THE BANKRUPTCY ACT.

Evening Star, Issue 14038, 20 April 1909, Page 7

THE BANKRUPTCY ACT.

HAVE THE SUGGESTED AMENDMENTS BEEN SUFFICIENTLY , .CONSIDERED? This question presents itself naturally. Ail that the public know'about it is that certain Chambers of Commerce have expressed" the opinion that changes should be made, and that the Conference in WeU iington on Wednesday last adopted a. serifs of resolutions on the subject. So far as is revealed. - the Dfiiiits',nt issue have never been’discussed with that carefulness and minuteness that the question demands. At any rate, if there has been any. such discussion', it was in camera. The only hint as to the', consideration -bestowed at Wellington is that “ Mr A!. Myers kindly gave Ihe Conference the benefit of his professional experience in the working of ilia law, and explained the effect of the rer.oln, lionssubmitted." Tih gravity of tho pro. positions scams to demand something inure than this, and in--order to onen up the question we now present to liie public a few arguments that may be raised per uontra, leaving those concerned to rcijlv, and thus help, perhaps, to bring out "public opinion .on the subject. 'I he resolutions of (he Chambers of Comuunce t.onlcrcmc secin to raise two Hiding question.) lust. Has the administration ol' :nc ’present Bankruptcy Act fallen IhrouMi because- of I lie' inefficiency of those whose duty is-[o administer it; Second. If the present system he swept a wav. is [lie scheme outlined by thj Conference likely to produce bettor result.-,? As to the first "of lliew; propositions, il may be imagined tint stress is laid on the fact .that nowadays many estates are piivatety - administered instead of going through the hands of the Official Assignees! and that comparisons of results have'been made to the prejudice of ihe Official .-W----signeqs. On this point, it is but fair to bear in‘mind ail the circumstances, i'aitlv out, of sympathy with the debtors, anil partly from a natural desire on the part of creditors to avoid the full glare of the open court, private trustees have been resortcd to for many windings up. arid it is es.-crti,] that as a rule the cleanest and most di-ir-able estates have gone in that diiection. leaving tm- less desirable estates —those with no assets and those of persons whore conduct has been mini!isfaetoi v-—to he dealt xvit.ii by the Official Assignees. As a result. Ihe privaie assignees" Slave been able in the majority of cases to pav fair dividends, whilst the Official AssWuee-.! have had to struggle with impn.-sibiliiHc Ihe average, business man is t>, busv oven his own affairs to take rnneli nole i f ihe causes in ,-u-di cases.- He simpiv rmt.'-s t L-e result, and. not imualm-allv. wain's ihe conclusion tha-t the piive;.-. a.-sigu-c svslern is the better one, Iwean e i;'hm peid him dividends, {'!... .i,? n W wnclner the i: i vr.l; rv Tm would have come out so well if it' laid taken ail the estates. Again, she re.-oluti'-ns ;>r tI iha! tiie estates ot _ bankrupts in narv eases have been unduly sacrificed. Tim pro,)? ~f this is so far wanting. Delffors invariably inibuo tueir assets, and mmaiiv lail to disclose par; Of their liabi!itim. so that in nearly evo-y. the forma! statement £ives nopus thin arc unattjiin.iljiu when the tine posit ion is b.w. iTrdiiors seldom ff.Ov into t.ice mat!er>. Seeing ii stated tiiat hj, w,,. done-, or Robinson, owes so unteli and owns sm much, tlmv enmo to the conclusion that the e.-tate ought to produce f r^ 1 "' I - anii ""ben they have to Am 2- 6d instead of 5s (hev assume that ffe Assume! l is at fault. " Fortunately. ‘ ' rc "y v ''Lich the Government can testvt.:? cotrectness or -otherwise ~t • ( • ( ,.b ,nrt ; i l T : nco res «totion on this sunject.. .I fm Ainuste;- in charge can if c„ d!spoee(U,mscci' !; ,ii, exactly i;ow this and that estate panned out and how it should have panned out, and it is to be hoped duo the. ic-t will be applied before the i; solution ,s assuuu-d to discredit the 081. cial Assignees. to Ihe .second proposal: to onhstKtite private trade as-igimm-,. presumably for cacn did net. Thc.-c' [uivato assignerx -“C. •’•■•"tr.-d coni ml. ;ill d apparently ilic.v are not to be Civil i.-rvants. inox .no to be nu-n witii ,xp,c.:ial qualiii.-a----(lous such .fs, will help them reiiUrx esates to pyahtage. From whence ere such men to lie ontairied? Arc they available? It te very cloulfftid whether tine fees u ,ui!d ■ittiact the man wim .g making a Mm,. 6 of lusmwn be-m-m. mtlTs :„d i; i; , , )ne xxho htus got the bull bv the head and tor avarice would undertake the additional otitles, ,ajtd,jit', woidd hardly be a desirable peison.Tox several rcakono, <,f wind, it is 3tece«iiirv to mention only the orm that m tnany ctise-.x !u, ini vale mt er.Y-t.s ~v his nusmess relattonsliips would danlt with the Jiitei’Ccts <;f I hr- Huch ;t;j ment would not last long. [(. „ liiv b! .mto ps.d. tno, ihv.t the depat‘merit, noui-l mff. in defamt o} the capable hteiuesa man. am poill: a I' ,ro Y. ,ld 'Ucapahhe. nor one „f who-'e abduy nothing is known,' 8o Liu- choice iv tanko of the and such a choice xvouk u.-.-tohessanly be fiatisfaciorv. \ knowledge nr. accountancy is not tlm one qu.tlihciuiom lor winding up Abutv ~unim [ J ,cc, l i,uL:,iu,s lack‘ihe imieu r" ‘j 1 - 11 U ' , S iur • Sl * " H,L ' h iM real’s, -a-, to the best uclvaiU-ige. And tlm man who poeses.-txs trade knowledge iw w .|| ~ mn.g qualified as ,-,n iiccoumant imiv not to so peculiarly fit for the ,^ t one might *Upi!Oc.i;. for Ih.lhOrl cases Mich I man would knew only one i radc,' Fvm supposing lieu ho know.) all ebon; the l. or .-omc pathc-ahr .-.rtije the r; mgttce m mot likely to malm stock wi'f v-i V n to*' lt - ihe chamm: arc that 1m xvi.l yaH an ;m . v,.,. r: , k) , t) p.ac-uc-a, tiu.s tjtterTion of knowito- ; r dogs not count for muc h. NT ,7,.,,. know all trades, but he can air. ays -m ticoeryiccs ot an exput who m up to daG Tt y asserted, bcsnkc, that in bankruptcy m. tors tnc lm i.hc do not want mm-h <Yperi, guidance or check. A bankrupt -- tato, it lanly put on to the market, will gem-tally command fair -rim. U , ( , V 1,.; ot the advertisement, and Iffddmm are'i-o keen to permit of the goods luing sacri-

m i'f 1 ’!-' 1 la( ■ here ' i[ i rmiiisatin Trl • Ul ° tf * 1>« that the 'Way as ..early i 3l ]( . ?3I11 t „ t !. t - K,oM€ot s (.veclitoi'M. want full' value. and to yet ml rains the .rvs.ynee km to mrsa :!U <] , d!torK ; liid f dte U wait. This is hi icconhuicc _\v l lh b,mines? cxpcrienm. nhsie, and it iwluyhlv doubtful whether pm ate alienee? would be able to make [H-'oplc more prompt in eetUino. Further, it in proposed to institute a' ktvHi> ~f tentral control, and if that means that all ciucstHins are to be submitted to Wallin. r . ton it must sure.lv mean more (May ' The present -proposals look van- much Wee a- return to some of the eviii (; f ti „. Debtors .'md Creditor* Act of W76 v.-ht p ! he Bankruptcy Act miperr-ede-i. m<kr that Act estates worth only £SO or £6O Titiver yielded a dividend. N» sensible person would seriously conlend that the Bankruptcy Act ha.i kvn always administered properly. ft n lnv even he assumed that there have been miloiluuale appointment* in the past. But t.ie new nmu who now hold the assienoe- • ; II P m the chief centres have not vcf had time _to prove their litmus or othorwi??, and m fairness they cm "lit to have an non?,si trial before they are condemned and thevv office übob^lieil.

. Ojm consoling thing about this business rs that the Hon. Dr' Findlay, the- Miiti-:-ot ', j'toice. H .-mv lo (‘•xaniino into the whole question belon- proposing any t .itiTige to Parliament. He has the facts at command, and he possesses the ability to analyse and appraise those facts. Ho is .liorctore pretty sme to act justly if he •■cts tu, all. The important thing' iu ihe meantime is tiiat the public should suspend judgment and not, seek to unduly force ihe .lands oi tnc Government in-this matter.