Rise and Fall of Cesar Birotteau by Honoré de Balzac (classic books to read .TXT) 📖

attend to it. The commissioner, however, delegates an agent to take possession of the property, the securities, and the merchandise, and to verify the schedule; when this is done, the court appoints a day for a meeting of the creditors, notice of which is trumpeted forth in the newspapers. The creditors, real or pretended, are expected to be present and choose the provisional assignees, who are to supersede the agent, step into the insolvent's shoes, became by a fiction of law the insolvent himself, and are authorized to liquidate the business, negotiate all transactions, sell the property,--in short, recast everything in the interest of the creditors, provided the bankrupt makes no opposition. The majority of Parisian failures stop short at this point, and the reason is as follows:

The appointment of one or more permanent assignees is an act which gives opportunity for the bitterest action on the part of creditors who are thirsting for vengeance, who have been tricked, baffled, cozened, trapped, duped, robbed, and cheated. Although, as a general thing, all creditors are cheated, robbed, duped, trapped, cozened, tricked, and baffled, yet there is not in all Paris a commercial passion able to keep itself alive for ninety days. The paper of commerce alone maintains its vitality, and rises, athirst for payment, in three months. Before ninety days are over, the creditors, worn out by coming and going, by the marches and countermarches which a failure entails, are asleep at the side of their excellent little wives. This may help a stranger to understand why it is that the provisional in France is so often the definitive: out of every thousand provisional assignees, not more than five ever become permanent. The subsidence of passions stirred up by failures is thus accounted for.

But here it becomes necessary to explain to persons who have not had the happiness to be in business the whole drama of bankruptcy, so as to make them understand how it constitutes in Paris a monstrous legal farce; and also how the bankruptcy of Cesar Birotteau was a signal exception to the general rule.

This fine commercial drama is in three distinct acts,--the agent's act, the assignee's act, the _concordat_, or certificate-of-bankruptcy act. Like all theatrical performances, it is played with a double-intent: it is put upon the stage for the public eye, but it also has a hidden purpose; there is one performance for the pit, and another for the side-scenes. Posted in the side-scenes are the bankrupt and his solicitor, the attorney of the creditors, the assignees, the agent, and the judge-commissioner himself. No one out of Paris knows, and no one in Paris does not know, that a judge of the commercial courts is the most extraordinary magistrate that society ever allowed itself to create. This judge may live in dread of his own justice at any moment. Paris has seen the president of her courts of commerce file his own schedule. Instead of being an experienced retired merchant, to whom the magistracy might properly be made the reward of a pure life, this judge is a trader, bending under the weight of enormous enterprises, and at the head of some large commercial house. The _sine qua non_ condition in the election of this functionary, whose business it is to pass judgment on the avalanche of commercial suits incessantly rolling through the courts, is that he shall have the greatest difficulty in managing his own affairs. This commercial tribunal, far from being made a useful means of transition whereby a merchant might rise, without ridicule, into the ranks of the nobility, is in point of fact made up of traders who are trading, and who are liable to suffer for their judgments when they next meet with dissatisfied parties,--very much as Birotteau was now punished by du Tillet.

The commissioner is of necessity a personage before whom much is said; who listens, recollecting all the while his own interests, and leaves the cause to the assignees and the attorneys,--except, possibly, in a few strange and unusual cases where dishonesty is accompanied by peculiar circumstances, when the judge usually observes that the debtor, or the creditors, as it may happen, are clever people. This personage, set up in the drama like the royal bust in a public audience-chamber, may be found early in the morning at his wood-yard, if he sells wood; in his shop, if, like Birotteau, he is a perfumer; or, in the evenings, at his dessert after dinner,--always, it should be added, in a terrible hurry; as a general thing he is silent. Let us, however, do justice to the law: the legislation that governs his functions, and which was pushed through in haste, has tied the hands of this commissioner; and it sometimes happens that he sanctions fraud which he cannot hinder,--as the reader will shortly see.

The agent to whom the judge delegates the first proceedings, instead of serving the creditors, may become if he please a tool of the debtor. Every one hopes to swell his own gains by getting on the right side of the debtor, who is always supposed to keep back a hidden treasure. The agent may make himself useful to both parties; on the one hand by not laying the bankrupt's business in ashes, on the other by snatching a few morsels for men of influence,--in short, he runs with the hare and holds with the hounds. A clever agent has frequently arrested judgment by buying up the debts and then releasing the merchant, who then rebounds like an india-rubber ball. The agent chooses the best-stocked crib, whether it leads him to cover the largest creditors and shear the debtor, or to sacrifice the creditors for the future prosperity of the restored merchant. The action of the agent is decisive. This man, together with the bankrupt's solicitor, plays the utility role in the drama, where it may be said neither the one nor the other would accept a part if not sure of their fees. Taking the average of a thousand failures, an agent would be found nine hundred and fifty times on the side of the bankrupt. At the period of our history, the solicitors frequently sought the judge with the request that he would appoint an agent whom they proposed to him,--a man, as they said, to whom the affairs of the bankrupt were well-known, who would know how to reconcile the interests of the whole body of creditors with those of a man honorably overtaken by misfortune. For some years past the best judges have sought the advice of the solicitors in this matter for the purpose of not taking it, endeavoring to appoint some other agent _quasi_ virtuous.

During this act of the drama the creditors, real or pretended, come forward to select the provisional assignees, who are often, as we have said, the final ones. In this electoral assembly all creditors have the right to vote, whether the sum owing to them is fifty sous, or fifty thousand francs. This assembly, in which are found pretended creditors introduced by the bankrupt,--the only electors who never fail to come to the meeting,--proposes the whole body of creditors as candidates from among whom the commissioner, a president without power, is supposed to select the assignees. Thus it happens that the judge almost always appoints as assignees those creditors whom it suits the bankrupt to have,--another abuse which makes the catastrophe of bankruptcy one of the most burlesque dramas to which justice ever lent her name. The honorable bankrupt overtaken by misfortune is then master of the situation, and proceeds to legalize the theft he premeditated. As a rule, the petty trades of Paris are guiltless in this respect. When a shopkeeper gets as far as making an assignment, the worthy man has usually sold his wife's shawl, pawned his plate, left no stone unturned, and succumbs at last with empty hands, ruined, and without enough money to pay his attorney, who in consequence cares little for him.

The law requires that the _concordat_, at which is granted the bankrupt's certificate that remits to the merchant a portion of his debt, and restores to him the right of managing his affairs, shall be attended by a majority of the creditors, and also that they shall represent a certain proportion of the debt. This important action brings out much clever diplomacy, on the part of the bankrupt, his assignees, and his solicitor, among the contending interests which cross and jostle each other. A usual and very common manoeuvre is to offer to that section of the creditors who make up in number and amount the majority required by law certain premiums, which the debtor consents to pay over and above the dividend publicly agreed upon. This monstrous fraud is without remedy. The thirty commercial courts which up to the present time have followed one after the other, have each known of it, for all have practised it. Enlightened by experience, they have lately tried to render void such fraudulent agreements; and as the bankrupts have reason to complain of the extortion, the judges had some hope of reforming to that extent the system of bankruptcy. The attempt, however, will end in producing something still more immoral; for the creditors will devise other rascally methods, which the judges will condemn as judges, but by which they will profit as merchants.

Another much-used stratagem, and one to which we owe the term "serious and legitimate creditor," is that of creating creditors,--just as du Tillet created a banker and a banking-house,--and introducing a certain quantity of Claparons under whose skin the bankrupt hides, diminishing by just so much the dividends of the true creditors, and laying up for the honest man a store for the future; always, however, providing a sufficient majority of votes and debts to secure the passage of his certificate. The "gay and illegitimate creditors" are like false electors admitted into the electoral college. What chance has the "serious and legitimate creditor" against the "gay and illegitimate creditor?" Shall he get rid of him by attacking him? How can he do it? To drive out the intruder the legitimate creditor must sacrifice his time, his own business, and pay an attorney to help him; while the said attorney, making little out of it, prefers to manage the bankruptcy in another capacity, and therefore works for the genuine credit without vigor.

To dislodge the illegitimate creditor it is necessary to thread the labyrinth of proceedings in bankruptcy, search among past events, ransack accounts, obtain by injunction the books of the false creditors, show the improbability of the fiction of their existence, prove it to the judges, sue for justice, go and come, and stir up sympathy; and, finally, to charge like Don Quixote upon each "gay and illegitimate creditor," who if convicted of "gaiety" withdraws from court, saying with a bow to the judges, "Excuse me, you are mistaken, I am very 'serious.'" All this without prejudice to the rights of the bankrupt, who may carry Don Quixote and his remonstrance to the upper courts; during which time Don Quixote's own business is suffering, and he is liable to become a bankrupt himself.

The upshot of all this is, that in point of fact the debtor appoints his assignees, audits his own accounts, and draws up the certificate of bankruptcy himself.

Given these premises, it is easy to imagine the devices of Frontin, the trickeries of Sganarelle, the lies of Mascarille, and the empty bags of Scapin which such a system develops. There has never been a failure which did not generate enough matter to fill the fourteen volumes of "Clarissa Harlowe," if an author could be found to describe them. A single example will suffice. The illustrious Gobseck,--ruler of Palma, Gigonnet, Werbrust, Keller, Nucingen, and the like,--being concerned in a failure where he attempted to roughly handle the insolvent, who had