was much increased by the high authority of the Department of State in which it originated.

It received the anxious and careful attention of the Committee, and especially of its Chairman, the late Mr. CowDIN, one of the most distinguished and excellent of our members, whose untimely decease has been the subject of the eloquent and well-merited remarks at the present meeting.

In consequence, however, of the vacancy thus created in the Committee, its remaining members, in view of the importance of securing a full consideration of the subject by merchants most experienced in the commerce referred to, and also the measures needed for providing accommodations for the proposed Industrial Museum, now beg leave to recommend that the whole subject be referred to a select Committee of three members of the Chamber, to be appointed by the President.

The recommendation of the Executive Committee was unanimously adopted, and the President appointed as the select Committee,

Messrs. CORNELIUS N. BLISS, FREDERICK A. CONKLING and
OLIVER HARRIMAN.

Mr. RUGGLES further reported the following resolution, which was unanimously adopted:

Resolved, That the President be and is hereby authorized to reappoint the Special Committee on Revenue Reform, consisting of three members; the Special Committee on Railroad Transportation, consisting of seven members; and the Special Committee on a National Bankrupt Law, consisting of three members, to continue the consideration of the several subjects referred to them by the Chamber.

REPORTS OF SPECIAL COMMITTEES.

Mr. JAMES W. ELWELL, Chairman of the Special Committee, appointed at the last meeting to audit the accounts of the Treasurer, submitted a report, showing the receipts and disbursements from May 1, 1879, to May 1, 1880.

The report was unanimously accepted, and ordered to be placed on file.

Mr. DANIEL C. ROBBINS, Chairman of the Special Committee on a National Bankrupt Law, submitted the following report:

To the Chamber of Commerce:

The preliminary report of the Special Committee on Bankruptcy, read at the March meeting of the Chamber, informed the members

that Judge JOHN LOWELL, of Boston, was engaged in the formation of a Bankrupt Law, and that your Committee waited his recommendations with much interest.

These recommendations, in the form of a proposed Bankruptcy Act, have appeared in Washington, and have been referred to the Judiciary Committees of the Senate and of the House of Representatives.

The proposed act is drawn in accordance with the suggestions of the Boston Board of Trade; it makes the office of Register a salaried position, which is an improvement on the system of compensation by fees in use under the law of 1867.

The number of Registers in any State is limited to the one-half of the number of members of Congress from each State, and their compensation is placed at $3,000 per annum.

The proposed law also appoints a Supervisor for each judicial district, at a salary of $3,000 per annum, to visit and inspect the office of every Clerk and Register within their circuits, at least once in every three months.

This office of Supervisor is an experiment in bankruptcy legislation, and is deemed by many to be an important one and worthy of a trial, although, in common experience, such officials are apt to be either grossly incompetent and over zealous or good naturedly negligent.

There are 293 members of Congress and eight judicial districts in the country, from which it will be noted, that the proposed act provides for 154 officials, at a salary of $3,000 each per annum, and the Government is to be reimbursed by a special tax of $50 upon each case of bankruptcy, and a general tax of one per cent. upon the gross receipts of all cases where the amount realized from assets, in each case, exceeds $500.

The provision for salaried Registers is an excellent one, although the amount of $3,000 for each Register is not an equal compensation for Registers in the cities, as compared with those in the

interior.

SECTIONS 21 and 22, in regard to entry and clerk's fees, are excellent.

SECTION 23. In regard to oaths, there ought to be some provision as to the authentication of the signature and official character of the official administering the oath.

SECTION 29, line 7.-In regard to injunctions.

The use of the words "said Courts" would seem to limit the power to enjoin suits to the Circuit and District Courts, wherein involuntary proceedings in bankruptcy are pending. It would. seem to deprive those Courts of power to enjoin in case of voluntary bankruptcy. Why not strike out the word "involuntary

line 2?

SECTION 30.-In regard to hearings.

We doubt the advisability of having the examinations of bankrupts or witnesses "oral," if by oral is meant that they shall not be reduced to writing and signed by the witnesses. This would convert the Register's Court into a regular star-chamber, where any

one and every one could be called up and interrogated, and no record would appear as to what had been testified to. The bankrupt or his counsel could never know, and the creditors would never know, whom the assignee had examined and on what subject. The former system is bad enough. This proposed system is outrageous. Provisions of lines 7 to 11 are too broad-open to abuse.

SECTIONS 32 and 33 contain the provisions for voluntary bankruptcy. These sections permit any person owing debts to the amount of $300 to enter into bankruptcy upon the payment of $50 to the Register, and $10 to the Clerk of the Court. This limit of only $300 is regarded as quite too small, and should be extended to $1,000 at least, as no dividend can well be paid upon an estate of less than $1,000. The provision requiring a schedule and inventory to be annexed to or filed with the petition will cause great practical inconvenience. It will make the preparation of a voluntary petition in a large estate an enormous labor and cause delay. Such delays are bad, because they may leave chances for the issue and levy of executions before the filing. It is suggested that the schedule and inventory may be filed within ten days after the filing of the petition, but that the debtor be required to file with petition a list of creditors with their addresses, and then the proceedings could go right along without delay, and schedule and inventory be filed afterwards.

SECTION 34.-In regard to proceeding for involuntary bankruptcies. This section is open to much criticism.

Lines 13 and 14.-Time as to attachments ought to be limited to ten days, so as to prevent judgment by default in New-York State in higher Courts.

Line 15.-The language as to final judgments is too broad. The debtor may have failed to satisfy a final judgment because he has appealed from it. It is, nevertheless, a final judgment, until reversed. Stay of execution may have been granted, even if no appeal is pending. In some States there is statutory stay in all cases. It ought to be qualified by adding after the word "money," on 16th line, the words," the enforcement of which judgment or decree has not been stayed by the direction of the Court or by the provisions of law." ""made" or

Lines 18 and 19.-The words, "commercial paper," "passed," "" in the course of his business," ought to be restricted as to exclude the question agitated under the law of 1867, as to whether accommodation paper came under this definition. This was an open question. (See In re Clemens, 2 Dillon, 534.)

Again, the term, "open accounts," is too broad. What does that term mean? Is an account for clerk-hire an open account? There may be many reasons why such an account is not paid within thirty days. Would it not be well to limit this to open accounts for goods sold and delivered, or for money loaned or deposited?

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or

Lines 20 and 21.-" Being insolvent." Why are the words, in contemplation of insolvency," omitted? A man may be solvent, that is, able to pay his debts as they may mature in the regular course of business, and yet be "in contemplation of insolvency." Further, the sum of 250 dollars is considered to be quite too

small an account to enable creditors to throw into bankruptcy a concern that may owe over one million of dollars.

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SECTION 36, line 9.-The provision requiring order to show cause to be served, as process is served in other civil actions," will not work. Suppose the case of a debtor doing business in New-York and residing in Connecticut, or Massachusetts, or Pennsylvania. If process is to be served personally out of this District, who is to serve it? What marshal? etc.

Lines 6 and 7.-Strike out words, "not less than ten days thereafter." Strike out words, "shall contain a copy of the petition, or shall state the substance thereof, and."

There seems to be no provision for trying the question whether the petitioning creditors constitute the statutory number and amount. There ought to be a provision for trying this question by the Court, or by a Register.

SECTION 38.-In regard to first meeting, choice and qualification of assignees. The provision requiring only one-third in number instead of one-half, as under old law. It diminishes the chances of a deadlock, and lessens the temptation to increase number of small creditors.

But there ought to be more specific provisions as to how debts are to be proved at first meeting. What power Registers have to pass on proofs before election of assignees; how it is to be determined who have received preferences; who are creditors, etc. The only practical plan would seem to be to allow all creditors to vote who have made a prima facie proof, regular on its face, and let the question of validity of claims remain to be passed upon afterwards. If it shall afterwards appear that the creditors, whose votes elected the assignee, were not lawfully entitled to vote, the Court could order a new election at any time. There should be some provision to that effect. Another way would be to authorize the Register to refuse the right to vote, where he thinks the claim is fictitious, or fully secured, &c., &c. (See Section 69.)

SECTION 40.-In regard to powers of Court in respect to assignees. Add at end of first sentence, after words, "needs to be filled," the words, "or the judge may direct a meeting of creditors to be called to elect an assignee to fill such vacancy."

SECTION 41.-In regard to Committee of Direction. The power conferred by this section is regarded as too great to be exercised by a bare majority in value and one-third in number of creditors. The election of this Committee should be by, at least, a majority in number and value of creditors who have proved their debts. There should be a provision for filling vacancies in the Committee by filing with the Register the written consent of a certain proportion in number and value of the creditors who have proved their debts, or by the judge on proper application.

With these qualifications, Sections 41 and 42 appear to be excellent. They accomplish all the advantages of the Trustee Section in the act of 1867 without any unnecessary routine.

SECTION 43.-In regard to title vested in assignees, lines 20 to 37. -There is no propriety in dissolving judgment liens. It will lead to

great injustice and introduce unnecessary confusion into practice. The old law as to dissolving attachments went far enough. There ought to be a provision protecting the Sheriff for acts done in good faith under process from State Courts, after proceedings in bankruptcy have been commenced, but without actual notice of such proceedings, to avoid such hardships as in case of LONG vs. CONNOR. SECTION 60.-In regard to debts, line 14.-"Equitable debts." This phrase is too indefinite. Objectionable. What is an equitable debt?

SECTION 61.-In regard to levies and rents, lines 2 to 5.-This provision seems to be unnecessarily harsh to landlords. Why should they lose the right to sue the lessee personally for breach of covenant, in case he should fail to secure his discharge in bankruptey?

There ought to be also a provision for recovering for use and occupation during time assignee is in possession. Again, if the lease is to be deemed surrendered at time of bankruptcy, there should be some provision as to proving for rent of current quarter. Shall it be apportioned? Or shall the whole amount be proved? Again, suppose a lease has still a long time to run, but rents have gone down so much that the landlord can't get so much rent from the next tenant. Is there not a positive loss? Should he be allowed to have it assessed as damages, and to take a dividend on it? There are good reasons pro and con.

SECTION 65.-This seems to alter the old law, which allowed, as construed by the Courts, a proof against both joint and separate estates in every case where creditor held a firm obligation, and also an individual obligation of one of firm, even though growing out of same transaction, and not out of distinct contracts and distinct trades.

SECTIONS 75 to 76.-In regard to accounts of assignees.

Provisions for calling a second meeting, at request of "any creditor," i. e., one creditor, and for passing on accounts by Register at second meeting, and for re-examining proofs of claim at second meeting, are unnecessary and inconvenient. Is there not abundant opportunity for those proceedings without having a meeting of creditors merely because one creditor (possibly a small one, who seeks to run up expenses) wants it?

Line 5.-"Similar services," by whom-executors, administrators, voluntary assignees, or whom? There ought to be a fixed per centage for compensation, reasonable in amount; say a fixed per centage on cash realized, with leave to Judge to grant extra allowance to assignee, on filing written consent of majority in number and amount of creditors who have proved their debts at date of final accounting. The matter ought not to be left to uncertainty of State law, and compensation ought to be reasonably liberal.

SECTION 82 to 85 are very important, because they relate to the discharge of the bankrupt. These sections, taken in connection with Section 100, prevent a discharge where the bankrupt has obtained money or goods on credit, with intent not to pay for same according to his undertaking.