Show Legislation Designed to Knock Props From FrO l Under Powerful Bankruptcy Ban Rim Ring I 0 IBy By Dr II ii X 1 Special Correspondent of or The Copyright 1926 I S 2 6 Consolidated I Press ss Association A t WAShINGTON April 10 Leg 10 Lep desIgned to knock knok a i f few w links out ot of the lh chaIn which hold holds the the powerful bankruptcy ring safe af from tho the present law lawand lawand and which If It successfully admin administered should hould result re aiM ilso In low low- lowering low ering the general cost cort of ot living a peg or two I Is In a position to o bo b enacted by eon congress In the tho Imm Imme- Imme Immediato Imme-diat Imme diato future Competent ties MY say ay ap al ni Improved bankruptcy law will 1 save ve many millions of ot dol now lars lost each year The Tite enato has lias the Walsh bill to amend the Iho blink bank bankruptcy bunk law approvIng Ing It without debato last laet week during otto ono of o Its periods ot of activity when whon forty measures measure were re passed In an bour and a halt half after atter three thre daS daya had been ben consumed In oratory about a matter which has not yot come orne to a vote VOtO which la II I a habit ot of work familiar In the tipper chamber The Th Michener bill hR has been reported to 0 I the Iho he hou house find tind a special rule rulo for lor Its consideration hell ho been asked and will b grant grant- granted rd crant-rd ed d next week or tho the week follow follow- follow Ing Ine WILD s r PASS Ina Inasmuch much liS aa s the two hUla dl r- r fer only In minor respects and differences can be bo Ironed out speedily In chances for tor fInal enactment during the l pres- pres present pres present rea- rea ent ArO aro decided decidedly I bright Poth roth bills are r endorsed by the American Bar Dar association the tho Commercial Law league of ot Amer Amr America lea ica the National Association of Credit Men and nd other ions The Walsh Walsh-Michener bankruptcy bill does not contemplate an n en- en entirely en entirely new la law and nd does doc not corn com completely meet met the jews of all etu tiu tu- tu of the th subject but It Is the broadest amendment that has been attempted since tince Ince the I statute wn we was enacted In Itt 1898 but It Is self evident that the amend amend- ments menta proposed In this measure will close dose man many loop holes through h which fraud now scap escape and that It will wil expedite administration and conserve the th assets of ot bankrupt es- es estates e eates ates tates late for lor the tho benefit of ot the credi credi- creditors credi- credi creditors creditors tors I IY Y hONEST Many rany unfortunates unfortunate who are brought or who come como Into bank bank- bankruptcy bankruptcy court courts are ar honest Dut Dul many others other are arc not Designed nd maInly for the tho relief of the th hon hon- honest hon hon hon-ft est eat debtor the federal bankruptcy act has hOIl ha b become also the tool of the h cheat and the fraud fraul Equity between creditor and nd debtor hs hIlS h hen been a II difficult question ever since the first recorded Instance of nn an effort Hort to give dvo the debtor a chance In the day davi of ancient Greece about tOO B B C The pending bill IDes does not take away way way- un any rights of the debtor who Is honest but It props wide Ido wid open the th penitentiary doors for lor the th dishonest Men who have studied the suh- suh suit uh Sect et for years the year the the Walsh Walsh- Mich Walsh ener crier bill Is Ia the result of end and nd conferences extending over snore more than four tour ears hayo years have testified lied fied that there is some clement of fraud In SO 80 to 30 90 per cent ent ot of nil all bankruptcy C a cases s eS a rather s start start- tart line ling hog statement The fraud may maybe mayhe mayhe he be minor such uch as ns th h of a o harassed man to save save ave Out ut of the wreck a a can n of beans beana for tor or his fam fam- famIly fam- fam family ily when the can and Its contents rightfully belongs s to 10 hi hl creditors but In a surprisingly large lar-e number of cases case it Is major maor such such- as ns the th deliberate concealment of o most or of orthe the assets Human Human nature being what It Is there i la small mall hope hop of or eliminating all II minor fraud JOn FRAUD Major Maor fraud however many millions million of collar annually front from legItimate business Dellb- Dellb erat Dellb-erat rate attempts often oHen to Impose upon tho the credit system that thatIs thatIs thatIs Is the tho lh best bet of American burdens honest trade trado and nd places the tho penalty of higher costs cost upon every ry consumer Bankruptcy rings alive live to every comma In the law lawand lawand lawand and equipped wRit wlm wide widO experience experience ence nce have sprung UI up In tn every evry see lice rc lion of the th countr country Trade uso- uso asso associations elation are ora ra raIsing s an n enormous fund to push prosecutions so go se ac- ac rious e-rious noun has hns the thc situation become Tho pending bill would create crate two Iwo new acts act of bankruptcy one affecting liens which are ore not V Va- Va Vacated va vacated l- l caled within thirty days day So o as a s to prevent them ripening Into prefer prefer- preferences In the hands of ot a friend the theother theother other the appointment fit pf pf a reedy reedy- receiver er or trustee e while insolvent Inc bog Ing ot nt collusive petitions In Involuntary Involuntary bankruptcy the bankruptcy the bill would place voluntary and nd involuntary on a parity ns IU to 10 time requIred for tiling filing schedules schedule and classes classes also Iso place the two to classes on an equality oS a to the tho number ot of o dis- dis discharges dis discharges charges permissible allowing one In six fix years ears The year six period now applies to voluntary bankrupts but till this ha been evaded by bay bay- baythE Inc hav-Inc thE friends file ClIo an nn Involuntary pe- pe pe petition usually r resulting re also In all ap- appointment ap appointment of a n receiver of the own In real real- real reality II ity The penalty penalLy for false statements for use In credit Is extended to In- In Include In elude clude statements Issued through commercial agencies the th statute or It limitations for or prosecutions Is extended from Crom one to three years maximum Imprisonment for tor or fraud Is Increased to the five years year from two and the tho definitions of oC o fraud raul are re broadened greatly In the pend- pend pend In bog amendments In order to close loop holes |