BANKRUPTS AND PUBLICITY.

Auckland Star, Volume LII, Issue 213, 7 September 1921, Page 4

BANKRUPTS AND PUBLICITY.

In tho course of proceedings at the Supreme Court yesterday Mr. Justice Adams expressed a view about examinations in bankruptcy that will startle the commercial community of the Dominion. It has long been the practice to report examinations of bankrupts under the authority of the Official Assignee at his office, and we do not remember any complaint being made in a responsible quarter that the admission of the Press to I these proceedings has been abused. Mr. [Justice Adame, however, strongly dis- : approves of the practice. "I wish to say," his Honor remarked yesterday, I "that I consider that the practice of. I public examination to be an extremely ] undesirable one," and he went on to j express the hope that in future it would be resorted to "only in cases where there are grave reasons for such a course." With all due respect to his Honor, we cannot agree with this view, and we are j sure that our disagreement will foe shared f by the rest of the New Zealand Press and by the public, Ilia Honor attaches too much importance relatively to the intertests of bankrupt!) and not enough to tho (interests of tho oommunlty. If thero ie to bo no public examination of a bankrupt before the Ofllclal Assignee, how is the business world to be sure of getting i adequate information as to the details of Ithe failure? That it should be fur* nished with this information >c import tant, and nn examination often brings out much more than is contained in the ! bankrupt's statement, which, we presume, Mr.. Justice Adams would not ■ withhold from publication. Does ft i bankruptcy involve fraud, of is it tho result of incompetence or carelessness, 1 or is it a eass of sheer misfortune? For ! its own preteetion the public is entitled ! to be enlightened on tliese matters. The j bankrupt doaa not remain a bankrupt , for ever, Sooner o~ iater he begins to I buy and sell again, and it is conseI quentiy desirable that these with whom ho deals should know something about his ability mid character-: If examinations before the Official Assignee are to J be held in camera the innocent bankrupt I and the guilty one will fee placed en tho same level; the one will be unabio to transmit the proofs of his innocence to the world, ana the other will be able to I conceal his offence. Jube as publicity is ' necessary in some cases in the interests I of business and business morality, it is I desirable in pthers in the interests of ' the bankrupt. It sometimes happens that a man has been compelled, through no fault of his own, to seek the protec- , tion of the law, in which case the creditors may decide to do all they qan to " facilitate liis discharge, and even condole with him in his misfortune. Publicity is surely right and proper in such a case. Mr. Justice Adams holds that only "grave reasons'' justify pub-

licity. Who is to be the judge of the sufficient gravity of the case? The Official Assignee, we presume. NewsI papers hold a high opinion of the ability [(and integrity of Assignees, but it is desirable that such power should be given to them, or would they willingly be saddled with the responsibility of exercising it'/ We cannot see why any distinction should be made in this respect between Magistrates' Court proceedings and those before the assignee. If a man contracts a debt, and cannot, or will not, pay it, Ire is liable to be sued in open Court. Why should the affairs of a bankrupt, who is merely a debtor on a large scale, not be subjected to the same publicity?