The Ely miner. [volume] (Ely, Minn.) 1895-1986, 1934-05-18
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National Topics Interpreted "a fTTTYYT&
by William Bruckart SSn<TS1T

rather signal honor
FIRST Termer in his first term as
Wins Honor q member OF the
house Of representa-
lives by obtaining passage Of the leg
islation that has come 10 be known as
the municipal bankruptcy bill II is
something like twenty years since a
freshman" member OF the house Of
Representatives has sponsored piece
Of legislation Of national scope that
was passed and become law. Plenty
Of new members have introduced bills,
nationwide in their effect. but as far
as my research has disclosed. none has
been successful in the last twenty
years
Mr.. Wilcox won membership In the
house by defeating Mrs. Ruth Bryan
Owen. daughter of the famed William
Jennings Bryan, for the Democratic
nomination in his district where the
nomination is tantamount 10 an cleo
ton So he was given baptism Of fire
before he ever reached the house IT.
self Whether il was the political
pICSlSC NOA Os A4Nh2AA- al OALcNAAA-
ing Democratic woman, or for other
reasons. the fact remains that Mr.. VIII
cox finally forced through a piece OF
legislation that constitutes something
entirely new in our national structure
Of laws
The measure. as I said, is national
in scope and il probably viii affect
the financial status of some 900 CON-
munities which the bill calls taxing
districts. This list Of taxing districts
includes municipalities, counties, bor-
oughs. villages, parishes, townships,
and Incorporated taxing districts such
as schools, drainage, irrigation. levee,
sewer, paving, sanitary, port, or any
other districts In which Improvements
have been made in bonds and sold TO
pay for them. In order to take ad-
vantage Of the provisions Of the law,
the taxing district must declare itself
TO be insolvent and unable TO pay the
interest or principal Of the debt The
officials Of the taxing district may pc
tition federal court for the right TO
arrange its debt on q new basis, but
the court must be shown that al least
threefourths in number and amount
OF holders Of the bonds are willing TO
agree TO the terms Of a compromise.
If they do agree, then the court may
issue a decree that will compel the re-
naming bondholders TO accept the set
Element
han-nnz Of &c -ha~ ~ha
taxing district viii be able 10 replace
the defaulted bonds with fresh series,
probably at lower interest rate. The
taxing district gets out of the predic-
ament Of what amounts 10 bankruptcy,
and the bondholders get new securities
which are marketable and have some
thing like their face value because the
interest will be paid This privilege
is extended for only two years, but Ii
is the general understanding that the
communities concerned will be able
TO accomplish settlements with their
il is obviously hoped also that i'm
proved financial conditions through
out the nation viii make the Job Of
rearranging the debts easier than it
was a few years ago.
The bill did not get through con-
gress without a fight. II had plenty
Of opposition from members who con-
tended IL was step toward repudia-
ton Of debts, q thing always to be alb
horred. There was argument also that
by granting permission for the munich
palities and taxing districts to force
such compromise as will result, the
congress was making such securities
less attractive TO investors The point
was this: If person with few thou
sand dollars wanted TO put that money
into bonds Of small city or school
district or some other community is
suing such securities, he could no
longer be absolutely certain that the
bonds or the interest they earned
would be paid Thus. it was claimed.
by passing the bill, congress reduced
the available funds normally invested
In such securities because people will
decline to invest unless they feel they
are TO be repaid the full amount.
It is undoubtedly true that there
will be some who will not desire TO re-
invest money in municipal bonds be-
cause Of this law, but other investors
have sustained losses through bank
ruptcy Of corporations or others to
whom they have loaned money. There
is In my opinion. objection to the law.
but that which was set out above is
possibly not the greatest Time will
have 10 elapse before 1t can be def
nitely known whether the weaknesses
are serious.
One OF the obvious results Of having
the spotlight turned onto an individual
or q fact or an Is
Kidding sue is plenty of COM
the MIRA ment. People talk
about II Sometimes
however, the talk develops jibes and
jests and ofttimes they are not pleas
ant for the ardent advocates Of 9
proposition TO swallow. For instance,
until recently discussion Of NRA had
been confined TO serious argument,
very often OF a heated character.
Lately. however, jokes and puns about
NRA have been emerging with greater
frequency and there are now a con-
siderable number Of them. The lat
est, and one Of the best that / have
heard, runs as follows:
N r. A me down TO sleep,
I pray Thee, Lord. my codes TO keep;
II I should bust before I wake,
A. F. Of L my plant viii take.
Y hoo-5 aT-o.5- 49,. -.