Bankrupt Merchants Jailed for Contempt
Judge Hanford jailed Seattle clothier Samuel Njac and Alexander Isaacs for contempt over $15,000 owed creditors.
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Yesterday afternoon, Federal Judge Hanford, in the bankruptcy proceedings against Samuel Njac, a clothing merchant of Seattle, and Alexander Isaacs of San Francisco, adjudged them guilty of contempt in disobeying the court's order. The judge ordered them to be confined in the Pierce County jail until they paid certain moneys to their creditors. The two men made an assignment for the benefit of their creditors, and as the creditors refused to accept their settlement, they filed a petition in bankruptcy. The referee reported that they had goods and chattels to the amount of $18,000. They were ordered to pay their creditors $15,000, and this they refused to do. Recently the trustee reported that the money had not been paid, and as neither of the subjects could give excuse for not having paid it, Judge Hanford adjudged them guilty of contempt and the jail sentence followed.
“The judge ordered them to be confined in the Pierce county jail until they paid certain moneys to their creditors.”
This case highlights the strict, often punitive enforcement of bankruptcy law in the early 20th century, where federal judges wielded significant power to order incarceration for failure to settle debts. It serves as a reminder of how the legal landscape regarding commercial failure has evolved from a matter of criminal contempt to a structured financial process.
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