1884 CONGRESSIONAL RECORD-HOUSE. FEBRUARY 18,

JUSTICES OF THE PEACE. HOUSE OF REPRESENTATIVES. Francis Carroll Mattingly, of the District of Columbia, to be justice of the peace in the District of Columbia (assigned to the FRIDAY, February 18, 1898. city of Washington). The House met at 12 o'clock m. Prayer by the Chaplain, Rev, Conrad H. Weiss, of the District of Columbia,. to be justice of HENRY N. COUDEN. the peace in the District of Columbia (assigned to the city of The J onrnal of yesterday's proceedings was read and approved. Anacostia). RECEIVERS OF PUBLIC MONEYS. LOSS OF THE UNITED STATES STEAMSHIP MAINE. L. B. Clough, of Vancouver, Wash., to be receiver of public Mr. BOUTELLE of Maine. Mr. Speaker, before proceeding to moneys at Vancouver, Wash. the regular order, I ask unanimous consent for action upon a Herschel V. Cashin, of Decatur, Ala., to be receiver of public joint resolution which I will send to the Clerk's desk, and which moneys at Huntsville, Ala. is explained by a letter received this morning from the Secretary POSTMASTERS, of the Navyt-.which I will read for the information of the House. Mr. BAIL.!!iY. Before the gentleman proceeds, I simply desire :Mary Gibson, to ba fostmaster at Romney, in the county of it understood that this is not a privileged matter, and the gentle­ Hampshire and State o West Virginia. man is asking for unanimous consent. William A. Stienbarger, to be postmaster at Augusta, in the Mr. BOUTELLE of Maine. This is a resolution to which I am county of Hancock and State of lllinois. sure no gentleman in the House will object. Jackson Whiteman, to be postmaster at .Marceline, in the county Mr. BAILEY. It is a request for unanimous consent. of Linn and State of Missouri. Mr. BOUTELLE of Maine. It is subject to objection, and is a David F. Conrad, to be postmaster at Lexington, in the county request for unanimous consent. of Davidson and State of North Carolina. The SPEAKER. The Chair will say that this is not a privi· Alfred Welshans, to be postmaster at Danville, in the county of leged question. Hendricks and State of Indiana. Mr. BAILEY. The request is for unanimous consent. Frank W. Ca1·ver, to be postmaster at Angola, in the county of The SPEAKER. For unanimous consent. Steuben and State of Indiana. Mr. BOUTELLE of Maine. I so stated. Edward McCreary, to be postmaster at Parkersburg, in the Mr. BAILEY. I wanted it so understood. county of Wood and State of West Virginia. Mr. BOUTELLE of Maine. I so stated. This letter is ad· I. N. Hoag, to be postmaster at Redlands, in the county of San dressed to me as chairman of the Committee on Naval Affairs: Bernardino and State of Cfllifm·nia. T. A. Stevens, to be postmaster at Chamberlain, in the county NAVY DEPA.RTME\'T, Washington, Feb1-uary 17,1898. SIR: The U. S. 8. Maine having been sunk while in the harbor of Habana of Brule and State of South Dakota. on Tuesday night last by an explosion, and more than 250 of her officers and ~ Morton Kilgore, to be postmaster at Goodland, in the county of crew having been lost, it is deemed proper and important that steps should Newton and State of Indiana. be taken immediately to recover the remains of the officers and men lost on the occasion of this most deplorable catastrophe; to raise the vessel; or t.o Samuel F. Davis, to be postmaster at South Paris, in the county save such parts of her armament and equipment as may be practicable. To of Oxford and State of Maine. this end I have caused to be prepared and mclose herewith a draft of a joint Willard H. Pike, to be postmaster at Calais, in the county of resolution conferring the necessaryauthorityu:pon the Navy D~rtment to enter at once upon this work, and appropriating the sum of ,000, or 1"0 Washington and State of Maine. much thereof as may be required, sucb sum to be made imme iately avail­ Ferdinand A. Davis, to be postmaster at Oakesdale, in the county able; and I have the honor to request that, if such action receives the ap­ of Whitman and State of Washington. proval of the committee, the matter may be brought to the attention of tho J. W. McBroom, to be postmaster at Abingdon, in the county House as early as may be practicable. ,, The meager information received respecting the nature and extent of the of Washington and State of Virginia. injuries sustained by the hull of the Maine renders it diftlcult to determine A. P. Funkhouser, to be postmaster at Harrisonburg, in the at this time whether there is reason to hope that the vessel herself may be county of Rockingham and State of Virginia. raised; but it seems probable, a.s she lies within t he protection of a harbor and is not wholly submerged, that much valuable property maybe recovered W. S. Hissem, to be postmaster at Loudonville, in the county if the necessa:ry action is taken without delay. The vessel, WJth her stores, of Ashland and State of Ohio. ~.material, equipment, fittings, and appurtenances cost, approximately, Edwin S. Williams, to be postmaster at Niles, in the county of $5,000,000. .AB an illustration of the value of single items which may have escaped serious injury, it may be said that the 10-inch guns, of which the Berrien and State of Michigan. Maine carried four, were worth, with their mounts, $48,500 each. William McCloy·, to be postmaster at Bay City, in the county of .ABide from the melancholy duty restipg upon the Government to recover Bay and State of Michigan. and bring to this country f(JJ' burial, if this may be done, the bodies of the officers e.nd inen who lost their lives in this disaster, it is believed that much Stephen R. Allen, to be postmaster at Homer, in the county of valuable property may yet be saved from the vesseL In any event it is of Calhoun and State of Michigan. the utmost importance that whatever is to be done in this ma.tter should be James J. Hunt, to be postmaster at Vineland, in the county of entered upon without delay. Cumberland and State of New Jersey. be:~~ ?t~:s ~rfg!~~~!:C:~~tf ~~lr:: t ~~~1~. ~~~g the cost of a n~- Alden Lyle, to be postmaster at Golden City, in the county of The sinking of the Maine will be made the subject of immediate and ex­ Barton and State of Missouri. haustive inquiry and Congress will be fully advised of the result of such Hugh B. Laing~ to be postmaster at Gladstone, in the county of investigation. In ftXina the sum asked for, the Department is, of COU¥6, unable at this Delta and State or Michigan. time to es~te the necessary expense with any degree of a.ccura.oy, but has Charles H. Richman, to be postmast-er at Woodstown, in the conferred with the Bureau of Construction and Repair. And in case of the appropriation of the amount requested, only so much thereof as may be county of Salem and State of New Jersey. found absolutely necessary will be expended. Alfred R. Messler, to be postmaster at Upper Mont Clair, in the Very respectfully, county of Essex and State of New Jersey. JOHN D. LONG, Secretary. H. B. Rollinson, to be postmaster at Rahway, in the county of Ron. CHARLES A. BOUTELLE, Union and State of New Jersey. Chairman Committee on Naval Affairs, House of Representatives. Harry A. Griffin, to be postmaster at Galveston, in the county of Galveston and State of Texas. Maine-Cost of ordnance ou(fit. Beryl F. Carroll, to be postmaster at Bloomfield, in the county Main battery o.n!I equipments ....• ----- .------$183,937. 7i Main battery, nuscella.neous .... ------·------6, 380.95 of Davis and State of Iowa. Secondary battery and equipments .... ------· ------.••.• 20,748.25 Harry A. Strohm, to be postmaste1· at Kentland, in the county Small arms and equipments. ------B, U2. 05 of Newton and State of Indiana. Ammunition, main battery------·------123,0W. 00 Lewis A. Castle, to be postmaster at Wyoming, in the county Ammunition~ secondary b3.ttery and small arms ...••••..• ------80,512.84: Magazine ana shell-room equipments .... ------·------. ----· 1,159.11 of Stark and State of illinois. Stores, tools, etc ____ _------.------·-.------1, 837.87 Philip Rodenberg, to be postmaster at Mount Olive, in the Torpedo outfit .. ----- ______·------22,310.65 Permanent fittings, main battery ...... ------______------84:,670.88 county of Macoupin and State of illinois. Permanent fittings, secondary battery------·-· 1,259.18 Annette Sim:pson, to be postmaster at Pass Christian, in the Permanent fittings, torpedo .... ------17,877. 7~ county of Harr1son and State of Mississippi. Permanent fittings, miscellaneous.------165.60 W. H. Stallings, to be postmaster at Augusta, in the county of Richmond and State of Georgia. Total ...... _____ ... __ .... ___ . ______----.-- --- . ___ ----•. ----.--- 150'~, 152. 76 E. C. Kreider, to be postmaster at Jacksonville, in the county of Inclosed with the letter is the above abstract of some of the Morgan and State of illinois. items of the ordnance outfit and other eqnipments which without Charles M. Tinney, to be postmaster at Virginia, in the county doubt could be saved by prompt a-ction. It is only necessary for of Cass and State of illinois. me to say that it is obvious, of course, to everyone that the work James R. Morgan, to be postmaster at Maroa, in the county of of salvage should be begun without delay. This vessel being sub­ Macon and State of illinois. · merged in salt water, all of these valuable munitions will be liable John R. Marshall, to be postmaster at Yorkville, in the county to rapid deterioration, and it is imperatively necessary that the of Kendall and State of Illinois. work shall be .begun at once by making arrangements with some John W . Maginnis, to be postniastera.t Abingdon, in the county Wl·ecking company that has the outfit to oarry on that work suc­ of Knox and State of Illinois. cessfully. Of course it will be understood by the Rouse that the 1898. CONGRESSIONAL RECORD-HOUSE. 1885,

Secretary of the Navy, recognizing that Congress is in session, has lution, but now that unanimous consent has been given, I only, shown a very proper deference to the views of Congress by com­ desire to say that I am heartily in favor of it and for that reason ing to us at the outset for authority rather than resort to any did not object. But I want to make this statement, that this straining of the authority of the Department itself, in regard to matter should not constitute a precedent. It is really a matter of the expenditure of money in emergencies. Now, Mr. Speaker, I deficiency for the current year. ask for the reading of the resolution. Mr. BAILEY. I hope we shall never have another case like it. The SPEAKER. The Clerk will read the resolution. Mr. BOUTELLE of Maine. I was about t.o remark that the The resolution was read, as follows: catastrophe is an extraordinary one. A joint resolution (H. Res. US) to provide for recovering the remains of offi­ The resolution was ordered to be engrossed and read a third cers a.nd men and property from the wrecked United States steamship time; and it was accordingly read the third time, and passed. Maine, and making an appropriation therefor. On motion of Mr. BOUTELLE of Maine, a motion to recon­ Resolved, etc., That the Secretary of the Navy be, and h9 is hereby, author­ sider the vote whereby the joint resolution was passed was laid ized to engage the services of a wrecking company or companies having proper facilities for the prompt and efficient performance of submarine on the table. work, for the purpose of recovet1ng the remains of the officers and men lost Mr. HENDERSON. The regular order, Mr. Spe~-r:.:.:r.:...--+---_, on the U. S. S. Maine, and of savmg the vessel or such parts thereof, and so much of her stores, guns, material, equipment, fittings, and appurtenances, THE BANKRUPTCY BILL. ~ a as may be practicable; and for this purpose the sum of $200,000, or so much thereof as may be necessary, is hereby appropriated and made immediawly Mr. TERRY. .Mr. Speaker, I yield twenty minutes to thegen':\. available. tleman from Texas fMr. BALL]. Mr. BOUTELLE of Maine. I ask unanimous consent for the Mr. BALL. Mr. Bpeaker, in all that has been said as to the ne­ consideration of the resolution. cessity for a national bankruptcy law, I fully concur. That Con· Mr. BAILEY. I desire to call the attention of the gentleman gress alone can pass laws by which the estate of an insolvent from Maine to the fact that the authority is merely to recover the debtor can be distributed among his creditors, and at the same bodies and not to bring them back. I presume, however, that time discharge the debtor from all his debts, is so well settled as there will be no mere stickling over that. to prevent discussion. That a widespread demand exists in this :Mr. BOUTELLE of Maine. I would state that the Secretary country for the passage of such a law it is idle to question. in his letter speaks about bringing the bodies back, if possible. I An enlightened public policy demands that a debtor loaded would like to say, however, on that point, that I have a telegram, down with debts impossible to be discharged, with his productive received this morning from the Secretary of the Navy from Cap­ energies so paralyzed that his business undertakings are con­ tain Sigsbee, that may be of sufficient interest to the House-suf­ duded without profit to himself or creditors, should be permitted ficient interest for me to read. [Cries of "Read it!"] It is the to surrender his estate, and, divestRd of debt, begin anew the race late.st news we have. of life. In no other way can he become a useful member of so­ HABANA, Februar9J 17,1898. ciety rather than a burden on the community and the business SECRETARY OF NAVY, Washington, D. 0.: world. As this sentiment is shared by members of Congress of Nineteen of the Maine's dead were burled this afternoon with great civil. all parties, as we are, without regard to party, ready to vota for E'Cclesiastical, military, and naval ceremonies, a.nd with all the resources of Habana brought into requisition. The Spanish Government, uc.der exp.ress a just bankrupt bill, it seems to me that the discussion by ad­ directions of General Blanco, the Bish_op of Haba.na, General Parrado, and vocates of the pending bill would have been far more satisfactory Admiral Manterola, and the mayor of'"Habana, took complete charge of all had they discussed the merits of the bill itself rather than the arrangements. The bodies were first laid in state in the building of the city government of Habana, where they were covered with floral and other om­ necessity cf bankruptcy legislation. blems suitable to occasion, which were presented by officials a.nd other per­ Why is it that theNelson bill, passed by the Senate of the Unit€d sons of Habana of all eha.des of political opinion. They were escorted to the States. has been stricken out and this bill substituted thm.·efor? cemetery by representatives of all the military, naval, and civil organizations, and foreign consular officers, and through a vast concourse of people spread­ Does :riot every member of this House know that it was done be­ ing over roofs. cause the Nelson bill was looked upon as too favorable to the General Lee, m~self, and officers and men of theMaine now here, together debtor class? Is it possible that the great army of unfortunate wi.th Lieutenant-Com.mander Cowles and members of the Fern's crew, were given special carriages a.nd conveniences. Ground for the burial of the debtors, whose woes have been so elo~uently pictured in this dis­ Maine's dead has been presented by General Blanco and the Bishop of Habana cussion to win support for the pending bill, are to be less con­ in the beautiful cemetery- of Habana. The utmost sympathy and respect sidered in the House of Representatives than in the Senate of the have been shown. I am mformed by the authorities that this is the second instance only of such a demonstration having been shown to foreigners in United States? It will no~ do to say the Nelson bill was a purely the history of Ha.bana. It is Inconceivable that a greater demonstration voluntary bill and therefore not just to the creditor class. _ could have been made to me personally. A great number of people have ex­ The Nelson bill provides for involuntary banlrruptcy for a.~tual pressed sympathy for the Maine and the United States Government and fraud on the part of the debtor, and is honest enough to use the people. 'l'he remainder of the dead must perforce be buried with brief cere- ' mony, which will be conducted by our)>elves, but the care and preparation word "defraud" that every court must construe in accord with of the remains will be under direction of the Spanish authorities. est-ablished rules, while this bill uses always the word "defeat," About forty, in addition to those buried, have come ashore to-day. Very with its numerous synonyms, behind which lurk unnumbered few are now reco~ble; even in the case of some of those who are hurt, but lived, recognition was difficult. I have not for a moment lost sight of opportunities for the conscieneele."s creditor to shield himself from the grief of the families and friends of the members of my crew, but I beg responsibility for unjustifiable oppression of the debtor. I know the Department to explain to them that it is impracticable, in fact, unpossiblo many creditors are humane, bnt others are not, and I would guard to send bodies home_; racilities are lacking, and embalmment is necessary to secure shi-pment even under the most favorable circumstances. Embalmment the citizen from human avarice uncontrolled by a quickened con­ is only imperfectly done here. Will wire all cases of identiftcation. I main­ science. tain organization among my small force here, but it can be well understood The time allotted me prevents a proper presentation of all ob­ that the execution of the work of which we are charged is one of much de­ tail and difficult of execution. It is belieyed that all of the Department's jections to the pending measure. Let me suggest a few. It is telegrams have reached me. . ' claimed for this bill "that its effect will be to prevent the prefer­ I run deeply grateful for the helpful sentiments and directions telegraphed ence of one creditor over another; and yet I say to you that in this by the President and the Department. I have the earnest help of all tbe of­ ficers of the Maine here now, which was to have been expected under all cir- bill, concealed behind a new definition for secured creditors and 1cumsta.nces. A previous tele!P'am sent to-da.y gives the names of those much verbiage, there are created two classes of preferred creditors buried by the Spa.nish authorities. Flags of all vessels, naval and merchant, that, above all others, should not be preferred. One is the creditor in Habana Harbor have been at ha.lf mast yesterday and to-day. Shall send Mangrove back to Key West to-morrow with eight wounded from the hos­ (usually the larger one) who ha.s his claim secured by real or per· pital. Will wire names later. Dr. Clendenin, of tho Army, will remain with sonal property. the wounded. Assistant Surgeon Spear also came by Mangrove, but will be This class of creditors is permitted by the bill to exhaust his detained here on board Fern to accompany others of the wounded wh-en they are ready to be moved. Will put some divers to work to-morrow. Divers security and then come into the common fund to the extent of the ! requested of Admiral Sicard will be here Saturday morning by Olivette. unpaid balance of his claim and share alike with the Ulli!ecured I Recoveries of Maine's battery, etc., impracticable except by regular wreck­ creditors. The other is the holder of a claiin. secured alone by ing outfit. personal indorsement. Thie class of creditors are permitted to SIGSBEE. come into the common fund, share alike with unsecured creditors Mr. BOUTELLE of Maine. Mr. Speaker, I ask unanimous con­ for the full amount of his cl~im, and then go on the indorsers of sent for the consideration of the resolution. the paper for the unpaid balance of his debt. Mr. SULZER. I would like to ask the gentleman from Maine, Why is this? It is for no other purpose than to give the large the chairman of the Committee on Naval Affairs, if he has any money lender, who usually takes a lien upon real or personal ,information, judicial or otherwise, as to the cause of the catas­ property, and the banks of the country, who loan upon personal trophe? security, a preference over all other creditors, especially the smaller Mr. BOUTELLE of Maine. I am obliged to ma~e the same ones. Common justice demands that they should either rely upon answer I did yesterday, that I have not. All the information I their security and leav-e the common fund to the unsecured cred­ have received, however, has seemed to strengthen and emphasize itors, or throw their securities of every character into hotchpotch the view t-hat it was dne to accidept. and then share alike with other creditors. _ -TJle SPEAKER. Is there objection to the present consjderation Of the acts of bankruptcy named in the bill, eight in number of the joint res~lution? [After a pause.] The Ohair heaJ.-s none. (page 21), not one. necessarily involves. actual fraud-one-half are Mr. CANNON. ~r. Speaker, a single word. I did not object for causes possessmg no element of fraud. For instance, No. 2 and do not object to the presen1fconsidera.tiori of the joirit reso- (page 21) makes it grounds for involuntary bankruptcy to fail to ·,

rl886 CONGRESSIONAL RECORD-HOUSE. FEBRUARY 18, l ------~.------1secure the release of property levied upon by process of law practice and procedure of the courts of bankruptcy in such State not affect­ ing the substance of this act, shall not be deemed in conflict with it. ;within thirty days. Again, on page 28, section 8, this bill provides SEa. 73. When, any qualified person has filed a petition in a court· of bank­ ~that after the petition is filed, upon affidavit of any person at ruptcy of such State, or the creditors of such person have filed a petition ~n i inter~st t~at such. bankrupt is about to leave the district to avoid such court to have him adjudged a bankrupt, and such persons and all his ,exammation, the Judge shall order the marshal to keep such bank­ creditors are resident citizens of such State, it slliill not be lawful to trans· .rupt in custody. True, it provides "but not imprison him; " but {g1so:c~~move such cause to any other court of bankruptcy designated by 'what liberty-loving American citizen can see any difference be­ SEC. 74. When a petition has been filed by any qualified person in a court tween being cast into prison and being held in custody by a of bankruptcy of such State to be adjudged a voluntary bankrupt, or any of the creditors of such persons have filed a p etition in such court to have him United States marshal? [Applause.] adj!ldged a bankrupt, anY: creditor of such person, being a citizen of the ./ As for me, if the time should ever come that I should be so un­ Umt(ld States, but not a c1tizeu of the State m which the petition has been ~f.ortunate as to be subject to such proceedings, I prefer to be hid­ filed, a~d who at the t~e of the filing of such petition was a creditor of such person m a sum exceeding $2,000, shall have the right to have such cause re­ den away from the sight of man rather than manacled in the cus- moved to the district court of t~e United States having jurisdiction thereof. ~tody or under the surveillance of such an officer. [Renewed ap­ SEC. 75. Fees and compensat10n allowed by tLe laws of any such State •plause.] shall not, for ap.y purpose, exceed those fixed by this act. SEc. 76. Not hjng in Chapter VI and the sections thereof shall be construed 1 Again, on page 29 of the bill, where the matter of extradition to .d~ny C?r ~br~d~e the jurisdiction. of the l!nited States courts to exercise ·of bankrupts is referred to, it will be found that they are treated ongmal JUrlSdlctwn as to any petihon filed m said courts in accordance with 'as common criminals. this act, except as mentioned in section 73 of tbis chapter. SEc. 77. Anl bankrupt whose estate has been distributed by a court of Let me illustrate further some of the hardships of this bill. A bankruptcy o such State may be discharged from all his debts by filinoo an court of bankruptcy, located perhaps 500 miles away from the application in the district court of the United States having jurisdiction rscene of action, is authorized to force witnesses to come before it thereof in the manner and form provided for in this act. in person who have no interest in the subject-matter of the suit, If not adopted at this time, sooner or later I hope to see this [and to give evidence touching the property, conduct, and acts of provision incorporated in the law. I have given it much study, tthe bankrupt. Why not resort, as in other civil cases, to deposi­ and to my mind there can be no question of its constitutionality. :tions, as provided by law? Why make an exception in this case? In the leading case of Sturges vs. Crowninshield ( 4 Wheaton's Again, Mr. Speaker, the provisions of the bill creating criminal U. S. Sup. Ct. .Rep.) it was decided, in effect, that State bankrupt :offenses are harsh in the extreme. Why, sir, it is made a crimi­ laws were valid in so far as they sought to distribute tbe estate nal offense, punishable by imprisonment for two years, for a man of a bankrupt, and void only in so far as they sought to discharge ;to have bought goods in contemplation of bankruptcy with intent the bankrupt of his debts. . not to pay for same, or to prefer a creditor, or increase the estate . I~ my judgment, as this ~mendment preserves the original juris­ liiJ bankruptcy. In the same way many other provisions of the diCtiOn of Federal courts m all cases and permits the exercise of ;btU are fraught with hidden, unseen dangers to the rights and concurrent jurisdiction in certain cases by State courts under liberties of the people. State laws identical with the Federal laws, there is no good reason ' Mr. Speaker, it seems to m_e to be the effect, if not t~e inten­ why the discharge of a bankrupt from his debts by such State tion, of this bill to turn over the persons of our citizenship to the courts would not be constitutional; but to guard against any un­ ~f.eJ?.der mercies of the Federal courts, that thereby vast and power­ ~rtainties, this amendment contemplates that an application for ·ful collection agencies may be created in this country for the bene- disliquidation, we hear evidence as to the acts complained of (the accused not neces­ should have an established uniform bankrupt law, operating alike sarily being present), and may punish and com,mit the accused as in every State of this Union, so that when a crisis comes in the :if the alleged offense had been committed in the presence of the affairs of an individual, isolated emancipation could be had with­ 'court. out disturbance of business conditions. The necessity of national This, sir, is not only imprisonment for constructive contempt, emancipation from debts, which can not be had without grave dis­ against which every Democrat at least is pledged, but it is impris­ turbance in the business of our commercial world, would then 'onment for constructive contempt at second hand. never come. Now, Mr. Speaker, there can be no question that one of the In conclusion, let me say that I have no desire to criticise the chief objection~ to the passage of a bankruptcy law is that the supporters of this bill, whether they do so from choice, or, yield­ 1arbitrary exercise and usurpation of power by the Federal judi­ ing to the clamor of debtors, shut their eyes to its many unjust 'ciary in this country has brought them into just odium among provisions and go it blindly. I warn you, however, that -very \n;,tany liberty-loving people. If this bill could be carried out by many of our people will not accept as an excuse for so harsh a the State cour~ much of the objection thereto would l;>e obviated. measure that your votes were cast for fear all bankruptcy legisla­ I ~w.end by adding, after the 'vords "affected by it," line 6, page tion would be defeated. If the advocates of a bette1· bill are not 80, the following: · strong enough to adopt one, they are also powerless to defeat this, and it will become a law without their help. Let those who favor CHAPTER VL this bill as it is take the responsibility of its passage. JURISDICTION OF STATE OOURTS. As for me, anxious as I am to vote for a just bankrupt law that will bring relief t;o a debt-laden people throughout this land of ', §EC. 71. From and after the passage of this act, where the lawmakin~ · .pow'er of any State has enacted and adopted, or shall hereafter enact an ours, jealous of the rights and liberties of our people, I prefer to ·adopt, the terms and provisions of this act as the law of such State in lieu o ~boulder the responsibility of voting against this bill rather than U tl.ssi~ent or other laws for the compulsory d~tribution of an insol· become a party to the passage of such a measure as that which is vent;s estate among his creditors, and provide for 1ts enforceni~nt i~ the presen~d ,jX)urts of bankruptcy designated by the laws of such State, this act shall J,lOt now for our consideration. [Applause.] ~~construed to repeal, annul, or sqspend the lawR of any such State enacted And, Mr. Speaker, I will be willing to content myself with thai and adopted in accordaQ.oe with this provision. vote and say to my people it is better "to bear the ills we hav~" ~ 8Eo. 72. NE)cessary rules, forms and orders ~ to procedm·e, execution of 1 ratl;lerthan accept a measure which can bring to us but "a har­ lll'ftoqesl!, ~d.nrlni§tratioQ o.f oat~ or 1!-tllrmations, ~eeping ttJ_e recq:rd1 ~~4 gucb,, i"tters ofform for the purpose of adapting-the proVislOM ol thiS aoho the vest of barren regrets." [Applause.] •...

1898. CONGRESSIONAL REOORD-HOUSE. 1887

Mr. HENDERSON. Mr. Speaker, has the gentleman consumed the star of hope above his sinking and despondent head. It will his time? afford no relief to the dishonest debtor; it will not wrong the The SPEAKER pro tempore (Mr. DA.LZELL in the chair). The creditor, but it will give the honest debtor another opportunity gentleman has not entirely consumed his time. and a new start on the road to success. For these reasons I favor Mr. HENDERSON. How much time is remaining? a measure of this kind, and want to see it become a law. It will The SPEAKER pro tempore. The gentleman has consumed grant some relief, and it will do some good. I can not see how it eighteen minutes. can do harm. ::Mr. BAILEY. Then he ha.s two minutes of his time remaining? I know of my own knowledge that there are a great many busi­ The SPEAKER pro tempore. The gentleman has two minutes ness people in the city and State of New York, whkh I have the rema.ining. , honor in part to represent on the floor of this House, who are Mr. BAILEY. Of course that time will be reserved for this anxious for the passage of this bill. Many of my constituents side? have written to me requesting me to vote for this bill, and several Mr. HENDERSON. Certainly. have personally asked me to advocate it and vote for it. I have Mr. BAILEY. Does the gentleman desire to proceed now? received no protests against it, and no one has requested me to Mr. HENDERSON. I now yield ten minutes to the gentleman oppose it. from New York [Mr. SuLZER]. The business people of this country want a uniform bankruptcy :Mr. SULZER. Mr. Speaker, the question of a uniform bank­ law. This will meet that want. It will giva more stability to ruptcy law is one of the most important and imperative questions credit, increase business confidence in commercial transactions, this House has been called on to determine this session. revive trade, stimulate languishing industries, arrest fraud, insure The Constitution provides that Congress shall have power to an equitable distribution of an insolvent debtor's assets among all establish uniform laws on the subject of banlrruptcy through­ his creditors, and grant the honest bankrupt his discharge. It out the United States, and in my opinion the time is opportune will help the unsuccessful and the unfortunate, do no man an in­ for the passage of a fair, just, and equitable bankruptcy law. justice, but protect and guard the rights of all. I hope the bill From all parts of the country, for some time past, the people have will meet with the approval of a majority of the members of the asked for this legislation, and petitions innumerable have been House and the Senate and speedily become a law. sent to Congress demanding the enactment of such a measure. Mr. Speaker, while I am discussing this bill I desire in a brief There can be no doubt that to a great many of our fellow-citizens and hasty way to call the attention of the House to a matter of a. good bankruptcy law is a consummation most earnestly desired. grave and imperative importance, a matter that concerns every I have carefully read this bill, and in many respects it does and citizen of this country. ought to meet the just expectations of the business people of the The Government of the United States is about to sacrifice to a country. There is no doubt of the imperative demand for some W ali street syndicate by the sale of the Kansas Pacific Railroad legislation of this character, caused by and incident to the hard the enormous sum of 57,000,000. This is one of the greatest out­ times, business depression, falling prices, and other evils that to­ rages on the taxpayers of this country which has been committed day afflict the body politic. It is not an absolutely perfect bill, and in years. I doubt if any bill of this scope, magnitude, and importance can It is a plain steal out of the pockets of the people of $7,000,000. be made in the first instance absolutely perfect. With few excep­ Who gets this enormous sum of money? The people want to tions all important acts of legislation in the past have been and know; and there ought to be and there will be a rigid investiga­ doubtless always willue in the nature of a compromise. tion. As is well known, the Kansas Pacific Railroad has paid in I favor the passage of this bill as a whole and shall give it my earning capacity 4 per cent on $30,000,000 for the last twenty support and vote, believing it is desired by and for the best inter­ years, and this during a period of business depression, commercial ests of a vast majority of the business men of this country, and disaster, and hard times. There is no doubt the road is worth that it will meet with popular favor and answer a pressing and much more, and there is no doubt that its business in the near urgent demand. future will make it worth much more. I believe in the next few If the bill is not entirely perfect, if there are some defects in it, years the Kansas Pacific Railroad will be worth at least $50,000,- they will soon be disclosed when it becomes a law, and these de­ 000. There is absolutely no reason why the taxpayers of this fects, if any, can be remedied and cured by subsequent legislation. country should lose a dollar on the sale of this railroad. The Take the bill, then, all in all, in my judgment it is beyond ques­ Government received every dollar, with interest, from the sale of tion the best bankruptcy measure that can be enacted at this the Union Pacific Railroad, and if the Department of Justice was time, and a great improvement on all previous similar acts. alive to its duty, the Government would receive every dollar, The members of the Judiciary Committee, and especially the with interest, from the Kansas Pacific Railroad. distin!!uisbed chairman of that committee, are to be congratu­ There is no doubt in my mind that the Kansas'Pacific Railroad lated on the result of their arduous labors. would bring at a fair and just sale every dollar due the people of So far as the voluntary features of the bill are concerned they this country. This railroad owes the Government about 513,000,- meet my most hearty approval. They are entirely in the interest 000. The Government has only received about $6,000,000 by rea­ of the poor and honest debtor. No honest debtor anxious to begin son of the action of the Attorney-General, making a clear loss to business life again can possibly find fault with that part of the the taxpayers of about $7,000,000. This is a flagrant outrage and bill, and I do not think the bill in that respect can be improved. a public scandal. It is a gigantic steal. It is a disgrace to the There is another part of the bill that I like, and that is the pro­ Administration. It is a shameful sacrifice of the rights of the vision that gives a preference to and carefully safeguards the people and a humiliating surrender on the part of the Government wages of employees and the rights of the producers and the wage­ to the reorganization committee. earners of the country. Under the provisions of this bill these The Attorney-General of the United States has played into the worthy people are absolutely protected in every respect and every hands of the Wall street syndicate, and has allowed the syndicate safeguard is thrown around their rights to protect their wages to fix its own price, have its own way, and make a cool 87,000,000. and earnings. They have received all that can be asked for, and This loss is a national crime. I raise my voice against this out­ this measure can not be improved so far as they are concerned. rage to-day because it is not yet too late for the Attorney-General In regard to the involuntary features of the bill I do not wholly to act, and if he will do his duty now there is no doubt this concur in the views of the commil;tee, and believe the bill in that $7,000,000 can ba saved and one of the greatest scandals in the respect could be perfected, at least to some extent. I understand history of our country averted. As a lawyer, :¥'have had occasion an amendment to this section of th~ bill will be offered, and at to investigate this matter very closely, and I unhesitatingly give it present I feel inclined to support it and think it ought to prevail. as my opinion that if the Department of Justice will bid at the If, however, that proposed amendment should fail, I shall vote for sale, do its full duty, and insist on all its rights, the Government the bill, take it all in all, as it is, and I hopeitwill pass and speedily will receive every dollar, with interest. become a law. If we will enact this measure into law at this ses­ Make no mistake; the people will hold the Administration re­ sion of Congress, I feel confident it will be in response to the sponsible. In the present stage of the Treasury, with a deficit of wishes of the people and for their best interests. Let us then pass millions and mi1lions, and growing larger daily, owing to the this bill and give it a fair trial. It will grant some relief to hun­ failure of the Dingley tariff law, this crime becomes most glaring. dreds and thousands of people in all parts of the land. It can do Every honest man in this country who has looked into this mat­ no harm and is bound to do many distressed persons a great deal ter knows that at a fair sale, with all the rights of the people safe­ of good. It will be a boon to the oppressed and struggling debt­ guarded and protected, the Government would get every dollar, ors hoping for a. chance to begin again and make a new start, and with interest. Why this outrageous sacrifice? If the Govern­ it is fair and just to the creditor. ment goes on losing money in this way, it will not be long before 1\.fy sympathies are all with the poor, the oppressed, and the un­ the Treasury will be bankrupt and the Government compelled to fortunate. My heart goes out to those who toil and struggle and take the benefit of this act or begin issuing bonds again. fail. I know in the long race of life's tempestuous battle only the I wish, at this time, here and now, as a representative of the few win, that the many lose heart, become discouraged, and give people, to enter my most empha.tic protest against this outrageous up the fight in hopeless despair. This bill will help the honest sacrifice of the Kansas Pacific Railroad to the Wall street syndi­ debtor who has failed, give him renewed courage, and raise again cate and monopolists. It is not too late for the Attorney-General 1888 OONGRESSIONAL RECORD-HOUSE. FEBRUARY 18, to take immediate action. Will he do his duty? If he does, there I pointed o~t at the time that it was one of the worst specimens is no doubt the $7,000,000 can be saved. It ought to be saved. of special legislation ever introduced in Congress, and that it The railroad runs through one of the richest and most prospero_us would add burdens on the consumers of our country beyond the districts in our country and is worth a great deal more than Its calculation of the human intellect; that its sole object was to entire debt. · take from those least able to pay and give to those most able to It is due to this House and to the people of this country that pay. All that I said at that time in opposition to and in denun­ the Attorney-General save this $7,000,000 or give good and suffi­ ciation of the passage of the Dingley bill is to-day practically true. cient reasons why he has allowed that vast sum of money to be The Dingley law has now been in operation for over six months, sae.rificed. and it has caused a deficit in the revenues of over 5l)O,OOO ,OOO. At some future time, if I can get an opportunity, I will have Surely it must be admitted now by the champions and the advo­ something more to sav in regard. to this matter. Why did not cates of the Dingley measure that it is a complete failure and has the Attorney-General take the same action regarding the sale of not in any way accomplished prosperity or met to the slightest the Kansas Pacific Railroad that his predecessor took in regard extent the expectations of its friends. to t he sale of the Union Pacific Railroad? There is dereliction How much longer will the people humbly consent to be robbed somewhere. Unless this matter is satisfactorily explained there and submissively permit a continuation of this outrageous system must be a rigid and searching investigation. The people are watch­ and policy of favoritism and class legislation? All legislation of ing the McKinley Administration in regard to this and other mat­ this kind, bestowing special benefits on the few, is unjust and ters and you can rest assured you willlhear from them. against the masses and for the classes. It has gone on until less The Attorney-General is charged with the responsibility of pro­ than 8 per cent of the people own more than two-thirds of all the tecting the interest of the taxpayers in regard to this matter. He wealth of our country. It has been truly said that monarchies has acted in the interest of the syndicat'3 and not in behalf of the are des~oyed by poverty and republics by wealth. If the greatest people. The people will not be robbed and outraged in this man­ Republic the world has ever seen is destroyed, it will fall by virtue ner. They know their rights, ~he_Y demand them, and theJ: a;e of this vicious system of robbing the many for the benefit of the going to have them. Any dereli_ct10n on the pari! of ~he Adnnms­ few. tration in a matter of such great Importance as this will be a grave The total population of the United States, according to the last public scandal and will not be overlooked or condoned _by the census, is about 70,000,000. The total aggregate wealth of the people of this country. The Attorney-General must do his duty United States, according to the best statistics that can be pro­ to the people or they will know the reason why. This loss of cured, is estimated at about $62,000,000,000, and it appears, and S7,000,000 is a matter of the first importance and conc~rn to every no doubt much to the surprise of many, that out of a total popu­ man in the Republic. The whole matter has a suspiCious look. lation of 70,000,000, less than 40,000 persons in the Umted States The day is not far distant when we will know the true facts in the own more than one-half of the entire aggregate wealth of the land. case, and woe betide those officials of the Government who have And this has nearly all been brought about by legislation during been recreant to their trust. the last twenty-five years. The Kansas Pacific Railroad sale is an outrage and a steal. It The centralization of wealth in the hands of the few by the rob­ is a shameful scandal and ought to be stopp~ It can be !3topped. bery of the many during the past quarter of a century has been We call upon the Attorney-General to do hi.s "duty. Will he do simply enormous, and the facts and figures are appalling. Three­ it? We will know during the next few days. quarters of the entire wealth of our land appears to be concen­ Yesterday the Senate passed a resolution to prevent the con­ trated in the hands of a very small minority of the people, and the summation of this fraud. This House has done nothing in regard number. of persons constituting that minority grows smaller and to it and probably will do nothing. Why? Ask the syndicate. smaller every year. The legislative schemes which have been It se~ms to have played its cards well, and won. Has the game most favored for checking this growing centralization of wealth been closed? Is the record made? If so the record will tell a tale are generally the most delusive and the most impotent. Taxing of shameful betrayal of a people's confidence, and on that record the many for the benefit of the few by operation of a law such as the Republican party will be Judged in the coming campaign. that bearing the name of Mr. DINGLEY is the meanest kind of The McKinley advocates promised much before election. What hypocrisy and robbery, and the most effective device for robbing has the Administration done since it cameinto power last March? the poor for the benefit of the rich that human ingenuity can The Republican party during the ~t Presid~ntial

uted large sums of money to the Republican Can).paign fund in tion in this country1 State and Federal, has been in the interest of the last Presidential election to defeat the will of the people. the few and against the rights of·the many. Class legislation 1898. .CONGRESSIONAL RECORD-HOUSE. 1889 has been stealthy, but it has been the order of the day, and it has The remedy is plain. · Stay legislating for fayored and special been successfuL No fearless student of our legislative history interests, and legislate for the benefit of all the people. Stop leg­ can honestly deny this fact. The evil consequences and financial islating to intrench the money power and establis-h an oli~chy losses resulting from this unfair discrimination in special legisla­ of plutocrats. Stop all legislation that seeks directly or indirectly tion against the people are deplorable and beyond computation. to enchainhumanityandenslave the industrialma.sse.s. Legislate It has robbed thrift, arrested enterprise, paralyzed progress, stifled for the best interests of all, and maka the path of opportunity a ambition, assassinated the hopes of the toilers, centralized power, public highway. and made the dch richer and the poor poorer. Aa I have had occasion to say several times before on the floor It has fostered syndica.te.s, created monopolies, and nourished of this House, we will never have national prosperity until we trusts. It has plundered the producers, wronged the wage earner.~, have national bimetallism. We must return to first principles. ~nd caused the commercial indu.shies of our land to languish and We must look to the Constitution and obey its mandates. to die. lt has made mammon a fetich, hoarded money, central­ I believe that the evils which I have endeavored to point out ized wealth, and threatens the very stability of our in.stitutions. have chiefly a~i:sen during the last twenty-five years, or since 1873, If it continues, is it any wonder farseeing patriots fe·.t.r for the life when the law for the free and unlimite.d coinage of both gold and of the Republic? The demand from all over the country fOl~ a silver was repealed by stealthy and surreptitiou.s legislation. !national b:mkr.uptcy law directs attention to our sorrowful situa­ !I'hedemonetizationofsilver, bytheact of 1873, wasthelegislative tion and accentuates the evil tendencie.s of the time. crime of the centm·y, and. has caused more woe, mm·e misery, It is high time to sound a note of warning. It is a good time to more poverty, more distress, more failures, more bankruptcies, go back to first principles. more labor strikes and lockouts, more bu.siness depression, more The ship of state is rapidly drifting from the safe moorings of industrial paralysis, and more commercial disaster than any other the fathers of the Republic and getting dangerously near the mael­ act of crooked legislation in the history of the Republic. strom of national disaster. T.hat act wronged every poor man's family and the hearth side Is it any wonder there is a crying demand from all parts of the of every toiler. It was an imposition on every honest debtor, and country for a national bankrupt law when we consider the nature the most gigantic fraud.on the masses in the interest of the money and tendency of discriminating legislation for the last twenty-five trust ever perpetrated in our legislative history. It is the true years? cause of most of the evils we denounce and deplore to-day. It: is Is it any wonder that thousands and thousands of sincere, so­ the meanest and most sneaking piece of class legislation on our ber, honest, hard-working people in every State of the Union, toil­ statute books, and should be repealed a.t onc-e. ing day in and day out~ are unable to make both ends meet, are in The people owe it to themselves to right this wrong by insist­ financial despair, hopeless desp0ndency, and welcome any kind of ing on the immediate repeal of this obnoxious and odious law. a bankruptcy law that will afford some relief and give them an Until it is done, all other reforms will be ephemeral and of no opportnmty to shake off the lncubus of disas.ter, raise their headB avail. 'in the· sunshine of hope, and once more, with renewed energy and Restore bimetallism, and you will stop falling prices, r_evive greater determination; try again? languishing industrie.s, and immediately inaugurate an era of The despotism of class legislation. has wrought. its most fright­ prosperity in this country ·unprecedented and unparalleled. ful effect on. the wage earners and produ:cer.s of. our land. I am Open the mints and the mills will open as if touched by a magic glad to raise my voic.e in behalf of the latter. They constitute wand. Restore the money of the Constitution and you give will­ ' the bone and sinew of our national greatness. Their prosperity ing handB and courageou.s hearts the longed-for and hoped-for means national prosperity. Capital and labor should go hand in opportunity. i hand; each should. carefully gwMd the 1ights of the other and The Republican. theory of ta.xin.g the people, by protective-tariff -with a. jealous care prevent any injustice by means. of inequitable, laws, to make-them rich and happy iB untenable and now ex­ unjust, and injurious legislation. I stand for the rights of labor, ploded. The- Republican party will never win another victory ' and in my humble way will do all that I can_to protect, to uphold, with that false remedy as a panacea and a shibboleth. and to dignify those rights. 1 believe that all wealth is created by Legislating away millions and million.s of dollars of the people.'s !labor- and, as Lincoln said, "is prior to capital and independent of money to a. favored few will not rest.ore prosperity to all the peo­ it;" that." capital is only the fruit of labor, and couldnever have ex­ ple, and sacrificing millions and millions of doiiars more to a..rail­ isted if labor had not first existed." I believe with Lincoln that: road syndicate in Wall street will not make times better or the No men living are more worthy to he trusted than those who toll up from Treasury of the country stronger. poverty., more less 1nclined to take or touch aught which they ha.ye not hon­ Thl.s bankruptcy bill, if it becomes a law, will alleviate some estly·ea.rned. Let them beware of su.rrendering a political power which they possess, and which. if surrendered, will surely be used to close the door of. distress, but will not, and can not, become a permanent remedy advancement agajnst them and fix new disabilities and burdens on them till for hard times and falling prices. all liberty is lost. What other legislation have the Republican.s to offer? They How true these words are to-day. The workingmen of our­ dare not attempt to legislate on the money question, which is the countrymust be alivetothe dangers whichconfr.ont them. They most vital, the most important, and the paramount politic.a.I. issue must realize the result and the consequences of unju.st class· legis­ to-day in American politics. lation which. discriminates against them. II. it continues,. how Mr. Speaker, the issue in the coming campaign and in 1900 has much longer will their rights be secure and their liberties endure? been made. It can not be evaded or ignored. In the contest be­ For their own interests they must study this question of discrimi­ tween the rights of the people and the. selfish and sordid greed. of nating legislation, cry out against it, and do all in their power to the plutocrats, the people must and will win; the Government_of stop it,. and stop it at once. the fathers, pure and undefiled, must and will be restored to them, Instead of. legislating again.st the people for the benefit of the and. the efforts of a united and triumphant Democracy crowned few, we must return to the early policy of the Republic and legis­ with success. f Applaus~] late for all the people. The trusts, the monopolies, the syndicates, Mr. HENDEliSON. Mr. Speaker, I yieldtotbegentlemanfrom and other unlawful combinations must go. They are merely a Nebraska [Mi'. STRODE.J. growth incident to this odious system of legislation.. The laws on Mr. STRODE. of Nebraska. Mr. Speaker, it is my opinion. that the statute books must be enforced against these oppressors of the the bankruptcy bill which the House is now discussing is the most people, and where they are insufficient they must be strengthened important measure that has been called up for consideration at and made more effective. If the Republic is to live and prosper this the second session of the Ffty-fifth Congress. The demand in the future as it has in the past, we must get back to the teach­ for bankruptcy legislation is urgent, powerful, and widely ex­ ings and principles of Thomas Jefferson and write across our leg­ tended. Many of the best business men in the First Congressional islative banners the motto, "Equal.rights to all, special privileges district of Nebraska, which I have the honor to represent on the to none." If our institutions are to be perpetuated and our Gov­ floor of this House, have appealed to me to use my influence to ernment to be in fact "a government of the people, and by the secure the pa.<>Sage of a bankruptcy bill. people, and for the 12eople," we mtist obey the mandates of the Some of these men are insolvent and want to take the benefits Constitution and carefully legislate for all the land and all the in­ of such a law that they may put themselves into a condition to habitants thereof. begin life anew; others of them are men who are now conductfu.g Let us in the future make the north staT of our legislative profitable and successful business enterprise.s, but see and ap_pre­ efforts the happiness, the prosperity, and the contentment of all. ciate the necessity for, and the great benefits to be derived from, If we will do our duty, if we will act with n. singleness of pur­ the passage of a just and fair bankru];>tcy law. pose to do no injury to anyone, the evils that now threaten us The appeals that have come to me from leading business men in will soon pass a way and the Republic of the people will go on and the district I have the honor to represent, and my personal belief on to its greater and its grander destiny. that the country needB and demands the immediate passage of a If the people will study these questions for themselves a!ld not bankruptcy law, have caused me to be persistent in my appeals to let others do their thinking, they will find the cause of all the members of the Committee on the Judiciary to hasten the consid­ evils now complained of due to iniquitou.s special legislation. eration of a bankruptcy bill. The effects of this kind of legislation grow more glaring and The press in_ every section of the country has been urging con .. startling every day. · · gress to act. Many commercial bodies. and a large number of 1890 CONGRESSIONAL RECORD-HOUSE. FEBRUARY 18, individuals have petitioned Congress for action. Nearly 200,000 Only a few years ago men of the Eastern and Middle States saw men have failed in business since the repeal of the last bankruptcy opportunities for bettering their conditions in that great expanse law, and a very large percentage of them are appealing to Con­ of territory, almost equal in extent to a great empire, lying west gress for the passage of a law that Will afford them relief. of the Missouri River, and now constituting the State of Ne­ Never before in the history of this country was there so great a braska. A great portion of these men were young, ambitious, need for settling up old and hopeless debts. The demand is so energetic, enterprising, frugal, and honest. Most of them com­ emphatic for bankruptcy legislation that Congress ought to act menced with little capital, but by industry and frugality, com­ promptly, and I hope this session will not end without its having bined with energy and business intelligence, they soon accumulated complied with that demand. It seems strange that this matter property, and by reason of their spirit of enterprise and push and has been delayed so long. All the great commercial nations of their honesty in trade established their credit in the financial world the world have enacted bankruptcy laws for the benefit of their and availed themselves of its great benefits. But many of these people. The Federal Constitntion confers upon Congress the men, through no fault of their own, have become insolvent and power to establish'' uniform laws on the subject of bankruptcies are to-day hopelessly burdened with debts they can not pay. throughout the United States." If given a-chance to start afresh, to reestablish themselves in We are now without a national bankruptcy law, although the business, many of them will soon secure credit and begin tomake exigencies for such a law were never so great in the history of the money again. Most of them are strictly honest and, when able country as they are now. It is the duty of Congress to act under to do so, will pay the obligations from which they may be re­ the powers given it in the Constitution. leased by the legal operations of a bankruptcy law, but which I am reminded of the words of that eloquent orator, great law­ they will still reco~ize as moral obligations against them. yer, and distinguished statesman, Daniel Webster, touching upon Mr. Speaker, while I speak for those who are hopelessly bur­ the duty of Congress to pass a bankruptcy law at an earlier period dened with debts in the great Commonwealth in which I reside, I in the history of our country, when the exigencies and conditions would not have you think that I do not appreciate the pressing demanded it. He UJ:5ed this language: demands and the necessity for bankruptcy legislation for the ben­ Sir, we talk much. and talk warmly, of political liberty; and well we may, efit of all parts of the nation. The conditions are such in every for it is among the chief of public blessings. But who !!an enjoy political State of the Union that the people imperatively demand, and anx­ liberty if he is deprived permanently of personal liberty and the exercise of his <.wn industry and his own faculties? To those unfortunate individ­ iously expect, the passage of a bankruptcy law. uals, doomed to the everlasting bondage of debt, what is it that we have In my judgment this Congress can do greater good and confer free institutions of government? What is it that we have public and pop­ benefits upon a larger number of worthy, honest, and energetic ular assemblies? What is even this Constitution itself to them in its actual operation, and as we now administer it? What is its aspect to them but people and do more good for the whole country by the passage of an aspect of stern. implacable severity; an aspect of refusal, denial, and a just and fair bankruptcy law than by the enactment of any other frowning rebuke? Nay, more than that. an aspect not only of austerity and legislation. During the last nineteen years failm·es aggregating rebuke, but, as they must think it, of plain injustice also, since it will not relieve them nor suffer others to give them relief. What love can they feel nearly th1·ee thousand million dollars have occurred. Portions of toward the Constitution of their country, which has taken the power of this vast indebtedness are found in every community in the land. striking off their bonds from their own paternal State governments. and yet, In this great aggregate of failures may be found thousands in inexorable to all the cries of justice and of mercy, holds it unexercised in its own fast and unrelenting grasp? They find themselves bondsmen, because every great commercial State of the Union whose very means of we will not execute the commands of the Constitution; bondsmen to debts making a livelihood bas been destroyed, whose hopes have been they can not pay, and which all know they can not pay, and which take away blasted, whose homes have been impoverished, and whose hearts the power of supporting themselves. Other slaves have masters charged are broken. with the duty of support and protection; but their masters neither clothe, nor feed, nor shelter; they only bind. The necessity for legislation to relieve the hopelessly debt­ The power to pass a national bankruptcy law has been exer­ burdened people of this generation is greater than it was fifty years cised three times since the adoption of the Constitution-in 1800, ago, when that great statesman and orator, Henry Clay, in dis­ in 1841, and in 1867. The combined life of these three acts was cussing the necessity for bankruptcy legislation for the benefit of about seventeen years. The first two were in operation about that generation, said: three years each and the last one about eleven years. My time The Declaration of American Independence, which announced our exist­ ence as a nation, solemnly proclaims as a self-evident truth that the right of will not permit me to enter into a historical discussion of these any individual person to life, liberty. and the pursuit of happiness is inalien­ laws or the exigencies that called them into existence nor the able. Does the wretched bankrupt, sunk down and overwhelmed by perhaps causes that brought about their repeal. unmerited misfortune, against which no human foresight or prudence could They were unsatisfactory, and were repealed because they were guard, enjoy the benefit of this maxim? He is not, indeed, deprived of life, but he drags out a miserable and lin~er­ too drastic, too harsh, and too expensive in their administration. ing existence, without one cheering hope. The humanity of progressive Clvil­ The weakne5ses of these laws of the past have been studied with ization has exempted his person from incarceration in the dark cells of a public jail; but the liberty which is granted to him ena'Qles him only to see care, we are told by the committee that reports this bill, and the more distinctly in the light of heaven and intensely to feel the rmsery of members of that committee who report this bill with the recom­ his condition. Stripped of all motives to human exertion, with the incubus mendation that it be passed tell us they have t1·ied to avoid all of an immovable mass of debt upon him, surrounded by a family sharing, without being able to alleviate, his sorrows and sufferings, he is mocked by just grounds of criticism in the preparation of the bill now before us. the privilege of the pursuit of happiness. pronounced to be inalienable in the We have been without a national bankruptcy law for about most memorable declaration of human rights that was ever promulgated to nineteen years. During that period nearly 200,000 men h ave the world. J.,et us, sir, make that guaranty substantial, practical, available, failed in business, and their liabilities amount, in round numbers, by fulfilling the duty imposed upon us in the power delegated in the Consti­ to S3.000,000,000. This great aggregate of indebtedness is crush­ tution to pass this law. ing the energy~ the ambition, and the enterprise out of these m en. The last national bankruptcy law was repealed in 1878. The In 1893 a great financial panic swept like a mighty, wide, failures in the State of Nebraska of persons, firms, and corpora­ extended, and destructive hurricane over the whole country and tions engaged in commercial and industrial pursuits, the number left in its wake a vast number of honest, energetic, and enterpris­ of those so engaged, the percentage of the former to the latter, the ing men hopelessly insolvent. These men are now handicapped total amount in dollars of the liabilities of those who have failed by loads of debt they can never discharge without the passage of in business from 1879 to 1896, inclusive, are shown as follows: a bankruptcy law. Without such a law, properly guarded against frauds, tens of thousands of the most useful men of this genera­ Number Number Percent Totallia- Year. 0 tion will be unable to reestablish themselves again in business, o!i:~- eb~&~~;~ !::~- bilities. and the country will lose the benefit of their energy, their enter­ prise, their experience and business abilities. 1879 --·"------. 66 5,266 1. 25 $221,800 There is now no incentive for them to make an effort to start 1880 ------·------.... -- ·· ---· 106 6, 179 1. 71 359, 919 anew unless something is done to keep the sheriff from seizing the 1881 --·- ---.------. ------···· 132 7, 084: 1. 86 360,415 first f1·uits of their efforts and driving them out of business. If 18 2 --···· --··------···· 113 7,848 1. 43 450,023 1883 ------.- - --·-.------100 9,331 1 350 700 these men can, through a bankruptcy court, equitably distribute 1884 ------· -·----·-· ------·-----···- 220 10,344 2.13 1,4.00:396 what assets they have among all their creditors and be discharged 1885 --··-· ------··-- 141 12 459 1. 13 819 854, from the unpaid p ortion of their obligations, they will be given a 1886 ---- ·------.... 13.5 14:543 . 93 844' 72-3 1887- -· --·--·--· ------·-·------196 17,158 1.14 6«: 948 chance to start in business again on an equal footing with their 1888 - -···---· ·------··- ·--· 248 19,848 1. 25 968, 620 fellow-men, and a large number of them will be restored to the 1 9------276 21,233 1. 30 1, 538,718 business world, and their energies, their enterprise and experi­ 1890 --··------· ·-----·----··----·- 271 22,041 1. 23 1, 573, 500 1891 --· ------· 395 20,598 1. 43 3, 288, 36!) ence will greatly benefit the whole country. 1892 ----·------200 20,512 1. 02 1, 838,291 Mr. Speaker, I am indeed proud of the great State that I have 1893 ------343 20,463 1. 68 2, 210, 613 the honor to represent in part in this body. It has made amazing 1 94 ------·------·------232 20,133 1.15 1, 262, 473 1'95 ------·------234 19,610 1. 19 2, 038, 060 progress since it was admitted into the Union of States. A gen­ 180 14,461 1. 24 1, 05!, 177 eration ago it was a boundless expanse of rolling prairie, produc­ 1896 ----·- ---·------ing only wild buffaloes and native grasses. Now it stands near Total ------· ·-----··-_-----. 3, 597 ·------·------____ 21,225,595 the head of the list of States in the production of corn, wheat, and Average. ______------______------·-·- 14,945 1.&1 ------__ ·--- hay. It is gridironed with railroads and dotted with thriving cities and towns, giving it large commercial importance among The following table shows the commercial and industrial fail· the great commercial States of the Union. ures in all the States and Territories for eighteen years i.e. since 1898. CONGRESSIONAL RECORD-HOUSE. 1891 the repeal of the last national bankruptcy law up to and including men on the floor of this House who are opposing this bill, and who the year 1896: - are opposed to anything except purely voluntary bankruptcy. But a careful examination of these acts of bankruptcy shows that Number Number P er CPnt Tota.llia- nearly every one of them would furnis-h legal grounds upon which Year. 0 o~;:~- eb~~e~~ !!:::- bilities. to sustain an attachment in the State of Nebraska, and, I think I may safely say; in most of the States of the Union. In many of the States the creditor who levies the first attach­ 1879------· -- •••• ------6, 6,1)8 702,157 0. 95 $-98,149,053 1880...... 4,735 746,823 .63 65,752,000 ment on the property of his debtor secures a prior lien. There is, 1881 ------·-- 5,582 781,689 .71 81,155,932 it seems to me, much greater danger that creditors will rush in 1882 ------······················----- 6,138 822,256 .82 101,547,5GO and attach the property of a debtor when, by so doing, the cred­ 18&1 ..•.••• ------9,184 863,993 1.06 172,874,172 1884 ------10,968 904,759 1. 21 226,363,621 itor knows he will, if he sustains his attachment, obtain an advan­ 1885- ---· ------10,637 919,990 1.16 124,220,321 tage over all the other creditors, than there will be if this bill is 1886.------·------9,834 969,841 1.01 114,644,125 enacted into law, so that no creditor, by throwing his debtor into 1887 ------··------9,634 994,281 .90 167,561,030 1888 ------·---- 10,679 1,046,662 1. 02 123,829,973 bankruptcy, can obtain any advantage over other creditors. 1889------· ------10,882 1,051,140 1. 04 148,784,307 So long as the first creditor who puts an attachment upon the 1890------10,907 1, 110,500 .98 189,786,964 1891 ______------· 12,273 1,142,!)51 1.07 189,868,638 property of a debtor succeeds in securing a preference over other 1892------· ------10,344 1, 172,705 .88 114,044,167 creditors, there is a strong incentive for him to take the chances 1893 ·----··-·····-··········-····---- 1153', 242895 1,193,113 11:2825 346,749,889 of making an attachment stick. He is much more liable to do so 1894 ------· ------1,114,174 172,993,856 than he would be if he obtained no advantage over other creditors 1895 ·-. -··----- ·----- ••..•• ------· 13,197 1,ro!l, 282 1. 09 173,196,060 1896 ----········ ·------·------15,088 1,151,597 1.31 226,096,&3! by doing so. Under conditions that exist to-day in nearly every State of the I~~S:age~:~:::::~:~:::~::~:::: --~~:~~~- ----99!;333· ----T~- ~·-~:~~~~-~ Union it is dangerous for a man financially embarrassed to sug­ gest to his creditors that he would like to have them come together and consult about granting him an extension of time upon over­ These tables were compiled by the Bureau of Statistics of the due obligations or those which are to become due in the near Treasury Department. future, or else to turn over his property for the benefit of all his Mr. Speaker, owing to my limited time I can not pursue further creditors. this general discussion of the necessity and the demand for bank­ The first thing an embarrassed debtor ought to do would be to ruptcy legislation, for I want to discuss brie~y S?me of the fea­ call a meeting of his creditors for a consultation to the end that tures of the bill now before the House. This bill has been re­ theh· rights and his might be protected. But if an emban-assed ported favorably to this body by the Committee on the Judiciary, debtor should do that now in most of the States, the creditors, in­ which consists of seventeen members. Four members of that stead of attending the meeting, would at once begin a race to see committee dissent from the report recommending its passage. who could secure the first attachment upon the property of the This committee is composed of fom· members from the East, six debtor. from the West, and seven from the South and Southwest. It is claimed by those members of the committee who have joined in Although such a debtor might~ if given the proper extension the majority report that the bill is free from all taints of section­ of time and credit by his creditors, save his business and pay his alism, and I am satisfied that this is so. The provisions of the debts in full, he invites his own disastrous failure by asking his bill are such that every individual debtor, without regard to oc­ creditors to meet and consult with him about his embarrassed cupation or employment, if he be honest, may enjoy the privileges condition. But if this bill becomes a law, the conditions will be of voluntary bankruptcy. If he is too poor to pay the cost of changed, and every debtor who so desires can with safety call a the proceedings, he shall not on that account be denied his right meeting of his creditors. This condition will be possible because to be heard, and if he comes into court with clean hands, and in under the provisions of the bill it will not be possible for creditors good faith turns over to his creditors all his property for pro rata to take advantage of their debtor or of each other, and in turn the distribution among them, he shall be discharged, protected, how­ debtor will not be able to take advantage of his creditors. ever, by all the exemptions which the laws of the State in which The result will be that many men who are not insolvent but are he resides give him. embarrassed will be able to compromise or secure extension of Any person owjng debts to the amount of 51,000 or over, if ad­ credit and successfully continue in business, and the number of judged an involuntary bankrupt upon an impartial trial, shall be business failures will decrease under the operations of this bill if subject to the provisions of this act, except (1) a national bank, it becomes a law. The good will of a business which a man may (2) a person engaged chiefly in farming or the tillage of the soil, have labored long and. faithfully to build up is sometimes of more or (3) a wage-earner. The farmer and the wage-earner may avail value to him than the money or property invested, and with a just themselves of the voluntary features of the law, but neither can and fair bankruptcy law in force many business men, well estab­ be forced into involuntary bankruptcy. The acts of bankruptcy Jished, may be saved that under existing conditions will be de­ for which persons may be involuntarily tried in a court of bank­ stroyed. ruptcy are as follows: If this bill becomes a law I do not apprehend there will be many SEc. 2. Acts of bankruptcy.-a Acts of bankruptcy by a. person shall con­ attempts to force debtors into a court of bankruptcy, unless there sist of his having (1) concealed himself, departed, or remained away from his are just grounds for so doing. Any person filing a petition for place of business, r esidence, or domicile with intent to avoid the service of the purpose of having another adjudged a bankrupt is required civil process and to defeat hls creditors, and shall not have returned at least forty-eight hours before the filing of a petition in bankruptcy, and before the to file a bond for the payment of all expenses, damages, costs, and ri~hts of cr editor s shall have been impaired, altered, or interfered with; (2) counsel fees if it shall appear that the petitioner wrongfully in­ fa1led for thirty days and until a petition is filed while insolvent to secure stituted bankruptcy proceedings. The bill provides as follows: the release of any property levied upon under process of law for $500 or over, or if such property is to be sold within such time under such process. then When a petition is filed by any person for the purpose of having another until three days before the time fixed for such sale; (3} made a transfer of declared or adjudged a bankrupt, the petitioner shall file therewith, or within any of his p1·operty with intent to defeat his creditors and has not regained five days thereafter, a.nd before any action is taken thereon, and in the same th<:~ ownership and v ossession of such property before the rights of creditors court, a boud, with at least two good and sufficient sureties who shall reside have been altered, unpaired, or changed by reason of such transfer and at within the jurisdiction of said court, to be approved by the court or a judge least ten days before the commencpment of a proceeding in bankruptcy; (4) t hereof, in such sum as the court shall direct, conditioned for the payment to made an assignment forthe benefit of his creditors or filed in court a written the respondent, his or h er heirs, executors, administrators, or assigns, all statement admitting his inability topa.yhis debts; (5) made, while insolvent, expenses, damages occasioned by the wrongful institution of such proceed­ a transfer of any of his proper ty or suffered any of it to be taken or levied ings, costs, and counsel fees to be allowed by the court. If such petition be upon by procesa of law or otherwise for the purpose of giving a preference, dismissed by the court, or withdrawn by the petitioner with leave of the and has not regained the ownership of such property or released same from court, the respondent or r esponilents shall be allowed all damages occasioned such levy before the rights of creditors shall have been altered, changed, or im­ by the wrongful institution of such proceedings, counsel fees, and costs in­ paired by reason of such transfer, taking, or levy and at least ten days before curred in defending against said proceedings, and the same shall be paid by the commencement of a proceedin~ in bankruptcy; {6) -procured or suffer ed the principal and sureties on said bond. a judgment to be entered against h1mself with intent to defeat his creditors, And for the purpose of ascertaining the damages, costs, and counsel fees and suffered same to r emain unpaid until ten days before the filing of a peti­ sustained by the respondent the court shall have jurisdiction of the principal tion in bankruptcy, provided that a payment or satisfaction of such a judg­ and sureties on said bond without issue of further process against the~, upon ment by a sale of any of the debtor's property or from the proceeds of such the respondent filing in the court a statement of the amount of damages, a sale shall not be deemed a payment of such judgment under the provisions costs, and counsel fees claimed by him; and the amount shall be ascertained of this section; (7) secr eted any of his property t o avoid its being levied upon by a jury in said court, or by the court, with the consent of the parties nnder legal process against himself and to defeat hi<> creditors. and has not thereto. surrendered such property to such legal process at lea..<>t ten days before t-he filing of a petition in bankruptcy; (8) suffered while insolvent an executwn from a court of record for$-')()() or over, or a number of executions aggre­ This bill does not interfere with State exemptions, but provides gating such amount, against himself to be returned "no yroperty found," that the bankrupt shall receive the exemptions provided by the unless the amotmt shown to be due by such executions shal be paid before a laws of the State in which he lives at the time the petition was petition is filed. filed. These acts of bankruptcy, which constitute all the involuntary This bill provides for the expeditious administration of business features of the bill, have been the subjects of criticism and fur­ in the courts of bankruptcy. Its provisions are such as to pre­ nish the grounds of objection urged by a large number of gentle- vent the wa-ste and consumption of the estates of bankrupts in 1892 CONGRESS! ON AL REOORD-HOUSE. FEERU.ARY 18, unnecessary costs. It provides for referees convenient for the that I insist that I am right in my declaration that its purpose is parties interested~ which appears from section 31: to deal exclusively almost with those who may be called the in· Szc. 3J. .Appointment, removal, and districts of referees. -a Courts of bank­ termediaries between the produce1· and consumer in our country. ruptcy shall, within the territorial liinits of which they respectively ha.-e Is it not a little singular, Mr. Speaker, that this act should be jurisdiction. (1) appoint referees each for a term of two years, and may in their discretion, remove them bec."tnse their services are not needed or for assailed so strongly now, an act simply putting in force powers other cause; and (2) designate, and from time to time chan~e. the limits of that were given to Congress by the Constitution at the time of the districts of referees, so that each county, where the sel'Vlces of a referee its adoption, when within the last twenty years the Natfonal are needed, may constitute at least one district. Congress did for the first time enact laws under another power The jurisdiction of ~se referees is defined as follows, in section conferred by the Constitution, a power which had laid dormant 38 of the bill: from the time the Constitution was adopted down to a period Sno. 38. Jurisdiction of referees.-n Referees res-pectively are hereby in­ within twenty years, viz, the laws regulating commerce between vested. subject always to a review by the jnd~, Within the limits of their districts as established from time to time, with Jurisdiction to (1) consider all the States? When it was proposed in Congress first, within the petitions referred to them by the clerks and make the adjudications or dis la£t twenty years, to enact laws regulating commerce between the miss the petitions; (2) exercise the powers vested in courts of bankru-ptcy for States, that proposition was assailed far more bitterly than gen­ ·the administering of oaths to and the examination of ~ersons as Witnesses and for requiring the production of documents in proceedings before them, tlemen now assail this proposition to enact a general bankrupt except the power of commitment: (3) exercise the powers of the judge for the law. taking possession and releasing of the vroperty of the bankrupt in the event Congress did enact laws regulating commerce between the of the issuance by the clerk of a certificate showing the absence of the judge from the judicial district, or the division of the district, or his sickness or in­ States, and who to-day would be willing to remit the people of ability to act; (4) perform.. such part of the dutjes, exce:pt as to questions this country to the condition before Congress undertook to enact arising out of the applications of bankrupts for compositrons or discharges, any laws regulating commerce between the States? I do not mean M are by this act conferred on courts of bankruptcy and as shall be prescribed by rules or orders of the courts of bankruptcy of their respective districts, to say by that that nobody would change those laws regubting except as herein otherwise provid.ed; and (5) upon the application of the trus­ commerce between the States. I think they might advantageously tee during the examination of the bankrupts, or other proceedings, authorize be changed, but the necessity and propriety of legislation of that the employment of stenographers at the expense of the esta-tes at a compen­ sation not to exceed 10 cents per folio for reporting and transcribing the pro­ kind is now clearly fixed in the public mind. and we would never ceedings. think of going back on it. · Great care has been taken in framing this bill to provide for the This act, perhaps, does not deal with all, but it deals chiefly, transaction of as much of the business of bankruptcy proceedings and almost entirely, with those who are engaged in commerce as possible where it will be most convenient for parties interested. between the people of the State and between the States and for­ The bill also provides for the appointment of a trustee or trustees eign countries-those who are traders; and, as the gentleman from to take charge of the bankrupt's estate, and persons having prop­ North Carolina [Mr. LINNEY] well knows, England~s bankrupt erty interests adverse to the trustee's may commence proceedings laws. or those of any foreign country, all limit their operations to in the appropriate State courts. traders-those who are not producers, but simply intermediaries The trustee is limited in instituting proceedings to the State between the producer and the consumer. This proposes the same courts or to the United States circuit court, if the bankrupt would limitation. it does not touch the- merchants who engage in busi­ have been entitled to have instituted proceedings in these courts, ness legitimately and honestly the merchant whose ships are in the event he had not been declared a bankrupt. The purpose freighted and sa:il:; are filled and flags are flying; the mel'chant of this provision is to have the litigation incident to property who honestly is able and. willing to pay his debts is not affected rights tried at places that would be most convenient to parties either by the law or the gpirit of this proposed law. interested. It proposes only to reach those who as. merchants are dishonest, Th&e are oth& features of this bill to which I should be pleased who as traders- are unwilling to pay their debts, or who as mer­ to call the attention of the House, but I can not be allowed to con­ chant£ or traders have already reached the point where the wind sume the time of this body to do so. has gone out of their sails, where their vessel is wrecked or about I hope that this or some other proper bankruptcy bill may soon to be wrecked. It only deals with such merchants as are a mere be enacted into law, that it may lift the heavy burden of hope­ flotsam and jetsam along the stream of commerce; and it proposes less debt from thousands upon thousand& of honest citizens of to do what with them? To deal harshly with them? No. No the Republic. I believe that sound public policy dictates its bankruptcy Taw was ever proposed in Congress that dealt so leni­ passage. I believe it affords creditors every facility for the pro­ ently, so kindly, as this bill does with the man. whose fortunes tection of their property rights that tbey can reasonably demand. ha-ve been wrecked in his tr.ading. I believe that if it shall become the law of the land tens of thou­ One of the kindest features of this proposed law is that concern· sands of honest men who are now inactive, discouraged., and de­ ingca composition with creditors that may be made by the debtor. spondent will become active, hopeful, happy, and useful citizens.. He may compound hls indebtedness. He can not be placed in Mr. HENDERSON. Iyieldtothegentlemanfromlllinois [Mr. bankruptcy until he has reached the stage where an honest man Co:r-.TNOLLY]. can no longer continue to conduct his business as a merchant. Mr. CONNOLLY. Mr. Speaker, that this bill is of more than This bill does not- touch him until he has reached a stage where usual importance is fully demonstrated by the fact that we have he can not pay the debts already existing. .And as business is now spent more than two days in general debate in the House,.. and. conducted in this country, no man can long continue as a mer­ nearly every member who has taken the :ff.oor has addressed him­ chant without invoking credit from some source. No merchant self directly to the bill under consideration before the House­ in this country scarcely-except those who are opposed to this something which has not occmTed before certainly during this measure-are able to do business on their own capital. None of session. them are wealthy enough; all must invoke credit from those with In the discussion that has taken place on this floor I have been whom they deal. a little surprised to see thatgentlemengenerallyhave treated this This bill does not propose to touch the man who is dealing on as a bill that affected all citizens of the United States alike. I do credit so long as he can honestly ask for credit from others. So not so regard it. The bill by its very terms limits its operation to long a.s he is able, by reason of the prosperity of his business and that claE!s of citizens who are not the real producers of this coun­ the property that be bas on hand, to pay his indebtedness in the try. It limits itself in operation to those who are the intermedia­ ordinary course of business, this bill does not touch him. It can ries, if I may so describe them, between the producers and con­ only operate upon him when he reaches such a stage that he sumers. It limits itself practically in its operation to those who can no longer meet his obligations-not all poured in on him at are engaged in trade or commerce between the States. It spe­ one time, but the obligations that come for discharge in the ordi· cially exempts from its operation those engaged in tilling the soil nary, regular course of his business. and those engaged in earning their bread by the sweat of their Now, I say, as was suggested yesterday by the gentleman from brow. Massachusetts ["Mr. MooDY], that the1·e are, I fear, too many of Mr. LINNEY. Will the gentleman from illinois allow me one these kind and humane features in this bill, if it is to be criticised question? at all. In other words, there are not quite teeth enough in it to Mr. CONNOLLY. Yes. accomplish the real purpose of making the dishonest man turn Mr. LINNEY. Yon say that it exempts those engaged in till­ over all his property to his creditors for the payment of his debts. ing the soil. Suppose a farmer carries on the business of selling But he may call his creditors together after this course of pro­ the products of his farm. I ask yon if it was not decided by the ceedings is commenced against him, and then they may examine courts of England that where a farmer sold apples and potatoes him thoroughly upon oath to know what he has done with all the and made brick he thereby became a- trader and subject to the money that be borrowed, with all the goods that he bought, with bankrupt law? all the property that he had when he first went into business. Mr. CONNOLLY. The word "farmer" does not exist in this They may purge his conscience-not as a bill of discovery, ac­ act. It specially exempts those whose business is chiefly that of cording to the suggestion of the gentleman from Kentucl..-y the tilling the soil. It makes no difference what incidental business day before yesterday, might do, but far more potently than any a man may have, if his chief business is that of a tiller of the soil. bill of discovery ever purged . any man's conscience the con· A farmer, as incident to his business, may and must necessarily science of this bankrupt may be purged by his creditors before sell the products of the soil that he may have as a surplus. So they accept his proposition to adjust matters with them. Then 1898. CONGRESSIONAL RECORD-HOUSE. 1893 - he and his creditors may come together. He can propose to pay not read the act of 1800, or else he would not have defined it as them so much on the. dollar. He can not be put in this position, being less drastic than the bill which is now before us. Did the you remember, until he is insolvent-until he can not pay. gentleman ever Iead that law? He said he did read it. If he did, Now~ when he is there he can propose to pay them, and they, then he Tead it to very little purpose. having full knowledge by examining him, by examining his Now, with a view to showing why that law was not satisfac­ schedule, by examining all persons who claim debts against him, tory, and why such a law could not be passed in this Congress, can then determine whether the offer made by the debtor is right I invite the attention of the House for a moment or two to just or not, and if it is, he is not then compelled to wait for the agree­ two provisions which the gentleman commended so highly as a ment of every single creditor as he is obliged to do to-day, but if better law than this, because he singled out the act of 1800 as not a majority of creditors in number and in .amount of indebtedness being as drastic, as he defined it, as the present law. I have that agree to accept the proposition he makes-it may be 25 or 50 cents act before me, and I call your attention to the provision of the on the dollar-the minority of his creditors are compelled to agree law concerning acts of bankruptcy for the purpose of showing with the majority, and that man is released. I say that this feature the operation of the law as compared with the pending one. I of the bill puts the insolvent on a far higher plane than he could read now one paragraph from the law in question: possibly be without a national bankrupt law. Anyone who shall with intent unlawfully delay or defraud his or her It may be said that creditors have now a right to settle with an creditors, depart from the State in which such persons usually reside, or remain absent therefrom, or conceal him or her self therein, or keep his insolvent trader. True, they have; but the insolvent trader with or her house so that he or she can not be taken or served with process, or fifty creditors scattered up and down the State or in different willingly or fraudulently procure him or herself to be arrested, or his or States-how can he get them together; how can he get them all of her lands, goods, money, or chattels to be attached, sequestered, or taken in execution, or shall secretly conyey his or her goods out of his or her honse, one mind? There are now no laws whereby he may summon or conceal them. to prevent their being taken in execution, or make, or cause them to any central point where he may confer with them. And to be made, any fra~dulent conveyance of his or her lands, or chattels, or if he has fifty creditors, forty-nine of whom agree to accept 50 make or admit any false or fraudulent security or evidence of debt, or being arrested for debt, or having surrendered him or herself in discharge of bail, cents on the dollar and release him, the remaining cl'editor may shall remain in prison two months, or more, or escape therefrom, or whose refuse, and that one creditor, with possibly a considerable debt, lands or effects being attached by prof'.ess issuing out of or returnable to, may stand out determined to keep him, as long as he owes that any court of common la~\ shall not, within two months after written notice thereof, enter special bail and dissolve the same, or in districts in which debt, from ever reengaging in business as afTee man. The insol­ attachments are not dissolved by the entry of special bail, being arrested for vent trader-the trader unable to pay his debts-is to-day a slave debt after his or her lands and effects, or any part thereof, have been attached . absolutely to every creditor that he owes. He is as thoroughly for a debt or debts amounting to $1,000 or upward, shall not, upon notice of within prison bars as any man who is actually there. He is no such attachment, give sufficient security for the payment of what may be recovered in the suit in which he or she shall be arrested, at or before the longer a free man. He may not do with his own as he chooses, retnrn day of the same, to be approved by the judge of the district, or some but is subject to the will of any creditor who chooses, Shylock­ judge of the court out of which the process i.<;Sued upon which h~ is arrested~ like, to demand his pound of flesh. No matter what his neces­ or to which the same shall be returnable, every such person shall be deemea sities may be, the trader is subject to the heartless creditor. and adjudged a bankrupt. Now, Mr. Speaker, some aTgument adverse to the enactment of Now, what does the gentleman from Colorado think of the bankrupt laws has been drawn from the fact that with the three drastic provision in that bankruptcy law, and how long would bankruptcy laws that have heretofore been enacted in this coun­ this bill b6 allowed consideration in this House if it contained such try the experience of the country has not been satisfactory. Those a provision as that? laws have not been allowed to remain very long on the statute In reply said: Aye, but look further, and I call the attention of book, and from that fact an argument is drawn that we shall the gentleman from Colorado [Mr. BELL] to this. That bill ex­ never permit a bankrupt law to remain very long on the statute empted only this, and nothing more, to the bankrupt: book in this country. His or her necessary wearing apparel and the necessary wearing apparel of the wife and children and necessary beds and bedding of such bankrupt It may be said, too, as it has been, that this country is peculiarly only excepted. situated with regard to national legislation on a subject of this character. We have forty-five different sovereignties having an .Mr. STRODE of Nebraska. What statute is that? equal right with this body to pass laws on certain subjects. Mr. CONNOLLY. This is the act of 1800, that the gentleman These sovereignties have their various courts and their laws from Colorado [Mr. BELL] characterized as one much less drastic concerning thecol1ection of debts and for the transmission of prop­ than the one now before the House. erty, and we are all of us more or less provincial in our peculiar Here is another provision of that act. The commissioners ad­ attachment to the laws, each of us, in his own State. But, Mr. judge the question of bankrupt or not bankrupt. The act provides Speaker, gentlemen should remember that the laws of our States, that the commissioners so to be appointed- complete as they may be in all other respects, none of them, have shall have power forthwith, after they have declared such person a bank­ rupt, to cause to be apprehended by warrant under their hands and seals the power of doing what a law passed by the National Congress the body of such bankrupt wheresoever he may be found within the United may do, namely, to absolutely discharge a man from the neces­ Stat-es, provided they shall think- sity of paying any more of his debt than his p1·operty will bring Now, just notice this- if sold under certain conditions. None of our State laws can do provided they _shall think there is reason to apprehend that the said bank­ that. rupt intends to abscond or conceal himself; and in case it be necessary to Now, is it a goou thing or not, as a matter of policy, for the take the body of the said bankrupt , shall have power to cause the doors of National Congress to provide a mode of deliverance for the honest ~~~:i~l~111ghh~e s~a~~ ~~~~pt to be broken, or the doors of any other man who has become, by no fault of his own, by the misfortunes of his life, a bankrupt? For men whose shoulders have long borne What does my Colorado friend [Mr. BELL] think about drastic the burden of the weight of debt, whose condition of distress can provisions in a bankruptcy law? Had he ever read this when he not inspire com·age, but, on the contrary, banishes hope, and which made that declaration? I doubt it. leaves him, for all the purposes of an enterprising citizen, a mere Mr. DOLLIVER. I should like to ask the gentleman a question. str:tnded hulk by the wayside? Is it politic for the National Con­ The SPEAKER. Does the gentleman from illinois yield? gress, if it has the power, to lift this burden from his shoulders Mr. CONNOLLY. Yes. and emancipate him from that condition? If it was good policy l't!r. DOLLIVER. Has the gentleman observed the exemption to emancipate the slave of the South, to lift him up in God's sun­ in the law of 1800 in favor of all existing liens? light and make him a free man, why is it not equally proper to lift Mr. CONNOLLY. Yes. up the white brother, to strike off the shackles from him, and let Mr. DOLLIVER. And does the gentleman regard that as an him also stand in God's pure sunlight a free man, and begin again advantage over the failure of this bill to make any exemption in the manly struggle for subsistence, to support himself and his behalf of bona fide liens already made? family and to leave to them a competency when he shall be no Mr. CONNOLLY. This does not fail to make provision. We longer able to be their stay and support? could not pass anYJaw that would exempt liens. We can pass no Mr. Speaker, even as a matter of policy we shouJd do this thing. law that will violate the obligation of a contract already made But it is said-and I repeat it, and I call attention again to the between parties. The gentleman knows that, and the committee fact and to the assertion-it has been said that we can not do this, never would report a bill of that kind. because no Congress heretofore has succeeded in passing a satis­ Now, tmder t he operation of the "humane" law that was so factory bankrupt law. Now I ask you, Have gentlemen consid­ favorably considered by the gentleman from Colorado [l\Ir. BELL], ered the reasons why a satisfactory bankruptcy law has not been when you come to regard these outrageous provisions-provisions heretofore passed by Congress? I heard one gentleman from that for the mere purpose of collecting debts allowed three com­ Colorado, speaking of the proposed law now under consideration, missioneTs, upon their own notion that a man was about to leave call it a "most drastic piece of legislation " or the "most drastic the Stat-e, to have him arrested, to issue a warrant without hear­ banln·upt law " that had ever been proposed to the American Con­ ing, without affidavit, and put the warrant in the hands of one of gress. I questioned then whether that gentleman had carefully­ their creatures, to go to the dwelling house of that man or to the ! Tepeat, carefully-read and considered the provisions of this bill? house of any neighbor where he might be ·staying overnight, I questioned whether he had carefully read and considered the break the door with strong hands, violate the sanctity of his castle, other bankruptcy laws passed in prior years. He assuredly had and drag him out to prison-is it any wonder that a law of that 1894 CONGRESSIONAL RECORD-HOUSE. FEBRUARY 18,

kind could not long remain upon the statute books? If there were benefit of debtors substantially alone and ignored in a large meas­ no other reason, a law that stripped him of the last bite to eat, a ure the rights of creditors. It was enacted in behalf of the debtors law that stripped him and his wife and children of everything alone, and it is but small wonder that that law, which opened the except the bare clothing on their backs and the beds and bedding doors of freedom to everybody that chosQ.to avail himself of it, and their little household furniture, could not long remain in ex­ without regard to the rights of the creditor, remained on the statute istence in this country. Talk about a humane law! Who would books bnt a year. · ., be heard in the American Congress to-day favoring the enactment That law also contained provisions whereby the estates might of a law that would thus strip the trader or any citizen of every­ be eaten up by the nibbling of mice that infest bankrupt courts thing that he had and turn him out hopeless or imprison him in a and eat all up for their own benefit. Again, in 1867 , all of us jail? who were familiar with .the operation of t he act while in force But there was still more than that as a reason why that law did know that one of the great crying evils with that act was that it not r emain long. That law was only intended by its terms tore­ brought around every Federal court and around every register in main in force for fi ve years after its enactment. It was really bankruptcy and every assignee a lot of mice and rats, who lived repealed within thre3 years. But that was not all. There was upon t he pickings that fell and what they could steal by any another reason, a r eason which, by t he way, m ade the very last practices under the law from the estate of the bankrupt. It was bankruptcy law we h ad so odious that it finally became a stench outrageous, and every lawyer except those who were engaged in in the nostrils of all right-thinking m en , and it was properly re- the actual practice of the bankrupt law felt himself outraged by . pealed by Congress, and should be if it could not be modified. the practices that be saw carried on under that law. We saw There is another reason why that act of 1800 never remained. I that the high character of the courts was being dragged down have before me a communication made by John Quincy Adams, and ma.de a subject of reproach in the minds of honest people Secretary of State, in 1822, under President Monroe, in response because of the practices that were winked at, as was supposed, to a resolution of the Senate asking for information as to the dis­ but were really carried on covertly under the very eyes of the position of cases under this banluuptcy law which was passed in Federal courts. 1800. It was not a law for the benefit of creditor or debtor, but a law He made a report in detail only of the cases disposed of in the for the benefit of those rodents who burrow around the places of StatesofNewYorkandPennsylvania. This isfoundin thefourth justice to get a living by what they can steal away from the cases volume of Executive Documents, first session Seventeenth Con­ legitimately before the courts. gress. In that I find the cases set out in each of those States, the Mr. LINNEY. Will the gentleman permit me another ques­ amount of cost in each case, and the amount of dividends paid in tion? each case. As a sample of how that law operated, here is a case Mr. CONNOLLY. Yes, sir. in which I find. the costs were $589.35 and the dividend paid was Mr. LINNEY. You say that under the practice of the old law 15-i per cent. So I find another case in which the costs were SS06.09 the estate was eaten up by rats and mice that were nibbling the and the dividend paid was 8-t per cent. estate. I wish you would tell the House, for my interest, if for I find another case in which the costs were $536.85. There were nob ody's else, how many rats and mice under section 45 may nibble three dividends, amounting in all to 17 per cent. I mention these the estate. There is no limit to the number of trustees. as the largest amount of costs, although the costs in all the cases Mr. CONNOLLY. \Vell, the creditors choose the trustees and named here run in each of them over $200; from that to four, they can limit the number. five, six, seven, and eight hundred. Now, when you consider the Mr. LINNEY. But what limits the creditors? small percentage of dividends paid, you can see that that law, Mr. CONNOLLY. Nothing but their own desire to realize an while it was a fearful outrage upon the debtor, while it violated advantageous percentage from the estate. The creditors know the sanctity of his home, robbed him not for the benefit of the that trustees are elected by themselves and that the trustees are creditor, but for the benefit of the officials who enforced the law. to take charge of the estate, and if they select trnstees who will They wok his property, turned him out penniless, and the officers rob them, they can not complain of anybody but themselves. of the court pocketed the results. Mr. BRODERICK. I will call the attention of the gentleman Is it marvelous that that kind of a law should be repealed? Not from North Carolina [Mr. LINNEY] to the fact that when there at all. The wonder is that it should ever have been enacted. are three trustees they only receive the same compensation as From the fact that a bankruptcy law with an involuntary feature one trustee. to it, and chiefly involuntary, was enacted by the men who were Mr. CONNOLLY. Yes; whether one trustee or three, the com­ contemporaneous with the Constitution itself furnishes strong pensation is the same. It makes no difference. You may multi­ _evidence that the men of that day who made the Constitution ply the number of rate;, but the size of your cheese remains the understood that when they gave the power to Congress to enact a same all the time. [Laughter.] national bankrupt law they gave the power and expected it to be Now, I am glad that the gentleman from North Carolina has used to enact an involuntary bankrupt law, such laws as were asked me the question, because it brings me to a very pertinent known then in England as bankrupt laws, laws that would take matter t hat I propose to consider. the estate of the insolvent debtor and apply that estate in the pay­ The provision on page 56 is: ment of his debts equally, and then give him a discharge. Under Whenever thre(l t r ustees have b een appointed for one estate, the concur· renee of at least two of them sh all be n ecessary to the validity of their every the old law, of 1800, I think it was, the debtor was compelled to act concerning the administration of t h e estate. pay 75 per cent, otherwise the incubus of debt remained on him, On page 54, in r eference to the appointment of trustees, it says: although stripped of everything, and he did not have the right to The creditors of a banln ·upt estate, at their first meeting after the adjudi­ distribute his own estate. cation or after a vacancy h as occurred in the offi ce of t r ustee, or aft er an Another feature of this law most acceptable to all who are esta.te has been r eop ened1 or after a composition h as been set aside or a djs. lawyers-and let me say that if this entire law was to be enforced charge revoked. if ther e IS a vacancy in the offi ca of t r ustee, shall appoint one trustee or t hree trustees of such estate. If the cr editors do n ot appoint · in the State courts I do not know how many of my brother law­ a trustee or t rustees as her ein provided, the court shall do so. • yers on this floor would find objection to the law. I presume Now, the number of trustees depends upon the creditors them­ not so many would be found to object to it as are found to-day. selves, and it is for their interest, I repeat, to select men for trus­ Another feature· of this law, in which it differs from any bank­ tees whose charges will not be exorbitant, who will be careful rupt law that has ever been proposed, is this, that the trustee of and prudent in their management of the estate, and whose charges the estate of the bankrupt, when the estate comes into his hands, will not be unlawful. is required by this law to go into the same courts the bankrupt Then the compensation of trustees provided for in section 48, himself would have to go into to collect that estate. That is a page 56, is as follows: new feature. When promissory notes or accounts are due the Trustees shall respectively receiv€', as full compensation for their services, bankrupt under this law, the trustee must go into the court of the payable after t hey are rendered, a fee of $5 dep osited with the clerk at the proper county in the proper State and there enforce the right, time the petition is filed in each case, except when a f ee is not r equired from a voluntary bankrupt, and from estates which they have administered, such just as the administrator of a man's estate would be compelled to comm:issions on sums to be paid as dividen ds and commissions as may be do; and that is a very proper provision. allowed by the courts, not to exceed 3 p er cent on the first $5,000 or less 2per All the State courts have ma-chinery for the collection of debts, cent on the second $5,000 or part thereof, and 1 per cent on such sums m1 ex· and it is not proposed now because we pass a bankrupt law here cess of $10,000. to give to national courts the right to interfere in suits between [Here the hammer fell.] citizens in the States, but the trustee must simply step in the shoes Mr. HENDERSON. How much more time does the gentleman of the bankrupt and go into the courts he is forced to go in if he from illinois want? collects his estate himself. That provision, I say, is one that should Mr. CONNOLLY. Fifteen minutes more. commend it most heartily to all of us who a1·e the strongest stick­ Mr. HENDERSON. I yield to the gentleman fifteen minutes lers for doing everything in the State courts that can possibly be more. done there. Mr. CONNOLLY. The compensation of the trustees I have Now, Mr. Speaker, no argument can properly be drawn against just read. N ow , in the event of the estate being administered by this law from t he failure of. the other law. I was addressing my­ three trustees instead of one, the com·t shall apportion the fees self to that. The second law, passed in 1841, was a law for the according to the services actually rendered, so that there shall not 1898. CONGRESS! ON AL RECORD-HOUSE. 1895: be paid to trustees for the administering of any estate a greater the causes recognized by the laws of the several States for attach- · amount than is herein prescribed. ing a man's property prior to judgment. So much for the trustee. Now for the referee in ·bankruptcy. Now, I have heard some gentlemen say that they do not believe Under the old law, before any step could be taken, $25 had to be they can support this bill because it makes preferences of creditors deposited in court for the register in bankruptcy. Under this a cause for bankruptcy. Gentlemen who say that are mistaken law the referee gets 810 after the case is closed, and he gets a in their understanding of the provisions of the bill. They have small commission, a very small commission, on the amount paid not read the whole measure and weighed it carefully. A mere out in dividends. I would say to my friend from North Carolina preference of one creditor over another is not under this bill an [Mr. LINNEY] that the rats would not get very fat on that kind of act of bankruptcy. Who are preferred creditors? What does feed. The referee or trustee gets $10 and a small percentage, a that expression mean? If gentlemen will turn to page 68 of the percentage less than the average percentage paid to administl·a­ bill, they will find the definition of a preferred creditor; and those tors for administering an estate in the several States. The referee who do not like the bill because it makes the preferring of one gets 510 and a small percentage on the dividends. The clerk of creditor over another an act of bankruptcy may set their souls at court gets $5. The total for the clerk in that case is $5, and that rest when they come to see what a preferred creditor is under is for his personal compensation. All that he gets for administer­ this bill. Here is the definition: ing oaths, filing papers, and all that is charged up by him under A person shall be deemed to have given a preference if, being insolvent or the general fee bill he must account for to the Government; that in contemplation of insolvency or bankruptcy, he bas procured or suffered a is not for his personal compensation. judgment to be entered against himseH in favor of any person, or made a So with the United States marshal. No fees are allowed the mar­ transfer of any of his property- shal except the fees that are allowed him by general law in all Now, observe the particular intent- cases with which he has to deal. The great complaint will come, with intent to (1) defeat the operation of this act; or (2) enable any one of if this act should become a law, to the very next Congress from his creditors to obtain a greater percentage of his debt than any other of such referees and from bankruptcy lawyers, insisting that the law can creditors of the same class. not be properly enforced because decent compensation is not paid It will thus be seen that a preference of a creditor within the to trustees, to referees, to clerks of court, and to the United States meaning of this bill must be done with a specific evil intent. marshal. To pay a creditor in the ordinary course of business is not to Mr. MAGUIRE. Will the gentleman allow me a question? make him a preferred creditor; but the debtor must do this with Will not the passage of this bill lead to continuous demands for a specific evil intent at the time. He must do it, first, while he is increase of compensation in future Congresses, and successful insolvent; second, it must be done by him in contemplation of demands, too? bankruptcy. And it must be taken not only in contemplation of, Mr. CONNOLLY. My dear sir, I can not answer for future but with the full purpose of evading the bankrupt act itself by Congresses as to how successful these applicants may be upon giving a person preferred and undue advantage in the distribu­ this fee and salary question, but my judgment about it is that if tion ofhis estate under the law. Now, what objection is there or this Congress will pass this bankrupt law with this schedule of could there be to such a law as that? It is not a '• preference" in fees in, before another new Congress meets it will be manifest to the ordinary course of business. We are constantly making pref­ the countl·ythat the law can be enforced, and that the only ques­ erences ourselves. :Men in trade, all of them, at times prefer one tion the next Congress will have to deal with is whether or not creditor over another. It is a common occurrence in business. they are willing to give more of the estates of debtors over to the Here are a number of accounts due by the merchant to the whole­ rats and mice that infest the Federal courts and the purlieus of sale dealer. He can not pay all of them at this time. He sends a Federal offices. draft to-day to A or to B, and says that to-morrow or next week Mr. MAGUIRE. And the gentleman must not forget the horde he will send others to the rest of the merchants to whom he is in­ of "rats and mice" who will be here as lobbyists asking that these debted. allowances be increased. Is that a preference within the eye of the law? No; by no · Mr. CONNOLLY. Yes, sir; but I have faith that the people means. Under this law it is not and can not be a preference. It will send another Congress here quite as virtuous as we are. is not clone when he is insolvent or with a view of taking advan­ While the gentleman from California and myself may not appear tage o"f the provisions of the bankruptcy law. It is not taken in that Congress, yet there will be others in our places who will even in contemplation of insolvency or bankruptcy proceedings. have just as much sense as we have and just as much desire to So the act is carefully guarded not to interfere with those who see this bankrupt law fairly carried out. The point of the gentle­ are doing business in the ordinary way, transacting their business man's question would go to say that we should have no bankrupt legitimately with a view to its proper conduct, and with no intent law, or if we do, we should pay no fees to anybody for enforcing to defraud. The law goes ::tlike to the interest of all parties-to it. If we have a law, we must have some means of enforcing it, the interest of the debtor and the interest of the creditor in the and somebody must be paid for doing so. distribution of the estate. It says to the failing debtor that "the Mr. POWERS. Will the gentleman yield for a question? ship shall not go down in the waves" and leave him struggling Mr. CONNOLLY. Yes, sir. and unprotected. Mr. POWERS. My question is not~n line with the remarks It says that the law will reach out and save the vessel and the which the gentleman is now making, but I wish to call his atten­ cargo, bring it to the shore, and distribute the proceeds-the value, tion to section 3 of this bill-subdivision b. whatever it may be-among the people to whom he is indebted, Mr. CONNOLLY. I would prefer not to occupy my time in and that he shall have a new opportunity of starting out in life touching upon that point, because I have only ten minutes left. again free from the incumbrances and burdens which have beset I addressed myself to that point when I began the discussion of him. This is the purpose of the law and is one of the funda­ section 3. ment.all·easons for supporting it. Those who would oppose the Mr. POWERS. What I wished to call the gentleman's atten­ law would stand on the bank and see the ship go down and the tion to was the inconsistency which there appears to be between bankrupt struggling in the waves, and all the rest of his life striv­ that section and subsequent sections. Section 59 provides that ing to regain the shore, without giving him a helping hand or "three or more creditors who have provable claims against any aiding in any way his honest efforts to redeem his fortunes. What person which amount in the aggregate, in excess of the value of did the old law do? Did that law provide for the release of the securities held by them, if any, to $500 or over/' may file a peti­ insolvent debtor? And, by the way, just here let me appeal to tion in bankruptcy. But in section 3 the limitation seems to be gentlemen of the profession on the floor who know the operation $1,000. of the law of 1867, to ask them if they do not know it to be a fact Mr. HENDERSON. That is where there are more than twelve that fully 50 per cent of all of the cases under that law were creditors. The section which the gentleman has just read has compounded .bY the cred~tors, and the debtors were discharged by reference to cases where there are less than twelve. agreement With the creditors when they found exactly the condi­ Mr. POWERS. I submit to the chairman of the committee tion of the estate and the property the creditor had which was [Mr. HEXDERSO:N] that there is an apparent inconsistency there. applicable to the debt? 1 call his attention to it so that he may look into the matter. The creditors can not, of course, expeet to receive more than Mr. CONNOLLY. Now, :Mr. Speaker, fault has been found the debtor can pay. They should receive that; and yet there are with this bill as a harsh measure. I come back to that point to creditors in this land who are opposing the bill. In my own Statet say that when gentlemen examine the acts of bankruptcy as set in the city of Chicago, whose business stretches over the great out on page 21, they will find that the same identical things are Northern, Middle, and Northwestern States, a large business con­ recognized by the laws of the various States as causes for attach­ ducted by a man of vast wealth, with as thoroughly organized a ment of a man's property. How does this proceeding in bank­ collection bureau as in any other of the regular departments of ruptcy any more effectually shut off the business of a trader than his business, as the cloth, the ribbon, and the muslin department, a w1it of attachment shuts it off? This bill provides that when a his lawyers in every State standing as pickets near every one of petition has been filed the same thing shall be done as is required his debtors-this man is opposed to a bankruptcy law because his by the law of every State when a writ of attachment is issued. collection army enables him to overcome all competing creditors, I repeat, the causes for bankruptcy are substantially the same a-s and seize for himself from each of his failing debtors enough to

. 1896 CONGRESSIONAL RECORD-HOUSE. FEBRUARY 18, pay his claim, although it may leave the unfortunate debtor bur- to ·escape payment of their -d~bts, for ev-ery State in this Union dened for life with the debts due other creditors. . provides remedies for such cases. We are not like many other The CHAIRMAN. The time of the gentleman has expired.. countries upon this subject. Mr. MAGUIRE addressed the House. Se_e Appendix.] : We might take England for instance~ from whose system, prob- [ ably, this provision of the Constitution found lodgment in our Mr. TERRY. I yield twenty-five minutes to the gentleman organic law~ because there parliament legislates for the whole from Missouri [Mr. BLA.ND]. people. Here we have local self-government. We have the laws ].Ir. BLAND. Mr. Speaker, I am not presumptuous enough to of the various States upon this subject. Creditors are nowhere suppose that I can throw any light upon this subject-or contribute without remedy. They have no right to com-e here and ask this anything valuable to this discussion that has not already been pre- · House to give them power to collect debts and enforce their col­ sented by those who have preceded me. I would not undertake to lection. They have that remedy in eyery Stat-e in this Union. use the time of the House if I did not feel that it was my duty to Hence, if thera is any merit in this bill, it must be in that part give some of the reasons why I can not support this bill, and why~ of it that proposes to relieve those honest men who have in the probably, I could not support any bill upon this subject. past become commercial wrecks, and in relieving them, or attempt- Entertaining, as I do, views that I have gathel'ed from the ing to relieve them, we -ought not to incorporate in this billn. pro­ fathers in the past, that our Government is a Government of dis- vision that is a threat to every man now transacting business in tributed powers, and that the great States of this Union are sup- this country. · posed to be competent to regalate their own contracts and to I can not speak for every section of this country with regard to enforce them in their own way; that although this power may the Federal courts, nor shall I undertake to criticise the manner haye been conferred, as it unquesti-onably has been, in th~ Con- in which they enforce the laws. stitution to }>ass uniform laws on the subject of bankruptcy, yet I shall not allude in a harsh manner to them in that respect, I -can not but regard it as one of some others in that instrument but from whatever cause it may be, the fa-ct il:l, as far as my that found lodgment there at the instance of those who doubted · knowledge extends in the country in which I reside, there is .an and distrusted the people of the States in their sovereign capacity · absolute terror when you mention the fact of :liTaigning .a man for self-government. · in a Federal court upon any subj-ect. And when it is proposed, !believe the time has come, Mr. Speaker, when those espedally . as this bill proposes, that a man who may haYe property probably who think as I do should hesitate before marching upon the road sufficient to pay his debts-for I think that is an important ques­ of centralization of power; for, unquestionably, as we strip the tion for inYestigation in this bill-who, under ordinary circum­ States of rights which properly belong to them and assume on the stances, if permitte.d to manage his own affairs, has sufficient part of Congress and the Federal judiciary and Fede1·al machln- means to meet his debt, yet the fact that he may be dragged be­ ery to take control of the local affairs of the people of this coun- fore a Fede1·al court is in itself a means by which in all proba­ try, in so far as we do that we tend at least to build up alien power bility he will be made a bankrupt. for the protection, not of the poor, but of monopolies, trusts, and Now, sir, what do I mean by one having prGperty sufficient to combines. meet his obligations in the sense of this bill? D0 we mean by that I feaT the enactment of this bill for -oth-er reasons. l!; looks to · a man -doing business who probably under ordinary conditions has me something like a proclamation of bankruptcy going forth from sufficient property and assets to meet his debts or do we mec1.n by the Federal Government that will unsettle business everywhere that that when you come to investigate the subject you must de­ and compel every man to inyestigate his neighbor; that will cause · termine whether if his property is put up at a judicial sale and he uneasiness in the business community~ so that even while a man is compelled to marshal his as.<;ets :and put them on the market may to--day feel himself entirely solvent, independent, and fearless he will have sufficient to meet his obllgations? as to hi8 debts, yet the fact that he may possibly be dragged into I t.ake it that is what this bill means. If so, then I can say, Mr. a Federal court by some spy set upon him will cause him to Speaker, that nine out of ten of the retail merchants in this conn­ hesitate in his business transactions and bring him • in the end try could be put into bankruptcy under this bill. If for any cause to disaster. an extraordinary demand should come to him to meet some exi- I do not believe the time has come for a bankruptcy bill, and if gency, some pressing obligation, and he should go to a friend or to ever such a time should arrive, it is not when business is prostrate a banker and there execute an instrument as a mortgage or a judg­ throughout the countl·y, when honest men are struggling as they ment in court for any security, for the purpose of procuring the are to-day everywhere, a great majority of them, to meet their means to tide him over his present difficulties, he would under obligations and surviye in the business world. After they have this bill be pat in banln·uptcy the next morning. survived the wreck of the past and are still holding their heads And the fact that such is the case, the fact that such a terror out of water, shall we, under the plea of -reliBving some unfortu- is held over him, would be in itself sufficient to compel him to nate individual who has gone to wreck, enact a law that is at once seek the banln·upt -court and immediately go into bankruptcy .a te1-ror to every man to-day who is in legitimate and honest busi- voluntarily rather than be driYen there. And so it may happen ness engagemBnts? under this bill that where we relieve -one man we would destroy No, 8ir. I know it is said sometimes, and even not only here ten, fifteen, or twenty.. but elsewhere, especially in the public press, that prosperity has So that, Mr. Speaker, the plea comes up from those who haye come to this people; that we are now emerbing from great busi- been unfortunate in the past claiming relief here; let us not, in ness depression, and that already prosperity is abroad in the land order to accomplish that purpose, bring those who to-day are and confidence is restored. I deny it; and yet conditions of that solvent into bankrupt courts and have their assets wasted in the kind ought to prevail beforB Congress enacts a law that will manner proposed. spread broadcast in this country distrust in the business relations I know it ia claimed in these arguments that when a man is once of eYery man now engaged in mercantile pursuits. relieved of his debt he feels free to enter again the commerci:l.l sea It may be that if prosperity and confidence everywhere are re- and to undertake by his industry to recover the situation; but my stored, if the land was productive and its vast products found experience is, so far as bankrupt bills are concerned and bankrupt ready markets at remnneratiYe prices, business everywhere was laws, that a man who is put into bankruptcy in the courts of this in a healthful and proS}>erous condition, that a law like this might country is liable ever afterwards to have the finger of scorn pointed not strike the people of this country with terro1·. It may be that at him, and his c1·edit and honor are all gone. under those circumstances you could relieve an honest man here I believe to-day that the honest, industrious, sincere man who and there who has met with misfortune without disturbing those may have been overwhelmed with debt and judgments-if he is who still surviv-e. known to be an honest man, his. ability and integrity will be a I am here, Mr. Speaker, to plead for those who are still surviv- recommendation to him that will enable him to finally accumu­ ing under existing conditions and carrying on their business~ no late sufficient to pay his debt and fight the battle of life. It is doubt, under many difficulties and apprehensions, -as most of them that character of men who usually recovers from these misfor· are. I am here to plead for them, and to say to this House and to tunes. the country that we have no right under any assumed sympathy It is not the man who undertakes by bankrupt laws or other- or actual sympathy for th-ose who have gone by the board, and all wise to escape his honest contracts, and I do not believe as a rule · that we may do would be to relieve them of their debts and after that any bankrupt bill, voluntary or involuntary law, will have we accomplish that to bring disaster and ruin upon many thou- the effect to give the relief that is claimed for them in this discus­ sands, yea, upon hundreds of thousands of. men to-d~y who have sion. I have but little confidence ill it. I look with distrust upon struggled up and are struggling on and still strugglmg and will all these measures-a distrust that leads me to believe that the succeed if this bill fails to become law. final effect of them will be to placB the collection of debts in the But, sir, it is yerytrue, as bas been stated by gentlemen in Federal courts. · advocacy of this bill, it is no harsher than the attachmen.t laws · I believe that it will make the retail merchant, instead of an of the various States. When that is stated we must remember independent, wealthy respected man, finally the agent and serv~ also that we are not without legislation or without remedies for ant of the wholesale merchant, who will all the time ho~d him fraudulent debtors or those who undertake by fraudulent means . under his grasp with a threat of bankruptcy and compel him to 1898. CONGRESSIONAL RECORD-. HOUSE. 1-897

. buy, compel him to sell, on such conditions and at such prices as Mr. PERKINS. Does the gentleman understand that he "stam­ the wholesale merchant may require. We have that to-day in some peded the convention"? instances in certain products in this country. Mr. BELL. I so understand. Retail merchants in my country have told me that they are Mr. PERKINS. I think the gentleman will find by consulting bound. to sell certain articles, not at the price fixed by themselves, the record that Mr. Field was almost alone when the matter came but at the prices fixed by trusts of this conntry. Are we to throw to a vote. all the retail dealers of this country into the hands of trusts and Mr. BELL. I base my statement on what I see in the Bank· combines and make them the mere agents of monopoly, of those ruptcy Magazine, the October issue, which is practically filled who carry on the great wholesale houses of this country? That with arguments undertaking to answer those of Mr. Field, and I will, in my opinion, be the effect of this bill, to destroy competi- understand from this magazine that Mr. Field made an excellent tion and to destroy manhood. . speech and was so witty and so forcible and aggressive in his state­ There never was a bankruptcy bill, not even in England or this ments that he captured the convention. country, that has not been denounced or criticized. They have Mr. PERKINS. I conced-e that Mr. Field made a unique been amending the bankruptcy law in England over and over and speech-such an oratorical success that it pleased those ·who heard over again, and yet they are full of imperfections and have met it-but when the question came to a vote Mr. Field was almost with the condemnation of the best statesmen in that country. unanimously voted down. We have passed such bills and repealed them. Such measures Mr. BELL. That may be, and if the gentleman states it as a are dictated only by the power of monopoly and combinations and fact it is doubtless true. I get my information, a-s I have said, trusts, seeking through the instrumentality of the Federal courts from the Ba-akru-ptcy Magazine, the Octobzr number of which is to dominate the commerce of this country, both wholesale and largely occupied with answers to Mr. Field~s arguments, or rather retail. [Applause.] I assumed the result from the persistent efforts to answer Mr. Mr. TERRY. I reserve the portion of time which the gentle­ Field. man from Missouri has not occupied. I yield fifteen minutes to I made the further statement that this was the most drastic the gentleman from Colorado [Mr. BELL]. . measure on tbe subject of bankruptcy that has ever been sought Mr. BELL. Mr. Speaker, I donot think I shallu.."lefifteenmin­ to be placed on our statute books. I stated that in our State leg­ utes. All I desire to do is to reply to some of the strictures made islation we are advancing in the direction of clemency toward the by the gentleman from 1t1assachusetts [Mr. MooDYj and by the debtor; that we have advanced far beyond the legislation of 1£00; gentleman from Illinois [Mr. CoNNOLLY] regarding some assertions that year by year. as civilization advances, we are becoming eman­ I made the other day. The gentleman from Massachusetts [Mr. cipated from all harsh remedies. !further said that in the mercy MoODY] took exception tomystatement that under a bankruptcy of its provisions the law of 1800 was very mild in contrast with law the local merchant's credit was contracted, and that under tha present bill. the operation of such a law credit in the community is greatly The gentleman from Illinois [Mr. CoNNOLLY] has said that in contracted. He inferred that I meant to say you can not secure the act of 1800we had twenty causes for bankruptcy. The st.atute a creditor on individual property; and when I endeavored to inter­ of 1800 was very much like the dictionary that consumes the first rogate him he had not the time to allow· me to explain or to ex­ four pages of this bill with a definition of terms. WhilB my in­ plain himself. I asked him whether the right of a debtor to con­ genious friend from illinois [Mr. CONNOLLY] finds in the law of fess judgment in favor of a local bank or a local wholesaler was 1EOO twenty causes of bankruptcy, a gentleman who has gone over not taken away under legislation of this lrind? I asked him whether the four preliminary pages of this bill and found the different the old judgment note used by a great many merchants and banJr­ senses in which each of these terms may be used tells me that ers would not be dispensed with if a bill of this kind should be there are fifty-four causes for bankruptcy in the bill under con­ passed by Congress? sideration. He said that in some cases that was a fact, and in some cases it This gentleman wa-s none other than one of the Senators in the was· not, leaving the question ambiguous. Now, I wish to say other end of the Capitol, who has taken great interest in this bill. that in the gentleman's own State, Massachusetts, it is held that He figured out that there were eighteen reasons, after a. man got the insolvency laws of the State are all set aside the moment a into bankruptcy, why you should keep him from escaping or ob­ national law goes into force. What I wish to be understood as taining a discharge. Now, you may· talk about the harshness of is saying this-and I defy any one to successfully controvert this the bill of 1800, but our friend had to grasp at some things at that statement-that the moment you enact a national statute of bank­ age that do not exist now. And after he does this he fails. You ruptcy, you greatly contract the local credit of every country all remember that in 1800 we had imprisonment for debt in this merchant; you destroy the right of the local merchant to confess country. So imprisonment went along with the bankruptcy bill, judgment in favor of the local banker; you destroy the right of just as it went with an execution, or with an attachment, or any the debtor to give, and of the creditor to use, a judgment note; other provision of the law. you destroy the right of the debtor to make any preference to his But take the general system of law in 1800 and our advance in local banker. jurisprudence since 1800, and compareone bill with the other, and When yon destroy the operation of the State statute upon which the harshness of this bill is extreme in comparison with that·of the local creditor depends, he being on the ground and able to 1 00. Or if you will blot out that distinction and take them as take care of himself, you distroy his disposition to extend local they are, without counting the general advance in the ameliora­ aid. By taking away these remedies of the creditor you take tion of our dealings with debtors, and the act of 1800 i" mild in away the opportunity of the local debtor to get an extension of comparison with this and the opportunities for imprisonment less. local credit, or to secure a local credit on the assumpt.ion that it Now, I am not like my friend from California [Mr. MAGUIRE]; I is a kind of a preferred debt of honor. believe that if a man commits an actual fraud. and shows him­ I think the gentleman from :Massachusetts is right when he self to be of a character unworthy to deal with the public, he says that the local merchant might give a deed of trust on his ought to be cast into bankruptcy and put out of the way of com­ store or residence, if he has one, or both. The law of mortgages mitting further frauds. I believe that where an actual fraud is will not permit him to give a mortgage on his stock of goods perpetrated a man ought to be cast into bankruptcy, and every while he continues to sell. The mere fact that a merchant should opportunity taken to keep him from dealing with the public. But place a mortgage on his store or a deed of trust on his residence you go beyond that in this bill. You throw him into bankruptcy, would so impair his credit, it being a confession of insolvency, not because he has committed a fraud, but because he is unfortu- that the act would probably lead to his being thrown into bank­ ~~ . ruptcy under this bill. Now, I assert that your first, third, fom·th, sixth, and se-venth I want to say to the gentleman that at the meeting of the Cred­ provisions make a much stricter bankrupt law than any we have itors' A.ssociation in Kansas City in June last one of the great ever had before, and yet I should not have seriously objected to wholesale merchants, Mr. Field, of Philadelphia, stampeded the those. But take section 2, and what does it provide? It provides con ention against this bankruptcy law. How? It seems that that if any debtor permits an execution for $500 to be levied on he has a great trade throughout the State of Pennsylvania with his property and remain there for a period of thirty days he may the local merchants, and he said, among many other things: be thrown into bankruptcy. Now, you know enough about the In Pennsylvania we have a right to take a confession of judgment from law's delays, you know enough about the powerlessness of liti­ our customers. When this law goes into effect, it wipes out our right to do gants to realize that a shrewd lawyer or a disreputable sheriff so; it takes away from our customers the right to give us protection for car­ may annoy a man for thirty days and prevent him from releasing rying them: it contracts their credit both with their wholesaler and with his property if he were disposed to do it. their local banks. and in this way it contracts business. The SPEAKER pro tempore. The time of the gentleman has For these reasons, among others, he declared his opposition to expired. this bill; and that association, as I understand, went with him. Mr. BELL. I ask the gentleman from Arkansas [Mr. TERRY] Mr. PERKINS. Does the gentleman from Colorado understand .to ~ve me three or four minutes more. · that the Kansas City convention agreed with Mr. John Field, of Mr. TERRY. I yield three minutes more to the gentleman. Philadelphia, in the position he took? Mr. BELL. I see that I must go over this hurriedly. Section 8 Mr. BELL. Yes, sir. ought not to be on any statute book. It does not deal with fra.ud, 1898 CONGRESSIONAL RECORD-HOUSE. FEBRUARY 18, but it simply permits one to throw a debtor into bankruptcy if an that firm and its methods to the House. It is a dry-goods house execution is issued against him and returned "No property doing business at the following places: Chicago, Adams, Quincy, found." Now, suppose that I live on the line separating North Franklin, Fifth avenue; New York, 104 Worth street; Manches­ and South Carolina. Suppose that I live just across the line in ter, 38 George street; Nottingham, 20 A Fletcher Gate; Paris, 22 North Carolina; that I have property in great abundance in South and 24 Rue St. Georges; Chemnitz, Theater strasse 14; Calais, 20 Carolina, and you obtain a judgment against me and issue an exe- Place de la Republique; St. Gall, 43 Vadianstrasse. cution. The jurisdiction of your State court would not go beyond This is a house that covers the civilized world. I venture to say the State lines. The sheriff might take the execution, and when that there is no house in the United States of America with such he made search in North Carolina he would find that I had no an organization as this house has. It has a regularly established property there and he would return that execution "No property and organized law department, and I point this out for the pur­ found." Then I might be thrown into bankruptcy, though I might posfl of illustrating what I shall have to say further on. I may as be worth millions of dollars. Or, suppose there is connivance well say now that this house has opposed bankruptcy legislation, with the sheriff and he returns an execution "No property found." in company with the great house of Claflin & Co., of New York, Tho~gh I have an abundance of property within the jurisdiction j and other great concerns, for a reason which I shall try to make of the court, I am permitted to be thrown into bankruptcy. Now, absolutely plain, not only in my introductory remarks, but when those things, I say, may exist under this the most rigorous bank- I come to analyzing their own circulars and their own statements. rupt law that was ever passed in this country, and, I believe, They have organized a law department, with branches extend- harsher than any existing in any other country. ing into every State and county where they have trade. Their Purthermore, you have added penalties until you have made trade is with the jobbers and with the retail dealers. Their sys­ almost a complete penal code under this bill. Now, that should tern of carrying on business is to keep the most perfect espionage, not be. I am not in favor of discriminating against foreign cred- far great-er than the ordinary wholesale merchant can, upon the itors. I believe that a foreigner ought to have as good an oppor- transactions of their patrons. They are entirely willing that the tunity as possible, but the local man always has an advantage, but small jobber and the small wholesaler shall, through the instru­ he has not so much as you may at first blush suspect. Men re- mentality of their own indorsement of the credit of the smaller move causes from the State court to the United States court on house, fill the shelves of the retailer with the goods of other mer­ the ground of citizenship, thinking they can not get justice in chants, while they themselves keep the sharpest and most vigilant local courts. Yet the man from Pennsylvania who tries his case eye upon the outgoings and incomings and all the movements of in the city of Denver has just as good an opportunity as the man the merchant; and when the proper time comes, before the other in Pueblo, in the same State, who tries his case in Denver. The dealer, who has possibly furnished the majority of the goods, is local man will have some advantage, and it can not be avoided. able to open his eyes to what isgoingon, these great organizations Under State laws the local banker and the local wholesale mer- seize the goods under the statutes of the several States, realize chant do have an advantage by being on the ground. By reason their own indebtedness, and the other people are turned out. of this advantage they advance embarrassed debtors money and I shall furnish a statement, published by Marshall Field & Co., credit, giving him an opportunity to survive· his embarrassment showing the percentage of recovery which they have been able to for the benefit of all. The only recompense they receive for this make by carrying out the processes which I have described, and I is these local preferences should he fail. The committee shows in leave it to you to imagine how much of this per cent has come its report that only 1 per cent of merchants ultimately fail. from the sale of the goods of the other man and how much the An invincible objection to this bill is that every retailer will other man has realized out of the remnant that was left after the have a master. His wholesaler will hold this law over him, prior lien of Marshall Field & Co. had been realized. charge him whatever he sees fit, and he can not change while he I have gone to the trouble of obtaining from Bradstreet's Com· owes anything or he will meet his fate. Occasionally you find a mercia! Agency and from R. G. Dun & Co. reports on this firm. man vicious enough to use such a law for revenge. I do not be- I may say that Bradstreet does not give the amount of the prop. lieve that many men will be thrown into involuntary bankruptcy if erty of any firm above a million of dollars. Both Bradstreet and this bill passes. It is not so profitable to sell men out under such Dun & Co. report Marshall Field & Co. at a million of dollars and a bill as it is to hold and control them undertheoverawingpower upward. of its cruel provisions. · I do not submit these figures in derision of that firm, but sim- Mr. HENDERSON. I yield twenty minutes to the gentleman ply to show that it is not necessary for it to have a bankrupt law from Ohio [Mr. GROSVENOR]. as a support to its credit as a member of the debtor class, and Mr. GROSVENOR. Mr. Speaker, I shall not attempt to go that it is not likely to take the advantages of the act, and hence over the details of the provisions of this bill. It would be an un- it can not have any sympathy w_ith or understanding of the neces­ necessary labor, and I could not do it as well as it has already been sity for such a law as an aid to the credit of the debtor classes done by a number of the gentlemen who have addressed the who are insolvent, nor any appreciation of the necessity of such House during the progress of this very interesting debate. I a law for the resurrection of the insolvent debtors of the country want to turn my attention, for the brief time allotted to me, to who are in great need of it. In other words, it seems to me that the discussion of a single question of fact, as I might say, touch- we must receive with extreme caution the influence which may ing certain arguments which have been made on this floor in re- have been brought to bear upon us by a gigantic concern which gard to the promoters of this legislation, and in regard to the men has no sympathy with nor interest in one-half of the subject­ who oppose this legislation, and generally to discuss who it is that matter of the bill before us. opposes it, and why. The gentleman from California [Mr. MA.- Some time ago an interview with one of the members of the GUIRE] and the gentleman from Missouri [Mr. BLA.ND] have both, firm of Messrs. Marshall Field & Co. was published in the Times­ within a few minutes, declared that the promoters of this legisla- Herald, with which we are furnished. In that interview the black tion are the great wholesale houses of the country. · protest was copied, and under the caption "Will work on the I may surprise some of the gentlemen who do me the honor to Senate," a member of the firm said," I did not think it best to listen when I say that I know of no great wholesale house, great waste my time on the House of Representatives, and consequently in the sense that it rises above its fellows, which does not oppose did not forward the petition. An effort will be made to defeat the this legislation, and I shall try to show you why and upon what legislation in the Senate." And then followed a rehash of a circu­ principle. And I will try to show to the House that the greatest lar, protest, and letter of instructions, which I will submit to you. ·promoters of monopoly, as it is called, are the men who are oppos- Note the significant language of this gentleman, that he does not ing this class of legislation. By monopoly in this connection I do think it best to waste his power on the House. For one I would not mean the ordinary use of the term, but I mean the great com- like to know what "power" it is that he arrogantly asserts he has mercia! powers of the country that, by virtue and by the operation but disdains to exert. of the systems which they employ and the vast capital which they The firm of Marshall Field & Co., of Chicago, New York, Man­ control, are able to concentrate the trade of the country in the chester, Nottingham, Paris, Chemnitz, Calais, and St. Gall, has fewest possible hands. sent out to its correspondents and patrons in the United States I take it that it will not be denied that the greatest wholesale two forms of protest against bankruptcy legislation as contem­ houses of the country are enemies in fact of this bill; and that, plated by the Federal Constitution. therefore, if I can show that the men who rise high above all You gentlemen have been thinking that these protests that have other competitors in the matter of control of the business of the been coming here have somehow or other come to you from men country are opposing this bill I have certainly gotten rid of the who had a deep interest in your action on this bill, when, in point argument which has been made by the two gentlemen to whom I of fact, I am going to show to you that every one of them has have referred. emanated from the office of Marshall Field & Co., and the argu- I propose to refer to the record of a great house, one branch of ment has been made to make it appear that it was the victim of which is located it}. the city of Chicago. I refer to the house of this legislation in some way by gentlemen who did not know any­ Marshall Field & Co., with which most of you are well acquainted. thing about it. Marshall Field & Co., of Chicago, have been playing a very large One of these forms is ruled in red and the other in black. Very hand in attempting to influence the members of the House with appropriate. The red form has only three reasons; the black reference to the banlrruptcy bill, and hence I propose to introduce form has five. They are practically the same. Neither of them 1898. CONGRESSIONAL RECORD-HOUSE. 1899

has any place or date line. Of the protests gathered by this great Con-ecting the statements in this black form of protest, I wiU firm, of this and other countries, eleven of them do not contain have disposed of the red form, as it is embodied within the black. on their face, or on their back by indorsement, any indication as In reply to the first reason, as given in this black form, I submit to the place from whence they came-no State, no town, no date. to the House that this firm is not competent to say whether or not None of the protests forwarded by order .are dated, and so, for all there is a necessity for such a law on behalf of the debtor class. we know, they may be a second-hand lot of ''shopworn" protests. As to there being a demand by that class, I fairly and squarely We sat and listened to some arguments made this afternoon by contradict the statement of this monster house. Every member gentlemen, and we have heard the gentleman from North Caro­ of this House knows that there is a demand for this legislation lina [Mr. LTh'NEY] r eading from Lord Selden's opinion of the from every part of the country-a demand not only by insolvent English bankruptcy law, delivered two hundred years ago. He debtors who have lost their all in the financial cyclones of the last might as well have taken Blackstone's Commentaries and read to few years, but on the part of solvent debtors, who realize that such us what the power of a man over the wife was, and how he could a law would strengthen their credit, relieve them from further legitimately beat her if he did not strike her with too big a club. exposure to the danger which they experience under inefficient [Laughter.] You might as well read other threadbare, anti­ State laws, and in all respects redound to their financial interests. quated, long-ago repudiated stuff that has been read with pedan­ It will be noted that in this first reason the word" ostentatious" tic flourish that had first been read by the students of law in this is printed in italics. I can not conceive why this was done unless country and then they had been warned against it a hundred it be a subtle attempt to prejudice persons who may read this times since. black protest against the proposed legislation. Be that as it may, I will r ead you now the black memorial. that firm is not qualified, I repeat, to speak for the debtor classes, They have been at this business of trying to perpetrate the nul­ and in attempting to do so does not speak truthfully. lification of that provision of the Constitution relating to the en­ In reply to the second reason in this protest, I want again to SjCtment of bankruptcy laws for years, and hence it may be that flatly and emphatically contradict the statement made. I say, and they are now working off their old stock of protests on us. every member of this House knows, that the enactment of a bank­ The red form of protest is as follows: ruptcy law at this time would not be "especially disastrous;" To the hon orable the Senate and the House of Representatives that it would not "restrict the granting of credit;" that it would of the United States of America. not ''hinder the return of business prosperity." GE "TLEME N: The under signed hereby protest against the passage of a gen­ Every member of this House knows and I know that the credit eral bankruptcy law for the following, among other r easons: First. Because ther e is neither necessity nor demand for such legislation on of an individual is determined not only by the aggregate amount the p ar t of any considerable number of the debtor clas!'l, for whose benefit, of the money he possesses but by the provisions of the laws under ostensib:y, the law is framed. which he lives. If these laws are such as to protect the property I have in my prepared remarks declarations from almost every and to enable creditors to secure their rights as against debtors board of trade and chamber of commerce in the United States, who may undertake to act wrongfully, the credit will be for as making the round of places from which these papers are issued. large an amount as is consistent with the character of the applicant The chamber of commerce and board of trade representing the for credit; but, on the other hand, if the laws are permissive of trade of that mighty city had already petitioned Congress, and wrongdoing, if they tend to the encouragement rather than to the they sent out this circular to be signed up by their innocent pa­ defeat of frauds, the result upon the individual applicant for trons, showing that there was no demand for this law. credit will be that he will receive not the largest possible amount Second. Because the condition of the country is now. and bids fair to be in of credit consistent with his character and property, but the the future, so prosperous that no occasion exists requiring such legislation. smallest amount of credit which is warranted by his character And yet we hear our friends on the other side, with their pock­ and money. ets full of these petitions, tell us that the country is in a bad fix, The worst of it is that the man who wrote this circular either and that we are all now going to the bad. was ignorant of the elements which go to make np credit or will­ fully perverted the facts which constitute the basis of credit. It · Third. Because the history of bankruptcy legislation shows that such laws are made only to be r epealed, one reason being, as expressed in thefetitions is therefore submitted that this firm has in a second respect of debtors for the repeal of the act of 1867, that "the existence o the act shown itself to be unworthy of belief by members of this House. prevented them from making such arrangements with their creditors as What idea the third ground is calculated to convey is a mys­ would enable them to carry on their business." tery. Every well-informed layman, to say nothing of lawyers, I never heard of such a petition. The features of the law of knows that the enactment of a bankruptcy law will supersede 1867 which were the most criticised have been eliminated from the existing State insolvency laws. The man who wrote that black present legislation, and therefore that argument falls to the ground. protest evidently knows this fa.ct. The Constitution requires that The black form of protest sent out by the monster firm of this the law shall be uniform, and the bill before the House answers and other countries is as follows: that description; hence whatever the third objection may be, it To the hon orable the Senate and the Hottse of Representatives does not apply to the bill we are considering. . of the United States of America. '£he fourth paragraph is another misstatement of fact. It is pro­ GENTLEMEN: The undersigned hereby protest against the pa..c;sage of a gen­ eral bankruptcy law for the following, among other reasons: vided by the bill before us that the bankruptcy court shall be First . There is n either nE:cessity nor demand for such legislation on the opened, both in term time and during the vacation, for the dis­ part of any considerable number of the debtor class, for whose benefit osten­ patch of bankruptcy business. It provides for the appointment of sibly t he law is framed. an unlimited number of assistant judicial officers, called referees, That is a repetition of the provision of the first letter. who will at all times administer the bill, and as a result there will Second. The passage of such an act at the present time would be especially be no vacation as to these officers. It follows of necessity that disastrous, as it would greatly restrict the granting of credit and hinder the return of business prosperity. there will be less delay in the administration of the bankruptcy , Third. Nonuniformity by reason of existing f?tate laws. law than there is in the administration of the insolvency law of · And I have sat here and listened to gentlemen who point out any State or Ten-itory of the country. the discrepancies between the enormous exemptions in one State The expenses of administration as provided for in this bill are and the meager exemptions in another State as reasons for passing the most reasonable of which I have any knowledge. Indeed, it this bill, pointing out the nonuniformity that is maintained by may be a very serious question as to whether the committee has various States; and yet this great house, which seems to have not gone too far in the direction of economy. For my own part, • taken such interest in the fight for uniform laws, speaks of" non uni­ I wish to go to the limit to which we may go and at the same formity by reason of existing State laws." It is a great p~int in time have the law properly administered. One thing is certain favor of this class of legislation that it is absolutely uniform in and that is that the expenses of the administration :under this law the method of its admiiristration, while it maintains and upholds will be the smallest possible amount. all the State laws touching exemptions, touching rules of evidence, It appears, then, that for the fourth time we have detected this touching all the modes of practice, which are controlled in the firm in the misstatement of a fact. United States courts by the enactments of the States. .As to the fifth reason, I do not know whether he who wrote this Fourth. Delay and expense of administration. most remarkable product referred to the history of bankruptcy legislation in this or any other of the counti"ies. If it was as to Gentlemen get up and say that that is the trouble about it; that other countries, it was quite as false as any other statement made. there are too many delays, and all we propose is to make the law If made with reference to this country, it may be said that the full and efficient if it is too slow. What they want is to arrest the other laws which have been enacted upon this subject have all debtor's property before anybody else gets there, and then get an been repealed. There were many reasons why they were repealed order himself and sell it, because he has charitably converted it which will not apply to this bill if it shall become a law. I think into money at their own price, leaving the balance of the creditors that one of the reasons why the other three laws were repealed to whistle for their debt. was that they were not fair measures; that they were not wisely Fifth. The history of bankruptcy legislation shows that such laws are made conceived or properly drafted, and hence did not embody the only to be repealed, one reason being, as exvressed in the petitions of debtors for the r epeal of the act of 1867, that "the existence of the act prevented them rights of all classes of our people. makin~ such arrangements with their creditors as would enable them to carry None of these laws seem 'to have been distinctively American on their business." laws, as is the one before us. In foreign countries they have one 1900 CONGRESSIONAL· RECORD-HOUSE. FEBRUARY 18, legislative body and one system of courts, and the result is that ruptcies throughout the United States." And the act then fails utterly to the law of the subject of bankruptcy need not of necessity be lim­ provide such a system. · The most.serious objection to the passage of bankruptcy legislation is the ited strictly to the provisions which are essential to it. It is im­ ~ad tha.~ ne1ther the debtor nor creditor class desire it. Such a law in force material, for example, whether a law on evidence is embodied in J.S a contmual menace to the honest, conscientious, painstakin~ merchant no a bankruptcy law or a separate enactment by itself. But in this matter .-yhere located and no :r,na~ter what the magnitude of his business.' The dishonest, careless, or Indifferent trader has him at a disadvantacre country, where we have national laws and State laws and na­ for he. can undersell, outtrade, and defeat him at every turn. He can c~n~ tional couTts and State courts, the conditions are different, and ceal h1s assets, or convert them and place the money beyond tlnrl-each of hence our bankruptcy law must be limited to the narrowest pos­ the la~ or his s~ering creditors, and obtain his discharse, only to r~peat the sible scope, and in this respect the bill before us is a very excellent operat~on at his plrosure. Such always has been ana always will be the o~ratlon of 81?-C~ a law, no matter how wisely and carefully framed or how mea.snre. skillfully adiilllliStered. It has been said of it "that its greatest excellence consists in . Hon ~st, unfortun!t~ de~tors can invariably obtain relief from their cred­ Itors :'Vltho~t the d iSSIJ>ati;on of a large p~rcentage of their assets, in much what is not contained in it." That is to say, it makes the provi­ !ess time, Without the sacrifice of commerCial character and integrity; a.nd it sions for determining whether or not a given person, firm, or cor­ Is conceded by all that such a law should not be created for the dishonest poration is a bankrupt. And if it turns out that such is the case, debtor ~lass. They are not entitled to relief; but should for the benefit of the various steps of the administration are provided for. If the the entn·e community, be kept out of business instead of b~ingprovided with defendant is an individuaL and in fact an honest man, he will be ~ 0~~~ t~~or of escape, which is practically all that a bankruptcy law discharged promptly. If the defendant has been guilty of fraud We are fully aware that it will be claimed that the law will provide for the with reference to his property, a discharge will not only be granted, exposure and puni<>hment of fraud and the return to the estate of secreted assets; but the ~xecuti-on of such a law is necegsarily in the hands of officers but humane punishment will be meted out &s a means of prevent­ who take very little inter~st in prosecuting criminals or hunting up assets in_g frauds in the future. for the benefit of others m whom they have no personal interest and per­ The affair~ of honest, solvent men are not in any way interfered haps have never seeu. 'l'he litigation attending such cases frequently takes the cred!tor far away from ~s ~ome, at great expense, and after he lias pre­ with. The jurisdiction of the State courts over the Litigation be­ pared his case, performed his JOUrney, and is ready for trial on the most tween its citizens and between its citizens and the citizens of other trivial excuse t.he case is carried over until some indefinite f~ture term of States, where it does not equal in amount to 2,000, is not dis­ court, and the journey must be repeated or the ca.se abandoned. The last bankruptcy law made ample provision for the punishment of turbed. The exemption laws of the States are not interfered with. frau~ul.ent debtors, but in the twelve years of it.<> existence we succeeded in The rules of evidence, as provided by the legislatures of the States, conVIctmg but two debtors, both of whom escaped punishment. One fled will be enforced in these proceedings. The statute of limitations from the court roo~ ~hila the jurY. was de~rmining its verdict, and the . other one, after conVIction, and pending a mot1on for a new trial took sick will be recognized. The mea.sure of damages on contracts will ~ie_d, ap.d was apparentlY. buried, but subsequently it developed that he was be enforced, and so on to the end of the chapter. Uvmg m luxury m a fore1gn country, at the expense of his creditors It is not worth while to contend with the author or authors of . If the creditor ~lass and the honest d~btor class do not ask for thiS legisla­ the first four reasons as to whether or not the truth was told in U~:u~~ts~lance, we are, with respect, ' will not prevent debtors from making arrangements with their Very truly, yours, MARSHALL FIELD & CO. creditors for carrying on their bUsiness; on the contrary, it will [From the Bankruptcy Ma~azine . ] enable them to do so where, under existing laws, it is impossible THE RIGHT OF PETITION-REMARKS CONCERJ\"'NG THE FOREGOING CIRCU· LAR LETTER OF INSTRUCYIONS Al\"'D PROTESTS OF MESSRS. MARSHALL that they should secure that result. The provisions in the bill FIELD & CO. before us looking to the settlement between debtors and their [By the editor, J ay L. Torrey.] creditors are ample and excellent, and I anticipate with the great­ It may be interesting to segregate the foregoing circular and take a look est confidence that the settlements made after it Bhall have been at it in parts. Let us try. · enacted will exceed in number the administrationB which will be ''It is to be hoped that the Congress of the United States will not cloud the era of prosperity that has been inaugurated by the enactment of a b~­ had under it. ruptcy law." Every gentleman in this House knows that under the laws of No; it will not "cloud the era of prosperity," but it will be brightened by most of the States the first creditor that gets an intimation that the passage of such a bill. It will enable the honest unfortunates of e-very class to be freed and to take part in and enjoy the prosperity of this er~+ his debtor has had a financial misfortune, or has been running be­ By the passage of such a law it will make this era always remembe1·ed as the hind in his payments, simply proceeds with compulsory process one in which a law was passed for the protection of all honest debtors for the calling to justice of all dishonest debtors, and for the protection and en­ to realize as against the debtor. Such action is f1·equently taken forcement of the rights of all creditors. as the result of misapprehension or nervousness .on the part of "The com_mercial and industrial interest.<> of the country have suffered the creditor, and in the absence of any real cause growing out St>verely durmg the past two or three years, and it is our firm conviction that of the financial condition of the debtor. The bill we are now con­ the passage of any bankruptcy legislation will be detrimental to the best interests of the entire country." sidering will do away with this condition of distrust by the sus­ Yes; the suffering depicted was experienced, and it is the "firm convic­ pension of the laws under which it grows and the substitution of a tion" of the great mass of people of this country that the enactment of wise law therefor which will give confidence to all men whose financial bankruptcy legislation will prove beneficial to the best interests of all classes of people. transactions go upon credit. "Such laws, however wisely framed, are not a credit to any nation, peo· My conclusion, therefore, is that, irrespective of whether or not ple, or age." • the statement is true with regard to the old law, it is unqualifiedly You don't say! This sounds wise and important, but let us inquire into the experience of other_people. As we are in a hurrr,. we will telephone: false with reference to the bill we are considering. "Hello, central!" "Well, what do you want?" • Give me England." To induce their dependent debtors to sign the protests and "Hello, England, is that you?" "Yes." "How Ion~. have you had a bank· secure the signature of their friends thereto, a circular has been ruptcylawin force?" "Since 1524." "Is it a'creait'to you?" "Ye; we could not get along without it. E.xcept for it one or two of the big whole­ sent out with their red and black protests, as follows: sale dry goods houses having offices in this and other countries might take CHICAGO, January 17, 1898. advantage of their debtors and other creditors and in that way work great DEAR SIR: It is to be hoJ!ed that the Con~ress of the United States will hardship to them." "Thank you." "Good-bye." "Good-bye." not cloud the era of prosperity that has been mau~urated by the enactment "Hello, France!" "Well, what do you want?" "How long have you had of a bankruptcy law. The commercial and industrial interests of the country a bankruptcy law in force?" "For something over four hundred and five have suffered severely during th<'l past two or three years, and it is our firm years." "A monster dry goods firm over here, which has an office in P aris conviction that the passage of any bankruptcy legislation will be detrimental at 22 and 24 Rue Georges, says it is' not a credit' to you. What do you think to the bast interests of the entire country. Such laws, however wisely about it?" "Our people would have caused it to be repealed long ago if it fr:lJlled are not a credit to any nation, people, or age. were not." Any Li:w that could be agreed upon would certainly and seriously disturb "H~llo, Germany, what about your bankruptcy law?" "Wehavehadone the bright pr~ects that give promise of a prosperity that alone will ~ve ~ force since t~e beginnin~ of the Empire, and the several _States had them mdividually pr1or to that time." "But Messrs. Marshall Field & Co., doing • ~u~T~r.le of classes, and the nation as well, happy issue out of all t eir business in your country and in this and in other countries, say that such Any law that leaves the sever al Commonwealths of the nation the right to laws 'are not a credit to any nation, people, or age.' What do you think retain ou their statute books the existing exemption laws cannot be uniform; about it?" "Couldn't tell you how wrong the:y: are in two or three days' and the Constitution of the United States does not, and its wise framers did time. Will you pay the telephone charges while I do so?" "Good-bye. ., not, intend that any other should ever become a law. "Good-bye." Examples of the inequality of the exemption laws of the different States Denmark, Switzerland, the Netherlands, Belgium, Austria, Haiti :f!awaiian are be t shown by the followin~: Islands, Liberia, Peru, Uruguay, Greece, Chile, Argentina, Ecuador, Spain, The State of Wisconsin proVIdes for the exemption of one-quarter of an Guatemala, Russia, Mexico, Sweden a.nd Norway, and Venezuela all have acre in town and 40 acres in the country- in Iowa one-half a.n acre in town bank-ruptcy laws, but are not on the telephont3 circuit. and 40 acres in the conn try, together with all the property that may be placed "Hello, China?" "Whaty want?" .. Do you have bankruptcy laws?" thereon. The exemptions of the State of- "We beheady bankrupts if owey ovel fiive tousand dols; if lessee tlansport." "We have a great big firm over here that says: 'Such laws, however wisely frame

legislation is a curious study. Itprobablyshowe action whichis.not a credit The sta.tem.ent that dishonest debtors m-e "provided with an open door-of to t he men who participated in it. But the- man who penned the above in­ escape, which is practically all that a bankruptcy law amounts to" is a. stu­ sult m ay rest assured that when it comes to final action the men in Congress, pid, willful misrepresentation of a fact. It is simply idiotic to make such a whose brains have the greatest influence, and whose hearts. have the loudest statement in view of the fact that all the great and most of' the small coun· baats, will see to it-that the law agreed UJ!On is such that it will brighten the trie.sof the world hav-e such laws and have had ever since the dawn of civili­ prospects and make r eal the promise of prosperity, and give to the people of zation.; and have found them to be beneficial and necessary. all classes, and to the Nation as well, a happy solution of all their troubles. "We are fully aware that it will be claimed that the law will provide for "Any law that leaves-the sev-eral Commonwealths of the Nation the right the exposure and punishment of fraud, and the return to the estate of secreted to retain o"h their statute books ex:is.ting exemption laws , can not be uni­ assets." form; and the Constitution oi' the "United' States does not, and its wise Yes, sir; that is the claim, and it will be made good by the results which framers did not intend that any other should ever become a law.. will be secured under the enforcement of our bill when.it is enacted. Thera The above is the decree of Messrs. Marshall Field & Co. It is true that the is practically no law at present for the securing of these results, and it is high last bankruptcy law permitted the States to re~ on their statute books time that one should be passed. their ex emption laws, and was h eld by the courts to be constitutional. But ·• But the execution of such a law is necessarily in the hands of ofiicers wQ.o still the above statement has been made in ignorance or malice by tllis mon­ take very little interest in prosecuting criminals or- hunting up assets for s ter business house to its dependent- d'E!btor~ in all parts of the country, and the benefit of others in whom they have no personal interest and p erhaps on the faith of it they have been instructed to secure protests against the have never seen." enactment' of a bankruptcy law. The principals of this great firm evidently have not read the bill. The The '.rorrey bill does not seek to interfere with the rights of the States to trustee of each bankrupt estate will be chosen by t he creditors who have say by law what amount of propE!i"ty·they consider that an insolvent debtor proven their claim against it. He will receive. the title of the bankrupt- t o should retain in order to J>rotect his family from want, and enable him to all of his assets, and he will have the right to recover t hem for the benefit of keep them out of the poorhou se and his children in the public schools. There creditors. It might be that the trustee would be a per son who would have iB no more doubt but that the Torrey bill, if enacted, will be constitutional, no interest in the estate, but at all events he would be a p er son chosen by the than tliere is that Messrs. Marshall F1eld & Co. are opposed to it because of creditors, and would perform his duties under their supervision. their selfish interests. Just what "and perhaps have never seen" means it is bard to t ell. If it A banl.--ruptcy law might override the State laws, and under±.ake to fix a is a suggestion that the creditors might select a trustee who never had seen uniform exemption, but there is no greater occasion for it to do so than there them, the reply is\ that still he might be quite as competent and indust-rious is t hat it should undert ake to supersede the laws of the State relating to as any of the emplOyees which this great house has who performs his duties evidence, or that it should undertake to fix a statute of limitations. Those at a distance from some one of their many places of business and perhal's is are subjects which can best be left, as they have been, to the State legislatures. so unfortunate as never to have feasted his eyes with a sight of their individ· • "The most serious objection to the l'assage of bankruptcy legislation is ual figures. the fact that neither the debtor nor ared1tor class desire it." It seems very singular that men of.. unquestioned ability as world-wide Let the maker of this statement examine the list of commercial, industrial, merchants should have inflicted upon an mtelligent people such clap-trap and professional bodie,s composed of debtors and creditors, in all ~arts of the bosh as the foregoing; country, and the names of the officers and committeemen residing in all of "The litigation attending such cases f1·equently takes- the creditor far the States and Territories, both as appearing in this magazine, and then real­ away from his home, at great expense, and after he has prepared his case, ize what a grand field there i5 for his imagination as an author of Baron performed his journey, and is ready for trial, on the most t-riYial excuse the Munchausen literature! case is carried ov-er until some indefinite future term of court, and the jour­ ·• Such a law in force is a continual menace to the honest, conscientious, ney must be repeated or the case abandoned." painstaking merchant, no matter where located, and no matter what the Is not the foregoing suggestion of difficulties attending litigation incident magnitude of his business." · to all litigation which is conducted at a place away- from the home of the in­ Yes, if he wants to impose upon his debtor, by compelling him to ~ve a dividual interested? A very ignorant person nnght think that under pres­ preference, or if he is not willing that such a debtor, whenhonestlyunfo:rtn­ ent laws litigation is not necessary in order to secure to creditors and debt­ nate, should be given a new lease of financial life. Yes,_ if he wants to have ors their respective rights. The United States courts, which will have ju­ an opportunity to take advantage of cocreditors of equal ri~hts . _ risdiction of the enforcement of the bankruptcy law, do not hold terms at as But no, if he is willing to rely upon the profits which a.nse from the pur­ many places as the State courts. If, therefore, all proceedings incident t o chase and sale of commodities instead of such as arise from coercing debtors bankruptcy business were conducted only in the Federal courts, the incon­ and robbing cocreditors.. The honest merchant does not live, and never will ;enience to parties.ininterest would be very much greater than it would be live, who has bee·n or will be injured by the enforcement of_ the rules of if such laws were administered in the State courts. equity. Selfish cormorants in all ages have &Uffered restraint from the But our bill provides, in order to overcome such possible difficulty, that erlforcement. of just laws. It is also true that,.- the major part of the bankruptcy business will be conducted, not in. the "No man e'er felt the halter draw, courts, but before assistant judiCial officers known as referees. Such officers With good opinion of the law." · may be appointed in such numbers as ar e necessary to deliberately but· ex­ peditiously dispose of the ban1..-ruptcy business. It is contemplated that; at "The dishonest, careless, or indifferent trader has him at a disa.dv-a.ntage, least one such officer shall be appointed in every county, and as many more for he can undersell, out trade, and defeat him at every tn:rn. He can conceal as shall prove to be necessary. It thus transpires that the administration. of his assets...l or convert them and place the money beyond the reach of the law the law may in reality be taken more nearly to the homes of the parties. in or'his SWiering creditors. and obtain. his discharg.e only to repeat. the opera­ interest than is usually the case when kindred laws are administered in the tion at his IJleasure." State courts. The results as above, except as to discharge, have never been so flagrantly It has been suggested in various quarters that the State courts should" be worked out as in the present diverse and incomplete laws of the several a-qthorize(l to administer the bankruptcy law: _The rep~y is that Congress is States. Under some of them a partial discharge may be obtained, and under Without power to com1)elSta.te courts to administer national laws. Besides, some they can not. as a practical P~:f~~n , the confusion which would ensue from the att-empt It is a source of very great regret. that there should ever be a failure of to have the law tered by one set of Federal courts and forty-five sets justice. Just- in prqportion as humanity-is defective and weak the adminis­ of State courts would practically amount to a denial of justice. tration of justice-will suffer the same ills. But justice and equity are always "The last bankruptcy law made ample provision for the punishmen t of aided by a good law. The present State laws are of a necessity defectiv-e. It fraudulent debtors, but in the twelve yea.J.•s of its existence we succeeded in was the original plan of the Government that bankruptcy laws should be convicting but two debtors, both oi' whom escaped. punishment. One fied enacted by Congress. The power to do so was reserved in the Constitution. from the court room while the jury was determining it& verdict, and the The Constitution also forbade the States from impairing the obligations of other one, after conviction and pending a motion for a new trial, took sick, contt·acts. and hence it is impossible, and always will r emain so unless the died, and was apl'arently buried; but subsequently it developed that he was Constitution is amended, for the States to pass comprehensive bankruptcy living in luxury m a foreign country, at the expense-of his creditors." laws. Too bad you did not succeed in convicting a larger number of your debt­ The whole question, then, resolves itself into this: Shall we have one com­ ors! How many did you prosecute? The two you did prosecute got away, plete, comprehensive, national raw, or shall an embargo be plaeed upon com­ did they? You seem to be mora effective at building up a great business merce and the right to comprehensive discharges be denied to honest ~or­ than you are in conductinglitigation. tunates by a continued toleration of the imperfect and diverse State laws? Yes, I have heard for years how you were fooled by the inan who pretended "Such always has been and always will be the OJ?,eration of such a law, no to be sick, pretended to 4ie, n:nd P!etended that he was buried. I have heard, matter how wisely and carefully framed or how skillfull:y administered." too, that there was nothing m th1s story, and tha t ho actually died and was It is not claimed for any law that it can always: be adm.mistered with abso­ buried, and that ever since you have been , metaphorically speaking, dancing lute fidelity, or that under its provisions full JUstice will be done in every upon his ~rave, and regretting that you did not succeed in having him put case to all the individuals who may be inrerested. But there is no reason why behind pr1son bars, instead of in his grave! a bankruptc-y law may not be as well and perfectly administered as any other There is another form of protest in addition to the one printed; it contains law accomplishing approximately the same ends. It is absurd to say that only three grounds and is a little differently worded. One of these protests there is any more difficulty in administering a3aw simply be<'ause it is called is ruled in red and the ot her in black; but "there is indisputable evidence to a bankruptcy law than if it were calletl by any other name. the effect that both of t hem were printed in the cellar printing office of the "Honest, unfortunate debtors can i:n.variably obtain r elief from their cred­ great firm of Marshall Field & Co. itors, without the dissipation of a large percentage of their assets , in much The foregoing letter.of instructions and protest (referred to in the letter less time, without the sacr ifice of comm.ercial character and integrity." of instructions as a petition) ars but companion pieces to the circular which The statement, as above, that "Honest, unfortunate debtors· can invar ia­ has been rev-iewed as above. bly obtain relief from their cr editors," is unqualifiedly false. The writer of The three documents show the extent to which the right o:fpetitioiLm.ay that sentence is stupidly ignorant, or else willfully misstated a; fact which he be prostituted. ought to know exists. That is that there are in the country many great houses which will not accept a. compromise with a creditor upon any terms, A letter of instructions was sent also by this firm, in addition and the result is that anyone who becomes indebted to them must, for the to the protests and the circular, which is as follows: rest of their natural life, either owe the debt or pay it. Under the provisions of our bill com:promises a.J.•a encouraged, and it is con- CHICAGO, January 17, 1893. r=~xr:~:~;:~o~t under its proVIsions there will be more settlements DEAR SIR: We are opposed to the enactment of bankruptcy legislation, The suggestion that debtors may gain relief without the sacrifice of com· ourre:tSons being given in the inclosed communication. If you agree with mercial character an d integrity, suggests an inquiry. It is: Wherein would us, we will be glad to have you circulate the inclosed petitions and have them a discharge, as con templated by the Constitution and provided by our bill, be as numerously signed as possible by the merchants in the various lines of less acceptable to an hon est debtor than a discharge obtained by the charit­ trade, the bankers, and attorneys of your city. When so signed, please send able consideration oi' creditors? one to ypurCon.,<>Tessman in Washington and the other-to one of the United "And it is conceded b y all that such a law should not be created for this States Senator&"of y our State. dishonest-debtorcl.c'l.SS. They are not entitled to relief; but should, for the Kindly advise us, in the inclosed en-velope, of your action. Sincerely hop­ benefit of the entir e community, be kept. out of business, instead of being ing that you will cooperate with us in d efeating legislation that will certainly provided wit h an open door of escape, which is practically all that a bank­ be detrimental to the-bestinterests of the country, tlumking you in advan-ce, rtt]>tcy law amounts to." and always ready to reciprocate the favor, we are, with respect, Hurrah! F or onco you are right. in this that a bankruptcy law is not for Very truly, y ours, the benefit oi' the dishonest debtor class. You are right that they ou~ht to M:A.RSHA.LL FIELD & CO. be kept out of business . And the way to secure these results is t o nnme­ d i~1;ely ~nact a bankruptcy law , and not by being without law, which is the The opening sentence of this letter: refers the recipie:q.t of it. to, p.tactical effect of the presen t enactments on this su bj.ect. the commnnication inclosed with it as the reasons. why this: grea / 1902 CONGRESSIONAL RECORD-HOUSE. FEBRUARY 18, firm is opposed to the enactment of a bankruptcy law. These You have doubtless observed how difficult it is for a strong corporation to obtain j~stice, or rather to prevent injustice being done, in cases before the reasons, as I have shown, were not reasons at all why bankruptcy average JUry. legislation should be opposed. It follows, therefore, that protests . We had a case in our United States court here a few days ago where a which may have been signed pursuant to these representations, JUror told the judge that he would not join in a verdict according to the law. and in consequence that the signatures have been obtained by false I mention this only to em~ba:size the fact that if a creditor ~ought to prose­ cute a debtor under the crunmal clause of a bankruptcylaw,1twould be said pretense, ought not to be considered for a moment by members of that the strong was perRecuting the weak, and conviction would be almost this Honse in the course they ought to pursue in the pending bill. i.J?lpossible, so t~at I conclude t~t a good bankruptcy law must make _provi· It will be noted that this letter refers to protests as "peti­ swn for the "P,urushment of criminals, and then we must face the fact that its execution 'Will from the start be a failure. tions. I! They speak for themselves, and as they are protests in The honest debtor does not require a bankruptcy law, and the dishonest form and effect, it is a misleading misnomer to refer to them as one should be kept out of business, and this can not be done with a bank· petitions. ruptcy law in vogue. Please n~te the particularity which the recipient of the above It is claimed by some that the reason we oppose bankruptcy legislation is that without it we have a decided advantage over other creditors. letter of instructions is directed from whom and how to obtain Replying to this, I bea to ECay that this reason has no weight with us what· signatures, and what to do with the protests when they have been ever, as we do not thi~ we have an advantage over our neighbors, for the completed. reason that we are selling practically all over the country. The avenue open to us for information, as well as the means employed by us for the collection It is not only desired that these instructions should be complied of our accounts, is open to all alike. with, but that the dependent debtor should report to the principal Our solicitude is always occasioned by the one predominating thought­ of the property performance of the stewardship. A stamped en­ the protection of our honest debtors. This has more weight with us than all velope was inclosed with each of these letters of instructions, the other reasons combined. There are other ob~ections, but I feel that the letter addressed to our Sen· directed to Messrs. Marshall Field & Co., and in the lower left-hand ators and the foregomg will enable you to understand our position, and I corner was stamped in red ink the significant initials "H. N. H.·~ hope to bear that in future it will be your pleasure to join us in opposing The terms in which this house with untold millions and unlimited the enactment of such a law. With great respect, I am, sincerely yours, credit appeals to its dependent debtors to defeat the proposed MARSHALL FIELD. legislation is truly touching. Mr. A. A. LAWRENCE, Boston, Mass. Note the fact that it is going to reciprocate the favor. Quick and safe terms, I imagine, in view of the improbability that any of The merchant prince does not say frankly and openly that be i' its dependent debtors will undertake to influence national legisla­ opposed to bankruptcy legislation because it is against his selfish tion and appeal to this great house. interests. If in this letter he had done so, we might have respected The foregoing letter was printed in typewriting type and the him as a frank, honest man. But instead he starts out his long names of the dependent debtors to whom sent were filled in at the letter with a long paragraph in the beginning showing how dread· top, and an autograph was printed at the bottom, all with the evi­ ful the enactment of such a law would be for the honest debtor. dent intent of making it appear that it was in every instance an You might as well expect this man to have a thought for the best original letter of instructions. interests of a. debtor as that a one-legged man would win a foot Some time ago Mr. Marshall Field wrote a letter which was race. published in the Dry Goods Economist, of New York, which read One of the greatest reasons for the enactment of a bankruptcy as follows: law is to prevent the honest debtor from being placed "at a seri· CHICAGO, February 9, 1895. ous disadvantage" when carrying on his business in competition MY DEAR MR. LAWRENCE: Replying to your valued favor of the 6th with a dishonest neighbor. Such honest debtor practically has no instant, I am pleased to say that we have invariably opposed bankruptey legislation, for the reason that it places the honest debtor at a serious dis· protection now from a dishonest neighbor; but we propose by the advantage, compelling him to carry on his business by the side of and in enactment of this bill to give him protection. · We propose that competition with his dishonest n eighbor, who, after having obtained credit, the long list of dishonest practices by which thieves in the guise fraudulently conceals his assets, pretending to have lost heavily by theft or speculation, and seeks relief in a bankruptcy court, engages in business at of business men steal money from the banks and property from the old stand, perhaps in due time to repeat his former experience if mean· creditors shall be stopped, and this bill provides the means by while the bankruptcy law has not been repealed. which it shall be done. This suppositions case maybe a debtor of yours and mayresideinadistant State. You can not, either in person or by proxy, be present at every stage Mr. Field, in describing the horrible things which may happen of the proceedings, and you must therefore be represented by a local attorney to an honest debtor under the provisions of the bankruptcy law, who frequently, if not always, cares less for his client than for his fee, which gives a very fair statement of what happens to a debtor under most will be increased if the case drags, and is frequently continued from one term of court to another. Delays in realizing on the assets of the debtor and dis­ present State laws. A reading of the first paragraph of his letter tributing the results can not be prevented, as it is to the advantage of officers would indicate that there are now no more troubles in the busi­ and attorney not to hasten the final settlement of an estate. ness world. One would think from his statement that the present Dishonest debtors who have in advance secreted a large portion of then· assets can not be prosecuted save by the personal presence and attention of honest business man js not "in competition with his dishonest the creditor and perhaps several of his employees, whose presence at home neighbor, who, after having obtained credit, fraudulently con­ can not be spar ed without serious interruption to his business. We have ceals his assets." Mr. Field knew when he wrote it, and you had cases when it took away from our office at one time the credit man, the salesman, the bookkeeper, and the shipping clerk. These, together with the gentlemen all know, that there never was a time in the history of attorneys, not only make the prosecution under the fraudulent clause a our country when dishonest men were so brazen in the perpetra­ heavy tax, but it becomes at once so burdensome that creditors will not and tion of fraud as now. He knows and you know that there never can not undertake to prosecute fraudulent debtors. was a time when there was so little danger to these men that they It requires from me no argument to convince you that attorneys can not secure conviction. of criminals without evidence, which must be worked up would be punished for their wTongdoing. This condition, quite and furnished by the creditors, and t he very m en that in well-ordered busi­ as much as any other, calls for the enactment and the enforce­ ness are required continuously at their posts are the very ones required per­ ment of the bill we are considering. haps a thousand miles away to prove the fraud, and it has been our experi· ence that cases are called and, when apparent-ly ready for ~rial, on one pre­ In the second paragraph of this letter this man offers a gratui­ text or another, carried over to the next term, so that the Journey must be tous insult to the members of the legal profession. Why should repeated or the case abandoned. Another serious objection to bankruptcy law is that it invariably dissi­ he go out of his way to say of all local attorneys that they care pates a large percentage of the assets. Under the old law, when in vogue less for their clients than for their fee? One would suppose from from 1867 to 1879, we realized on estates that went into bankruptcy an aver­ the statement contained in this paragraph that under present age of 2"2 per cent of our claim., as against the following in the years next laws his debtors do not reside in a distant State; that whenever succeeding the r epeal of the ballliTuptcy law: Per cent. Per cent. there are insolvency proceedings. he can be present at every stage 1880 ...... ----······---···--···----··· 77 1885 ..... ·--·-····-··-·--··--···-····· 55 in person and does not of necessity require the services of a local 1881 ...... ---··-···--··--·······--···· 66 1886· --··--·······-··----···-···-····· 59 attorney who is so wicked as to care less for his client than his fee, 1882 ...•.....••..•.•••••.••..•••.....• 82 1887 •...... ••...•••.••••..••...•..... « and that cases do not now drag, and that they are not frequently 1883 ...... ---··-····--·-·······--· 65 1888.----·-·--······------··-·--··-··· 71 1884: ...•...... •.•••.....•• .: ...... •• 65 continued from one term to another. The difference is due to fees and expenses incidental to the administration As a matter of fact, Mr. Field knows, and you know, gentlemen, under the bankruptcy law. · that whenever a man does business in the number of countries I know you will agree with me that that law should prevail that will make that Mr. Field does, he must necessarily do a great deal of his possible the very highest code of commercial ethics. It is my conviction that banl.'TI!ptcy laws, no matter how wisely and carefully framed, will have a business at long range. He knows, and you know, too, that the tendency to lower the standard that we have spent so many years of our inconveniences of which he speaks exist now under present State lives in maintaining and inculcating. insolvency laws in this country. (I of course can not say how Referring to your mention of the difficulty or disadvantage of obtaining justice in the State courts, I wish to say that while I admit the truth, I an­ it is in other countries, so far as he is concerned.) I am confident, swer that it is better< for the reason that without bankruptcy laws the debtor and you have a right to anticipate, that the inconveniences and can be driven out of ousinessand kept out. Knowing this, under the present delays of which he speaks, and which he doubtless suffers now, system such cases are much more infrequent. There has drifted into this country a class of merchants the last twenty will be greatly assuaged by the enactment of this bill, since it pro­ years that it will not do to tempt with bankruptcy laws. There is a much vides for prompt administrations. larger percentage of this class now in business than there was from 1867 to 1879, and therefore the danger of serious consequences of a. bankruptcy law Please note that this gentleman states as a fact that '' delays in would be augmented in the same ratio. realizing on the assets of the debtor and distributing the results A good many merchants favor (or say they do) a good and wise bankruptcy can not be prevented, as it is to the advantage of officers and at­ law, but do not stop to think that the most serious difficulty is not in the law, torney not to hasten the final settlement of an estate." He in· but in its administration. Nothing short of eternal vigilance and strong, sharp, vigorous handling of the good law will make a good law good. tends, of course, that this statement shall constitute an objection 1898 . . CONGRESSIONAL RECORD-HOUSE. 1903 to bankruptcy legislation. We all know that delays are unavoid­ "inculcating" in poor debtors the belief that they must give up able where State courts hold short sessions and do not do any everything they have and then mortgage their future lives to pay business during vacation. the balance; that the" commercial ethics" of his code is to secure One of thegreatest advantages to be derived from the enactment preferences, voluntarily or by compulsory process, and take prop­ of this bill will be the fact that United States courts will always erty which belongs to other men in equity in the payment of his be open, and that proceedings can always betaken before referees. debt. I am at a loss to understand why this man should say of officers In the seventh paragraph of his letter he comes to the real ''milk and attorneys that they neglect their duties and violate their in the cocoanut," as ·he states it. A man who started out with a trusts. I never have found such to be the case, although I know voluble communication with a warning cry to honest debtors, now that it is the fashion among a certain class of men to be impatient comes down to the real merit of the subject, from his standpoint. that claims they have are not settled in full without the slightest That is, he says," Without bankruptcy laws the debtor can be delay, although it may take a great deal of time to unravel the driven out of business .and kept out. Knowing this, under the complications which they themselves have made. present system such cases are more infrequent." Here we have it. I note with satisfaction that it is provided in the bill before the The present laws furnish him opportunities to drive debtors out House that the referees and trustees will be paid chiefly by a com­ of business and keep them out! mission upon the amounts realized in dividends out of the estates Unless what? Unless what? I repeat. Unless, of course, they for creditors, and that these commissions, together with the petty pay him in full irrespective of the misfortune which compels them fees paid them, can not be received until after the estates have to pay other creditors only in part or not at all. Why should this been finally closed. This provision of the bill makes it to the finan­ merchant princ·e have the right, as he says, under State laws, to cial advantage of these officers to secure prompt and economical drive debtors out of business and keep them out? My thought administrations. is that the debtor is quite as much entitled to the protection of In the third and fourth paragraphs of this remarkable produc­ the law as the creditor. I would not consent for a moment to the tion it is alleged as a reason why a bankruptcy bill should not be passage of any law which did not amply protect the creditor and enacted that dishonest debtors can not be prosecuted without the amply protect the debtor, any more than I would consent to the attendance of witnesses. He refers to cases in which he was the passage of such a law that did not protect the interest of the prosecutor and it was necessary to take important employees to debtor. · court. It is apparent that he would have us believe that it would Speaking for myself, I am delighted with the fact that we have be more troublesome to prosecute rogues under a national law before us for consideration a bill which this man opposes because than State laws. This can not be true. One might think from under it he can not drive men, irrespective of their honesty or dis­ what he says that there is no occasion to prosecute rogues under honesty, out of business and keep them out. A dishonest debtor existing laws. Every well-informed man knows that it is now ought to be kept out of business, and he will be under the provisions more difficult to prosecute such men than it ought to be, and one of this law. But the honest creditor ought to have the protection of the purposes of this bill is to make it possible for honesty to of the law offered men of this class. . prosecute dishonesty reasonably, diligently, and effectively. I note with regret the gratuitous insult offered by this man to . It will be noted that thus far there has not been stated a single, the merchants of this country. I have examined the rep~rts of solitary reason which is any opposition to the enactment of the the commercial agents with reference to the percentage of faH­ bill before the House. ures which arise from the dishonesty of debtors, and I find that it In the fifth paragraph the gentleman starts out with a broad, is very small. My experience has been, and I doubt not it has sweeping statement which is not true. An estate can not be been the experience of every member upon this floor who is a administered without expense. One would imagine from this member of the profession, that there are very few men in business statement that this man would desire that an estate should be who are dishonest; very few men in business but who do the very administered by officers of the law for sweet charity's sake. best they can; and hence for one I resent this imputation upon I undertake to say that estatt;ls will be administered at much the character of the men in business. less expense under the pending bill than they are now being ad­ It is interesting to note this man's opinion, in the ninth paragraph ministered in any of the State courts of the country. He says of his letter, of what is necessary to'' make a good law good." If that they realized on estates during the pendency of the last it takes "eternal vigilance and strong, calm, sharp, vigorous hand­ bankruptcy law 22 per cent of their claims, and for the years ling" to" make a good law good," I wonder what it would take 1880 to 1888, inclusive, a larger per cent, the lowest being 44 per to make a bad law good. This paragraph certainly does not con­ cent in 1887 and the largest 82 per cent in 1882. I am glad he stitute any argument against the enactment of good law; but, on gave this table, as it furnishes food for thought. First, as to the the contrary, it shows how imperative it is that there should be a purposes for which he presents it. He says of it that the disparity good law enacted without further delay. is due to the fees and expenses incidental to the administration In the tenth and eleventh paragraphs an attempt is made, as it under the bankruptcy law. seems to me, to show us that because of the reply of one stupid, First, let me say that his statement might be entirely true, and vicious juror in a United States court the people are not entitled yet it would not constitute any argument against the pending bill, to have the constitutional right of living under a bankruptcy because, under it, the question of excessive fees has been care­ law enforced. fully guarded. Again, the last law was enacted at thecloseof the In the twelfth paragraph Mr. Field comes back again to the war, at a time when bankruptcy was almost the rule instead of argument of why an honest debtor does not require a bankruptcy the exception, and all creditors who then held claims could not law, or rather the dictatorial statement that such is the case. He and did not realize a very large percentage upon them. They has already shown in a preceding paragraph that it is necessary, would not have done so if there had been no bankruptcy law en­ in order to keep such men as Mr. Fiald from running him out of acted. This disparity may occur out of the fact, and I doubt not business and keeping him out under State laws. . but what it does in part arise from the improved business methods In the thirteenth and fourteenth paragraphs Mr. Field under­ of this great house. takes to state the reasons why other people think he is opposed to I can not help wondering what percentage their fellow-creditors the. bankl'l~ptcy law! and to make answer thereto. He says that received during the years in which they made this wonderful he 1s "sellmg practiCally all over the country." This statement record as collectors of debts. No wonder that this man does not is interesting, and throws light upon the fact that· he has been want an equitable bankruptcy law passed under which he will not able to secure from his dependent debtors in all parts of the coun­ be permitted to take preferences from debtors and collect from try signatures to both his red and black forms of protest. He them his entire claim, while other crAditors of equal rights get says: nothing. I undertake to say, as one who has been conversant for We do not think we have an advantage over our neighbors. many years with the affairs of good, strong business men, that The facts are that he has as a part of the equipment of his great this record of amount s collected against insolvent estates is abnor­ house a corps of clerks who run in his behalf a mercantile agency mally large, and I know that just in proportion as this house has for obtaining facts about their customers. He also has, as a part flourished in this respect that other houses have suffered. I am of his equipment, a corps of lawyers who devote themselves to perfectly content that this house should be prosperous, and I want planning and carrying out schemes by which they can "nm debt­ it to be prosperous upon its merits under the rules of equity and ors out of business and keep them out," obtain preferences, and not to flourish at the expense of other men of equal rights simply insure "doing" other creditors of equal rights. I have been told because there is no adequate law under which the rights of all that they have a letter head on which is printed in big type the may be protected. words "law department," in addition to the matter upon the let­ Yes; I agree perfectly, in his sixth paragraph, that a law should ter bead referred to by me. prevail which will make possible the very highest code of com­ The acme of absurd pretended solicitude for the poor debtor is mercial ethics. Think of a man who complains that his employees reached in the fifteenth paragraph, in which he says: "Our solici­ might be taken away to a court of justice to prosecute fraudulent tude is _always occasioned by the one predominating thought-the creditors talking about having " spent so many years" "in main­ protectiOn of our honest debtors." What kind of protection? I taining and inculcating " a standard of '' commercial ethics." As ~ould ask. He has goods to sell and wants to sell them, and near as I can make out, he has amassed a great fortune while nghtfully wants t~ collect for them; and there is no objection to 1904 CONGRESSIONAL RECORD-HOUSE. FEBRUARY 18, his doing so, provided he does so with reference to the rights of J ST. Lom~ Mo., Febl'uanJ 16,.1898. others. M.Y DEA& ~IR: Mr. D. Crawford's protest against a. bankruptcy law, sent Then why should he try to fool reasonable people by saying in from St. Louis, only repre~ents" ~lve of ou:z:- most wealthY. men out of the · ati h h ·ef St ,_ many thousands engaged m some kind of busmess here. Ninety per cent of: one.and th e same communlC on t at e pr ers ate .illlWS to a- our people want a bankruptcy law, and during the xtreme panicky times national law, because under the former he can r-un debtors out of afewmonths back no doubt these twelve men wanted a la.vr, but now some of business and keep them out and under the latter he could not of their customers might take th~ benefit of the law:, hence the pr

Whereas we believe that th~ measure, if enacted will in all respects afford Huntsville; Robert F. Ligon, Montgomery: William L . Miller, Tallanega; adequate relief and protection, which the nation at this time stands grea.tly Edward L. Russell, Mobile; Gregory L. Smith,l\Iobile; Henry C. Tompkins, iD need of; and Montgomery. Whereas we also believe that a national bankrupt law is a great necessity Arkansas.-Arkansas Lumbermen's Association, Little Rock; Fort Smlth to the business interests of our counti·y, and that the enactment of such a Cbamber of Commerce; Helena Chamber of Commerce: Little Rock Board of law will to a great extent militate against the present unsettled condition of Trade; Merchant Tailors' Exchange, Little Rock; Pine Bluff Board of Trade; financial and commercial affairs, and will bring about a. stability in such re­ James H. Clendening, Fort Smith; John G. Fletcher. Little Rook; James A. lations which will be hailed with universal approbation; and Fones, Little Rock; Albert S. Honnet, Pine Bluff; John J. Hornor, Helena; Whereas we further belie-ve that a failure to enact this measure will in­ George G. Latta, Hot Springs; Julius Looser, Marianna; EliasW. R.ector,Hot -volve indefinite delay in the adoption of a general bankruptcy law, and will Spring:s; Matthew T. Sanders, Helena: George Sengel, Fort Smith; George operate disastrously upon trade, commerce, and business generally: There- W. Shinn, Little Rock; William G. Whipple, Little Rock; John E. Willia.Irul, fore, . Little Rock. . Be it 1·esolved by the senate (the assemblhers' Association of America, New York City; Monroe; Albion K. Miller, New Orleans; Fred. F. Myles, New Orleans; Fred­ Trans-MississipJ?i CommerCial Congress, Denver; Tra-velers' Protective Asso­ erick J. Odendahl, New Orleans; Walter L. Saxon'l..~ew Orleans; William B. c~tion of America, St. Louis; Western Commercial Travelers' Association, Schmidt, New Orleans; Raymond B. Scudder, .New Orleans; Thomas J. St. Louis. Semmes, New Orleans; Breedlove Smith, New Orleans; James F. Utz, Alabama. -Commercial and Industrial Association of Montgomery; Mobile Shreveport. Chamber of Commerce..i.. Mobile Cotton Exchange; Samuel Brown, Mobile; Maine.- Bangor Board of Trade; Biddeford Board of Trade; Calais Board John C. Hush, Mobile; .uobert 0 . Brickell Hunts-ville; Orville F. Cawthon, of Trade; Portland Fruit and Produce Exchange; Portland Mechanics' Ex· Mobile; Gaylord D. Clark, Mobile; Nathaniel H. R. Dawson, Selma; John W. change and Board of Trade; Sa.co Board of Trade; State Board of Trade, Durr, Montgomery·'oFred S. Ferguson, Birmingham; Charles S. Halsey, Biddeford; Leslie C. Cornish, Augusta; Charles F. Libbey, Portland; Albert .Htmtsville; Samuel . Holt, Selma; CharlesL.Huger,Moblle; MiltonHume, R. Savage, Auburn. XXXI-120 1906 CONGRESSIONAL RECORD-HOUSE. FEBRUARY 18,

Maryland.-Baltimore Clearing House; Business Men's Association, Annap­ de Comercio Espanola en Nueva York; Chamber of Commerce of the State olis; Credit Men's Association of Baltimore City; Maryland Division, Trav­ of New York, New York City; Clothiers' Association of New York City; ~lers' Protective Association, Baltimore; Merchants and Manufacturers' As­ Conso~id~ted Stock and Pe.troleum ~xchange, New York City; Credit Men's sociation, Baltimore; Shoe and Leather Board of Trade, Balt.imore; AlfredJ. AssoCiatwn, New York Citv; Elmua Board of Trade; Italian Chamber of Carr, Baltimore; Thomas Deford, Baltimore; J. Ross Diggs, Baltimore; Solo­ Commerce, New York City; Lumber Exchange, Buffalo; Mercantile Ex­ mon Frank, Baltimore; J. Walter Hodges, Annapolis. change, New York City; Merchant Tailors' Society of the City of New York; Ma.ssachusetts.-Arkwright Club, Boston; Board of Trade, Amesbury; New York Board of Trade and Transportation, New York City (two reso­ Board of Trade, Beverly; Board of Trade, Lowell· Board of Trade, Pitts­ lutions, 1889, 1890); New York Jewelers' Association; New York J ewelers' fteld; Board of Trade, Spr.ingfteld; Board of Trade, Stoneham; Boston Board Board of Trade, New York City; New York State Wholesale Grocers' Asso­ of Fire Underwriters; Boston Executive Business Association;. Boston Fish ciation, Elmira; Oneonta Board of Trade ; Paint, Oil and Varnish Club, New Bureau; Boston Fruit and Produce Exchange; Boston Merchants' Associa­ York City; Retail Grocers' Association, Buffalo; Rochester Chamber of Com­ tion; Boston Merchants' Club; Boston Paper Trade Association; Commercial merce; Sing Sing Board of Trade; Stationers' Board of Trade, New York Club, Boston; Drysalters' Club of New England, Bost.on; Gardner Board of City~ United Retail Grocers' Association, Brooklyn; Warsaw Board of Trade; Trade; Grocers' Associaton, Boston; Massachusetts State Board of Trade, WhOlesale Grocers' Association of New York and vicinity; Micha.elE.Bannin, Lowell; Massachusetts Wholesale Lumber Association; Mechanics' Exchange, New York City; Herbert P. Bissell, Buffaloj Henry W. Carpenter, Oneida; Boston; members of the Lowell Master Builders' Exchange {petition); Mer­ Charles T. Clark New York City; Herbert; M. Condit, St. Paul Building: chant Tailors' Exchange of the city of Boston; Wholesale Grocers' Asso­ New York City; James M. Constable, New York City; H enry L. Dreyer; ciation, Boston; Jonathan Bigelow, Boston; Walstein R. Chester, Boston; New. York City;· John Esser, Black Rock· Joseph Fahys, New York City; Henry D. Dupee, Boston; Robert R. Endicott, Beverly; James B. Forsythe, Patrick ]'arrelly, Nflw York Cit~ J ohn C. Graves, Buffalo; Divid Hirsch, Boston; George A. Miner, Boston; Beverly K. Moore, Boston; Edward C. N.ew York City; Henry A. Meyer, Brooklyn; Ludwi.~ Nissen, N ew York Rogers, Springfield; Joseph Sawyer, Boston; James I. Wingate, Boston. C1ty; Alexander E. Orr, New York City; Edward W. Peck, Rochester; .Michigan.-Business Men's Association, Ann Arbor; Business Men's Asso­ George Sandrock, Buffalo; Charles S. Smith, New York City; G. Waldo ciation, East Saginaw; Business Men's Association, Grand Haven; Business Smith, New York City; Daniel M. Thomas, New York Cit~ Francis R Men's Association, Kalamazoo; Business Men's Association, Sault Ste. Marie; Thurber, New York City; Walter P. Warren, Troy; Alfred R. Whitney, New Chamber of Commeree, Sault Ste. Marie; Detroit Credit Men's Association; York City; MorrisS. Wic;e, New York City. Detroit Paint, Oil, and Varnish Club; Furniture Manufacturers' Associa­ North Om-olina.-Newbern Cotton and Grain Exchange; Thomas B. tion of Northwestern Michigan, Muskegon; Grand Rapids Board of Trade; Keogh, Greensboro; Samuel W. Smallwood, Newbern. Grand Rapids Furniture Manufacturers' Association; Manufacturers' Club, N01·th Dakota.-Fargo Board of Trade; Anson S. Brooks, Grand Forks: Ad­ Detroit; Merchants and Manufacturers' Exchange, Detroit; Michigan State dison W. Clark, Grand Forks; Martin Hector, Fargo; John W. Von Nieda, Business Men's Association, Grand Rapids; George H. Barbour, Detroit; Fargo. George G. Briggs, Grand Rapids; Wellington R. Burt, East Saginaw; John A. Ohio.-Akron Board of Trade; Ashtabula Board of Trade; Board of Trade, Covode, Grand Rapids; Bernhard Desenberg, Sault Ste. Marie; Albert K. Clrillicothe; Board of Trade, Gallipolis; Board of Trade, Nelsonville; Build­ Ed wards. Kalamazoo; Richard C. Flannigan, Nor way; Theodore H. Hinchman, ders' Exchange, Cincinnati; Cincinnati Board of Trade and Transportation; Detroit; George E. Howes, Battle Creek; AdamS. Kedzie, Grand Haven; Ed­ Cincinnati Chamber of Commerce and Merchants' Exchange· Cincinnati ward A. Mo~eley, Grand Rapids; Samuel E. Pittman, Detroit; Charles R. Sligh, Clothiers' Association; Cincinnati Retail Grocers' Association: cleveland Re­ Grand Rapids. tail Grocers' Association; Defiance Board of Trade; Massillon Board of Trade; Minnesota.-Board of Trade of Minneapolil:1; Chamber of Commerce of St. Piqua Board of Trade and Improvement Association; Produce Exchange, Paul; citizens of Duluth (petition); citizens of Mankato (petition); citizens Toledo; Retail Merchants' Protective Association, New Philadelphia; San­ of Marshall (petition); Cont-ractors and Builders' Board of Trade, St. Paul; dusky BusinesR Men's Association; Springfield Board of Trade; Tiffin Duluth Board of Trade; Duluth Chamber of Commerce; Fergus Falls Cham­ Board of Trade; Albert Beebe, Dayton; Burr W. Blair, Cincinnati; Lee H. ber of Commerce; Jobbers' Association, Minneapolis; Minneapolis Produce Brooks, Cincinnati; Cornelius A. Brouse, Akron; John H. Doyle, Toledo; Exchange; Rochester Board of Trade; St. Paul Board of Trade; St. Paul Job­ Richard Dymond, Cincinnati; Lowe Emerson, Cincinnati; Clinton D. Fire­ bers' Union; Wholesale Grocers' Association, Minneapolis; Winona Board of stone, Columbus; James 1\L Glenn, Cincinnati; Justus Goebel, Cincinnati; Trade; Winona Jobbers' Association; Isaac Atwater, Minneapolis; Melvin Lawrence Grace, Cincinnati; Robert J. Harrison Cincinnati; Anthony R. Baldwinl.-..Duluth; John M. Bartlett, Minneapolis; William B. Dean, St. Howells, Massillon; Anson Hurd, Findlay; John C. Hutsinpiller, Gallipolis; Paul; Paul .u. Ferguson, St. Paul; Frank L. Greenleaf, Minneapolis; George JohnS. Kountz, Toledo; Thomas W. Lewis, Zanesville; Arthur McAllister, W. Gregory, Winona; Christopher B. Heffelfinger, Minneapolis; Thomas B. Cleveland; William J. McManigal, Orbiston; Oscar T. Martin, Springfield; Janney, Minneapolis; Anthony Kelly, Minneapolis; Elliott A. Knowlton, Joshua Nickerson, New Bm·lin~ton; Louis H. Pike, Toledo; Frank A. R othier, Rochester; Daniel R. Noyes, St. Paul; FrankL. Randall, Winona; Charles E. Cincinnati; Michael Ryan, Cincmnati; Alfred Seasongood, Cincinnati; Jo.seph Sawyer, Crookston; Channing Seabury, St. Paul; WilliamE. Steele, Minnear G. Sextro, Cincinnati; John N. Stewart, Ashtabula; Earl W. Stimson, Cincm­ polis; JudsonL. Wicks, Minneapolis; Ja.mesT. Wyman, Minneapolis; William nati; Jacob W.Stoody, New Ph.iL1.delphia; Ezra B. Taylor, Warren; Albert H. Yale, Winona. C. Thompson, Portsmouth; John L. Vance, Gallipolis; Simon P. Wolcott, Mississippi.-Board of Trade, Jackson; Mississippi Bar Association, Jack­ Kent; WilliamW. Woodward, Sandusky; CharlesJ. Yingling, Tiffin; J . Frank son; Roswell V. Booth, Vicksburg; Eaton J. Bowers, Bay St. Louis; Edward Zahm, Toledo. C. Carroll, Vicksburg; William C. Craig, Yazoo City; James H. Duke, Oregon.-Astoria Chamber of Commerce; Board of Trade of Portland; Scooba; John F. Halpin, Vicksburg; Au~. Keller, Bay St. Louis; Simon H. Chamber of Commeroo, Portland; Merchants' Protective Union, Portland; Lowenberg, Natchez; John T. Lyle, Meridian; John McC. Martin, Port Gib­ Oregon Immigration Board, Portland; John Q. A. Bowlby, Astoria; Charles son; T. Marshall Miller, Vicksburg. H. Dodd, Portland; James E. Haseltine, Portland; Donald Macleay, Portland; Missouri.-Associated Wholesale Grocers of St. Louis; Business Men's Richa1·d H. Thorntcn, Portland. Club, Joplin; Cape Girardeau Board of Trade; Kansas City Commercial Club;­ Pennsylvania.-Board of Trade, Plymouth; Board of Trade of Wilkesbarre· Kansas City Paint, Oil, and Varnish Club; Lawyers of Sedalia (petition); Me­ business firms, Philadelphia tpetition); Central Furniture Manufacturers; chanics' Exchange, St. Louis; Merchants' Exchange, St. Louis (two resolu­ Association, Williamsport; Chamber of Commerce, Pittsburg:.....Commercial tions, 1889,1890); Mexican and Spanish-American Commercial Exchange, St. Exchange, Philadelphia; Grocers and Importers' Exchange, J:'hiladelphia; Louis; Missouri Bar Association, St. Louis; St. Charles Board of Trade; St. Lancaster Board of Trade; Paint and Drug Club, Pittsburg; Philadelphia Joseph Board of Trade; St. Louis Credit Men's Association; St. Louis Furni­ Board of Trade; Paint Club of Philadelphia; Philadelphia Drug Exchange; ture Board. of Trade; St. Louis Paint, Oil, and Drug Club; St. Louis Retail Philadelphia Produce Exchange; Philadelphia Maritime Exchange; Beran ton Grocers' Association; Springfield Board of Trade; Young Men's Business Board of Trade; Shoe Exchange of P hiladelphia; Titusville Board ef Trade· Association, Louisiana; Young Men's Commercial Club, Moberly; Leon Theodore H. Bechtel. Philadelphia; Frederick Fraley, Philadelphia; Samuel J. Albert, Cape Girardeau; Rufus E. Anderson, Hannibal; Charles C. L. French, Plymouth; Henry A. F ry, Philadelphia; Edward H. Hance, Phila­ Bell, Boonville; James 0. Broadhead, St. Louis; Robert S. Brookings, St. deiphia; Benjam.il:f S. Janney, jr., Philadelphia; George A. Kelly, Pittsburg; Louis; Baxter Brown, Warrensburg; Calvin F. Burnes, St. Joseph; JamesK. G. Murray Reynolds, Wilkesbarre; Daniel C. Ripley, Pittsburg; William T. Burnham, Kansas City; Adolohus Busch, St. Louis; Charles Christensen, St. Smith, Scranton; Henry M. Steel, Philadelphia; Samuel Wagner, Philadel­ Louis; Martin L. Clardy, Farmington; John Cos!f!:ove, Boonville; Charles A. phia; Elias Z. Wallower, Harrisburg. Cox, St. Louis; Samuel Cupples, St. Loui<>; William S. Curtis, St. Louis; Rhode Island.-Board · 0f Trade, Providence; Manufacturing Jewelers' James D. Davison, Kansas City; Daniel R. Flagg, Louisiana; Frank Gaiennie, Board of Trade, Providence; Mechanics' Exchange, Providence; James Mur­ St. Louis; Baldwin B. Gill. Chillicothe; Noah M. Givan Harrisonville; Lam­ ray, Woonsocket; Joseph U. Starkweather, Providence; William B. Wright­ din E. Irwin, Kansas City; Anthony Ittner, St. Louis; George P . B. Jackson, man, Providence. Sedalia; John A. Lee, St. Louis; William B. McAlister, Bowling Green; South Oarolina.-Charleston Chamber of Commerce; D'Arcy P. Duncan, Charles A. McCann, Springfield; Francis J. McMaster, St. Louis; James M. Columbia; Thomas C. Gower, Greenville; Henry T. Thompson, Darlington. Nave, Kansa~ City; Samu~l M. Nave, St. Joseph;,_?eter Nicholson, St. Louis; South Dakota.-Commercial Club, Sioux Falls; Robert F. Bacon, Rapid Elijah H. Norton, Platte Ctty; John C. O'Keefe, moberly; Joseph M. Patter­ City; Albert W. Coe, Deadwood; James Halley, Rapid City; Hosmer H. son, Kansas City; Osgood H. P eckham, St. Louis; George F. Putnam, Kansas Keith, Sioux Falls; Henry L. Loucks, Huron. City; Ferdinand W. Risque, St. Louis; William E. Schweppe, St. Louis; D. Tennessee.-Uhattanooga Board of Trade; Jackson Board of Trade; Knox­ Howell Shields, Hannibal; Edward C. Simmons, St. Louis; Edward C. Smith, ville Board of Trade; Knoxville Chamber of Commerce; Memphis Lumber St. Joseph; Edwin W. Stephens, Columbia; James G. Stowe, Kansas City; Exchange; Alexander A. Arthur, Knoxville; Louis Erb, Memphis: Henr:r. 0. GeiTit H. Ten Broek. St. Louis; John H. Voglesang, St. Louis; CyrusP. Wal­ Ewing, Chattanooga; Doc. W. Fly, Memphis; Edward E. Hooker, Knoxville; brid~e, St. Loui..q_; Robert F. Walker, St. Louis; Henry K. White, St. Joseph; Robert E. Hunter, Memphis; Henry H. Ingersoll, Knoxville; James P. Jor­ Wilham A. Wooo, Kingston; Benjamin W. Zimmerman, Sedalia. dan, Memphis; Ben Lindauer, Nashville; William B. Lockett, Knoxville; 1 Montana.-Charles K. Cole, Helena; Timothy E. Collins, Great Falls. JacobS. Menken, Memphis; Thomas 0. Morris, Nashville; Frederick W. Or­ 1 .Nebmska.-Hastings Board of Trade; Lincoln Board of Trade; Lincoln Re­ gill, Memphis; Zeboim C. Patten. Chattanooga; Robert F. Patterson, Mem· tail Grocers' Association; Nebraska Paint, Oil, and Glass Club, Omaha; Ne­ phis; Ike F. Peters, Memphis; William K. Phillips, Nashvill~ Joseph F. Shipp, braska State Business Men's Association, Lincoln Branch; Nebraska State Chattanooga; Thomas B. 'l'urley, Memphis; P eter P. Van vleet, Memphis. Business Men's Association (115 local branches; membership, 2,200), Omaha; Texas.-Austin Board of Trade; Cleburne Board of Trade; Dallas Board of Omaha Board of Trade; Union Club, Hastings; Edward M. Anderson Omaha; Trade; El Paso Board of Trade; Galveston Cotton Exchange; Henrietta Board Augustus C. Barler, Fremont; William J. Broatch, Omaha; Andrew J. Conlee, of Trade; San Antonio Board of Trade; The Builders' Exchange of Dallas; Beatrice; George M. Darrow1..0maha; Luther Drake, Omaha; Manford L. Benjamin N. Boren, Dalla.s; Oliver P. Bowser, Dallas; Richard D. Coughanour, Elsmore, Hastings; Griff J. l!ivans Hastings; James G. Gilmore, Omaha; Dallas; John W. Crowdus. Dallas; Joseph Deutschman, Texarkana; Newton Charles J. Grable, Crawford; Frank B. Kennard, Omaha; Thomas Kilpatrick, W. Finley, Tyler; Moses D. Garlington, Dallas; William H. Harrell, Dallas; Omaha; Freeman P. Kirkendall, Omaha; William V. Morse, Omaha; Rolland William Heuermann, San Antonio; Smith J. Howell, Dallas; Joseph A. Kemp, H. Oakley, Lincoln; Allen T. Rector Omaha; John W. Roland, Crawford; Wichita. Falls; Christo:pher W. Mertz, Cleburne; J oseph F. Meyer, Houston; Dudley Smith, Omaha.; Rollin G. Snnth,1 Crawford; David F. Trnnkey, Red .Arthur F. Platter, Demson; Nathan Redlich, Galveston; Julius Runge, Gal­ Cloud; Robert B. Windham, Plattsmouth. veston; William J . Swain, Henrietta; Joaquin Villegas, Laredo; Paul Waples, Nevarla.-Citizens of Mineral Hill (petition). Fort Worth; William D. Williams Fort Worth. New Ham.pshire.-Concord Commercial Club; Manchester Board of Trade; Utah.-Edward P. Ferry, Park City; Henry W . Lawrence, Salt Lake City; Nashua Board of Trade; George B. Chandler, Manchester; Edward R. Kent, Fred Simon, Salt Lake City; Jabez G. Sutherland, Salt Lake City. Laneaster; James H. Tolles, Nashua. · Ve1·m.ont.-George F. Edmunds, Burlington; Andrew J. Sibley, Montpelier; New Jersey.-Asbury Park Hoard of Trade; Board of Trade of Jersey City; Urban A. Woodbury, Burlington. . Brewers' Association of New Jersey, Newark; James H. Bird, Asbury Park; Vi1·ginia.-Board of Trade of the city of Lynchburg; Post A, Virginia Di­ , Anthonv W. Dimock, Elizabeth; J. !<"'rank Fort, Newark; Leonard J. Gordon, vision, Travelers' Protective Association, Richmond; Real Estate Exchange, J'ersey City. Norfolk; Richmond Chamber of Commerce; Staunton Chamber of Com­ . New Jl..fe.'tico.-Santa Fe Board of Trade; Charles M. Creamer, Santa Fe. merce; A. Berkeley Carrington, Danville; JohnM. Higgins, Richmond; Ben­ Ne1v York.-Albany Chamber of Commerce; Amsterdam Board of Trade; jamin F. Johnson, Richmond; Egbert G. Leigh, jr., Richmond; Abraham Black Rock Business Men's Association; .Brewers' Association, Buffalo; Buf- . Myers, Norfolk; Mann Page, Brandon; Robert R. Prentis, Suffolk. : talo Fire Underwriters' Association; Buffalo Merchants' Exchange; Camara Washington.-State Bankers' Association, Olympia; Seattle Chamber of 1898. _CONGRESSIONAL RECORD-HOUSE. 1907

Commerce; Tacoma Chamber of Commerce; Tacoma Commercial Club; Walla It will be observed that, while they condemn the substitute pro­ Walla Board of Trade; Charles M. Atkins, Whatcom; Nelson G. Blalock, Walla Walla; Noah B. Uoffman, Chehalis· Samuel Collyer, Tacoma· Simon B. posed by the majority of the committee, they do not approve the Conover, Port Townsend; Marion D. Eg~rt, South Bend; John W. Feighat:t, Senate bill. The gentlemen making the minority report have put Spokane; Emory C."Ferguson, Snohomish; Jacob Furth, Seattle; John P. themselves in a purely negative position and have not laid before Hartman. jr., Puyallup; George H. Heilbron, Seattle; John H. McGraw. Seattle; Ezra Meeker, Puyallup; Miles C. Moore, Walla Walla; Thomas M. the House for its consideration a measure having the sanction of Reed, Olympiaj Clinton A. Snowden, Tacoma; Hugh C. Wallace, Tacoma, their own approval. West Virgima.-Boardof Trade, Martinsburg; WheelingCha.mberof Com· We are, t.herefore, 1\Ir. Speaker, left to consider the Senate bill merce; E. Boyd Faulkner, Martinsburg; J. Ellwood Hughes, Wheeling; William M. Miller, Parkersburg; Hullihen Quarrier, Wheeling; Thomas S. and that reported by a majority of the Judiciary Committee. Riley, Wheeling. If I correctly understand the parliamentary status, it js this: Wisconsin.-Association for the Advancement of Milwaukee; Business By adopting the substitute, both bills will go into a conference Men's Association, Green Bay; Chamber of Commerce of the city of Milwau­ kee; C..'redit Men's Association, Milwaukee; legislature of the State; La between the two Houses for further consideration, with the power Crosse Board of Trade (2 resolutions, 1889, 1890); Milwaukee Brewers' Asso­ in the conference committee to report a measure. ciation; Milwaukee Merchants and Manufacturers' Association; Paint, Oil, My judgment, Mr. Speaker, is that if the House substitute and Dru~ Club, Milwaukee; John M. Holley, La Crosse; Frederick W. In­ busch, Milwaukee; Thomas L. Kelly, Milwaukee; Wilbur P. Massuere, Arca­ should be voted down the only opportunity that will be had for dia; Frank McDonough, Eau Claire; Henry :M .- Mendel, Milwaukee: Simon J. passing a bankruptcy measure during the present Congress will Murphy\jr., Green Bay; John R. Reiss, SheboyganJ John M. Smith, Green be lost, and that nothing further can or will be done in the mat- Bay; Jonn E .. Thomas, Sheboygan Falls; Richara Valentine, Janesville; ter for two years to come. · Edward C. Wall, Milwaukee. Wyoming.-Board of Trade ChE\yenne; Board of Trade, Sundance; Chey­ The indications are that we will reach an early adjournment of enne Chamber of Commerce; Fremont County Business Mens Club, Lander; the present session, and we all know that it will be scarcely possi­ Fremont County Immigration Board, Lander; W_yoming Stock Growers' As­ sociation, Cheyenne; John 0. Baird Cheyenne; Bryant B. Brooks, Casper; ble to do anything at the next or final session of this Congress Charles H. Burritt. Buffalo; Edmund J. Churchill, Cheyenne; Gibson Clark, except to pass the general appropriation bills. If the committee Cheyenne; 'l'ruman B. HicKs. Cheyenne; William C. Irvine, Ross; John K. substitute should be defeated, the Senate bill will also be defeated, Jeffrey, Cheyenne; George W. Munkres, Buffalo· Charles N. Potter, Chey­ enne; De Forrest Richards, Douglas; Charles W. Riner, Cheyenne; William and by a much larger vote. This, I believe, would be jnevitable. A Robins, Cheyenne; Edward A. Slack, Cheyenne; Jay L. Torrey, Embar; I am strongly of the opinion that the present Congress should Willis Van Devanter, Cheyenne. . not fail to enact a wise and just bankrupt law, and in order that ~r. SAYERS. 1\Ir. Speaker, owing tO my physical condition, the opportunity to enact such legislation may not be altogether I will not be able to occupy but a very short time of the House defeated, I shall for that reason vote for the committee substi· upon this important subject. tute, so that the entire matter can go into a conference between For the pa.St eight years Congress has been endeavoling to pass the Houses and a bill wise and just in itself and satisfactory to the a bankrupt bill, but so far nothing has been accomplished. This country may be reported back. I can not see how anyone really should not be a party question. At the .first session of the pres­ desiring any bankruptcy legislation at all could do otherwise. I ent Congress a large number of Democrats submitted a request will not, however, Mr. Speaker, now commit myself to such con· to the Comm~ttee on Rules for an order which would permit the ference report, but will reserve to myself the right to vote for or House to consider a bankruptcy measure that would be alike just against it, as my judgment may dictate. to creditors and debtors. Mr. Speaker, I have not had the time to give the committee su~ I also recall the fact that, when Congress met in December last­ stitute the careful examination which its importance demands. and I am, in making this statement, not betraying party secrets, Its basic or fundamental features I understand to be (first) that for it was published in all of the papers-a caucus of the Demo­ any person who owes debts, except a corporation, may become a cratic members of the House passed a resolution favoring a wise voluntary bankrupt; (second) that any person owing debts to the nnd just 'bankrupt bill, and it was stated distinctly in the caucus, amountof$1,000orover, ifadjudgedaninvoluntarybankruptupon over and over again, that it would not be considered a party an impartial trial, shall be subject to bankruptcy, except a national measure, but that each Democrat would be left to act upon the bank, a person engaged chiefly in farming or the tillage of the matter according to his best judgment. soil, or a wage-earner; (third) that acts of bankruptcy by a person Mr. Speaker, I now propose to so act. I regard a bankrupt shall consist of his having (1) concealed himself, departed or re· measure as strictly and exclusively a business p'roposition and as mained away from his place of business, residence, or domicile undoubtedly within the jurisdiction of Congress, and I think that with intent to avoid the service of civil process and to defeat his it would be very unwise indood to inject party politics into its creditors, and shall not have returned at least forty-eight hours consideration. before the filing of a petition in bankruptcy, and before the rights I have before me a list, by States, of insolvents from 1879 to of creditors shall have been impaired, altered, or interfered with; 1895. It shows that the number of commercial and industrjal (2) failed for thirty days and until a petition is filed while insol· failures in the country between the years 1879 and 1895, inclusive, vent to secure the release of any property levied upon under proc­ was 171,389, and that the liabilities aggregated the extraordinary ess of law for $500 or over, or if such property is to be sold within sum of $2,611,521,000. such time under such process, then until three days before the But, sir, I may be pardoned for referring to a class of debtors time fixed for such sale; (3) made a transfer of any of his prop­ not embraced in this list. In my own State, and most probably erty with intent to defeat his creditors, and has not regained in other Southern and Western States, some eight or ten years ago, the ownership and possession of such property before the rights it will be remembered, there was an extensive spirit of specula­ of creditors have been altered, impaired, or changed by reason of tion; the greatest activity prevailed for a time in the sale and pur­ such transfer, and at least ten days before the commencement of chase of real estate, especially town and city lots. Part of the a proceeding in bankruptcy; ( 4) made an assignment for the ben­ purchase money was paid when the sales were made, and for the efit of his creditors, or filed in courta writtenstatementadmitting remainder notes were executed with the vendor's lien reserved on his inability to pay his debts; (5) made, while insolvent, a transfer the property sold. · of any of his property or suffered any of it to be taken or levied The crash came, and the purchasers were unable, in conse­ upon by a process of law or otherwise for the purpose of giving a quence of the heavy and rapid decline in the value of such prop­ preference, and has not regained the ownership of such property erty, to meet their unpaid notes. Suits were instituted and or released same from such levy before the rights of creditors prosecuted to judgments. Orders of sale were issued, and the shall have been altered, changed, or impaired by reason of such property sold for far less than the amount of the decrees, and in transfer, taking, or levy, and at least ten days before the com­ the great majority of cases purchased by the original vendors. mencement of a proceeding in bankruptcy; (6) procured or suf­ Thus it will be seen that the vendors not only had the cash pay­ fered a judgment to be entered against himself with intent to ments, but recovered the property at amounts much smaller than defeat his creditors, and suffered same to remain unpaid until ten the judgments, and still hold the unpaid indebtedness against the days before the filing of a petition in bankruptcy, provided that vendees. a payment or satisfaction of such a judgment by a sale of any of Very many of these purchasers-and they may be numbered by the debtor's property, or from the proceeds of such a sale, shall the hundreds-are honest, industrious, and energetic men; but so not be deemed a payment of such judgment under the provisions long as these judgments can be enforced against them their efforts of this section; (7) secreted any of his property to avoid its to do anything for themselves will be vain. being levied upon under legal process against himself and to Sir, the House is divided upon two propositions-the Senate bill defeat his creditors, and has not surrendered such property to and the s~bstitute reported from the Judiciary Committee. Both such legal process at least ten days before the filing of a peti­ measures provide for voluntary and for involuntary bankruptcy. tion in bankruptcy; (8) suffered, while insolvent, an execution The minority of the Judiciary Committee have not reported a from a court of reco1·d for $500 or over, or a number of executions measure of their own for the consideration of the House. Theil· aggregating such amount, against himself to be returned ''no prop­ report is very brief and reads as follows: erty found," unless the amount shown to be due by such execu· !!'he undersigned, members of the Committee on the Judiciary, to which ~ons shall be paid before a petition is filed; (fourth) that a peti­ 'VI'as referred Senate bill1035, having considered the same in said committee tiOn may be filed against a person who has committed an act of are unable to agree with the committee in recommending the amendment hi p.ame, but substitute in fact, which it has reported to said bill. We do not bankruptcy within four months after the commission of such act; believe the bill as so amended, with the extensive powers it confers on the (fifth) that when a petition is filed by any person for the purpose Federal courts., is a wise and just measure, or one that should be passed. of having another declared or adjudged a bankrupt, the petitioner 1908 CONGRESSIONAL RECORD-HOUSE. -FEBRUARY 18,

shall file therewith, or within five days thereafter, and before any I am ready at all times to a-ssist in passing a bill to give relief'tQ action is taken thereon. and in the same court, a bond, with at the honest and real bankrupt, but never can I sup~ort a measure least two good and sufficient sureties, who shall reside within like the present bill, that will be the means of making bankrupf.i. the jurisdiction of said court, to be approved by the court or a Let us redeem bankrupts, but, no, never make them. judge thereof, in such sum as the court shall direct, conditioned for Bankruptcy branches out into two diffe1·ent and distinct direq­ the payment to the respondent, his or her heirs, executors, admin­ tions. Voluntary bankrupt~y is the means of the redemption of istrators, or assigns, all expenses, damages occasioned by the the unsuccessful and fallen debtor. Involuntary bankruptcy is a wrongful institution of such proceedings, costs, and counsel fees weapon in the hands of the creditor to press collections of debt to be allowed by the court. harshly, to intimidate, and to destroy. If such petition ba dismissed by th~ court, or withdrawn by the Involuntary bankruptcy carries me back to the olden days when petitioner-with leave of the court, the respondent or respondents the unfortunate debtor who could not pay his debts was placed in shall be allowed all damages occasioned by the wrongful institu­ prison. I believe that our forefathers, in forming the Constitu­ tion of such proceedings, counsel fees, and costs incurred in de­ tion of this country, had in view, when they gave Congress tpe fending against said proceedings, and the same shall be paid by power "to establish uniform laws on the subject of bankruptcie~ the principal and sureties on said bond. throughout the United States," the release from bondage and prison And for the purpose of ascertaining the damages costs, and the overburdened and distressed debtor. I can not for a moment counsel fees sustained by the respondent the court shall have jm·is­ believe that they had in view the involuntary feature. diction of the principal and sureties on said bond without issue For this House to determine whether a bankrupt law is wise and of further process against them, upon the respondent filing in what kind of a law is needed, we have only to make two investiga­ the court a statement of the amount of damages, costs, and tions: First, is there sufficient distress in the country for such a, counsel fees claimed by him; and the amount shall be ascertained law; then, if that proposition be true, second, what is the moral by a jury in said court, or by the court, with the consent of the condition of this nation of 70,000,000 people? parties thereto; (sixth) that a person against whom an invol­ I claim that the people have grown rapidly in intelligence, in­ untary petition has been filed shall be entitled to have a trial tegrity, and honesty, that we are a debt-paying people, and as a by jury in respect to any act of bankruptcy alleged in such rule credit has become almost universally based on the financial petition to have been committed, upon filing a written appli­ condition and honesty of the man. For that reason I can not ap­ cation therefor at or before the time in which an answer may prove of involuntary bankruptcy except on one ground; and that be filed; (seventh) and that the act shall not affect the allowance is dishonesty and fraud committed by the debtor. to the bankrupts of the exemptions which are prescribed by the From what class of our people does the demand for involuntarf State laws in force at the time of the filing of the petition in the bankruptcy come? It is largely from the wholesale and jobbing State wherein they have had then· domicHe for the six months or merchants. If that be true, then I want to say that I do not know the greater portion thereof immediately preceding the filing of of any class of people of the United States that is to-day doing the petition. better than this class of our business men, unless it be the greedy It seems to me, Mr. Speaker, that if involuntary bankruptcy is trust monopolies, the bondholders, the money power. Why, dowli to be provided for at all the committee substitute furnishes the in my State every little town and city is overrun by the repre­ most ample security to the debtor. It would be indeed difficult sentatives of these business houses, overanxious to sell goods to to suggest, in cases of involuntary bankruptcy, other and better the retail merchant-s. Why is it so? Because they find them prof­ safeguards, consistent with a proper regard for the rights of the itable and desirable customers to sell to. creditor, than those which I have read. It must be borne in mind that where debt is created it also car­ The remainder of the bill I understand to be administrative in ries with it a profit to the creditor. Then it would be unjust to its character, and I am assured by my colleague [Mr. LANHAM), place the power in the creditors, probably after y~ars of profit­ who is a member of the Judiciary Committee, and whoassistedm able dealing with a debtor, that should the debtor become tem­ the preparation of the substitute, that it is neithoo· harsh nor porarily depressed and fail to meet his obligations for a time h& severe. should be dJ:agged into a court of bankruptcy, his property sacri­ [Here the hammer fell] ficed and absorbed in costs and fees, and he be disgraced in the Mr. TERRY. I now yield to my colleague on the committee, the eyes of his people. But, Mr. Speaker, I am fully convinced that just at this time a. gentleman from Missouri [Mr. DE ARMOND], for thirty minutes. voluntary bankrupt law is greatly needed, and if this House will [Mr. DE ARMOND addressed the House. See Appendix.] pass a voluntary bill it will be a wise step. It will, in a measure, relieve the all-pervadin~ depression and restore activity and give Mr. TERRY. I yield three minutes to the gentleman from a new lease of life to thousands of good men who have lost not Alabama (Mr. WHEELER]. only their property but the right to use their names. Mr. Speaker, [Mr. WHEELER of Alabama addressed the House. See Ap­ for the past few years this country has undergone a most terrible pendix.] financial depression, and the skies are not clear yet. Thousands of good men have been buried in the wreck of destruction. Mr. LANHAM. Mr. Speaker, in view of some statements that I submit a table, prepared by the Bureau of Statistics, showing have been made with reference to arrest and interference with the business failures since the repeal of the last bankrupt law, in personal liberty permitted under this bill and the misapprehen­ 1878, to October 1. 1897: sions which may exist in the minds of those who may not have carefully: read the bill, I wi!ih to place in the RECORD the clause Number of the bill relating thereto, and which is as follows: Year. of Liabilities. b The judge may, at any time after the filing of a petition by or against a failures. person, and before the e:Jq>iration of four months after he has been adjudged a bankrupt, upon affidaVIt of any party in interest that such bankrupt is about to leave the district to avoid examination, and that his departure will 1879 ------____ .,_ ------6, 658 $98,149,053 defeat the proceedings therein, issue a warrant to the marshal directing him 1880------·------·------4, 735 65,752, ()()() to bring such bankrupt forthwith before the court. If, upon hearin~ the 1881 ------5, 582 81,155,982 evidence, it shall appear to the judge that the allegations of such affidaVIt are 1882 ------·------6, 738 101 ,547,546 true and that it is necessary, he shall order such marshal to keep such bank­ 1883 ------~------9,184: 172, !!74, 172 rupt in custody but not imprison him, until he shall be released or give bail 1884 ------10,968 2.26, a.tl, 427 conditioned for hls appearance, from time to time, as required by the court, 1 and for his obedience to all lawful orders. i~ ===~=~==:::::::::::::======:====:======g: ~ ~:m 1!!87 ------.------!J, 634 167m:,560, 944: Mr. TERRY. I yield ten minutes to the gentleman from Geor­ 1888 ------.------·----.------10,679 123,829,973 gia (Mr. LEWIS]. 1889 ------·------1o,ss2 148 7M, 33I Mr. LEWIS of Georgia. Mr. Speaker, I have serious misgiv­ 1800 ------10, 907 189,856, 96 1891------· ·------12,273 189, 868,688 ings as to the good results of bankruptcy laws, and think it a 1892 ------··------10,344 114,044,167 pitiful and unfortunate condition of affairs that any country 1893 ------· ------15,242 346,779,889 should have to keep upon its statute books at all times a standing 1894 ------13,885 172,992,866 1895------13,197 173,196,060 system of bankrupt laws. I believe at certain stages of all coun­ 1896 ------15,088 226,096,884. tries, after devastingwars and long-protracted financial complica­ Third quarter, 1897------9,702 ll'i,293,975 tions, some temporary system of relief for the unfortunate and 1------l------fallen is needed. And that time is at hand when we need, purely Tots.l __ ------.----.------_------196,169 2, PM, ml1, financial distress Again, the bill is sectional in that it operates against the retail all ove1· this country. We find a number of our business men sick merchant and places him in an unfortunate one-sided position. I in our hospitals and unable to give us their help. refer to the retail merchants all over the South and West, who Then let us give these unfortunate ones their only remedy-a have for their customers the agricultural classes, as well as the voluntary bankruptcy bill-and thereby redeem them by again retail merchants in the manufacturing vicinities, who have for putting them actively in the ranks of our workers; then once more their customers the laboring classes. The bill wisely exempts the they will become taxpayers and supporters of the Government. agricultural and laboring people from forced bankruptcy, but in The prosperity of the people is the Government's prosperity. I what condition does involuntary bankruptcy place the retail mer· have said that we only need bankruptcy laws after great financial chant? He can not force his customers into bankruptcy, while on depression. I would be willing_to vote to make a voluntary law the other hand he himself is ever subject to the application of that for a limited time, say two or three years, if it could be done, and harsh measure, should he unfortunately become embarrassed, even past history bears out my theory. though it be in tiding his own customers over misfortunes. We have only had three bankruptcy laws in the history of the Then how unjust and one-sided this bill is to that class of our country, and they were of short duration. In 1800 we had a bank­ business men; no protection on the one side, but the ever-stand­ ruptcy law that only lasted a short time. Again, we bad one in ing menace of bankruptcy on the other. The bill's unfairness to 1841 which was r epealed after only two years, it having accom­ the retail merchants finds an illustration in the system on which plished its pm·pose in that length of time. That law very wisely fol­ our Treasury Department is conducted by its officials. This De­ lowed the financial troubles of 1837 and 1838. Again, we had another partment will accept from its debtors any and all classes of our bankruptcy law in 1867, following on the heels of our great civil money, but it permits the creditors of the Department to demand war. This law remained on the statute books about eleven from our Treasury any one kind of money that their option, pur- years, longer than it should, for it was an unjust and severe lavv: pose, or greed may demand. . and administered often in a most dishonest, extravagant, and The strongest government would at times give way under such unjust manner, oftentimes the cost absorbing the entire estate.z a system. Then whatwould betheresult of this one-sided legisla­ causing the people all over the country to rise up and demana tion to the retail merchants? that Congress repeal the law, which it did in 1878. I anticipate We must remember that legislation has tended to advance the that this bill will be a stab at our State courts, that the creditor value of money, thereby depreciating the value of property, so class will almost entirely use the United States courts for the pur­ that it is legislation by Congress that is somewhat responsible for pose of collections, instead of the State com'ts. I claim the cred­ a great deal of the depression and many of the failures. There­ itor class has proper and ample protection under the existing laws fore Conffl'ess should not be slow to legislate for the redemption as administered in the courts of the country. of the failed and fallen debtors. We are rapidly establishing more courts, thereby increasing the With that great principle in view, let us give the country a bill facilities for expediting the collection of debts. In my state we that will reclaim the unfortunate and broken debtor, and at the have the justice court, county, city, superior, and supreme courts, same time give the creditor protection against a dishonest debtor. in addition to the United States court. The jurisdiction in the [Applause on the Democratic side.] · county and city courts has been extended so that a creditor can Mr. TERRY. Mr. Speaker, I yield ten minutes to the gentle­ quite often secure his judgment in thirty days' time. Besides, man from Missouri [Mr. LLOYD]. our courts are going far in their practices looking to the more Mr. LLOYD. Mr. Speaker, I am in favor of any measure which speedy dispensation of justice; small technicalities of law are will, in my judgment, tend to relieve the overburdened debtor of overlooked and purer justice meted out. Our courts are going the country without doing injm·y to the creditor class. I was far to protect honesty. greatly impressed with the pathetic description of the bankrupt of As an illustration, our courts have decided that where a debtor to-day, asmade by thegentlemanfrom Texas [Mr. LANHAM], and has bought goods under false statements as to his financial stand­ the duty of the more fortunate to relieve his distress by law or in~ , then afterwards gives a bona fide mortgage for a good and otherwise. His demand for legislation absolving such bankrupt valuable consideration to an innocent party, the mortgage is null from the liability to pay his debts after he had given up his estate and void, and have it set 3.8ide in favor of the original creditors was forceful and convincing, but it seemed to me that his beauti­ who sold the goods. ful and touching appeal formercyto the debtorwas overturnedin I merely call attention to this fact to show that the creditor is his effort to justify the involuntary features of the pending bill. being protected, and that I could not support a bill that carried .I can conceive of no condition more unfavorable and dishearten­ involuntary bankruptcy except for the one ground of fraud on ing than that of the individual, past 50 years of age, with his the part of the debtor. You can always reach an honest debtor family about him dependent on his bounty, and he a bankrupt, with the ample courts that now exist. It is the dishonest debtor with his social and moral condition clouded. The energy and vigor 1910 . OON,GRESSION.AL RECORD-HOUSE. FEBRUARY 18,

of young manhood vanishing and he, overwhelmed with the gloom fecting collections and exemptions and homesteads could be of his misfortunes, undertakes to penetrate the future, but no ray changed by the several States if the pending bill were to become of hope is presented. He takes a retrospective view and considers a law. the success and happiness of the past only to meet the remorseful Statistics have been invoked to show the increased number of thought that his future in life must continue to be a failure as failures in this country, and thereby to show the necessity for a. dismal as that in which he is involved. bankrupt law. I submit herewith a statement showing the num­ In these times of financial depression, with the retail merchants ber of failures and amount of liabilities involved in thosA failures of the smaller towns and villages scarcely able, with the utmost during the period intervening from the beginning of the year 1863 caution, prudence, and economy, to m ake a living and meet their to the close of the year 1895, as follows: obliga.tions to their creditors, burdened as most of them are with debt, I do not feel that it would be right to so place them at the Year. Number Amount mercyof their creditors that they could be forced into bankruptcy of failures. of failures. and required to answer in a United Statescow·tunderthe penalty of imprisonment. Who is demanding a bankrupt law such as 1863-.-----.------·-·------495 $7,000,000 1864--.------·------.------520 9,000,000 the pending bill? My opinion is that it is the creditor class alone. 1865------.------530 17,000,000 I have received numbers of letters and circulars from manufac­ 1866------.------.------1,505 54,000,000 turing associations and wholesale establishments urging the pas­ 1867------.. ------2,780 96,000,000 1868----.------.------2,608 63,000,000 sage of this bill, anrll have no doubt every member on this floor 1869 ------· ------•. ------2, 799 75,000,000 has; but I do not hear of an oppressed debtor in the throes of 1870------· --.... 3,551 88,000,000 bankruptcy asking that an involuntary bankrupt law be passed 1871 ------·------·------.------2,915 85,000,000 1872------. --·------4,069 121,000, 000 for his relief. What does the bankrupt debtor want? Not a law 1873------5,183 228, 000, 000 for the collection of debts, but absolution from liability to pay 1874 - --.------.-- 5,830 155, 000, 000 that which he can not meet. 1875 ------• -.------.------. ------• ------7,740 201,000,000 1876 ------9,092 191,000,000 I am not in favor of the Congress of this country passing laws 1877 ------••. --. 8,872 190, 000, 000 for the collection of debts; that is a proper matter for State regu­ 1878 . ------.----· ------.------.---- 10,418 234, 000, 000 lation. It is urged in reply that the State laws are not uniform 1879------6,658 98,000,000 1880 ------· ------4,735 65,000,000 on this subject. P erhaps they should not be. Each State shot!-ld 1881.------... 5,582 81,000,000 control its own collection laws. Besides, the pending bill will not 1882------.------6 738 101,000, ()()() make them uniform, for the bill permits the exemptions to debt­ 1883------·------9:184 172,000,000 ors which are made in the States where the bankrupts reside, and 1884------. ·---- . ------.--- 10,988 226, 000, 000 1885 ------. ·------10,637 12!, 000, 000 these exemption laws are not uniform. I submit herewith a state­ 1886 ------. 9,834 114, 000, 000 ment showing the exemptions that are allowed in the various 1887------·------.--- 9,634 167,000,000 States of the Union. 1888 -.---·------· ------10,679 123,000,000 1889 ------10,882 1~.ooo.ooo 1890 ------10,907 189,000,000 Personal Value of 1891.------12 2'73 189,000,000 State. property. homestead. 1892------.------10:344 114,000,000 1893 ------.------15,242 346,000,000 1894 ----- ~------·------13,895 172,000,000 1895.------.---- ·------.-----.------13,197 173,000, 000 $1,~ ~.000 ~~~~~======:::::: =::::::::::::::::::::::::::::::: 2,500 California------••.... ------••....••...• ------· 500 5,000 There was enacted in this country in 1867 an involuntary bank­ Colorado-...• ------.----- .....•••..•••...... ----- .... 500 2,000 Connecticut.------...... •....•••••...... • ------400 1,000 ruptcy law which continued in operation, with some modifica­ Delaware .•...•••....•..... ------••..•....• ______200 ------{a) _____ tions, until1878, when it was repealed. Florida.------.•.• ------••..•. ------.. .. 1,000 Now, I wish you to observe that in the four years preceding Georgia ------...... •..• ------.... ------b1,600 Idaho ....• ----.••• ____ .... ____ ..••••.... _____ ... ______500 ------"5;600 1867 there were only 3,050 failures, with liabilities aggregating illinois ....•...•..••...... ----...• ------...... 300 1,000 the sum of $87,000,000; that in the four years immediately fol­ Indiana ...... ••••••...... •.....• -----••..•....•••.... 600 lowing the passage of the bankrupt law there were 11,873 failures, Iowa ..... ------...... ••.•••...... 400 -----~cy··-·· Kansas ...... ••...• ----.... ------...... •..... 800 d) with liabilities aggregating 8311,000,000-nearly four times as 300 1,000 many failm·es and almost four times the liabilities as in the period l~~~~~~~ ~~::::~: :::::::::::·_ ~::: :::::::::::::::::::: b2,000 ------·----500 immediately preceding the passage of the law. Maine .....• ------••...• ------...... •...•••.... _..... 400 Now, let us examine further and ascertain, if we may, what 100 -----· -----800 M:-~~h~ei"tS·::::::::::::::: :::::::::::::::::::::::: 200 was the effect of the bankruptcy law in the matter of the nt!_mber 500 1,500 of failures by comparison of the four years immediately preced­ 500 (e) ing its repeal in 1878 with the four years which followed its re­ 2,000 250 Et:~~ ~~~:~~~~~:~~~~:::~ ~ :~~: ~~~~:::~:~~~::::~~ :: 300 1,500 peal. You will observe from the above table that the failures in Montana . ------•.•....•.... ------...... 800 2,500 the four years preceding 1878 aggregated 31,534, and that thelia­ Nebraska. ------•••..•. ----- •...•••.•• ------500 2,000 bilities of those thus failing aggregated $737,000,000; that in the Nevada. ----...... ------.•.... ------•....• ____ ... . 5()0 5,GOO . New Hampshire------.•...• ------...... •.... 300 500 four years subsequent to 1878 the failures aggregated only 23,713, ~ew Jersey------200 1,000 and the amount involved in such failures aggregated 5345,000 ,000- 250 1,000 less than one-half that which was involved in the four-year period 600 1,000 1,500 5,000 immediately preceding the repeal of the law. So that, if the ~~~[g~~~~=~~~~=~~~~~=~~~=~=~~~=~~=~=~===~=~~== 300 1,000 argument with reference tofailw·es amounts to anything, it shows 400 1,500 conclusively that the passage of the bankrupt law tends to in­ b:D> ------·--- crease the number of failures rather than diminish them. §!~~Rhode~l~~~ Island~- .....==== =------~~ ~ =~ ~ ~~...... •. ~ =~~ ~== == ~ === ----- == ~...... === == ~: =___== =_ 500 ------Tiiil South Carolina.------...... ••...••.....•••• --~- .... 500 Another significant fact. In the year 1895, the last year in which South Dakota------.•...••.•..•...... 750 5,000 we have accurate statistics, the amount involved in failures was Tennessee ------.... ------_ ..... 500 1,000 Texas ...... ••...••... ____ •...•• ____ .•.••...... •• ___ _ 5,000 500 $175,000,000, and in the year 1877, immediately preceding there­ Utah ...... ••••..•..... ____ ••.... ____ •..... ______2,000 500 peal of the law, the amount of failw·es amounted to $190,000,000, Vermont ••..••••...• ------••..•• ------.... ____ ------250 500 a greater amount than was involved in the failures of 1895. It Virginia.------·------____ •••..• ____ •..•...... 500 2,000 1,000 2.000 may be argued from these statistics that the passage of a bank­ ; :~~~~~a==~::==:~:::=: =:::::::::: =:::::::::::::: 250 1,000 ruptcy bill such as that which is now pending will increase the 500 Wiscon.sin .•..••..••....••.... ------______..•. (/)1,500 number of bankrupts rather than diminish them, and it seems to Wyoming-·------500 me very patent that the reason for this is evident. By the invol­ untary featw·e of this bill, and that of t he law which was in exist­ a160 acres of land in country, one-half acre in town. ence from 1867 to 1878, the creditor could force the debtor to bank­ b Value of personal property and home9tead. ruptcy, and by reason of this power the creditors exerted it to such /;40 acres of land in coun~ry, one-half acre in town. d160 acres of land in country, 1 acre in town. an extent as to cause a much greater number of failures than there e80 acres of land in country, one-half acre in town. would have been without such law, and certainly, judging the j4D acres of land in country; one-fourth acre in town. future by the past, we may expect that if the present bill should It will be plainly observed from an examination of the forego­ become a law there will be a greater number of failures following ing tables that the pending bill will not produce uniformity in than there would be without the passage of such a bill. collections. In fact, it would make nothing more of uniformity It might be well to inquire at this time as to the history and ·than now exists. These several States have, under their constitu­ effect of previous bankruptcy legislation in this country. The tions and the laws of the United States, enacted laws for the col­ fu·st bankrupt law was passed on the 3d of April, in the year 1800, lection of debts, and it is not within the power, or it would not be and contained a provision which limited its force to five years; the province, of this body to attempt to interfere with the several but, notwithstanding its limitation, the law was so unpopular that f;!tate laws regarding exemptions; and yet it seems to me, from a it was repealed on the 19th day of December, 1803, a period of a strict construction of the proposed bill, that none of the laws af- little over three years and a half after its passage. There was no 1898. CONGRESSIONAL RECORD-HOUSE. 1911 other enactment of a bankrupt law until the 19th of August, 1841, of such transfer and at least ten days before the commencement of a pro­ ceeding in bankru:ptcy. when a bill somewhat similar to the one now pending was passed. (4) Made an assignment for the benefit of his creditors or filed in court a. The necessity fot· the passage of this bill was brought about as written statement admitting hisinabilitv to pay his debts. the result of the fearful panic of 1837; but this law thus passed (5) Made, while insolvent, a transfer of any of his property or suffered any of it to be taken or levied upon by process of laworotherwiseforthepurpose was repealed on the 3d day of March, 1843, remaining in force less of giving a preference, and has not regained the ownership of such property than two years. or released same from such levybeforetherights of creditors shall have been I have referred to the fact that a bankrupt law was passed on altered, changed, or impaired by reason of such transfer l. ~king, or levy, and at least ten days before the commencement of a proceeain~ in bankruptcy. the 2d day of March, 1867, and that it, with its modifications, re­ (6) Procured or suffered a jud1m1ent to be entered agamst himself with mained in force until1878. Now, it is plainly seen from the his­ intent to defeat his creditors, and"suffered same to remain unpaid until ten tory of these measures in our own country that they have proven days before the filing of a petition in bankruptcy, Frovided that a payment or satisfaction of such a judgment by a sale of any o the debtor's property, or unsatisfactory; at least only one purpose has thus far been from the vroceeds of such a sale, shall not be deemed a payment of such judg­ served by them. It has been attempted in each case where a law ment under the provisions of this section. was enacted to overcome to some extent the evil consequences of (7) Secreted any of his property to avoid its being levied upon under legal panic-the law passed in 1841 to overcome the dire distress pro­ process against himself and to defeat his creditors, and has not .surrendered such property to such legal process at least ten days before the filing of a. duced by the panic of 1837; the law passed in 1867 to overcome petition in bankruP.tcy. the evil effects of ruined fortunes, and blasted lives thereby prcr (8) Suffered while insolvent an execution from a court of record for S500 duced, by the fearful effects of the civil war. or over, or a number of executions aggregating such amount, against him­ self to be returned "no property found," unless the amount shown to be due This law passed over the financial crisis of 1873, and was on the by such executions shall be paid before a petition is filed. · statute book during that period. Now, in the financial panic from 1893 to 1895, the worst known in the history of this Republic, the ·The courts of bankruptcy, which alone have jurisdiction of aggregate liabilities of those failing for those years amounted to bankruptcy proceedings, are defined to be- $691,000,000, while in the corresponding period of 1873, 1874, and The district courts of the United States and of the Territories, the suprema court of the District of Columbia, and the United States courts in the Indian 1875 the liabilities of those failing amounted to $584,000,000. Territory and of Alaska. Thus it will be observed that the liabilities of those failing in the What are the duties, if any, required of the individual adjudged financial distress of the panic of 1873 and the liabilities of those to be a bankrupt? They are defined to be: J~iling in the great panic of 1893 were very nearly the same. To attend the first meeting of his creditors, if notified by any: of them to Notwithstanding the fact that twenty years had intervened, the do so, and the hearing upon his application for a discharge, if filed; to com­ business interests of the country had developed, there was more ply with all lawful orders of the court; to examine the correctn~ss of all wealth and a much greater population than in the former period. proofs of claims filed against his estate; to execute and deliver such papers as shall be ordered by the court; to execute to his trustee transfers of all his I call special attention to these two crises-one with the law, the property in foreign countries; to immediately inform his trustee of any at­ other without it-to show that the evils resulting from failure were tempt, by his creditors or other persons, to evade the provisions of this act as severe during the pendency of the bankrupt law as they were in coming to his knowledge; in case of any person having to his knowledge proved a false claim against his estate, disclose that fact immediately to his the more severe trial when no bankruptcy law existed. trustee; to prepare, make oath to, and file in court within ten days, unless It might be of iuterest to inquire also, and give to the country, further time is granted, after the adjudication, if an in'I'Oluntary bankrupt, some expression of opinion of those occupying places in this body and with the petition if a voluntary bankrupt, a schedule of his property, be showing the amount and kind of J>roperty, the location thereof, its money at the time the law was attempted to repealed in 1878. Mr. value in detail, and a list of his creditors, showing their residences, if known, Lapham, of New York, said, on the question of the repeal of the if unknown that fact to be staf;ed, the amounts due each of them, tha con­ law in 1878: sideration thereof, the security held by them\ if any, and a claim for such The only object of a bankrupt law is an equal distribution of the property exemptions as he may be entitled to, all in triplicate, one copy of each for of t-hose who are embarrassed at the time of its passage, an equal distribution the clerk, one for the referee, and one for the trustee; and, when present of their property among all their creditors, and the release of the debtor from at the first meeting of his creditors and at such other times as the court his obligation. shall order, submit w au examination concerning the conducting of his busi­ It never was designed that a bankrupt law should remain a permanent ness, the cause of his bankruptcy, his dealings with his creditors and other system in view of which men may calculate their chances, intending when persons, the amount, kind, and whereabouts of his property, and, in addition, the time comes to avail themselves of its provisions. What occasion is there all matters which may affect the administration and settlement of his estate. for a continuance of this law? Is there any other than to leave the door open If it occurs that he fails to discharge fully and perfectly all these for that system of frauds which are being perpetrated under it, and which requirements, he is liable to criminal prosecution and severe pun­ are as patent to the public gaze as the sun at noonday? Now, under the op­ eration of this law it is a notorious fact that not a tithe of the debtor's proP­ ishment. erty reaches his creditors. Careful e:;timates show that the average of the What of theserequirements? Shall wesupportameasure which debtor's property that reaches the creditors is not 10 per cent under the takes from the State courts all jurisdiction on insolvent estates bankrupt law, while the average dividend under the insolventlawsof the State l runs as high as 35 per cent. · and the suits growing out of them? Shall we vote for a bill which Mr. Calkins, of Indiana, in the discussion of the same subject, takes the honest but unfortunate debtor, struggling against adver­ said: sity, away from his home and friends, and allow him to be forced The fact remains, under the operation of this law, while it has been upon into the United States court by any creditor, however exacting, the statute book it has been a constant, crying fraud upon all classes of thereto complywith the numerous requirements of this bill? Shall people. we add to his sorrow and mortification by placing him in dread of Mr. Burchard, of illinois, said: his nonresident creditors? Certainly this would not be such a It is the judgment of the country, the desire of the commercial world, cred­ course as our constituents would desire us to pursue. [Applause.] itors and debtors, and of all lawyers acquainted with the practical working of the law, that it should be repealed on account of the frauds, injustice, and Mr. Speaker, it is admitted on all hand~:~ that relief is needed for injurious effects resulting from the law. the debtor classes. But the serious question is, How shall they ob­ Mr. White, of Pennsylvania, on the same subject, said: tain it? Not by a bankruptcy bill which has as its principal fea­ The bankrupt law has been employed as a tra:p in which to catch the hon· ture the collection of debts and takes from the debtor all his prop­ est business man of the country. It is full of deviCes, uncertainties, and p er erty and cancels the remainder of his obligations, but by the ~laxiti es ; i~ a dark shadow upon the fair face of the jurisprudence of the enactment of such measures as will make it possible for him to country. The sooner it is dispelled the better it will be for the currents of the trade among the p eople. A uniform system of bankruptcy? Uniform accumulate the means with which to pay his debts. in what? In its invitations to the dishonest debtor to thwart and evade his Open the mints of the country to the coinage of silver as well honest creditor; to the r elentless creditor to harass and destroy the honest as gold. Increase the circulating medium. Open up the chan­ debtor. nels of trade. Appreciate the prices of the commodities of the The House of Representatives at that time, which is regarded country to the value of the money in which it is measured. as the index of public sentjment, repealed the law by the decisive Tear down the trusts and monopolies of the land. Legislate in vote of 205 yeas, 4..0 nays. In these times of peril, with the debtor the interests of all the people instead of a few favored classes, and oppressed, should we not be very cautious in any steps that may be the star of hope will be brought to the farmer and laborer, ahd taken which will in any wise affect his illterests? through him to the merchants and tradesmen, and the apparent What are the rights of a creditor in compelling a debtor to be­ necessity for bankrupt legislation will cea-se to exist, and the era come a bankrupt? This bill has eight different provisions, any one of better times will be ushered in. rApplause.] of which may be alleged by the creditor, and the debtor would be Mr. TERRY. Mr. Speaker, I yield ten minutes to the gentle­ required to answer to the charge of being a bankrupt, and the issue man from Idaho [Mr. GUNN]. would be tried somewhat as an attachment case under the laws of Mr. GUNN. :Mr. 8peaker, of late years but few public ques­ the various.States. The acts which authorize the proceeding in tions have occupied the attention of Congress more fully than the bankruptcy are stated as follows: enactment of a bankruptcy act. Nor have we been successful in (1) Concealed himself, departed or remained away from his place of busi ness, residence, or domicile with intent to avoid the service of civil procesu the adoption of such measures. Three times in our history we and to defeat his creditors, and shall not have returned at least forty-eight have enacted bankruptcy bills, all containing the involuntary hours before the filing of a petition in bankruptcy, and before the rights of feature, and each time they have been repealed in compliance creditors shall have been impaired, altered, or interfered with. with a widespread sentiment in opposition to their continuance. (2) Failed for thirty days and unt~ a petition is filed while insolvent to secure the rt;~lease of any property levied upon under process of law for $500 Each time they proved to be terrible engines of oppression in the or over, or if such property is to be sold within such time under such process hands of the creditors, enabling them to degrade the debtors. then until three days before the time fixed for such sale. We need not expect any better results from the mea.erty be­ the House, for many of its features are more repulsive to our peo­ tore the rights of creditors have been altered. impaired, or changed by reason ple than their predecessors. Gentlemen of the House, it is time 1912 CONGRESSIONAL REOORD-HOUSE. FEBRUARY 18,

we learned something from experience. Looking back over the duee a lesson showing that the change in our financial polic.y iiJ past, we are warned to avoid the breakers that wrecked and found· 1873 caused an increase in our business disasters. Let us see if ered so many bankruptcy bills-the involuntary feature. Give it did. The business failures from 1872 to and including 1878 us a voluntary bankruptcy bill and there will be but little, per· amounted to $1,321,964,968. To this let us add the failures for haps no; opposition to it in this Honse. Give us a voluntary bill last year, amounting t.o $154,332,071, which makes a grand total and then when you discuss the subject from a humanitarian stand· for the twenty-five years, reaching from 1872 to 1897, of $4,087,- point your words will have weight. But when you incorporate 818,743, divided among 235,004 unfortunate debtors. All will cer­ with your measure the involuntary feature we know that you are tainly admit that this is a disastrous record. disguising for the unfortunate debtor a fatal death trap beneath Let us take it up by periods and see what kind of a lesson can the spider's web woven out of honeyed but misleading words. be drawn from it. In 1872 we had a bimetallic standard, gold Do not misunderstand me; lwill support a voluntary bankruptcy and silver circulating side by side, each with the same legal· act, but an involuntary one never. One that places the debtor tender function, each alike admitted to the niints, each alike helplessly at the mercy of the creditor is abhorrent to my nature. recognized by the Government, and each alike assisting in up· A more inopportune time could not have been selected for the holding the honor and the credit of the nation. In that year we introduction of this bill than the present. Never before haveour had 4,069 failures, and putting the population of the country at people been pinched by the cold hand of poverty more relentlessly 40,000,000, we had in round numbers one failure in each 10,000 of than now. A dollar was never more hard to get than now. the population. The following year we demonetized silver, con­ Thousands of workingmen are out on a strike, paralyzing business tracted the circulating medium, and commenced that long chain over a large area of the country. The products of the farm, with of financial disasters that has continued to the present time with the single exception of wheat, were never as low as they are at one short interval. this time. Over that vast extent of country known as the cotton Without giving the failures by years, let il; be sufficient to say belt there is universal distress, owing to the low price of the prin­ that they increased year by year without a break until 18i8 was cipal product. reached, and then we touched the culminating point. The failures In all localities where silver mining has been the leading indus· amounted to 10,478, and placing the population at 4.8,000,000, we try you have legislated the people intopoverty. It appears tome had one failure to each 4,581 of the population. From this we can a.s cruel and heartless at this time tq go to the distressed mer­ see that in five years after the demonetizatjon of silver the busi· chant,· manufacturer, or mechanic with a bill that resembles a ness failures more than doubled. Congress took action in the two-edged swoTd, and offer him one, saying to him, "Go into vol· year 1878 that temporarily checked the hurricane of disaster that untary bankruptcy, immolate yourself in my presence, or with was sweeping ac_ross the land. In that year the Bland-Allison bill this other one I will behead you." A more brutal alternative could was passed, and the following year its good effects were felt, fo1· not very well be conceived. In this process no sympathy can be failures fell off to 6,658 and the next year to 4, 735. detected for the suffering wife or the helpless and dependent That was the year, 1880, we touched high-water mark of pros· children. perity. The census put our population at 50,000,000. This gives This is the cold, stern, and heartless provision presented by the us one failure in 10,592 of the population. We had gone back to Henderson bill. Yet we hear men who advocate its passage pour the conditions that prevailed before silver was demonetized. The out sympathetic words for the poor man and his family, and how land was blessed with prosperity from ocean to ocean. Wheat they are going to relieve his distress with an involuntary bank­ sold as high as a dollar and thirty-one cents per bushel, and cot· ruptcy act. Lord protect the poor man from the kind of merc[_ ton, which was quoted as high as 20 cents in 1873, after the de­ that is dealt out to him in a bankruptcy court. It makes nodi - monetization of silver fell to 11 cents per pound, now became ference what the circumstances may be that force an honest man steady in price and went to 12 cents per pound. But this happy into bankruptcy, either as a voluntary or an involuntary victim, state of affairs wa-s destined to continue but a short time. he is entitled to sympathy, not the kind he will receive from the Each succeeding Secretary of the Treasury worked against the cold alternative of the law, but true, genuine sympathy, the kind Bland-Allison Act, and P1·esidents made it a special point to de· that comes from the human heart. nounce it in their messages. In the purchase of silver the Secre­ It means that he leaves behind him all his earthly accumula­ tary was governed by the price on the London market. A set of tions and what he has struggled possibly for a lifetime to acquire; sharpers on the other side of the Atlantic Ocean fixed the price of and when he walks forth bereft of all his possessions, ·penniless our money metals with as unerring certainty as though the United I and despondent, once more he must commence the struggle for States was a dependency of Great Britain. Thus the good effect existence. The man who must pass through this dread experi­ produced by the Bland-Allison Act was in the course of a few ence should be dealt with kindly, gently, not with the harshness years neutralized, and eventually undermined and destroyed, and that charactedzes this bill. once more a cyclone of business failures commenced to devastate The Republican party, when it sought to be returned to power, the land. promised us that with its return to Government control the nation Finally, the commercial doctors-did I say doctors? no; quacks­ would be submerged with a tidal wave of prosperity. They came who had been running the nation deeper and deeper in the tinancial into power, but the tidal wave did not come with them. They_ Slough of Despond, put their heads together and evolved an idea. told us that it was a short distance behind; that it would overtake '!'hey said, "We know what will cure the existing distres.::. Let us as soon as the tariff bill was passed. So anxious were they to us repeal the Sherman law. No more silver shall be coined or pass this measure that all other legislation was stopped until the purchased by the Government. We will make of it a renegade Dingley bill and prosperity should be ushered in simultaneously, metal. The white coin shall be dishonored at home and disgraced The Din~ley bill came, and when we seek the prosperity we must abroad." President Cleveland wrote to the governor of Georgia, look for 1t among the idle mill hands in New England, now living saying that the repeal of the Sherman law would restore confi­ at the soup houses, and in this bill which is designed to crush out dence and confidence would bring prosperity. Sherman, the au­ the remaining ray of hope left to the poor man, after the last thirty­ thor of the law, said that in ten days the good effects of the repeal odd years of bad financial legislation. would be felt. In the report accompanying this bill there is given a record of The law was repealed in 1893 and the business failures that year the business failures running back for the last sixteen years. were the heaviest that the nation ever experienced. Fifteen thou· The disastrous list might with profit commence with the year sand two hundred and forty-two individuals or firms failed, rep· 1873 or 1870 and could have been continued to 1897, the last year resenting S346,000,000, or one failure to each 4,264 of our popula· to which our record is complete, so as to show that with the tion. The financial quacks were "\-vrong in their predictions once change in our financial policy business wrecks were multiplied. more~ Failing in their efforts to bring prosperity or even a mod· There is no effort in the report to account for the increase in busi· icum of relief to the distressed country, they turned next and ness failures, but there is an intimation running throughout the tried a tariff. That is a. failure; and now as a last resort they report that the increase of failm·es is owing to a growing desire bring in this bankruptcy bill. They have one more expedient. on the part of our people to practice dishonest methods. Other­ They will punish a man for being poor, try him before a United wise why this harsh, repressive bill? This covert charge against States judge-in a court where a jury is a very doubtful quantity­ our fellow-citizens should be spurned with contempt. make him testify against himself, and imprison him on a trivial If this is not the charge leveled against our industrial element, pretext. After all the golden promises held out to us in the last then the failures must be attributed to other causes. In that event campaign, this is the best that can be done for us. would it not be our duty to inquire into the source of all this dis· I have shown by figures that a.re recognized by the Government aster, and, after it was discovered, endeavor to apply a remedy, as correct that in 1873 and 1893, when you contracted the cur~ instead of punishing the people for business failures which they rency, failures increased. It will be adi;D.itted by all fair-minded could not prevent and could not anticipate? The business failures men that an increase of business failures is indicative of wide. referred to by the committee amounted to 170,389, and repre­ spread poverty and distress. On the other hand, when the Bland­ sented $2,611,521,704. AlliBon Act became a law and it was supposed that it would be The table compiled by the committee does not include the panic fairly executed, that it would increase our circulating medium, year 1873 nor any of the preceding years. If it did, we might de- prices advanced and business failures fell off. Now, gentlemen /

CONGRESSIONAL. RECORD-HOUSE. 1913 ~ who favor this bill with all its abhorrent features, first put forth authority that puts it above review by the people, our liberty is an honest effort to relieve the distress which your vicious legisla­ gone; the last spark of freedom has departed from the land. For tion produced and then you will show some consistency; but for this reason it can be said that it is unfortunate that the United heaven's sake do not legislate a man into poverty and then punish States courts, composed of judges not selected by the people, not him for being in that deplorable condition when he is not to in sympathy with the people, supplant a judicia1·y that comes blame; you are the culprits. direct from the people. It is not clear that a bankrupt can have He is a stony and hard hearted man who would force on the under this bill a trial by jury. Section 18, paragraph d, says: nation a policy that would make money scarce, so that the mass If the bankrupt or any of his creditors shall appear within the time limited of our people would be compelled to do without the necessaries of and controvert the facts alleged in the petition, the judge shall determine, life, o1· at least sustain life on less than a sufficient allowance, and as soon as may be\ the issues presented by the pleadings with or without tha thus create a panic in the business world; compel the poor man intervention of a Jury, and make the adjudication or dismiss the petition. to go without sufficient clothing and without sufficient food, thus The language is so ambiguous that one has the right to infer leaving the merchant without customers and the artisan and me­ that it is optional with the judge whether he calls a jury or not. chanic without patrons. Then at this particular time of unusual The bill imprisons bankrupts for a term of years on light and distress drag into a bankruptcy court every business man who may trivial offenses and restores imprisonment for debt. Section 8, be embarrassed by the disastrous conditions that reign around him. paragraph b, says: This is a policy that might suit medireval times, but is a disg1·ace b The judge may, at any time after the filing of a petition by or against a person, and before the ex1;1iration of four months after he has been adjudged to the nineteenth century. a bankrupt, upon affidaVIt of any party in interest that such bankrupt is This bill is sectional, and is aimed particularly at the people of about to leave the district to avoid examination, and that his departure will the West and South and in favor of the money-loaning classes "in defeat the proceedings herein, issue a warrant to the marshal directing him the East. In the West we are openingup the conn~. The farm to bring S\].Ch bankrupt forthwith before the court. If upon hearing the evi­ dence it shall appear to the judge that the allegations of such affidavit aro must be fenced and b1·ought to a state fit for cultivation. The true and that it is necessary, he shall order such marshal to keep such bank­ building of houses and barns costs money and takes time. Roads rupt in custody, but not imprison him, until he shall be released or give bail must be constructed, churches and schoolhouses have to be erected. conditioned for his appearance from time to time as required by the court and All this presses heavy on the settler; as a consequence debts are for his obedience to all lawful orders. contracted. Settlers are poor and merchants must carry them; While the bankrupt is not imprisoned, he is deprived of his lib­ this in turn throws the country retail merchant behind with the erty and is kept in the custody of a United States marshal. In wholesale dealer. fact there seems to be no limit to what United States courts may The low price of cotton in the South, continued through a long do. They can even ''extradite bankrupts from their respective series of years, reduces the Southern people to a condition similar districts to other districts." In this way a bank--rupt is completely to that borne by the Western brethren. .Ai3 a result this act bears surrendered to the jurisdiction of the United States judges. lam heavily on them and gives to their creditors a club with which to satisfied that this bill in its present shape will never become a law. terrify them. If all moneyed men or all manufacturing concerns It is contrary to the spirit of our institutions; but should it be­ or all wholesale dealers would confine themselves to business op­ come a law, an effort to enforce it will breed the same discontent erations and use the immense advantage their wealth gives them that its predecessors produced, and it will go down in a maelstxom in a business way, there would not be so much to complain of. of public indignation. [Applause.] Let me illustrate the point !-wish to make. During the last cam­ Mr. HENDERSON. Mr. Speaker, I yield to the gentleman paign Eastern capitalists endeavored, and in some instances suc­ from New York [Mr. RAY] . cessfully, to coerce the Western merchants into an abandonment Mr. RAY of New York. Mr. Speaker, the remarks made by of their political views. gentlemen on both sides of this Chamber and by those who favor In Boise, the capital city of my State, business houses that at and those who oppose the bill now before the House concede the the opening of the campaign declared for Bryan and free silver necessity o~ a law establishing a uniform system of bankruptcy received from the Eastern houses with which they dealt a notice throughout the United States. The main difference is whether that it would be to their advantage to throw their influence with the bill should contain both voluntary and involuntary featm·es, the other side, coupled with an intimation that otherwise their and to this question and the character and effect of the involun­ accommodations might be cut off and they might be called on to tary features of this bill I propose to confine my remarks. settle up speedily. Business houses that the public imagined This is a business proposition, and must be treated in a b!lsiness­ stood on an independent foundation obeyed that order. like spirit and manner. We should approa<:h its consideration Clothe the moneyed element with the power that this bill extends without passion or prejudice and with a desire to conserve the best to them and it will give them an influence an authority that will interests of our country and all its people. be dangerous in the hands of any element7 in our population and I commenced my investigation of this subject as a member of subversive of the liberties of a large body of intelligent citizens. the Committee on the Judiciary in the Fifty-second Congress, The coercion that was practiced on the voters in the last campaign when the old and now condemned and discarded so-called Torrey is a matter of sincere regret to all lovers of liberty. bill was up for consideration. That bill was championed by the I met laboring men, railroad men, and others who assured me Hon. W. C. Oates, then a member of this House and later gov­ of their support and of their sympathy with the principles I rep­ ernor of the State of Alabama. The battle was renewed in the resented, came to me voluntarily and expressed themselves, and Fifty-third Congress, when a purely voluntary bill was finally then when I pointed to the McKinley badge on their breast and passed in the House. In the Fifty-fourth Congress we passed the asked them, ''Why are you wearing that emblem?" the answer Henderson bill, which was substantially the bill now before the invariablywas, "!must wear this to holdmy job." The Hender­ House. - That bill, however, has been amended and improved and son bill will put the business man in the same category, and it substantially liberalized in the Committee on the Judi_ciary, and, will narrow down the list of free men to a straggling and broken aside from the involuntary features, met substantially the unani­ column. Therefore I denounce this bill as sectional and designed mous appmval of the committee. to bear with especial severity on the West and South. I opposed the Torrey bill in the Fifty-second and Fifty-third If it is impossible to draw up and enforce a bankruptcy ad Congresses for the reason that it was not framed on lines of jus­ without giving so much power to the United States courts, it is an tice to the debtor class. It was designed to forward the interests unfortunate situation. These tribunals have lost the confidence of collecting agencies, and was harsh, drastic, and unjust. It of the people; they are as unpopular as they were in the days of met little approval and was permitted to be reported to the Honse Abraham Lincoln. If we refer to the platform at that time as a bankruptcy measure, but without the approval of a majority adopted by the Republicans, we find this plank: of the committee. That we brand the recent reopening of the African slave trade, under the In both the Fifty-second and Fifty-third Congresses I most cover of our national flag, aided by perversions of judicial power, as a crime strenuously and persistently opposed the so-called Torrey bill, against humanity and a burning shame to ol!r country and age. because of its harsh and drastic features. Strong language that which denounced our judiciary for re­ Mr. LANHAM. Is it not true that Torrey is opposed to this sorting to a perversion of their power whereby they perpetrated bill as it now stands? a crime against humanity. Since that time the Republicans have Mr. RAY of New York. That is true. changed their views, in fact both parties have changed their In the Fifty-fourth Congress Judge Culberson, who was chair­ views, regarding the Federal judiciary. In Lincoln's time the man of the Committee on the Judiciary in both the Fifty-second Democrats upheld the courts and denounced the Republicans as and Fifty-third Congresses, became a loyal and enthusiastic sup­ anarchists for assailing them. Now the Republic-ans uphold the porter of the bill now before the House, although it contained courts and denounce the Democrats as anarchists for assailing harsh features now wholly eliminated. I may be permitted to them. If the court issues an arbitrary injunction and arrests and say that where Judges Culberson and LANHAM lead any Democrat imprisons a citizen without a trial by jury for disobeying its may safely follow. Neither of those gentlemen would seal with command, the Republicans defend the court. his approval any bill that is unjust to the debtor class. The true situation is this: There is no tribunal, no institution, A voluntary bill permits any honest person who owes debts he no individual exercising authority under our form of government can not pay to surrender all he has, except exempt property, and above criticism. Whenever we surround any tribunal with an secure an absolute discharge and commence business life anew, 1914 CONGRESSIONAL RECORD-HOUSE. FEBRUARY 18,

unfettered by debts which would otherwise make it impossible None of these people, and they constitute the masses, are inter­ for him to embark in business-in his own name, at least. Such ested to cripple their debtors. The very life and success of their a law, properly guarded, ought to be constantly on the statute business depend on the business success of those to whom they books. It will encom·age business enterprise and will discourage give credit. The failure of the one involves the failure of the rascality in business matters. Such a law will always say to the other. The same is true of the man who has money to loan and honest man, "You may safely venture, for if unfortunate but depends on the interest he derives from investments made by honest you have a way out," while it will also say to the rascal, way of loans to business men. When he crushes the borrower, he "If you become involved, there is no door open for you, no way cuts off his own revenue. Hence it is that the great mass of our whereby you can escape." In this way honest dealing is encOlU'­ business men are interested in a law containing both voluntary aged and dishonesty condemned by the law. and involuntary features; a law that will aid him in adversity The safeguards to such a bill are the involuntary features, such and protect him against rascality at all times. as are found in the bill now under consideration. A purely vol­ No honest man can declaim against such involuntary features untary bill is an open bid for rascals to cheat and defraud their as we have here included in this bill, for they strike at no man creditors and take their chances of ultimately obtaining a dis­ who is honest so long as he has the slightest chance to prosecute charge. Dishonest men will run in debt with no intention of pay­ his business. ing, sell the property obtained, and conceal or use up the proceeds A correct definition of a constitutional law on the subject of in riotous living and laugh at their creditors. They will then bankruptcie!' requires both voluntary and involuntary features. change their residence to another State, go into voluntary bank­ Story on the Constitution, volume 2, fourth edition, page 50, note ruptcy, and obtain a discharge, as their creditors will not and fre­ 2, says: quently can not be to the expense of following the dishonest to Perhaps as satisfactory a description of a bankrupt law as can be framed other States simply for the purpose of opposing a discharge. is that it is a law for the benefit and relief of creditors and theh- debtors in cases in which the latter are unable or unwilling to pay their debts. And a. A purely voluntary bill is an encouragement to prodigality and law on the subject of bankruvtcies, in the seDBe of the Constitution, is a. law extravagance. The debtor will say,'' It makes no difference whether making provisiOns for cases of persons falling to pay their debts. I am economical or not, whether I pursue safe business methods A law that has for its object the discharge of debtors from their or not, whether I pay my debts or not, the law has provided a way obligations is one for the benefit and relief of debtors, and does by which I can easily be discharged from all my obligations." not take into account the creditor at all, except as it prevents him A bill containing only voluntary features might be well entitled from ever enforcing his just and legal claim against the debtor. "An act to encourage fraud." Such a law as that would be one-sided and unjust to the creditor Such a bill enacted into law would almost, if it did not entirely, and can not meet with the approval of the ~reat mass of our busi­ ruin credit. ness people, who are at the same time both debtor and creditor. When you look abroad, gentlemen, over this land and count the Any law that meets with favor with the American people must thousands of active, energetic, brainy men who are now tied down, work harmoniously and equitably in the interest of both the debt­ bound hand and foot by a load of debt they never can pay and ors and the creditors; it must protect all interests and do no who, if this law is enacted, will come again to the front and be­ wrong. . come active, energetic, and useful business men in the community, The bill now under consideration will meet the demand made it seems to me impossible that any man should seek to prevent its from all parts of the country for a banln·upt law. All persons speedy enactment. · except corporations may have its benefits. No one can complain Mr. MAGUIRE. Will the gentleman permit a question? Is of this provision, for it is universal and treats all alike. Small the involuntary feature of the law in any way necessary to that debtors, that is, those owing debts amounting in the aggregate to purpose? less than $1,000, are not subject to its provisions; neither are those Mr. RAY of New York. Certainly; and I was coming to that who a1·e chiefly engaged in farming. Neither can it touch a wage­ immediately. earner. Now, gentlemen, I contend that a voluntary bankruptcy law, Much has been said by our Populist friends of the drastic and properly guarded with involuntary provisions, ought to stand harsh features of this bill, as they term them, and by which terms perpetually upon our statute books, not for the encouragement of they refer to the acts of bankruptcy contained in the second sec­ fraud, not for the encouragement of dishonest men, but for the tion of the bill. Let us see what these are. protection of honest and innocent men who through misfortune If a debtor conceals himself, departs, or remains away from his become involved in debt. place of business, residence, or domicile, with intent to avoid the Enact a purely voluntary law and distrust is at once created in service of civil process and to defeat his creditors, and does not the business world. The merchant would suspect that some, if return; or if he makes a transfer of any of his property with intent not all, of his customers were seeking credit for the purpose of ulti- to defeat his creditors, and does not regain the ownership and . mately secreting the property and taking the chance of securing possession; or if while insolvent he transfers any of his property a discharge from their debts at a future day. Such a law would or suffers it to be taken for the purpose of giving a preference to destroy all confidence between the debtor and the creditor classes. one of his debtors over the others, and does not regain it; or if he Well-established credit and confidence is absolutely essential to procures or suffers a judgment to be entered against himself with successful commerce. When capital is protected by wise and rea­ intent to defeat his creditors, and suffers such judgment to remain sonable laws, it greedily seeks investment. When unprotected, it unpaid; or if he secretes any of his property to defeat his cred­ hides itself, and business stagnation follows. itors and does not surrender it, he has committed an act of bank­ It is a mistake to talk so much of the debtor class and the cred­ ruptcy, and if either of tllese facts is established on a trial by a itor class. In this country we have three classes-the very rich, jury of his peers he may be adjudged a bankrupt. the very poor, and the great middle class. The very rich usually The element of fraud and dishonest dealing is present in each do nothing. They live on the interest of their money. They toil and every of these cases. Is there a member of this House whose not, neither do they spin. They have inherited their wealth; keep sense of justice and right is so dormant that he will not approve it invested in Government securities, bank stock, or railroad these provisions of this bill? Who will say that any one of these shares. This class is limited in number, and has no interest in acts is not a sufficient justification for setting inmotwn the wheels bankruptcy legislation. They neither ask nor give credit. They of justice? give no life to any business enterprise. The bill further provides thn,t if a debtor fails for thirty days, The very poor, aside from those made so by sickness or misfor­ and until a petition is filed while insolvent, to secure the release of tunes for which they are not to blame, is made up largely of the property levied on under a judgment for 5500 or more, an act of lazy, the shiftless, the drones, the Weary Waggleses, and they bankruptcy has been committed. Every just-minded man must neither seek nor expect nor give credit. This class is not specially concede that this is a condition where the creditor ought to be per­ interested in legislation of this kind. mitted to proceed at once and collect his debt, and a condition of But we have the third class, the great mass of our population, things where all the creditors of the debtor ought to share and made up of active, intelligent, industrious, and energetic men and share alike in whatever property may be reached. women. This class is engaged in business of some kind. The in­ The bill further prov1des that if the debtor makes an assign­ dividual members are thinkers, workers, and doers. When young ment for the benefit of his creditors, which is a confession of his and hopeful, they borrow capital~ start business, set factory inability to pay his debts, or files a written statement admitting wheels in motion, and make things hum. Others buy the farm his inability to pay his debts, then he may be adjudged a bank­ on credit, and the lowing of cattle, the bleating of sheep, and the rupt. Who will claim that in such a case the creditors should singing of the mower and the rattle of the reaper tell the world not be permitted to take the property of the debtor not exempt that business is being done. The products of these mills and fac­ from execution and apply it to the payment of their just debts? tories and fru.·ms are sold on credit, and so all these people belong 'rhe bill further provides that if a debtor suffers while insolvent to both the so-called debtor and creditor classe::;. Really they be­ an execution of 8500 or over, or a number of executions aggre­ long to neither; they belong to and constitute the business class. gating that amount or more, to be returned "no property found,'' The same is true of the millions who, possessed of ample means, then he bas committed an act of bankrup~y. are not content with a competence, but desire to add to their cap­ Who will contend for au instant that when a debtor is in such a ital, and so they engage in large business enterprises and both condition as that financially his creditors should not be permitted buy and sell on credit. .to proceed and have his property applied equitably and equally to 1898. CONGRESSIONAL RECORD-HOUSE. 1915

the payment of all their demands? Every ground of bankruptcy curred in defending against the proceeding. The bill further pro­ involves either actual fraud or a condition of hopeless insolvency. vides that for the purpose of aacertaining the damages, costs, and Such acts of fraud must be open and active, while the condition counsel fees the court shall have jurisdiction of the principal and of insolvency must be such as to forbid any hope that the debtor sureties on the bond, without issue of process against them, upon can proceed with his business. the respondent filing a statement of the amount claimed by him, This is the mildest law containing involuntary features ever and that the amount shall be adjudicated by a jury unless the put upon the statute book in this or any other country. It is far parties consent that the court fix the same. less drastic and far less harsh than was the act of 1867. This as­ It must be as clear as the noonday sun that no creditor will proceed sertion is broadly made in the face of the assertion of the gentle­ against his debtor unless he has a clear case, and that if he does man from Colorado [Mr. BELL], who stated, ignorantly and for the debtor is amply protected, not only for his expenses in defend­ effect, that this bill is m01·e harsh and drastic than was the act re­ ing the proceeding, but for all damage to his business. The act of ferred to. 1867 contained no such provision as this for the protection of a In reading section 2 the members of this House should keep in debtor, nor can it be found in either of the other acts previously mind the definition of the word defeat as there used. " Defeat on the statute book in this country. Indeed, I doubt if any such includes defraud or delay, evade, hinder, and impede with intent provision can be found written in any bankruptcy law in any to defraud." country of the earth. England, the most successful commercial nation on the face of Mr. Speaker, I dislike to hear so much talk here about the vari­ the earth, has had a bankruptcy law containing much harsher ous classes of our citizens. We have, as I have stated, only three features than this for two centuries or more constantly upon her classes in this country of ours, and hardly those. We have the statute book, and we hear no claim that her law works injustice very poor, made up of the Weary Waggleses, of the lazy and the or is used to destroy credit. shiftless; and we have some not properly of that class who are In this connection it is well to say that England has never had very poor because of misfortune or disease, for which they are in a bankruptcy law that did not contain both voluntary and invol­ no way responsible. These people ha:ve very little interest, sub­ untary features, except that once she did pass a law entitled "An stantiallyno interest, in bankruptcy legislation. We have another act for the relief of poor English gentlemen," which did not con­ class, the very, very rich-the millionaires. tain involuntary features. This act was, however, very short They do not ask credit; they do not give credit. It is of no ac­ lived. count to them whether they have a bankrupt law or not. They Another criticism of this bill was made by the gentleman from have their money invested in Government bonds, in railroad Colorado, and he stated in broad language that this bill, if enacted stocks, and all they do is to eat, drink, be merry, and draw their into law, would repeal the State laws providing for attachments interest. They amount to nothing, except in fashionable society, and assignments. This bill does no such thing. In this respect and the Committee on the Judiciary has not heard from nor has it is not as drastic or harsh as was the law of 18G7. That act pro­ it paid any attention to them. They do not do anything, the one vided that all liens upon the property of a debtor created within way or the other. They are not interested particularly in the com­ four months prior to his being adjudicated a bankrupt should be merce of our country, in the business of our country. absolutely void. This bill, in section 67, simply provides that Mr. BROCKER. They are the sacred bondholders. liens created by or obtained in any suit or proceeding at law or in Mr. RAY of New York. Well, they are very few in number. equity including an attachment, and which suit was begun within You may cry out against them all you please. They take no part four months prior to the filing of a petition, shall be dissolved by in making the law~:; or in the management of this country of ours. the adjudication if it appears (1) that said lien was obtained and Whenever there is a great political battle that involves principle, permitted while the defendant was insolvent and in contempla­ you do not hear from them. They wear their broadcloth, they tion of hankruptcy and with a view to work a preference; or (2) ~ve their dinners, they drjnk their wine, but they do not take part the party or parties to be benefited had reasonable cause to be­ m any business. They have no interest in our commerce. lieve that the defendant was insolvent and in contemplation of Mr, BRUCKER. Not ostensibly; bnt as a matter of fact they bankruptcy; or (3) that such lien was sought and permitted in cut a pretty wide swath. ·· fraud of the provisions of the act. Mr. RAY of New York. They are few in number. Now, do Can any just-minded man complain of such a provision as this? not mistake me. I am not applying these remarks to those whom In effect these provisions do not invalidate a lien created by judg­ many of you would call rich men. I only apply my remarks to ment, attachment, or otherwise unless there was fraud in its the few who are very rich, who have inherited their riches, and creation. When a debtor is owing several persons and he permits who do not care for anybody on God's earth. They think they the one to secure a preference to the detriment of the others were born kings, and their only ambition is to be kings in fashion- · through any fraudulent practice, connivance, or concealment, all able society. honest men will concede that such lien ought to be set aside and 1\Ir. KELLEY. Do they not aim to rule as kings as well? annulled. I am so constituted that I can not appreciate an argu­ Mr. RAY of New York. Certainly not. The class to whom I ment against such a wise and equitable provision as this is. It is refer does not take any part in politics or business. said that if a man has property, is engaged in business, and pro­ Mr. KELLEY. Who managed Cleveland, and who is managing cures indorsers upon his note to raise money to purchase goods, the present occupant of the White House? such indorser ought to be protected in preference to all other cred­ Mr. RAY of New York. Do not divert me to that. itors. Concede that this is true. The debtor may secure his Mr. KELLEY. It is a subject I thought the gentleman would indorsers either by mortgage or a confession of judgment by way not be willing to discuss. of security and put the same on record. Such a lien would not be Mr. RAY of New York. Cleveland is out. The present occu­ sought or permitted in fraud of the provisions of this act; such a pant of the White House is in the full tide of success as Chief lien would not be given or taken by a person who had reasonable 1\Iagistrate, as is the Republican party in this House and in the cause to believe that the defendant was insolvent and contemplat­ country. [Applause.] Now, I have not referred to the great ing bankruptcy. Should a man indorse a note and take security, middle class. I wish, then, to refer to them. This third class having reasonable cause to believe the defendant insolvent and in is made up of the great masses of our people, ordinarily spoken contemplation of bankruptcy, he ought not to be protected by his of as the rich and the poor-the merchant, the professional man, lien, for he would be conniving at a fraud. Should a person take the farmer, the laboring man. This class includes all, from the such a lien to protect an indorsement when the defendant was farmers and day laborers all the way up to the great manufac­ insolvent and in contemplation of bankruptcy, and with a view turers, the great merchants-the rich men, as you call them-in to gain a preference, he ought not to be protected. the cities and in the towns who are engaged in business. It takes In short, no man ought to be protected by a lien which he ob­ them all in. These men are active; they are energetic; they are tains knowing the debtor to be insolvent and in contemplation of interested in business. They take part in business. They loan bankruptcy, or who seeks such a lien in fraud of any law of the money, they borrow money; they buy on credit, they sell on credit. United States. They belong neither to the debtor class nor to the creditor class · Every member of this House, when he comes to vote upon this alone. Thev are both debtors and creditors. bill, and who has objection to involuntary bankruptcy, should re­ These belong to what I call the g1·eat business class, the active, member that no wrong can be done to the business, character, or energetic class, the class that gives life and energy and character standing of the person proceeded against. The moving party, to the American people. All men who come within that definition when he institutes his proceeding, must file a bond with sufficient are clamoring for a law upon the subject of bankruptcy. But sureties, who must reside within the jurisdiction of the court, and they are opposed to a law that contains simply voluntary features, which bond must be conditioned to pay to the party proceeded because they want it guarded in the way I have suggested, so that against all expenses and all damages occasioned by the wrongful while the good and the honest but unfortunate man may escape institution of such proceeding, and also all costs and counsel fees from the load of debt that overwhelms him, the rascal shall not allowed by the court. find a way out when he has committed frauds against his neigh­ To make the remedy of the party proceeded against complete bor in the conduct of the great business interests of this country. and easy of enforcement, the bill provides that the respondent It has already been said here, and I repeat it, Mr. Speaker, that shall be allowed all damages and his counsel fees and costs in- there is no sectionalism in this bill. 1916 CONGRESSIONAL RECORD-HOUSE. FEBRUARY 18,

Mr. BARLOW. :May I ask the gentleman a question? rantly. It is presumed that some gentleman has construed sec­ Mr. RAY of New York. Certainly. tion 8 of the bill as authorizing imprisonment for debt. Such is Mr. BARLOW. You use the expression, "This great middle not its intent or its effect. In framing this bill we have sought to class, that includes from the farmer all the way up." interfere with the laws of the several States as little as possible. Mr. RAY of New York. To the rich. In some States there are laws permitting imprisonment for Mr. BARLOW. Thenyonputthefarmer asthenextclassfrom certain debts, and Subdivision A of section 8 provides that the the Weary Waggles class? bankrupt, under certain conditions, shall be exempt from arrest Mr. RAY of New York. I did not do any such thing, and you and imprisonment on civil process. Subdivision B of that sec­ know perfectly well that I did not. You knowperfectlywell that tion provides that a bankrupt may be detained without being im­ I spoke of the lazy, of the shiftless, of the Weary Waggles of this prisoned when it appears that he is about to leave the district to countTy of ours-- avoid an examination and his departure will defeat the proceedings. Mr. BARLOW. And then- No honest man will attempt to leave the district in which he Mr. RAY of New York. Then I said, in the same connection, lives to avoid an examination and defeat, defraud, and cheat his that among the very poor we found another class-those who are creditors. If a man should attempt to evade the law for such a very poor by reason of misfortune and sickness, for which they are purpose, he ought to be detained. The bill is liberal, however, not at all to blame. for it prohibits imprisonment even under such circumstances. Mr. BARLOW. That is right. O.ll'FENSES. Mr. RAY of New York. Now, take what I said as I said it, Section 29, page 45, defines offenses against the law. Subdivision and as you know I said it, and as you know I meant it, and do not A makes it an offense for the trustee to knowingly and fraudu­ try to misrepresent me. lently embezzle the trust estate. Mr. BARLOW. I leave it to the reporter's notes if, when you No honest man will complain of this. Subdivision B makes it spoke of this tbh·d class, yon did not use the words "this includes an offense to- from the farmers all the way up." That is the beginning and 1. Knowin~ly and fraudulently falsely account for or fail to opening expression of your definition of the third class. account for his property. . Mr. RAY of New York. And then I modified it-->­ 2. Knowingly and fraudulently conceal any of the property Mr. BARLOW. I think yon had better modify it. belonging to the estate from the trustee. Mr. RAY of New York (continuing). With the other expres­ 8. Knowingly and fraudulently make a false oath. · sion, and you know I did, and the man who seeks to misrepresent 4. Knowingly and fraudulently obtain, in contemplation of what a man says here demonstrates that he has no foundation bankruptcy, any property with intent to increase his estate in on which to stand when he casts his vote against this bill. bankruptcy. Every provision has been made for the speedy, the cheap, and 5. Knowingly and fraudulently present or use a false or sub­ the economical administration of the estates of bankrupts. The stantially exaggerated claim for proof against the estate or to trial of disputed questions of fact in all ordinary cases has been secure a compromise. brought to the yery door of the debtor. The right to the trial by 6. Knowingly and fraudulently receive property from the bank­ jury is preserved. Only two new offices are created. The fees rupt for the pm'J)ose of defeating the act. and expenses of administering the law are made extremely light, 7. Knowingly and fraudulently receive or pay money or prop­ and no man is prevented from taking the benefits of the act be­ erty to influence acts in banJn-uptcy. cause of his poverty. Every good citizen is aware tllatpains and penalties of some kind . Something has been said to the effect that this bill creates of­ must be imposed for the violation of law, else government fails fenses that may be punished by fine or imprisonment. Stringent and anarchy reigns. rules are made to guard against tb,e wrongs and the dishonesty of There is not a line or word in the above provisions that will the referee and the trustee. Every precaution, has been taken to injm·e or even disturb the honest man. . guard the estate and compel its speedy administration and distri­ These provisions make perjm-y, larceny, embezzlement, the bution among the creditors. It is true that the bill creates cer­ fraudulent making and use of false accounts, and bribery, cri::pt­ tain offenses of which the bankrupt may be found guilty. But if inal offenses. They do nothing more. They include nothing found guilty and punished for any one of these offenses, it will be else. Every lover of law and order and justice will approve these because of his own wrongdoing, his own moral turpitude. If the provisions. They describe acts of absolute active dishonesty, debtor offends against the provisions of this act, he will do so with and properly construed according to their plain reading give no his eyes wide open and should suffer the consequences. warrant for the criticisms made by the opponents of tile bill. The offenses are few in number and defined with clearness and It will be observed that no person can be proceeded against precision, so clearly that none but the intentionally dishonest man ~nder the criminal provisions of this act unless the indictment is will ever incur a penalty by reason thereof. The bill has been found within one vear from the commission of the offense·. modified in this regard, for many offenses made penal by the bill States may passwinsolvent laws and provide for the discharge of as it passed the House in the Fifty-fourth Congress have either debtors from debts ·contracted after theh- passage within the been stricken out or transferred to the causes for denying a dis­ State. No State can pass a valid law impairing the obligation of charge to the bankrupt. In every case the bankrupt will have a a contract made prior to the passage of the law or made without clean bill of health, a free discharge from his debts, with certain its jurisdiction. It is therefore plain that the several States are wise exceptions, unless he shall have been guilty of some flagrant powerless to remedy the evils now existing to relieve the debtors wrong knowingly committed against his creditors. now o~pressed by debts they can not hope to pay, or to meet the It has been contended that we should enact into law a voluntary condition that will arise hereafter. bankruptcy bi11 permitting the estates of debtors to be adminis­ The demand for this legislation has come from every quarter tered in the State courts and discharges there granted. It is plain of the Union, and from all classes of our citizens. Our fathers and self-evident to all thinking men that such a law would not be when they framed the Constitution foresaw the necessity of the a uniform law on the subject of bankruptcies throughout the legislation proposed and wisely provided for it. United States. In effect it would be adopting the various and Then let us meet the demand. This bill is not a hasty produc­ conflicting laws now in operation in the various States. There tion. It is the result of careful investigation made by the Judi­ would be no uniformity in either the law or its enforcement, and ciary Committee of fom· different Congresses. The fact that only it may well be doubted whether such an act would be constitu­ three members of that committee now oppose, and they on grounds tional. which concede the necessity of a law on the subject, is a most It is clear that any such law would not be within the plain in­ potent argument in favor of this bill. tent and purpose of the Constitution. In any event the creditor The jurisdiction of the courts and the mode of procedure are in Boston should be enabled, under a bankruptcy law which carefnlly defined; the care of the estate is amply pr<>vided for; makes any pretence to uniformity, to proceed against his debtor the duty of every officer is pointed out; the speedy settlement and in California under the same procedure and conditions that he distribution of the estate, and the final discharge of the insolvent would in Massachusetts or New York or New Jersey. debtor are made certain; and when we think of the weight of It has been stated here during this debate that the proposed debt that will be lifted from the shoulders of thousands of our law revives and permits imprisonment for debt. citizens under the beneficent operation of this la\v, we are im­ Such is not the fact. There is not a line or a syllable in the pelled to say that its enactment will redound to the credit of every bill that permits imprisonment for debt, and no man can point member of the Fifty-fifth Congress. rApplause.] out such a provision. I desire to say to my friends from the great, growing, and new Every proposed law is open to fair and legitimate criticism, and South that there is no sectionalism in this bill. It does not dis­ the advocates thereof ought to invite the closest and most careful criminate in favor of the one section or a~ainst the other. It is scrutiny. When, however, men who oppose a measure resort to wise and just in its every line. Enact it mto law, and you will misstatements, it demonstrates that they are without just reasons break the fetters that encumber many a man who, since the late for opposition. If the opponents of a proposed law do not under­ civil war, has struggled against financial reverses he bad no power stand it sufficiently to state its provisions correctly, they should to avert. Enact it into law, and yon will encourage capitalists remain silent, for they have no right to misrepresent, even igno- from the North and East to extend unlimited credit and financial 1898. OONGRESSIONAL REOORD-HOUSE. ·1917 aid to your business men. With adequate laws written by the defeat the proceedings therein, issue a warrant to the marshal, directing him to bring such ban.krnpt forthwith before the court. If, ttpon hearing the Congress of the United Stares, and which can not be repealed or evidence, it shall appear to the judge that the allegations of such affidavit are changed except by the consent of a majority of the States through true and that it is necessary, he shiill order such marshal to keep such bank­ their Representatives, the capitalists of the East, of New York rupt in custody, but not imprison him, until he shall be released or give bail and Boston and Philadelphia, will as re(tdily invest in buSiness ;~za.dj~~o~do~di~~c~ft~)e:fii!~~~~e to tim~ as required by the court, enterprises in Louisiana, Texas, Alabama, and Georgia as though they. were to be carried onin New England or New York. What The annoyance to which merchants may be subjected should they want is an adequate,.uniform law the State can not change this bill become a law is made plain enough by a reading of the to their detriment, for the protection of their interests. foregoing provision. Mr. Speaker! it is well known that the bulk The enactment of this bill into law will not only increase but of the busmess of this country is done on credit, and the merchant it will create confidence where confidence is now wanting. It whose indebtedness is not more than $1,000 many times during will encourage trade, enlarge and extend credit, build up and pro- the year is indeed doing a small business. Yet, if it be this mote business, put active, energetic, and brainy men at work, and amount, he is absolutely at the mercy of his creditors. Suppose a add to the dignity and wealth of our common country. merchant in the city of Flandreau, my home town, should desire The time has come in the history of our country when sectional to visit the city of Washington. He may be owing $1,000 and lines are vanished. Those who wore the blue and those who wore more and think nothing of it, but after he is here enjoying him­ the gray and met as foes thirty-three years af$0 now meet as self his creditors may think otherwise, or may be actuated by friends, a.s brothers in a common country, and With them the fra- malicious motives. ternal hand is ever extended, ever warmly grasped. Theymayaccordinglyfileapetition withaFederaljudge, who in Let us have an equal union of industrial and commercial in- turn may issue a warrant for the arrest of the absentee, and some "terests. Let our business relations be of the most friendly and br1ght morning as the merchant gentleman is strolling up Capitol cordial character. Let us frame laws that work for the common hill to take a view of the beautiful surroundings he is met by an good of all classes and conditions and do injury to none. [.A.p- officer who very much desires his company. He is taken back to planse.] his home surrounded by all the apparent evidence attending an On these lines this bill has been framed, and approved as it is escaped crimi.n.a.L. from Maine to Texas, and from Texas to Oregon, let it be speedily Gentlemen in favor of this bill may argue that this is not likely enacted into law, to the end that all our business interests maybe to occur, but, Mr. Speaker, the possibility of such occurring in strengthened and our Union the more firmly cemented. [Ap- this age of civilization is a proposition so monstrous that it seems plause.l astonishing that supporters could be found for it in this country. Mr. TERRY. I yield ten minutes to the gentleman from South The gentleman from New York [Mr. ALEXANDER] who has just Dakota rMr. KELLEY] . taken his seat has declared that thereis great necessity forthe en- Mr. K~LLEY. Mr. Speaker~ I have listened to the gentleman actment of this bill into law. Why is there great necessity forit? from New York [Mr. RAY] with a good deal of interest, and I have Have you not been telling us that mighty waves of prosperity no doubt whatever that the gentleman is absolutely conscientious have been sweeping over this land ever since the election of a in his advocacy of this bankruptcy measure; but I say the gentle- Republican President and the restoration of confidence took man has taken rather an extraordinaryposition upon some things. place? Sirs. your actions contl'adict your words. Your demand I do not undertake to quote the gentleman verbatim as to what he for such legislation as this proves conclusively that this people is said, but he took the position in his remarks that no man of honesty not prosperous, that you do not expect prosperity, and that the or honor could oppose this bill brought in here by the committee. claims you have made were but idle vaporings for partisan pur- Nobody presumes to say that there is not some good in this poses. bill. I scarcely know of anything so bad that something good Our merchants do not engage in business for the purpose of could not be found in it, or something good could not be said cheating their creditors. It is their desire to do an honest bnsi­ about it. So I presume there are some good things in this meas- ness, and as a rule they do an honest business until overwhelmed ure. The gentleman's argument, however, reminds me of astory by conditions largely brought about by the mighty aggregations of an American who visited India and returned. He met an old of wealth, the very institutions which are now demanding the acquaintance, who asked him what kind of a country it was there. passage of this bill. "Oh) it's a very fine country; nothing the matter whatever with Those are the men who previous to the last election, in every that country," he said, "except a terrible scarcity of water and letter sent to the retail dealer throughout the land, inserted a rather bad society." "Well," drawled out his questioner, "if printed slip advising him by all means to vote and work for the they had plenty of water and good society in hell, it would not be gold standard, threatening that credit would surely be denied a very bad place." [Laughter.] should free silver carry the day. Well, the gold standaTd was Now, the same reasoning might be applied to this bill that the successful once more. The merchant has heavy fixed charges to gentleman has so eloquently advocated here for the past hour. I meet annually besides paying for his goods, so he must sell goods have not a doubt if certain obnoxious provisions were eliminated, at fair profits or shut up shop. it would be very good; and the passage of a bankruptcy law at He can sell goods readily enough, for hungry mouths will be fed this time is certainly a logical measure, and proves in an eminent and famishing bodies will be clothed if goods can be obtsiued. degree that present conditions are fully appreciated by the advo- But when he comOJ to get his pay-'; aye, there·s the rub." Here cates of this bill, however vociferous they may be in declaring that is where the gold standard gets in its deadly work Prices have a great wave of prosperity has swept over the country. Vast been falling for twenty years; his customers are hard up: even numbers of our people are unquestionably bankrupt, and a law many of his best customers can not pay this year, for it will take should be passed that would relieve the honest but unfortunate all the money they can raise to pay the intere ~tc on the mortgage business man who is laboring under burdens and disabilities caused which is on the homestead. by conditions over which he had no immediate control. This soon drives many merchants to the waH, and should this But, Mr. Speaker, I conld never give my consent or vote to a bill become a law they will find themselves beautifully situated measure containing so many drastic provisions as I find here; between the gold standard on the one side and the national bank­ which puts such despotic power in the hands of the great creditors ruptcy law on the other, or the '' devil and the deep sea," as you whereby any debtor owing them a sum of 81,000 knows not at choose to call it. what time he maybe seized upon, dragged before a court, and left However, there is no great loss without some littl'e gain. and at the mercy of a Federal judge to determine whether he shall be the situation will doubtless afford many merchants an opportunity held in custody or not. for reflection and close observation, and in addition to this they Section 3 of this act reads: L have presented to them a magnificent and forcible illustration of Who may become bankrupt. .A:ny person owing debts to the amount of the ~rony of fate.. Th~y, or a ~ajo,!ity of them, _?ave followed ~a $1000 or over if adjudged an involuntary bankrupt upon an impartial trial adV1ce of the gtgantic combmations of weal .. h and votEY.l ~or shall be subject to the provisions of this act. ' the gold standard in order "to strengthen their credit,' but it . . . proved to be simply a hammer placed in their hands that they ~rom. the above 1t seems that any person domg busmes~ and might themselves rivet the chains by which they are bound. o~g $1,000 or :t;nore may be declared a bankrupt at the whim or But, Mr. Speaker, it is little wonder those mighty gatherers of capr1c~ of a cre~tor: wealth ask the legal power to force people into involuntary bank- Section 8 of this bill reads: ruptcy whenever it suits their purpose. It is but a few years since A bankrupt shall be exempt from apprehension upon civil process. except one of their agents, then an occupant of the Whit,e House, the upon a. warrant from a. court of bankruptcy, (1) unless the same is founded predecessor of their gentlemanly agent who occupies the mansion !JPon some debt or claim from which his discharge in bankruptcy would not at present, declared the entire nation bankrupt, and appointed oo a. release, and (2) when in attendance upon such a. court, or at the first meet­ in~ ot: his creditors, or when actwdly engaged in the performance of a duty Pierpont Morgan, the agent of a London Jew, as receiver. The efiJoined by this act or prescribed by order of court. great financier kept the infant Republic under his protecting wing bThe judg~ may, a.t any time after the filing of a. petition by or against a for a period of six months, by the terms of a contract, for which person, and before the ex'{>iration of four months after he has been adjudgE:d a bankrupt, upon affidaVIt of any party in interest that such bankrupt is services he received but the trifling sum of about $26,000,000. about to leave the district to avoid examination and that his departure will It is perfectly app~rent at this time that those who are now 1918 CONGRESSIONAL RECORD-HOUSE. FEBRUARY 18, ruling this great Republic intend to establish an absolute aris­ Mr. UNDERWOOD. Yes. tocratic oligarchy upon the ruins of our free institutions, and this Mr. HENDERSON. I desire to say that obviously there will bill, which is two h undred years behind what we imagine our be a square vote on the question of voluntary and involuntary civiJ,ization to be, is one of the instruments by which it is attempted bankruptcy. The amendment proposed by the gentleman from to be accomplished. The next move will undoubtedly be, should Alabama [Mr. UNDERWOOD], which has been agreed to by those this succeed, to enact a law by which a debtor can be thrown into favoring a voluntary bill, will squarely raise that question, and I prison and left there at the pleasure of the millionaire creditor, as think it an eminently proper method of reaching the sense of the it was in olden times. House on that subject. THE CONDITION OF THE NATION. The SPEAKER. To-morrow the vote will be taken u pon such I noticed, among others, the gentleman from Massachusetts f:Mr. separate amendments as the members of the House desire to offer, MoODY] and the gentleman from Kansas [Mr. BRODERICK] making but this vote is to bErupon an amendment presented by the gen­ strong pleas for the passage of this bill. This seemed more aston­ tleman from Alabama to the amendment recommended by the ishing after listening to the encomiums which have been pro­ committee as the House finds it at 4 o'clock. Is there objection to nounced upon those ::;tates on this floor because of the great pros­ the request of the gentleman from Alabama [Mr. UNDERWOOD]? perity they were enjoying under the Dingley bill. But, Mr. [After a pause.l The Chair hears none. Speaker, the whole dreadful situation is revealed by this docu­ Mr. CLAYTON. Mr. Speaker, if to-moiTow the amendment ment, the Abstract of the Census of 1890. These figures were ob­ offered by my colleague from Alabama is voted down, or at the tained before the second curse of Clevelandism fell upon the proper time, I want to offer amendments which I hold in my hand, country and hence must be considered the blight of Harrisonism. and in the meantime I ask that they be printed in the RECORD On page 224 it is shown that Massachusetts had, in 1890, 479,790 for the information of the House. families, and of this number 304,737 were tenants at will, or 63 The SPEAKER. The Chair will have to say that that would per cent of its people. Add to these figures 66,240 who hold their n ot come in after the other had been voted down tmless by special homes subject to the merciless mortgage, and we find but 20 per arrangement. cent of the population of Massachusetts free home owners. In Mr. HENDERSON. The gentleman asks no special advantage the State of Kansas, whose prosp6rity was so eloquently described at all, but only to print his amendments in the RECORD for t}+e by Mr. CURTIS a few days since, it is shown that but 29 per cent information of the House. of her people were free home owners in 18!}0. The SPEAKER. Is there objection to the request of the gen­ lLLINOIS.-The per cent of families living in encumbered and tleman from Alabama [Mr. CLAYTON]? The Chair hears none. hired homes, 66.56. The per cent of families hiring or renting The proposed amendment referred to by Mr. CLAYTON is as fol­ homes, 50.3. lows: IowA.-The per cent of families living in hired and encumbered Insert "and exemptions" in line 7, pa~e 23, after t.he word "allowance;" homes, 60.6. The per cent of families living in hired homes, 36.8. so that section 7. on page 28, will read as follows: MICHIGAN.-The per cent of families living in encumbered and "SEc. 7. Death or insanity of bankrupts. -a The death or in£anity of a hll·ed homes, 62.8. The per cent of families renting or hiring a bankrupt shall not abate the proceedings, but the same shall be conducted homes, 36.8. and concluded in the same manner, so far as possible, as thou~h he had not died or become insane: Provided, That in case of death the widow and chil­ M:rm-.rxsoTA.-The per cent of families living in encumbered and dren shall be entitled to all rights of dower and allowance and exemptions hired homes, 62.68. The per cent of families living in rented or fixed by the laws of the State of the bankrupt's residence." hired homes, 35. Also, strik~ out the words "or the information is filed in court," in line 2i But it is not necessary to select individual States. The summing of page 46 and line 1 of page 47. . np of the conditions of the nation is as follows (same page): Mr. DOCKERY. Mr. Speaker, I ask unanimous consent that Total number of families, 12,690,152; occupying rented homes, the final report of the president of the Board of Lady Managers 6,623,735, or about 52 per cent; number living in homes owned of the World's Columbian Commission be taken from the files of and mortgaged, 1,696,890. the House and referred to the Committee on Printing. I will say From this it is seen that only about one-third of all our people that during the closing hours of the Fifty-fourth Congress it was owned the homes they lived in even in 1890. What would the inadvertently referred to the Committee on Appropriations, and figures show if taken to-day, after nine more years of gold-stand­ after the expiration of the life of that Congress went to the files ard ruin, appreciating money, and falling prices have elapsed? of the House. The Committee on Appropriations does not desire The answer to my question is briefly and forcibly given by the to deal with the question, having no jurisdiction under the rules, introduction of this iniquitous national bankruptcy bill. and I ask that it be taken from the files and referred to the Com­ Nobody will deny, by reason of the official figures which I have mittee on Printing. given, as well as reliable statistics from other sources, that 75 per The SPEAKER. Is it a voluminous report? cent of all our people are at this time bankrupt-that is, they do Mr. DOCKERY. About 600 pages, I think. It is a summary not own the homes they live in, have comparatively little or no of the work of the woman's department of the World's Columbian property, and are not able to save any property, it requiring all Exposition. their efforts to make a living-while about 40,000 others, those Mr. HENDERSON. Is it for the purpose of having it printed? favored by legislation in their interests-those legalized robbers­ Mr. DOCKERY. It is for the purpose of having it considered have wealth beyond their ability to utilize or the mind of man to by the Committee on Printing. have an adequate conception of its immensity. Mr. HENDERSON. Then this does not determine the question Certainly, then, we need a national bankruptcy law, but we of printing? . need a Jaw to protect and care for the bankrupts, who have been Mr. DOCKERY. It does not. made such by law, and not a law to dishonor, degrade, and har­ The SPEAKER. Is there objection to the request of the gentle­ ass them as this bill will do. Voluntary bankruptcy we should man from Missouri [Mr. DocKERY}, that the final report of the have so long as we continue the gold standard, whereby debtors president of the Board of Lady Managers of the World's Colum­ may turn over their property to their creditors, and such an act bian Commission be taken from the files of the House and should amount to final liquidation. A law should also be passed prohibiting any person from becoming a preferred creditor. referred to the Committee on Printing? The Chair hears no These propositions are simple and readily understood by all, and the committee in charge of this bill will find little opposition to such a bill from the r eal representatives of the great plain, honest A message from the Senate, by ·. LATT, one o 1 , people of our country. [Loud applause.] announced that the Senate had insisted upon its amendments to Mr. UNDERWOOD. Mr. Speaker, on day before yesterday I the bill (H. R. 7441) making appropriations for fortifications and obtained leave to print in the RECORD the amendment which I other works of defense, for the armament thereof, for the procure­ propose to. offer. In printing that amendment, in paragraph 15, ment of heavy ordnance for trial and service, and for other pur­ it says: " All after the word' adjudications,' where it occurs in poses, disagreed to by the House of llepresentatives, had agreed line 14, page 37." Now, line 14, as it is in the RECORD, should to the conference asked by the Honse on the bill and amendments, read line 11. I wish to ask unanimous consent of the House that and had appointed Mr. PERKINS, Mr. HALE, and Mr. MuRPHY as that correction be made and that the first thing after 4 o'clock to­ the conferees on the part of the Senate. morrow to be considered by the House shall be this amendment. The message also announced that the Senate had passed joint The SPEAKER. Is it an amendment to the bill reported by the resolution of the following title; in which the concurrence of the committee? House was requested: Mr. UNDERWOOD. It is prepared with a view to eliminate a S. R. 109. Joint resolution authorizing the Secretary of the number of votes on amendments to strike out the involuntary Navy to engage the service, vessels, and apparatus of a wrecking clauses in the bill. It is our desire to have one vote to strike out company or companies for the purpose of recovering the remains all involuntary clauses of the bill. Therefore this amendment of the officers and men lost on the U. S. S. Maine, and of saving was prepared to strilre out all of the involuntary clauses. the vessel, or such parts thereof and so much of he:c stores, guns, The SPEAKER. It is in the nature of an amendment to the material, equipment, fittings, and appurtenances as may be prao­ amendment proposed by the committee? ticable. 1898. ~ CONGRESSIONAL RECORD-HOUSE. 1919

SENATE BILLS REFERRED. CHANGE OF REFERENCE. Under clause 2 of Rule XXIV, Senate bills and joint resolution Under clause 2 of Rule XXII, committees were discharged from of the following titles were taken from the Speaker's table and the consideration of bills of the following titles; which were ther~ referred to their approprjate committees, as indicated below: upon referred as follows: S. 2495. An act for the relief of the heirs of Margaret Kennedy-­ A bill (H. R. 8261) for the relief of Hannah J. Jones, executrix to the Committee on Yifar Claims. of Emanuel Jones, deceased, a British subject-Committee on S. 3179. An act granting a pension to Bethiah H. Rollins-to Foreign Affairs discharged, and referred to the Committee on the Committee on Invalid Pensions. War Claims. S. R. 109. Joint resolution authorizing the Secretary of the A bill (H. R. 8078) granting a pension to Mary Dozha-Commit­ Navy to engage the service, vessels, and apparatus of a wrecking tee on Pensions discharged, and referred to the Committee on company or companies for the purpose of recovering the remains Invalid Pensions. of the officers and men lost on the U.S. S. llfain,e, and of saving A bill (H. R. 8250) granting a pension to Mrs. Sarah A. Aspold­ the vessel, or such parts thereof and so much of her stores, guns, Committee on Pensions discharged, and referred to the Commit­ material, equipment, fittings, and appurtenances as may be prac­ tee on Invalid Pensions. ticable-to the Committee on Naval Affairs. A bill (H. R. 8147) granting a pension to J. M. Plunket-Com· mittee on Pensions discharged, and referred to the Committee on ENROLLED BILLS SIGNED. Invalid Pensions. Mr. HAGER, from the Committee on Enrolled Bills, reported A bill (H. ·R. 8144) granting a pension to Franklin Bannon­ that they had examined and found truly enrolled bill of the fol­ Committee on Pensions discharged, and referred to the Commit­ lowing title; when the Speaker signed the same: tee on Invalid Pensions. H. R. 79~3,.An act making appropriations for expenses of United A bill (H. R. 8197) for the relief of Mrs. Mary B. Hulings-Com· States courts, and for other purposes. mittee on Pensions discharged, and referred to the Committee on The SPEAKER announced his signature to enrolled bill of the Invalid Pensions. following title: A bill (H. R. 8214) to increase the pension of Francis Scott, late S. 3192. An act to provide an American register for the steamer a private, Company B, Twenty-third Regiment Wisconsin Infan­ Leelanaw. try Volunteers-Committee on Pensions discharged, and referred to the Committee on Invalid Pensions. A~~OUNCEMENT OF APPOINTMENT TO COMMITTEE. The SPEAKER announced the appointment of Mr. WARD to PUBLIC BILLS, RESOLUTIONS, AND MEMORIALS the Committee on Rivers and Harbors. INTRODUCED. LEAVE OF ABSENCE. Under clause 3 of Rule XXII, bills, resolutions, and memorials of the following titles were introduced and severally referred as By unanimous consent, leave of absence was granted as follows: follows: To Mr. WHITE of North Carolina, for one week, on account of By Mr. MADDOX (by request): A bill (H. R. 8343) referring important business. the claim of the Turtle Mountain Band of the Pembina Chippewa Mr. HENDERSON. Mr. Speaker, I move that the House do Indians to the Court of Claims under the provisions of the Bow­ now adjourn. man Act, approved March 3, 1883-to the Committee on Claims. The motion of Mr. HENDERSON was agreed to; and accordingly By Mr. ELLIS (by request): A bill (H. R. 8344) for the relief (at 5 o'clo~k and 55 minutes p.m.) the Honse adjourned. of the settlers upon certain lands in the States of Minnesota, North Dakota, Montana, Idaho, Oregon, and Washington-to the Com· mittee on the Public Lands. EXECUTIVE COMMUNICATIONS. By Mr. CURTIS of Iowa (by request): A bill (H. R. 8345) to· Under clause 2 of Rule XXIV, the following executive commu­ amend section 4 of the act of Congress entitled "An act relatinoo nications were taken from the Speaker's table and referred as to the supreme court of the District of Columbia," approved Jun~ follows: 21, 1870, and for other purposes-to the Committee on the District A letter from the Secretary of the Treasury, transmitting a of Columbia. communication from D. N. Morgan, late Treasurer of the United By Mr. GILLETT of Massachusetts: A bill (H. R. 8346) for the States, asking reimbursement for payment of a shortage discov­ admission into the United States of certain works of art free of ered during the count of the standard silver dollars for transfer duty-to the Committee on Ways and Means. ' of funds on the change in the treasurership-to the Committee By Mr. JONES of Virginia: A bill (H. R. 8347) to provide for on Claims, and ordered to be printed. the purchase of a site and the erection of a post-office building A letter from the Secretary of the Treasury, transmitting a thereon at Cape Charles, in the State of Virginia-to the Com­ copy of a communication n·om the Attorney-General, recom­ mittee on Public Buildings and Grounds. mending an appropriation for erection of certain penitentiary By Mr. FOOTE: A bill (H. R. 8348) for the purchase of a battle buildings-to the Committee on Appropriations, and ordered to ship to replace the battle ship Maine-to the Committee on Naval be printed. Affairs. By Mr. SHERMAN (by request): A bill (H. R. 8349) granting additional powers to railroad companies created by laws of the REPORTS OF COMMITTEES ON PUBLIC BILLS. United States and operating lines in the Indian Territory-to the Under clause 2 of Rule Xlli, Mr. GRIFFITH, from the Com­ Committee on Indian Affairs. IQ.ittee on the Public Lands, to which was referred the bill of the By Mr. CASTLE: A bill (H. R. 8350) authorizing and directing House (H. R. 1639) donating the abandoned military reservation ~he Secretary_of War. to make pre.liminary surveys for wagon roads in Wheeler County, Tex., to the State of Texas for school pur­ m the Yosemite National Park, m the State of California-to the poses, reported the same with amendment, accompanied by are­ Committee on the Public Lands. port (No. 477); which said bill and report were referred to the By Mr. MORRIS: A bill (H. R. 8351) permitting the building Committee of the Whole House on the state of the Union. of a dam across Rainy Lake River-to the Committee on Int-er­ state and Foreign Commerce. By Mr. COCHRAN of Missouri: A bill (H. R. 8385) entitling REPORTS OF COMltiiTTEES ON PRIVATE BILLS AND State militiamen to pensions under certain circumstances-to the RESOLUTIONS. Committee on Invalid Pensions. By Mr. CURTIS of Kansas: A bill (H. R. 8386) to extend the Under clause 2 of Rule XIII, private bills and resolutions of the time for ~he con~truction of the rail way of the Chicago, Rock Island following titles were severally reported from committees, deliv­ and Pacific Railway Company through the Indian Territory-to ered to the Clerk, and referred to the Committee of the Whole the Committee on Indian Affairs. House, as follows: By Mr. SPARKMAN: A joint resolution (H. Res.14.9) directing M·r. CUMMINGS, from the Committee on Naval Affairs, to the Secretary of War to submit plans and estimates for the pro­ which was referred the bill of the House (H. R. 2793} for the relief posed improvement of Hillsboro Bay, Florida, from its confluence of Pay Inspector John H. Stevenson, reported the same with with Tampa Bay, through Hillsboro Bay and River to the city of ~mendment, accompanied by a report (No. 478); which said bill Tampa-to the Committee on Rivers and Harbors. and report were referred to the Private Calendar. Also, a joint resolution (H. Res. 150) directing the Secretary of Mr. STURTEVANT, from the Committeeon Invalid Pensions, War to submit plans and estimates for the improvement of Tampa to which was t·eferred the bill of the House (H. R. 1547) granting Bay, Florida, from Port Tampa to its mouth, in the Gulf of Mex­ ~ pension to Sarah E. Daub, reported the same with amendment, ico-to the Committee on Rivers and Harbors. ~companied by a report (No. 479); which said bill and report By Mr. ALEXANDER: A joint resolution (H. Res. 151) au­ were referred to the Private Calendar. thorizing the National Reunion Monument Association to erect a / 1920 -CONGRESSIONAL RECORD-HOUSE. FEBRUARY 18, monument in the city of Washington to the Union soldiers, sail­ Also, a bill (H. R. 8377) for the relief of Lewis Salyer-to the ors. and marines of the war of the rebellion-to the Committee Committee on Claims. on Public Buildings and Grounds. By Mr. JONES of Virginia: A bill (H. R. 8378) for the relief of By :Mr. SWANSON: A joint resolution (H. Res. 152) author­ the heirs of P. A. Leatherbury, deceased-to the Committee ori izing the printing of additional copies of the Report of the Secre­ Claims. tary of Agriculture on the Adulteration of Wheat Flour-to the By Mr. MUDD: A bill (H. R. 8379) gTanting a pension to Mrs. Committee on Printing. Sarah A. Aspold-to the Committee on Pensions. By Mr. MEYER of Louisiana: A joint resolution (H. Res. 153) By Mr. OVERSTREET: A bill (H. R. 8380) for the relief of to secure the erection of a monument in honor of the officers and William 0. Eagle-to the Committee on Military Affairs. sailors lost on the Maine-to the Committee on the Library. By Mr. RIDGELY: A bill (H. R. 8381) granting a pension to By Mr. WADSWORTH: A joint resolution (H. Res. 154) to James B. Stephens-to the Committee on Invalid Pensions. print Bulletin No. 19 of the Bureau of Animal Industry, Agri­ Also, a bill (H. R. 8382) granting a pension to Capt. George F. cultural Department-to the Committee on Printing. Petitr-to the Committee on Pensions. By :Mr. RICHARDSON: A concurrent resolution (House Con. By Mr. SHATTUC: A bill (H. R. 8383) for the relief of the Res. No. 20) to print 7,500 copies of the final report of the Board Black Brigade-to the Committee on Military Affairs. of Lady ;M:anagers of the World's Columbian Commission-to the By 1\.fr. SMITH of illinois: A bill (H. R. 8384) gmnting a pen­ Committee on Printing. sion to Mary A. Hanson, of Jackson County, Ill.-to the Commit­ By :Mr. CATCHINGS: A resolution (House Res. No. 228) di­ tee on Invalid Pensions. recting the Committee on Appropriations to provide for the pay­ By Mr. BARHAM: A bill (H. R. 8387) gt·anting a pension to ment of certain sums to the persons named therein-to the Com­ Nancy Hall-to the Committee on Pensions. mittee on Appropriations. By Mr. SNOVER: A bill (H. R. 8388) to correct the military record of S.D. Gleason-to the Committee on Militpry Affairs. PRIVATE BILLS AND RESOLUTIONS INTRODUCED. Under clause 1 of Ru1e XXII, private bills and resolutions of the following ti.tles were introduced and severally referred as fol­ PETITIONS, _ETC. lows: Under clause 1 of Rule XXII, the following petitions and papers By Mr. BENNETT: A bill (H. R. 8352) increasing the pension were laid on the Clerk's desk and referred as follows: of Mary McCoy-to the Committee on Invalid Pensions. By Mr. ADAMS: Petition of Heinrich Dreisbach, jr., and other By Mr. BENTON: A bill (H. R. 8353) for relief of James H. citizens of Philadelphia, Pa., praying for the enactment of legis­ Wimpey, of McDonald County, Mo.-to the Committee on the lation which will more effectually restrict immigration and pre­ Public Lands. vent the admission of illiterate, pauper, and criminal classes to Also, a bill (H.R.8354)to increa.sepensionof JohnB.Hurlbut­ the United States-to the Committee on Immigration and Nat- to the Committee on Invalid Pensions. uralization. · By Mr. BODINE: A bill (H. R. 8355) for the relief of the suf­ By Mr. BARHAM: Petitions of the Woman's Christian Temper­ ferers by the wreck of the United States steamer Maine-to the ance unions of Sonoma and Marin, Cal., for the enactment of leg­ Committee on Appropriations. islation to protect State anti-cigarette laws by providing that By Mr. BOOZE: A bill (H. R. 8356) for the relief of Ferdinand cigarettes imported in original packages on entering any State Keller-to the Committee on Invalid Pensions. shall become subject to its laws-to the Committee on Interstate By Mr. BRENNER of Ohio: A bill (H. R. 8357) granting an and Foreign Commerce. increase of pension to David S. Shannon-to the Committee on By Mr. BARROWS: Petitions of the Woman's Christian Tem­ Invalid Pensions. perance unions of Dorchester and Neponset, Mass., praying for Also, a bill (H. R. 8358) to pension Mary J. Black-to the Com­ the enactment of legislation to protect State anti-cigarette laws mittee on Invalid Pensions. by providing that cigarettes imported in original packages on en­ By Mr. BRUMM: A bill (H. R. 8359) removing charge of de­ tering any State shall become subject to its laws-to the Commit­ sertion from military record of James Mangham-to the Com­ tee on Interstate and Foreign Commerce. mittee on Military Affairs. Also, petition of the Boston Merchants' Association, of Boston, By Mr. CATCHINGS: A bill (H. R. 8360) for the relief of the Mass., in favor of the passage of the so-called anti-scalping ticket estate of Joel Hullum, deceased, late of Warren County, Miss.­ bill-to the Committee on Interstate and Foreign Commerce. to the Committee on War Claims. Also, resolutions of the Fruit and Produce Exchange of Boston, Also, a bill (H. R. 8361) for the relief of Mary Ann Nagle, of Mass., favoring reciprocity with Canada and Newfoundland-to Vicksburg, Miss.-to the Committee on War Claims. the Committee on Foreign AffaiTs. Also, a bill (H. R. 8362) for the relief of Frank Harris, of Bovina, Also, resolution of the Boston Associated Board of Trade, on Miss.-to the Committee on War Claims. manning coast defenses-to the Committee on Rivers and Harbors. Also, a bill (H. R. 8363) for the relief of the estate of F. C. Hen­ Also, petition of Susan S. Fessenden, of the Massachusetts derson, deceased, late of Warren County, Miss.-to the Committee Woman's Christian Temperance Union, relating to the collection on Wa1· Claims. of special taxes from wholesale and retail liquor dealers-to the Also, a bill (H. R. 8364) to remove the charge of desertion from Committee on Ways and Means. the record of Hart Nailor-to the Committee on Invalid Pensions. By Mr. BELKNAP: Petition of C. H. Knight & Co. and other Also, a bill (H. R. 8365) for the relief of Adeline L. Hebron, of firms of Chicago, ill., indorsing the report of the Indianapolis Warren County, Miss.-to the Committee on War Claims. monetary convention, January 25,1898, favoring currency reform Also, a bill (H. R. 8366) for the relief of the estate of Samuel based on the gold standard-to the Committee on Banking and Worthington, deceased, late of Wa2hington County, Miss.-to the Currency. Committee on War Claims. Also, resolutions of the Illinois Commandery of the Loyal Le­ By Mr. COOPER of Wisconsin: A bill (H. R. 8367) for the re­ gion, favoring the erection of monuments to mark the lines of lief of James K. Van Matre-to the Committee on Invalid Pen­ battle at all the national militaryparks-to the Committee on the sions. Library. Also, a bill (H. R. 8368) for the relief of Frank Lincoln-to the By Mr. BELL: Petitions of Lewis Yost, M. J. Powell, R. D. Committee on Claims. Jamison, FTederick Goble, and other citizens of Florence, Colo., in Also, a bill (H. R. 8369) for the relief of Fordyce R. Melvin-to favor of legislation to more effectually restrict immigration and the Committee on Invalid Pensions. prevent the admission of illiterate, pauper, and criminal classes to . By Mr. COOPER of Texas: A bill (H. R. 8370) for the relief of the United States-to the Committee on Immigration and Natu­ John Bailey-to the Committee on War Claims. ralization. By Mr. CRUMP: A bill (H. R. 8371) giving military record to By 1\fr. BENNER of Pennsylvania: Petitions of John P. Wild Peter Parker-to the Committee on Military Affairs. and other citizens of .Mechanksburg, Pa., George W. Winters and Also, a bill (H. R. 8372) to remove the charge of desertion from others, of Wrightsville, Pa. . , in opposition to the admission of illit­ the milit.:'lry record of Charles D. Tifft-to the Committee on Mili­ erate, pauper, and criminal cla.sses to the United States-to the tary Affairs. Committee on Immigration and Naturalization. By Mr. FITZPATRICK: A bill (H. R. 8373) for the relief of By Mr. BENTON: Papers to accompany House bill for. there­ Jack Hamilton-to the Committee on Military Affairs. lief of James H. Whimpey, of McDonald County, Mo.-to the Also, a bill (H. R. 8374) for the relief of Elijah Francis, sr.-to Committee on Claims. the Committee on Military Affairs. Also, paper to accompany Honse bill No. 7644, being a state­ Also, a bill (H. R. 8375) for the relief of Arch Huffman-to the ment of the physician at the National Soldiers' Home of Ohio as Committee on War Claims. to the condition of William Sutton-to the Committee on Invalid Also, a bill (H. R. 8376) for the relief of John M. Fidler-to the Pensions. Committee on War Claims. Also, papers to accompany House bill No. 7643, for the relief of 1898. . _CONGRESSIONAL RECORD-HOUSE. 1921

. John A. Brown, being the affidavits of W. H. Waters and I; c. Association, of Boston, Mass., in favor of the anti-scalpi..ug bill- Kountz-to the Committee on Invalid Pensions. to the Committee on Interstate and Foreign Commerce. Also, petition of citizens of Carthage, Mo., in behalf of John B. Also, resolutions of the Fruit and Produce Exchange of Boston, Hurlbut, for increase of pension-to the Committee on Invalid Mass., favoring reciprocity with Canada-to the Committee on Pensions. Foreign Affairs. Also, petition of the Ministers' Association of Monett, Mo., in Also, paper bearing upon the claim of Elijah Francis-to the favor of legislation to protect State anti-cigarette laws by provid- Committee on Military Affairs. : ing that cigarettes imported in original packages on entering any By Mr. FITZPATRICK: Petition of William H. Johnson, of State shall become subject to its laws-to the Committee on Inte1·- Company H, Fourteenth Kentucky Volunteer Infantry, for the state and Foreign Commerce. removal of the charge of desertion-to the Committee on Military By Mr. BINGHAM: Resolution of the Hardware Merchants Affairs. and Manufacturers' Association of Philadelphia, Pa., indorsing By Mr. FOSS: Resolutions of the Retail Grocers and Mer­ the Loud postal-reform bill-to the Committee on the Post-Office chants' Association of illinois, asking for the passage of a bill to . and Post-Roads. establish a postal savings bank system-to the Committee on the Also, resolutions of the Pennsylvania Society for the Advance- Post-Office and Post-Roads. ment of the Deaf, and the Trades League of Philadelphia, Pa., in Alsot memorial of the Illinois Commandery, Military Order of favor of the passage of the so-called anti-scalping ticket bill-to the Loyal Legion, relating to Gettysburg monuments-to the the Committee on Interstate and Foreign Commerce. Committee on the Library. Also, petition of Ida S. Keller and others, of Philadelphia, Pa., By Mr. GARDNER: Seven petitions of Magnolia Council, No. favoring the enactment of legislation to more effectually restrict 101, Junior Order United American Mechanics, of Toms River; immigration and prevent the admission of illiterate, pauper, and citizens of Princeton, Hamilton Square, Basking Ridge, Ware­ . criminal classes to the United States-to the Committee on Im.- town, Silverton, and Lumbarton, all in the State of New Jersey, migration and Naturalization. in favor of the enactment of legislation to more effectually restrict By MJ.·. BOOZE: Petition of Baltimore Council, Junior Order immigration and prevent the admission of illiterate, pauper, and · United American Mechanics, and citizens of Baltimore, Md., criminal classes to the United States-to the Committee on Immi­ favoring the enactment of legislation to more effectually restrict gration and Naturalization . . immigration and prevent the admission of illiterate, pauper, and Also~ petition of the Woman's Christian Temperance Union of criminal classes to the United States-to the Committee on Im.mi- Moorestown, N.J., praying for the enactment of legislation to · gration and Naturalization. · protect State anti-cigarette laws by providing that cigarettes im- By Mr. BROMWELL: Petition of J. W. Chambers and 23 citi- ported in original packages on entering any State shall become zens of Cincinnati, Ohio, praying for the enactment of legislation subject to its laws-to the Committee qn Interstate and Foreign which will more effectually restrict immigration and prevent the Commerce. · admission of illiterate, pauper, and criminal classes to the United Also, petition of the Woman's Christian Temperance unionq of . States-to the Committee on Immigration and Naturalization. Moorestown and Tuckerton, N.J., and the Presbyterian Church Also, protests of the Harrison Avenue Mutual Aid Association, of Tuckerton, N.J., praying for the enactment of legislation to the Coopers' International Union~ and Union No. 30, Elecll.·ical raise the age of consent for girls to 18 years in the District of Co­ Workers of America, all of Cincinnati, Ohio, against the passage lumbia and the Territories-to the Committee on the District of of the so-called. anti-scalping ticket bill-to. the Committee on Columbia. Interstate and Foreign Commerce. Also, petition of the Woman's Christian Temperance unions of By Mr. COCHRAN of Missouri: Petition of citizens of Voris, Moorestown, Tuckertown, and Bakersville, Presbyterian Church Mo., praying for the speedy passage of the Lodge immigration . of Tuckertown, N. J., and National Young People's Christia:ra bill-to the Committee on Immigration and Naturalization. Union of the Universalist Church, praying for the enactment of By Mr. COOPER of Texas: Petition of John Bailey, of the State legislation prohibiting interstate gambling by telegraph, tela­ of Texas, asking reference of his claim to the Court of Claims; phone, or otherwi...c::e-to the Committee on Interstate and Foreign also papers relating to his claim-to the Committee on War Commerce. Claims. Also, petitions of the Woman's Christian Temperance unions Also, petition of the Woman's Christian Temperance Union of of- Moorestown, Burlington, Tuckerton, Bakersville, and the Marshall, Tex., for the passage of.a bill to substitute voluntary Presbyterian Church of Tuckerton, N.J., urging the passage of a industrial arbitration for railway strikes-to the Committee on bill to prohibit the sale of liquors in Government buildings-to . Labor. · the Committee on Public Buildings and Grounds. By Mr. CURTIS of Kansas: Petition of citizens of Kansas, in Also, petition of the reform legislation committee of the Na- . favor of the Y.assage of a bill to prohibit the sale of liquor in Gov- tiona! Young People's Christian Union of the Universalist Church, ernment buildings-to the Committee on Public Buildings and praying for the enactment of legislation prohibiting the interstate . Grounds. transmission of newspaper descriptions of prize fights, etc.-to Also, protest of the Topeka (Kans.) Commercial Club, against the Committee on Interstate and Foreign Commerce. the passage of the Loud postal bill-to the Committee on the Also, petition of the Woman's Chris.tian Temperance Union of Post-Office and Post-Roads. Bakersville, N.J., favoring the enactment of legislation to more Also, protests of the Trades Assembly and the Kaw Valley Beef effectually restrict immigration and prevent the admission of illit­ Butchers' Local Union, No.4, all of Kansas City, Kans., against erate, pauper, and criminal classes to the United States-to the the passage of the so-called anti-scalping ticket bill-to the Com- Committee on Immigration and Naturalization. mittee on Interstate and Foreign Commerce. By Mr. GILLETT of Massachusetts: Petitions of the Woman's Also, resolution of Company K~ First Infantry, National Guard Christian Temperance unions of Warren, East Brookfield, and of Kansas, favoring an appropriation to-promote the efficiency of West Brookfield; Young People's Society of Christian Endeavor, the militia-to the Committee on the Militia. Congregational and :Methodist churches of West Brookfield~ and By Mr. DALZELL: Threepetitions of citizens of Pittsburg, Pa., the Baptist Church of East Brookfield, all in the State of Massa- . in favo:r of legislation to more effectually restrict immigration chusetts, for the passage of a bill to protect State anti-cigarette and prevent the admission of illiterate, pauper, and criminal. laws by providing that cigarettes imported in original packn.ges on classes to the United States and the speedy passage of the Lodge .entering any State shall become subject to its laws-to the Com- bill-to the Committee on Immigration and Naturalization. mittee on Interstate and Forei~ Commerce. Also, petition of the Lutheran Ministers' Association of Pitts- By Mr. GRIFFITH: Resolutions adopted by the Seymour (Ind.) burg, Pa., in favor of the passage of the so-called anti-scalping Division, No. 39, of the Brotherhood of Locomotive Engineers, ticket bill-to the Committee on Interstate and Foreign Commerce. against government by injunction-to the Committee on the Also, petition of the Christian Endeavor Society of the Fourth Judiciary. Avenue Baptist Church, of Pittsburg, Pa., a-sking for the passage By Mr. HENRY of Indiana: Petition of C. H. Nelson and citi­ of a bill to forbid the sale of intoxicating beverages in all Govern- zens of Monroe and Adams counties, Ind., and G. M. Lanck, J. H. ment buildings-to the Committee on Alcoholic Liquor Traffic. Thorp, C. Vance, and 52 other citizens of the town of Dunkirk, By Mr. DINGLEY: Protest of Oliver Otis and 78 citizens of Ind., praying for the enactment of legislation which will more . Rockland, Me., against the passage of the Loud postal bill-to the effectually restrict immigration and prevent the admission of Committee on the Post-Office and Post-Roads. illiterate, criminal, and pauper classes to the United. States-to By Mr. DOVENER: Four petitions of Walter Deal and 23 oth- the Committee on Immigration and Naturalization. ers; J. L. Burgey and. 23 others; J. L. Gaines and 23 others; C. 0. Also, petition of Wells County (Ind.) Medical Society, protest­ Newman and 23 others, all citizens of Moundsville, W. Va., favor- ing against the passage of Senate bill 1063, known as the anti­ , ing the enactment of legislation to more effectually restrict immi- vivisection bill-to the Committee on the District of Columbia. gration and prevent the admission of illiterate, pauper, and crimi- Also, petition of E. W. Collis and 169 citizens of Pendleton, Ind., Iial classes to the United States-to the Committee on Immigration asking for the passage of a bill to forbid the-sale of intoxicating . and Naturalization. bevera~s in all Government buildings-to the Committee on By Mr. FITZGERALD: Resolutions of the Boston Merchants' Public tiuildings and Grounds. XXXI-121 1922 CONGRESSIONAL RECORD-HOUSE. FEBRUARY 18,

By Mr. IDCKS: Twelve petitions of John L. Wilson, Jerry By Mr. McCALL: Petition of the Woman's Christian Temper­ Vaughen, Isaac B. Hogins, and 21 others, of Coopersdale and ance Union of Ashland, N.H., favoring the passage of a bill to vicinity; G. W. Lawrence, Wesley Hutchens, S. A. Grimbling, forbid the interstate transmission of lottery messages and gam­ and 47 others, of Johnstown; I. W. Sullivan, Morrison Brougher, bling matter by telegraph-to the Committee on the Judiciary. Herbert Dyke, and 21 others, of Somerset County; John A. Marsh, By Mr. McEWAN: Petitions of Howard H. Schopp and 103 George W. Adams, Theo. D. Helsel, and 22 others, of Johnstown; citizens of Hudson County; A. A. Bergstrom and 50 others, of W. A. Leer, John Clevenger, Benjamin F. Clevenger, and 21 others, Jersey City, all in the State of New Jersey, in favor of legislation of Kingwood and vicinity; L. W. Sullivan, E. E. Sullivan, E. B. to more effectually restrict immigration and prevent the admis­ Leer. and 13 others, of Kingwood and vicinity; William J. Beeker, sion of illiterate, pauper, and criminal classes to the United Charles M. Temple, and 24 others, r~sidents and citizens of Johns­ States-to the Committee on Immigration and Naturalization. town; W. E. Swartzenstine, J. J. Lochman: and24 others of South By Mr. MILLER: Petitions of J. C. Campbell and 1.50 others. of Fork; John K. Patterson, Andrew Obt, and 24 others of East Free­ Mason County; W. A. F. Smith and 150 others, of Tyler Com:lty; dom and Blair County; David E. Unger, Frank Zoder, and23 others Ira C. Williamson and 60 others, of Ritchie County; Junior Order of South Fork; George B. Rondabusk, W. H.l3erkebele, of Johns­ United American Mechanics, of Guyandotte, State of West Vir­ town; D. B. Raffensberger, H. B. Miller, William Ott, and 52 ginia, in favor of the enactment of legislation which will more others of Freedom and Blair townships, all citizens of the State effectually restrict immigration and prevent the admission of of Pennsy1 vania, in favor of legislation which will more effectually illiterate, pauper, and criminal classes to the United States-to restrict immigration and prevent the admission of illiterate, pau­ the Committee on Immigration and Naturalization. per, and criminal classes to the United States-to the Committee By Mr. MORRIS: Two petitions of citizens of Koochiching, on Immigration and Naturalization. Rainy Lake, and vicinity, in the State of Minnesota, asking for the By Mr. HILBORN: Petition of W. C. Norton and other citizens construction of a dam on Rainy Lake River at Koochiching, of San ·Francisco, Cal., in favor of legislation to more effectually Minn.-to the Committee on the Public Lands. restrict immigration and prevent the admission of illiterate, By Mr. OLMSTED: Twenty-four petitions of numerous citizens paupE-r, and criminal classes to the United States, and the speedy of Oberlin, Steelton, Harrisburg, New Buffalo, Dauphin County, passage of the Lodge bill-to the Committee on Immigration and Middletown, Lykens, and other towns, all in the State of Penn~ Naturalization. sylvania, in favor of the enactment of legislation which will more By Mr. ROOKER: Petitions of the Woman's Christian Tem­ effectually restrict immigration and prevent the admission of illit­ perance unions of Fillmore, ~herman, and Mayville, 160 citizens erate, :paup~r, and criminal classes to the United States-to the of Bolivar, First Presbyterian Church of Andover, First Baptist Committee on Immigration and Naturalization. Church of Andover, all in the State of New York, praying for the By Mr. PAYNE: Petitions of the Woman's Christian Temper­ enactment of legislation to protect State anti-cigarette laws by ance unions of Moravia and Reeds Corners, and citizens of Onta­ providing that cigarettes imported in original packages on enter­ rio, all in the State of New York, favoring legislation providing ing any State shall become subject to its laws-to the Committee that cigarettes imported in original packages on entering any on Interstate and Foreign Commerce. State shall become subject to its laws-to the Committee on Inter­ Also, petitions of the Endeavor Society of the Baptist Church state and Foreign Commerce. and the Seventh-Day Baptist Church of Andover; also petition of Also, petition of the Woman's Christian Temperance Union of the Independent Order of Good Templars of Rushford, all in the New York City, for the passage of a bill to forbid interstate trans­ State of New York, asking for the passage of a bill to forbid the mission of lottery and other gambling matter by telegraph-to sale of intoxicating beverages in all Government buildings-to the Committee on Interstate and Foreign Commerce. the Committee on Public Buildings and Grounds. · Also, petition of the Woman's Christian Temperance Union of · Also, petitions of citizens of Jamestown and Falconer, N.Y., in New York City, asking for the passage of a bill to forbid the sale favor of the passage of a bill to prevent the admission of illiterate~ of intoxicating beverages in all Government buildings-to the pauper, and criminal immigrants into the United States-to the Committee on Interstate and Foreign Commerce. Committee on Immigration and Naturalization. ...Uso, petition of the Woman's Christian Temperance Union of By Mr. JOY: Petition of John R. Leonard, for correction of his New York City, praying that the age of prot-ection for girls ba military record-to the Committee on Milita-ry Affairs. raised to 18 years in the District of Columbia and the Territories­ By Mr. KETCHAM: Petition of Theodore Ruggles Timby, of to the Committee on the Judiciary. Philadelphia, Pa., the inventor of the revolving turret gun bat­ Also, petition of the Woman's Christian Temperance Union of tery, for relief-to the Committee on Claims. Reeds Corners, N. Y., praying for the enactment of legislation to By Mr. KIRKPATRICK: Resolutions of the Pennsylvania So­ substitute voluntary arbitration for railway strikes-to the Com- ciety for the Advancement of the Deaf, in favor of the passage of mittee on Labor. · a bill to suppress ticket brokerage-to the Committee on Interstate Also, petition of the Woman's Christian Temperance Union of and Foreign Commerce. Reeds Corners, N.Y., praying for the enactment of legislation Also, petitions of 22 citizens of Mauch Chunk, 18 citizens of prohibiting kinetoscope reproduction of prize fights in the District Beaver Meadows, and 19 citizens of Messport, Pa., in favor of leg­ of Columbia and the Territories-to the Committee on Interstate islation which will more effectually restrict immigration and pre­ and Foreign Commerce. vent the admission of illiterate, pauper, and criminal classes to Also, petition of the Woman's Christian Temperance Union of the United States-to the Committee on Immigration and Natu­ Reeds Corners, N. Y., for the passage of a bill to prohibit the ralization. transmission by mail or interstate commerce of newspaperdescrip· By 1\Ir. LOUD: Resolution of the Chamber of Commerce of tions of prize fights-to the Committee on Interstate and Foreign San Francisco, CaL, urging that a treaty be made with the gov­ Commerce. ernment of British Columbia for a modification of their laws in ByMr. ROBINSON of Indiana: Petition of the WayneKnitting relation to American wreclting companies-to the Committee on Mills, of Fort Wayne, Ind., in favor of the Torrey bankruptcy Foreign Affairs. bill-to the Committee on the Judiciary. Also, resolution of the Chamber of Commerce of San Francisco, By Mr. SHERMAN: Petition of the ~eattle (Wash.) Board of Cal., in opposition to House bill No. 5854, in relation to civil serv- Trade, in favor of the passage of a bill to suppress ticket broker­ ice-to the Committee on Reform in the Civil Service. . age-to the Committee on Interstate and Foreign Commerce. Also, resolution of the Chamber of Commerce of San Francisco, By Mr. SHOWALTER: Petition of the Methodist Episcopal Cal., aslting for the immediate removal of Arch and Shag rocks, Church of Butler, Pa., and the Woman's Christian Temperance in the Bay of San Francisco-to the Committee on Rivers and Union of Petrolia, Pa., praying for the enactment of legislation Harbors. , substituting voluntary arbitration for railway strikes-to the Com· Also, resolution of the Chamber of Comme1·ce of San Francisco, mittee on Labor. Cal., in favor of the passage of House bill No. 7130 and Senate bill Also, petition of the Methodist Episcopal Church of Butler, Pa., No. 1575, restricting the right to buy and sell railroad tickets-to and the Woman's Christian Temperance Union of P etrolia, Pa., · the Committee on Interstate and Foreign Commerce. for the passage of a bill to further protect the first clay of the week Also, resolution of the Chamber of Commerce of San Francisco, in the District of Columbia-to the Committee on the District of Cal., in favor of the passage of Honse bill No. 5359, known as the Columbia. Loud bill-to the Committee on the Post-Office and Post-Roads. Also, petition of the Methodist Episcopal Church of Butler, Pa., By Mr. LOUDENSLAGER: Petitions of Junior Order United and the Woman's Christian Temperance Union of Petrolia, Pa., American Mechanics of Ocean City, N.J., and George A. Cheever praying for the enactment of legislation prohibiting the interstate and others, of Vineland, N. J., in favor oflegislation which will more transmission of newspaper descriptions of prize fights, etc.-to the effectually restrict immilP'ation and prevent the admission of illit­ Committee on Interstate and Foreign Commerce. erate, pauper, and crimmal classes to the United States-to the Also, petition of the Methodist Episcopal Church of Butler, Pa., Committee on Immigration and Naturalization. and the Woman's Christian Tempe1·ance Union of Petrolia, Pa., By Mr. MAHANY (by request) : Petition of the Medical Society praying for the enactment of legislation. prohibiting kinetoscope of the county of Erie, N. Y., in favor of a national health bureau, reproductions of prize fights in the District of Columbia and the to be a branch of the Treasury Department-to the Committee on Territories-to the Committee on the Judiciary. Interstate and Foreign Commerce. Also, petitions of the Methodist Episcopal Church of Butler, 1898. CONGRESSIONA·L RECORD-HOUSE. 1923

Pa., and the Woman's Christian Temperance Unions of Petrolia The SPEAKER. Does the gentleman from Iowa, in making and Ellwood City, Pa., praying for the enactment of legislation this request, refer to the inserted bill? Is anything to be done prohibiting the sale of intoxicating liquors in all Government with the original bill? buildings-to the Committee on Public Buildings and Grounds. Mr. HENDERSON. I refer to the substitute reported in lieu Also, petition of the Methodist Episcopal Church of Butler, Pa., of the Senate bill. and the Woman's Christian Temperance Union of Petrolia, Pa., Mr. BAILEY. I desire to submit an inquiry as to the parlia­ praying for the enadment of legislation p~ohibiting intersta;te mentary situation. I think the request submitted by the gentle­ gambling by telegraph, telephone, or otherWise-to the Commit­ man from Iowa a very reasonable one, and I shall not object to tee on Interstate and Foreign Commerce. it; but before it is granted I desire to know whether the Com­ Also, petition of the Methodist Episcopal Church of Butler,Pa., mittee on the Judiciary has reported tha committee bill as a sub­ and the Woman'e~ Christian Temperance Union of Petrolia, Pa., stitute for the Senate bill, or whether they have reported the praying for the enactment of legislation raising the age of protec;­ committee bill, and at the same time recommend that the Senate tion for girls to 18 years in the District of Columbia and the Ter­ bill lie on the table. ritories-to the Committee on the District of Columbia. Mr. HENDERSON. Our proposition is to strike out all after Also, petitions of the Methodist Episcopal Church of Butler, the enacting clause of the Senate bill and insert in lieu thereof the Pa., and the Woman's Christian Temperance Union of Petrolia, bill which we have prepared. Pa., praying for the enactment of legislation to protect State anti­ Mr. BAILEY. Then, Mr. Speaker, I desire to see whether we cigarette laws by providing that cigarettes imported in original can reach an understanding by which the sense of the House can packages on entering any State shall become subject to its laws­ be tested on that proposition in a somewhat different form. I de­ to the Committee on Interstate and Foreign Commerce. sire to suggest an agreement by unanimous consent that we be Also, petitions of the Methodist Episcopal Church of Butler, permitted to offer the Senate bill in lieu of the bill reported by the Pa., and the Woman's Christian Temperance Union of Petrolia, committee, so that in addition to the other amendments which Pa., asking for the passage of a bill whic)l will more effectually may be offered in the progress of the day's proceedings we can at restrict immigration and prevent the admission of illiterate, pau­ some time during the day test the sense of the House as between per, and criminal classes to the United States-to the Committee the Senate bill and the bill recommended by the committee. on Immigration and Naturalization. The SPEAKER. The Chair will state to the gentleman from Also, petitions of the Methodist Episcopal Church of Butler, Texas that the question he desires voted upon will be reached in Pa., and the Woman's Christian Temperance Union of Petrolia, the natural course of things if the request of the gentleman from Pa., in favor of the passage of certain bills in the interest of la­ Iowa be acceded to. In that case the course of procedure will be boi·-to the Committee on Labor. this: The bill proposed to be inserted in lieu of the Senate bill By Mr. SPRAGUE: Petition of the Young People's Christian will be gone over section by section or paragraph by paragraph so Union of Milford, Mass., favoring the passage of a bill to prohibit far as time will allow; amendments will be submitted upon each the sale of liqpors in the Capj.tol and all Government buildings­ portion of the bill as reached. Then, on the arrival of 4 o'clock to the Comllllttee on the District of Columbia. the first thing in order will be the motion made by the gentleman Also, petition of Susan S. Fessenden and Ruth B. Baker, of the from Alabama [Mr. UNDERWOOD], which is, substantia.lly, to Woman's Christian Temperance Union of Massachusetts, praying strike out the clauses of the bill proposed to be inserted and pro­ for the enactment of legislation to substitute voluntary arbitra­ viding for involuntary bankruptcy. If that motion be rejected, tion for railway strikes-to the Committee on Labor. the vote will come upon the bill offered by the committee; and if By Mr. STEVENS of Minnesota: Petition of 46 citizens of St. that be adopted the vote will then substantially be (not speaking Paul, Minn., native and foreign born, favoring the enactment of in exact parliamentary language) whether that bill shall be sub· legislation which will more effectually restrict immigration and stituted for the Senate bill; and when that question is presented prevent the admission of illiterate, pauper, and criminal classes a negative vote will be a vote in favor of the Senate bill. to the United States-to the C-ommittee on Immigration and Mr. BAILEY. I sayfranklythatthoseof uswhointend tovote Naturalization, for the Senate bill desire to reverse that order of taking the ques­ Also, petition of citizens of Hamlin, Minn., urging the passage tion. Our request, which we think a reasonable one, is that we of a bill to prohibit the sale of liquors in Government buildings­ may have an opportunity to vote for the Senate bill as against the to the Committee on Public Buildings and Gr01mds. committee's substitute, because some gentlemen on this side-not Also, petition of citizens of Hamlin, Minn., for the passage of a myself among that number-if that motion fails, intend to vote bill to prohibit the sale of intoxicating liquors-to the Committee for the committee's bill. on Alcoholic Liquor Traffic. The SPEAKER. They will be obliged to do that. Also, petition of citizens of Hamlin, Minn., in favor of the pas­ Mr. BAILEY. I understand, Mr. Speaker; but they would sage of the Broderick bill to raise the age of protection for girls to rather vote first for the Senate bill, and, that proposition failing, 18 years in the District of Columbia and the Territories-to the if it should fail, some of them may vote for and some against the Committee on the District of Columbia. other proposition. I frankly say that we think there is an advan­ By Mr. STROWD of North Carolina: Petition of H. G. Col- tage in this course of procedure. We do not desire to take any lins and other citizens of Randleman, N. C., for the passage of a unfair advantage; and, if there is any objection, of course this . bill to more effectually restrict immigration and preve_nt the ad­ proposition can not be carried out. But I ask unanimous consent mission of illiterate, pauper, and criminal classes to the United that the vote, instead of being taken on the substitute of the com­ States-to the Committee on Immigration and Naturalization. mittee for the Senate bill, be taken on substituting the Senate bill for the bill of the committee. · The SPEAKER. The Chair thinks that course would create a HOUSE OF REPRESENTATIVES. great deal of confusion in the record. Mr. BAILEY. I think not. Every gentleman in the H ouse SATURDAY February 19 1898 would understand what he was voting for or against. ' ' • :h r; Mr. HENDERSON. I can not consent to the course which the : The House met at 12 o'clock m. Prayer by the Cl:I p J.n, .H..e • gentleman proposes. There will be fair opportunity to test the HENRY N. douDEN. sense of the House in a parliamentary form. We consented last The Journal of yesterday's proceedings was read and approved. night unanimously to have the motion of the gentleman from G BANKRUPTCY B>LL, Alabama [Mr. UNDERWOOD] voted on at 4 o'clock to-day. ' ---- The SPEAKER. If the gentleman from Texas and his friends Mr. HENDERSON. Mr. Speaker, we have now reached a point who favor the provision to which he refers shall vote down the the consideration of the bill when it is to be considered in the question of substitution, they will have an opportunity of voting House as in Committee of the Whole. The usual course, I pre- on the other proposition. sume, is ~o read .the bill section by secti

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