other group is the creditor, the
investor, and he is wondering what the
Congress is endeavoring to do with the
sacred and solemn contract existing
between him and his debtor.
I want to assure both the debtor and
the creditor that these words do not
mean exactly what they seem to mean.
This bill does not propose to take away
the obligations or the duty Of debtor
who can pay and, therefore, does not
take away from the creditor anything
upon which he might be able to realize
We must remember, however. that the
people Of the United States are going
through a new experience for most of
them and If it be not new experience
for all Of them, it may safely be said to
be more serious than any previous sit
uation through which they have lived.
Thinks Bill Aids Both Parties.
Bearing In mind, therefore, that the
debtor class is somewhat more seriously
affected than the creditor class, this
bill undertakes to give the debtor some
relief, and those of us who have given it
careful consideration believe We have
done no real harm to the creditor. In
deed, If all of the sections we have
given consideration to could be adopted,
we are satisfied that we have done a
real service to the creditor as well as
to the debtor.
The creditor has no anxiety in these
days to possess the physical property of
the debtor In many instances he is
willing to give him additional time In
which to pay. In many instances he
knows that his debtor will not be able
to pay, certainly not at the present
time, and unless some relief is granted
to the debtor, he will not be able to
pay at any time in the future. 1t is