AMENDMENT TO BANKRUPTCY LAW. 5 right. We dissent from this view. As long as there is a bankrupt law an unfortunate and honest debtor is entitled, as a matter of right, upon proper showing, to a discharge from his debts. Section 7 interferes with the settled policy of some of the States and makes the wife an involuntary witness in certain transactions. We submit that these States have the right to regulate their domestic affairs, and have a right to refuse to make the wife a witness in any case against the husband, if the lawmakers of the State believe that such a course is most conducive to harmonious family relations. Even if we were to concede, though we do not, that there ought to be a limit to the right of the debtor to discharge, we affirm that one discharge in six years is carrying the restriction too far, especially in case a man is made an involuntary bankrupt and shows that he is entitled, under the narrow provisions of this law, to a discharge. In all cases we believe that the bankrupt, voluntary and involuntary, ought to be discharged as often as he makes the showing required by the act. Most crimes against the United States are barred by statutes of limitation of less than six years. If debtors are to be forgiven at all there is no reason for being less generous to them than to criminals. While we have urged objection to some of the amendments proposed in the pending bill, we think there are other reasons why the bill should not pass. We believe that the public interests will be subserved by the repeal of the present bankruptcy law. Five bills for this purpose have been introduced in the House at the present session of Congress, and two for the same purpose have been introduced in the Senate. It will be remembered that when the bankruptcy act was under consideration in the Fifty-fifth Congress, the amendment to limit its operation to two years was adopted, and that subsequently this limitation was defeated by a very narrow majority vote. We do not believe that there is any necessity or any general public demand for the longer retention of this law. It has tended to burden the Federal courts with much litigation, which we believe could be just as well conducted by the courts of the different States. We believe that the people of the various States favor and uphold just and honest laws, and that the State courts administer justice as honestly, faithfully, and efficiently as do the Federal courts. Bankruptcy laws and other unnecessary Federal legislation, creating new civil remedies and new penal offenses, are unnecessarily burdening the Federal courts, and the administration of public justice is not bettered thereby. We submit House bill 4574, as a substitute, and recommend its passage, it being in the following words: A BILL To repeal an act to establish a uniform system of bankruptcy throughout the United States, approved July first, eighteen hundred and ninety-eight. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the act approved July first, eighteen hundred and ninetyeight, entitled "An act to estab, sh a uniform system of bankruptcy throughout the United States," be, and is hereby, repealed: Provided, That nothing herein shall in any way affect proceedings under said act begun prior to the time this act takes effect H. D. CLAYTON. W. H. FLEMING. FIFTY-NINTH CONGRESS. SESS. I. Cus. 3302, 3333-3335. 1906. 267 CHAP. 3333.-An Act To amend section sixty-four of the bankruptcy Act. June 15, 1906. [H. R. 4478.] [Public, No. 232.] Bankruptcy. Vol. 30, p. 563, Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That clause four of subdivision B of section sixty-four of said Act is hereby amended so as to amended. read as follows: "Fourth. Wages due to workmen, clerks, traveling or city salesmen, or servants which have been earned within three months before the date of commencement of proceedings, not to exceed three hundred dollars to each claimant." Approved, June 15, 1906. Priority of wages, let Session 59TH CONGRESS, HOUSE OF REPRESENTATIVES. { AMENDING THE BANKRUPTCY ACT. REPORT No. 2753. MARCH 30, 1906.-Referred to the House Calendar and ordered to be printed. Mr. GILLETT, of California, from the Committee on the Judiciary, submitted the following REPORT. [To accompany H. R. 4478.] The Committee on the Judiciary, to whom was referred the bill (H. R. 4478) to amend section 64 of the bankruptcy act, submit the following report: This bill amends clause 4 of subdivision B of section 64 of the bankruptcy act, making traveling salesmen, preferred creditors with workmen, clerks, city salesmen, and servants of the bankrupt. The Federal courts have decided that the original act is not broad enough to include traveling salesmen in the list of those employed by the bankrupt and to whom a preference is given. Traveling salesmen, being away from home a great portion of the time, have not the opportunity of protecting themselves as other employees of the bankrupt have. There is no opposition to the amendment from any source. The creditmen associations of the country favor the amendment, say it is just, and request that it be made. that 838 June 25, 1910. (H. K. 20575.) [Public, No. 294.] amendments. Vol. 30, p. 516. SIXTY-FIRST CONGRESS. SESS. II. CHs. 409–412. 1910. CHAP. 412.-An Act To amend an Act entitled “An Act to establish a uniform system of bankruptcy throughout the United States," approved July first, eighteen hundred and ninety-eight, as amended by an Act approved February fifth, nineteen hundred and three, and as further amended by an Act approved June fifteenth, nineteen hundred and six. Be it enacted by the Senate and House of Representatives of the United Bankruptcy act States of America in Congress assembled, That clause five of section two of the Act entitled "An Act to establish a uniform system of bankruptcy throughout the United States," approved July first, eighteen hundred and ninety-eight, as amended by an Act approved February fifth, nineteen hundred and three, and as further aniended by an Act approved June fifteenth, nineteen hundred and six, be, and the same hereby is, amended so as to read as follows: Vol. 32, p. 797. Vol. 34, p. 267. Receivers, etc. Extra allowance for Authorize the business of bankrupts to be conducted for limited cor tinuing business periods by receivers, the marshals, or trustees, if necessary in the del P. 797, best interests of the estates, and allow such officers additional compensation for such services, as provided in section forty-eight of this Act." amended. Post, p. 540. SIXTY-FIRST CONGRESS. SESS. II. CH. 412. 1910. 839 Powers of court ex tended. Vol. 30, p. 546. amended. SEC. 2. That section two of said Act as so amended be, and the same hereby is, amended by striking from clause nineteen thereof the word "and" and adding a new clause, to be known as clause twenty, so that said clauses shall read as follows: "(19) Transfer cases to other courts of bankruptcy; and (20) Anclary jurisdic exercise ancillary jurisdiction over persons or property within their respective territorial limits in aid of a receiver or trustee appointed in any bankruptcy proceedings pending in any other court of bankruptcy." tion to other courts. Vol. 30, p. 547, SEC. 3. That section four, clause a, of said Act, as so amended, be, amended. and the same hereby is, amended so as to read as follows: Voluntary bank "SEC. 4. WHO MAY BECOME BANKRUPTS.-a. Any person, except rupts. a municipal, railroad, insurance, or banking corporation, shall be Corporations exentitled to the benefits of this Act as a voluntary bankrupt." cepted. p. amended. rupts. Corporations ex cepted. SEC. 4. That section four, clause b, of said Act, as so amended, be, 32073479 Vol. and the same hereby is, amended so as to read as follows: "Any natural person, except a wage-earner or a person engaged Involuntary bankchiefly in farming or the tillage of the soil, any unincorporated company, and any moneyed, business, or commercial corporation, except a municipal, railroad, insurance, or banking corporation, owing debts to the amount of one thousand dollars or over, may be adjudged an involuntary bankrupt upon default or an impartial trial, and shall be subject to the provisions and entitled to the benefits of this Act. "The bankruptcy of a corporation shall not release its officers, Liability of corpora directors, or stockholders, as such, from any liability under the laws of a State or Territory or of the United States." tion officers, etc. Vol. 30, p. 549, amended. Time when terma SEC. 5. That section twelve, subdivision a, of said Act as so amended be, and the same hereby is, amended so as to read as follows: "A bankrupt may offer, either before or after adjudication, terms Compositions. of composition to his creditors after, but not before, he has been may be offered. examined in open court or at a meeting of his creditors, and has filed in court the schedule of his property and the list of his creditors required to be filed by bankrupts. In compositions before adjudi- Meeting of creditors. cation the bankrupt shall file the required schedules, and thereupon the court shall call a meeting of creditors for the allowance of claims, examination of the bankrupt, and preservation or conduct of estates, at which meeting the judge or referee shall preside; and action upon the petition for adjudication shall be delayed until it shall be determined whether such composition shall be confirmed.” Action to await determination. Discharges Vol. 30, p. 50, Vol. SEC. 6. That section fourteen, subdivision b, of said Act as so amended be, and the same hereby is, amended so as to read as fol- 32, p. 797, amended, lows: "The judge shall hear the application for a discharge and such proofs and pleas as may be made in opposition thereto by the trustee or other parties in interest, at such time as will give the trustee or parties in interest a reasonable opportunity to be fully heard, and investigate the merits of the application and discharge the applicant unless he has (1) committed an offense punishable by imprisonment as herein provided; or (2) with intent to conceal his financial condition, destroyed, concealed, or failed to keep books of account or records from which such condition might be ascertained; or (3) obtained money or property on credit upon a materially false statement in writing, made by him to any person or his representative for the purpose of obtaining credit from such person; or (4) at any time subsequent to the first day of the four months immediately preceding the filing of the petition transferred, removed, destroyed, or concealed, or permitted to be removed, destroyed, or concealed, any of his property, with intent to hinder, delay, or defraud his creditors; or (5) in voluntary proceedings been granted a discharge in bank Action on applica tions. Trustee to be heard. Grounds for refusal, |