Evening star., 1933-01-31
BANKRUPTCY BILL
| |SSENT TO SENATE
House Passes Measure, POI
to 43-Amendments Urged
by Solicitor General.
By the Associated Press.

By the Associated Press.
To ease the strain on the farmers and
railroads, especially, but designed to
aid debtors, both individuals and cor
porations, the House by vote Of 20l
to 43 passed an unprecedented bank
ruptcy relief bill and 1t was rushed to
the Senate late yesterday.
Although there is strong sentiment
for this legislation in the Senate de-
termined effort will be made to amend
it along lines recommended by Solicitor
General Thacher.
The overwhelming approval under
rigid suspension Of the rules climaxed
day of action, during which the Demo-
cratic leadership drove through lcgisla-
ton extending the Federal gasoline tax
and provisions of the Glass-Stegall cur
rency bill for another year. The latter
measure went to the White House.
Opponents of the emergency bank
ruptcy bill lambasted it heartily during
two hours of debate, but sentiment was
so strong for 1t that leaders OF the
opposition accepted standing ballot
and did not ask for a roll call.
Assailed and Defended.
Members Of the House have shed
many crocodile tears over the plight Of
the farmer" Representative Tarver.
Democrat, of Georgia, said during the
debate LET us see what you will do
now. This is the only bill that may be
put through at this session to relieve
the farmer"
Assailing the measure. Representative
Dyer, Republican,. Of Missouri, said 1t
established q debtors moratorium
This is to do the same thing that Is
being done by force in some farm
States" he said
In brief, the bill enables individuals
to put into effect through Federal courts
a plan under which they may get more
time to pay or have their debts slashed
down until they can meet them. The
courts would have power to prevent the
foreclosure Of farms pending the ar
rangement.
The extension Of time and reduction
Of indebtedness apply to corporations,
but the latter can reorganize their CAPT.
tai structure and issue new securities.
which may find the value OF holdings
by stockholders and bondholders far
less than they were before the plan
was put into effect.
5000, 900 Attorney Fees.
Railroad reorganization would be
worked out under the supervision of the
Interstate Commerce Commission but
the courts would have the power of ap-
proval or disapproval.
Representative La Guardia, Repub-
lican of New York, who drafted the
provisions affecting railroads, said 1t
was vital that the carriers be dealt with
by some one who was familiar with the
intricacies Of railroad matters
He said the Chicago. Milwaukee &
st. Paul was q reason for this bill. as
serting that while that road was in
equity receivershtp 1t had been "mulcted
there being 100000 in attorneys
fees"
Chairman Summers Of the House Ju-
dietary Committee. which reported the
bill. and Representative Rayburn,
chairman OF the House Interstate Com
merce Committee. said railroads were
in distress and that many of them must
be reorganized.
Projects Bondholders.
II believe 1t will result in fair re-
organization Of the financial structure
burn said. Il believe 1t will better pro-
tect bondholders and other preferred
claimants In their rights than has been
customary in past receiverships"
What this bill does" Representative
Dies. Democrat. Of Texas, said. 'is to
permit corporations to merge and CON-
bine In the face II the Sherman and
Clayton antitrust laws. I don't think
1t will be Of value to the farmer"
Representative Montague. Democrat,
Of Virginia, said be objected to the