JUDGE RICHMOND ON THE BANKRUPTCY LAW.

Evening Star, Issue 726, 2 July 1887, Page 2

JUDGE RICHMOND ON THE BANKRUPTCY LAW.

In the Bankruptcy Court at Wellington Mr Justice Richmond said that the manner in which the penal and penalty clauses of the Act had been drafted showed not only carelessness but want of brain power on the part of those concerned. Waters’s examination was continued. His Honor, in giving judgment in Waters’* case, said when debtor’s statement of March 31, 1886, was drawn up Waters must have known that lie was hopelessly insolvent; therefore, it was only a question whether Waters at this time knew himself to be insolvent. He would at once give i-n affirmative answer. He was satisfied!)/ the authorities cited by Mr Skerrett that the fact that bankrupt continued to carry on business long aft.r he knew himself to be insolvent would not justify him in convicting, and it was a most unsatisfactory state of law. The books had been disgracefully kept. Nothing could have balanced them, nor was any attempt made, to balance, although he was not prepared to say that these books did not truthfully set forth the state of the transactions of the bankrupt. In fact the books did so, with one exception, which was subsequently and prior to the bankruptcyrectified. He {the Judge) did not see his way to exercise summary power to commit the bankrupt. He should undoubtedly have exer cised it had subsection 2 of section 171 of the Act applied to the case, but the English autho rities quoted as to the section did not apply. He therefore declared the bankruptcy closed, and the examination finished.