Evening star., 1933-01-21

Unqualified approval Of President
Hoover's demand for amendment of the
bankruptcy laws is extended in the
comment on his message. The position
taken Is in harmony with the senti-
ments Of both parties. and all are con-
vinced that agreements to prevent
wasting Of assets should be facilitated.
THE more humanely the process car
be carried through, the more quickly
the wounds Of this economic war can
be healed" declares the Dayton Daily
News, with recognition Of the need Of
'lesS force and more agreement in the
settlement Of the infinite entanglements
in which debtors and creditors now fnd
themselves" Pointing out that under
present requirements "a minority of
creditors may reject any agreement"
the Buffalo Evening News upholds the
principle Of providing an opportunity
for the debtor and the majority Of his
creditors to effect reorganization and
settlement through q court" with the
direction Of the court binding on the
minority creditors" Holding that there
has been q long existing need for such
legislation, the News sees an enccurag-
ing sign in the fact that "spokesmen
for regular Republicans, insurgent Re-
puUllCAuS ana 0ckuOCIdto olA Soy sAAoo
they approve the proposed amendment.
The Lincoln State Journal also OBJ
serves an inclination on the part Of
Congress "to follow the Presidents
leadership" in this proposal.
"The old view," according to the
Jersey City Journal, twas that any sin
gle creditor could throw a debtor Into
bankruptcy when the debtor failed to
meet an obligation. The new theory,
now advanced by . retiring Republican
President, smacks very thoroughly OF
what Is coming to be the new philos-
ophy Of public and private rights, sup
posedly entertained more warmly by
Democrats-that individual rights are
entirely subsidiary to mass rights"
The Texarkana Gazette emphasizes the
injustices of the present law under
which numerous businesses have been
entirely wiped cut, with nothing left
for the debtor and almost nothing paid
to the creditors" as a result of forced
sales, court costs and receivership fees. "
That paper finds an evil in withdrawal
of credits to which business men are
entitled under the credit system which
has been built up"
Indorsing some courts which have
endeavored Ito prevent even the sucpi-
cion of waste or looting," the Baltimore
Evening Sun states: ITO prevent
an insignificant and often irresponsible
minority from throwing a wrench into
the efforts Of large majority OF
creditors to secure q satisfactory settle
ment Is the change most needed. Con-
gress could make no better contribution
to the country than an intelligent
change in the law" The Morning Sun
adds as to the purpose Of proposed
amendments: "They would facilitate
and speed up the processes Of financial
reorganization in emergency cases In
order that the wheels Of industry and
commerce may continue to move with
out the Interruptions that might follow
recourse to the present legal remedies. +"
One question Is raised by the Baltimore
paper in the relations between bond
holders and stockholders in corporations,
and 1t comments: There Is the ethical
question Of how far bondholders may
be expected to 60 in the surrender OF
their rights without any compromising
surrender en- the part Of stockholders.
Expediency seems to counsel moderation
and forbsarance on the part OF both
groups In the case Of corporations pat
emily unable to meet their obligations.
But the establishment Of q proper rela-
tionship between the two Is by no means
an easy matter"
There Is no longer any excuse for
delay" thinks the Lexington Leader,
while the Akron Beacon Journal speak;
for the protection Of those who can
present good reason for having con-
siderate treatment from their creditors, /"
and the Indianapolis News charges:
"The practice Of casting business Or
ganisations into bankruptcy and then
Iooting thtm by gastained Htsetipn and