Evening star., 1933-02-28
BANKRUPTCY BILL
IS SENT TO HOUSE
Senate Approves Measure,
Including Rail Feature,
by Vote of a. to 8.
BY the Associated Press.

Following more than eight hours OF
debate. which carried the Senate into
a night session, that body last night,
by vote Of "A to 8. passed a sweep
ing bankruptcy relief measure which
provides machinery for individual and
farm debtors to obtain extensions or
cash settlements and for railroads to
readjust downward their capital struc-
lures to avoid receiverships.
Passage of the bankruptcy measure
cleared the way for consideration today
of urgent appropriation bills and con-
ference reports
The bankruptcy BILL sponsored By
Senator Hastings, Republican. of Della
ware, now goes to the House, which has
passed a bill on the same subject, but
will be sent to conference for compost
tion of differences, but whether an
agreement can be reached before March
is uncertain.
Opposition to the bill in the Senate
centered principally on the railroad
feature. This was approved. AZ to Is,
splitting parties and factions wide
apart.
Railway Needs Cited.
The opponents claimed this section,
offered by Hastings as an amendment
to the bill reported by the Judiciary
Committee, had not received committee
consideration and the subject was of
such wide importance that hasty &C
tion was unwise.
Proponents, including Democratic
Leader Robinson and Senator Couzens,
Republican, of Michigan, argued the
roads were badly in need OF the leg1s-
lation if wholesale receiverships were
to be avoided.
Twenty-one Republicans and SIM
liar number of Democrats voted for the
railroad amendment. Nine Democrats
and six Republicans opposed 1t.
The eight who opposed the bill on
final passage were Bratton, Bulow. Dill,
George, Nicely, Russell and Tramell,
Democrats, and Brookhart, Republican.
Hastings withdrew, at the request OF
Robinson, another important amend
ment. which would have brought cor
porations other than railroads within
the scope of the legislation.
Robinson suggested this would have
led to lengthy debate and endangered
the bills passage.
Provisions Of Measure.
The bill as passed by the Senate sets
up machinery under which individuals
can obtain extensions or cash settle
ments and railroads can readjust their
capital structures to avoid receiverships.
Under the Hastings bill an individual
debtor who can obtain the consent OF
a majority of his secured and unsecured
creditors to an extension or cash settle
ment of his obligations may petition
the Federal Courts for approval Of such
settlement
A farm debtor could either proceed
under that method or band together
with IA other farmers in his county
to obtain similar relief through the ap-
pointment by the courts Of a concilia-
ton commissioner.
Under the railroad clause, carriers
seeking to avoid receivership could petit
ton the courts and the Interstate Com
merce Commission for permission to re-
organize their financial set-ups, provid-
ing they obtain an agreement with q
certain percentage Of their creditors.
Little hope was held today for the
final passage of any measures other
than appropriation bills before Satur-
day, although efforts were renewed in
the House to get through Senate-ap-
proved bill to allow Southern planters to
participate in Government cotton
pool.