DEEDS OF ASSIGNMENT.

Evening Post, Volume XLVI, Issue 22, 26 July 1893, Page 4

DEEDS OF ASSIGNMENT.

TO THE EDITOB. Sib — Apart from the question aB to whether your remarks on the working of the new Bankruptcy Act can be borne out by the fctrict letter of the law, the fact clearly remaiiiß that the practical results are exactly as stated. When the presont Act came into force you pointed out, in a leading article, man; objections to private assignments, and predicted the very results in that tliroction which now render the measure partially inoperative. Although the combined commercial wisdom of the associated Chambers of Commerce was employed in making numerous suggestions, many of which found embodiment in the Act, it haß become a law un o the few only, while the many escapo. There are probably six private assignments to one public bankruptcy, all the better estates going through tho former process, while only those much involved are forced into Court by their very poverty. TJbi mcl, ibi apei. You remark, truly, that "large oreditors frequently ignore or bounce Bmaller creditors by acting on tho deed of assignment without the concurrence of all concerned." I know of instances where the deed haß been drawn out and signed by some of the creditors before the others actually knew the debtor was in difficulties ! — drawn, in fact, on the pretty safe assumption that the smaller oreditors would not deem it worth opposition. Untortunately, it is not always the cose, even, " that such deeds are useless unless accepted by all concerned." For instance some time ago. in Auckland, a creditor objecting to a pre-arranged assignment filed a petition in bankruptcy, but when the case came before the Court it was decided under section 39, sub-section 3, that the assignment should not bo interfered with, consequently the opposing creditor had to fall in with it. Now, in the face of this, and for many other reasons, few small creditors will hold out against a majority, especially when everything is so nioply and considerately arranged for them beforehand. It stands to reason that a bankrupt will not go through tho Court if ho can avail himsolf of a quick and easy process of private absolution. In the latter case, there is generally only one meeting ot creditors; the debtor is practically freed at ouco, whatever may turn up afterwards; everything is left in the hands of the Assignee, and the creditors accept without further question the result of tho clean-up. Surely the Official Assignees, with a stringent law to aid them, ought to be in as good a position to realise an estate as profitably aB private persons working for their own benefit. If not, then, I say, the sooner we get rid of them and tho Act the better. I am, &c, Whitewash.