the system has always resulted in defeating the very object for which it was established. So far from suppressing fraud and relieving distress it gradually becomes a favorite method by which fraud may be perpetrated. It builds up a class of petty officials about the federal courts whose existence depends upon the perpetuation of bankruptcy proceedings and who naturally become allied with the unreasonable and implicable creditor. Interest in perpetuating it becomes confined to one class only. The small business men of the country are by far the more numerous, and must always remain so. Their encouragement and protection is highly necessary to the prosperity of the entire country. They are usually found in the small towns and villages, remote from the centers where the federal courts are established. The expense and inconvenience of defending against bankruptcy proceedings, aside from the legal cost and fees in such cases, becomes a powerful weapon in the hands of an uncompromising creditor by which he may enforce his demands. We submit that the insolvency law of the States are found to be more just and satisfactory under general conditions. They are made in keeping with the conditions that exist in each locality, and when no general disturbance imposes the same misfortune upon the whole country alike, these laws should prevail. No objection against their provisions or their administration can be found that will compare with that which is manifest against national acts in the fact that each heretofore has been many times amended and finally repealed. Under the insolvency laws of the States creditors have collected a larger per cent of their debts than they did under the old bankruptcy laws, and we feel quite sure that if statistics were available the same situation would be found to exist at present. This is doubtless due to the fact that proceedings in the federal court are necessarily more cumbersome and expensive, attendant with more delays and prolixity, than that of courts nearer the residence of litigants and witnesses. If we calculate the percentage of a small estate that must necessarily go to defray the expense of such a proceeding, and compare it with that which accrues at last to the creditor, we must necessarily regard the system even as a proceeding for the collections of debt as a failure. In our opinion there should be no exercise of federal power when there is not a clear necessity for it. Can it be contended that there is any necessity in the country to-day for a national bankruptcy law? The argument that certain classes of individuals are pleased with it, and that it operates to their satisfaction, does not establish the necessity which we think should justify its existence. The interest manifested in perfecting and extending the law does not to our minds come from an unbiased source. The trouble with the perpetuation of the system is that after it has served its purpose of relieving from unusual conditions no one is left to look after its subsequent modification and administration but the credit-giving class and.officials whom it has called into existence or who derive emoluments from its operation. We can not bring ourselves to look upon "credit men's associations" and organizations of bankruptcy court officials as interested and actuated altogether for the "good of the glorious cause." We fear the development of a situation similar to that referred to by an English chancellor in speaking of the bankruptcy laws of England when he said: "They are little more than the stock in trade for the commissioners, the assignees, and the solicitors." H R-60-2-Vol 1-9 Those who are interested in converting the bankruptcy law more and more into mere collection machinery, and lawyers whose practice is confined largely to bankruptcy cases, regard the bankruptcy law with favor, and their appreciation of the law increases as the law is made more and more severe and harsh against the debtor class. They forget that the primary object of the bankruptcy law is to relieve unfortunate debtors from the weighty oppression of debts impossible for them to pay. These advocates of drastic bankruptcy legislation care nothing for the debtor class. The paramount object of their desire is to obtain harsher and more effective federal collection laws, all resting for their constitutionality upon the power of Congress to pass a bankruptcy law. We are not willing to see this provision of the Constitution, written for beneficent purposes, converted into a means of oppression. We believe that many amendments proposed by the creditor class to the bankruptcy law are inimical to the debtor class, and naturally so. The creditor is apt to think that the debtor should not have any very liberal relief. This opposes the very fundamental theory of any bankruptcy law. Such a law rests for its justification upon the beneficence that it is supposed to afford unfortunate debtors. We are unwilling to subscribe to a theory that ignores this idea which lies at the foundation of all proper bankruptcy legislation. The present bankruptcy act has stood longer than any prior act of the kind in the history of the country. As we have said, we do not believe there is any longer any necessity for its retention. One reason given for its enactment was that it was to relieve insolvent debtors from debts beyond their ability to pay and that were fastened upon them by the unusual stringency of the times. This law has served its day and purpose. It is now the subject of more abuse in its administration and the cause of more complaint to Congress than any other existing federal statute. The best remedy afforded is not to amend a law that is so badly abused and misused, if we are to believe the advocates of its amendment that it has grown into well-nigh a vicious system. The better or true remedy is to repeal the whole law. We therefore beg leave to report as a substitute for the bill reported by the committee, House bill 141, which is as follows: A BILL To repeal an act to establish a uniform system of bankruptcy throughout the United States, approved July 1, 1898. 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 establish a uniform system of bankruptcy throughout the United States," and all acts amendatory of such act, be, and are hereby, repealed: Provided, That nothing herein shall in any way affect proceedings under said act begun prior to the time this act takes effect. We shall offer the above substitute for the bill as reported by the committee and ask its passage in lieu of the bill reported by the majority of the committee. CHAS. C. REID. D. A. DE ARMOND. W. G. BRANTLEY. 60TH CONGRESS, HOUSE OF REPRESENTATIVES. 2d Session. RIGHT OF WAY ACROSS NIOBRARA MILITARY JANUARY 12, 1909.-Committed to the Committee of the Whole House on the state of the Union and ordered to be printed. Mr. HULL, of Iowa, from the Committee on Military Affairs, submitted the following REPORT. [To accompany S. 8143.] The Committee on Military Affairs, to whom was referred the bill (S. 8143) granting to the Chicago and Northwestern Railway Company a right to change the location of its right of way across the Niobrara Military Reservation, having considered the same, report thereon with a recommendation that it do pass. The foregoing measure passed the Senate on January 8, 1909, and as a full report was made thereon, the same is hereto annexed and made a part of this report. [Senate Report No. 722, Sixtieth Congress, second session.] The Committee on Military Affairs, which has had under consideration the bill (S. 8143) granting to the Chicago and Northwestern Railway Company a right to change the location of its right of way across the Niobrara Military Reservation, hereby makes a favorable report to the Senate upon said bill, and recommends that it be passed. The Chicago and Northwestern Railway Company, as the successor and owner of the lines formerly operated by the Fremont, Elkhorn and Missouri Valley Railroad Company, is now maintaining and operating an existing line in Nebraska which passes through the following parts of the Fort Niobrara Military Reservation, to wit: The south half of section 8 and the southwest quarter of section 32, township 34 north, range 27 west of the sixth principal meridian. In the development of its own business, as well as that of the country, it has become necessary for the Chicago and Northwestern Railway Company to change the alignment as well as the grades of its lines in Nebraska, particularly in the vicinity of said military reservation. In furtherance thereof it has also become necessary to replace a wooden bridge now forming a part of its line across the Niobrara River, which forms a part of the western boundary of said reservation, with a permanent steel structure. The existing bridge used is about 80 feet above the river bed of the Niobrara River. The new proposed bridge will be at least 138 feet above the bed of said river. On account of the increased height of the new proposed bridge and the abruptness of the banks of the river and the lay of the ground on either side of the new proposed right of way south of the river it is necessary to have a strip of ground 400 feet in width from the southern boundary of said reservation, commencing at the south line of section 8 and extending northwesterly to the river, a distance of about 2,200 feet. This will make it possible for the bridge to be built from a prominent point on one side to another prominent point on the opposite side of the Niobrara River, maintaining the grade of the line of road as it will approach and depart from said river. To secure this end it is necessary to relocate its right of way at a point about 500 feet, and of the dimensions above described, west from the existing right of way across the portion of said section 8. From the river northwesterly the line of road as relocated will continue to diverge from the old line until it enters the village of Valentine, a distance of about 3 miles from the river. That portion of the existing line of the Chicago and Northwestern Railway where it passes through the southwest quarter of section 32, as aforesaid, will be abandoned, leaving a less number of acres to the right of way, as proposed to be located on the reservation, than is contained in the old existing right of way. At present the right of way of this railroad on the reservation is three-quarters of a mile long and it enters the reservation twice. By the proposed change and shortening of the railway it will only enter the reservation once and it will be only 2,200 feet in length. Less ground will be occupied by the new route than is now occupied by the railroad. The bill was referred to the War Department for comment and report, and was returned with the following indorsements, indicating that the change in location of the right of way is approved by the department: [Second indorsement.] WAR DEPARTMENT, OFFICE OF THE JUDGE-ADVOCATE-GENERAL, Respectfully returned to the Secretary of War. The accompanying bill (S. 8143, 60th Cong., 2d sess.) purports to authorize the Chicago and Northwestern Railway Company, the owner of the railroad constructed by the Fremont, Elkhorn and Missouri Valley Railroad Company, to change the location of its railway across and through the military reservation of Fort Niobrara, Nebr., which railway is located in the south half of section 8, township 33 north, range 27 west, to a point in the same subdivision. The crossing is now in the southwest corner of the reservation at a point remote from any buildings, and it is understood that the new location of the right of way is to be a little nearer the southwest corner, and that the purpose of the change is to permit of the crossing of the reservation on a high grade to reach the higher ground on either side of the reservation at this point and to meet the requirements of modern railroading. The bill purports to grant a new right of way, not exceeding 400 feet in width, in lieu of the existing right of way, and provides that it is to be "so located as not to interfere with any buildings or improvements on said reservation, and the location thereof to be subject to the approval of the Secretary of War." While the right of way appears to be unusually wide, it is understood that this is desired in order, as above stated, to permit of the crossing on a higher grade than the existing crossing. In view of the location of the railway and of the facts recited above, it is recommended that the bill be returned with report that the department has no objections to its passage. GEO. B. DAVIS, WAR DEPARTMENT, January 7, 1909. Respectfully returned to the chairman Committee on Military Affairs, United States Senate, inviting attention to the foregoing report of the Judge-AdvocateGeneral, and with the information that the department has no objections to the granting of the right of way under the provisions of the within bill. EXCHANGE OF CERTAIN LANDS IN FORT DOUGLAS MILITARY RESERVATION, UTAH, FOR LANDS ADJACENT THERETO. JANUARY 12, 1909.-Committed to the Committee of the Whole House on the state of the Union and ordered to be printed. Mr. HULL, of Iowa, from the Committee on Military Affairs, submitted the following REPORT. [To accompany H. R. 23863.] The Committee on Military Affairs, to whom was referred the bill (H. R. 23863) for the exchange of certain lands situated in the Fort Douglas Military Reservation, State of Utah, for lands adjacent thereto, between the Mount Olivet Cemetery Association, of Salt Lake City, Utah, and the Government of the United States, having considered the same report thereon with a recommendation that it do pass. This bill provides for the exchange of certain lands situated in the Fort Douglas Military Reservation, State of Utah, for lands adjacent thereto, between the Mount Olivet Cemetery Association, of Salt Lake City, Utah, and the Government of the United States. The proposed legislation has been referred to the War Department for information and remarks, and is approved by following indorsement: [First indorsement.] WAR DEPARTMENT, Washington, December 22, 1908. Respectfully returned to the chairman Committee on Military Affairs, House of Representatives, United States. The land described in the first section of this bill, though of greater commercial value than that described in section 2, is of no practical military value whatever; whereas the ownership of the land described in section 2 is necessary to the Government, in order that it may be enabled to use the target range on the Fort Douglas Reservation. It lies immediately behind the butts, and the owner claims is rendered useless by the danger to live stock grazing thereon from passing bullets. The exchange of these two parcels of land, being in the interest of the Government, is therefore recommended. ROBERT SHAW Oliver, An act passed by Congress and approved May 16, 1874, authorized the Secretary of War to set apart a tract of 20 acres within the limits of the Fort Douglas Reservation for a public cemetery. |