Show BILL v lievore congress adjourned for the holidays holi daye a bankruptcy bill was referred to alie committee on the judiciary in the use end with amend amenta lue bill sets for h it ie for of an uniform system of throughout the united and ia the old Tor reye bankruptcy in such an amended form that judge jay L torey the aurli r would not be able to recognize it ane torrey bill has ben before Con reea for at least eight deais and has passed the twice but failed ot in abo senate theah the senate has ened alio nelson bankruptcy bill whish waa intended as a it S i I 1 the Torrey bill and which la I 1 ure now before the house y king ia a interest in the proposed legislation is obtaining the opinion of bw y the following ia a letter written W G mccornick salt nn banker and hie came house 0 U B D 0 dec hon W S mccornick salt lake city ajtai D ar sir bankruptcy Ban krupcy act 1 bo by Co neresa dorinn toils cission cie sion of opinion exist ae to one ie necessary and if eo the provisions to be embodied within it by eosue it is that it should be purely voluntary by others exclude ively involuntary and still another ct EQ tat it should poetess both voluntary and involuntary features the qu ebion ia one f treat importance to the people of this country I 1 will foal under great obligation to you it you will avor me your upon the subject yours truly H KINO iloh W II 11 king house 0 representatives washington D 0 dear sir your esteemed favor of dinst waa duly received also copy of an act to establish a system of bankruptcy throughout the united states it would make very little difference whether the act contains voluntary involuntary or both features my contention ie that unless preference is permitted tor money actually loaned in good faith that a great wrong would be perpetrated pet rated should the bill become a law as it ie calculated to impair the credit of our merchants in the west who mostly have all of their capital invested in merchandise and as n rule have no other security to offer and this of course would be rendered worthless as security under a bankruptcy law no one would or could afford to loan money where tb power to prefer creditors is by law taken I 1 oca the borrower and to be compelled to prorate with all kinds of accounts made up no matter bow nothing could be more inequitable it is being urged entirely by eastern jobbers who are doing handbag business through the suba ct to no rent taxes or license or in fact any expense other than that ol 01 a drummers and then to have the effrontery to ak that in case of an assign mentor failure they bo permitted to share abid share alike with local b inkers and merchants who have to bear the burden of taxation suppose ua erchant sart ingin business opens an account with a jobber and another with a bank it is usual to make from two to three purchases of goods per year and the profit on each sale would not be lees than 20 per coot suppose but two purchases be made in the year it would ibave 40 per cent profit to the jobber and the banker at the end of the year would have made 10 percent from the use ot his money which is about the average rate ot interest in the west then merchant fail the job br would have an advantage over the banker of 80 per cent and at the end of two years the jobber would lave made profit of 80 per cent to the bankers 20 percent and so on consequently it be readily seen that no one could afford to loan money without security and be comp elrd to prorate his claims with such accounts and under such disadvantages the only good feature that I 1 can ceo in the law is ahat it does not take effet for six months after its passage thus aiding people time to adjust their affairs as well as possible to meet the contingencies of the case it beems to me that corporations ought to be excluded from the of the bankruptcy ey jaw as it cannot be contended ahry could or would continue business after a failure as their assets would be divided among creditors and hence be it of existence the trends of the measure lav great stress on the benefits that would by freeing debtors that they might commence anew freed from all past indebted nea whatever force there may be in this argument in favor of individuals cannot be urged in behalf ot corporations and therefore should be excluded for the leaanne above elated with the hope that your efforts may be crowned with success and that the act in question may meet with defeat I 1 remain yours W G we aaeree with banker mccornick in his opposition 0 o the measure it is in the interest of eastern bue inese houses and would result disastrously to western merchants congress has on three different occasions passed a bankruptcy measure and each time the legislation was found to be detrimental to both debtor and creditor the law being repealed in 1879 |