COMMERCIAL MORALITY.

Northern Advocate, 8 October 1887, Page 2

COMMERCIAL MORALITY.

It is with feelings of considerable pain that we place before our readers an article touching on the commercial morality of this township. Too often of late haye there been failures hushed up by prjvt-te arrangements. There is a prevailing idea that creditors get a larger dividend by a private arrangement than by allowing a debtor to file his schedule; yet, in how many instances hajve the creditors of insolvents in Whangarei received reasonable dividendsTnin how many cases have 'they refcwyed dividends at all? In many instances creditors are a good deal tmhlame themselves for allowing too r_4«l^credit; but still, on the other^^Hfc^^^^fe^figardeda-^ A tradesman, if'he atteia.lt such a thing, either before'he gives credit or after he allows it, is very often unpolitely told to " go and hang himself," and that the intending debtor will "do business elsewhere." Some more stringent measures than are now provided by our bankruptcy laws should be introduced to prevent people from carrying i on business when they know they are hopelessly insolvent, and_ so inducing innocent people to enter into contracts with them when in that state, and ultimately get only a shilling in the pound, if they even get that. We cannot help remarking the number of insolvencies that have taken place in Whangarei. Of course we are only too well aware that bankruptcies are pretty general throughout New Zealand, and the past and present depression may have been holding back its effects in Whangarei until lately. We can, however, point to at least one insolvency which has not been due to misfortune. In the instance referred to the party concerned narrowly escaped criminal punishment, the magistrate before whom he was brought, in leniently dealing with him, remarlang that no fraud had been committed against a certain individual, but against the creditors. Wherein the distinction lies we admit we have not sufficient acumen to determine, but bow to the decision of the Bench. This much, however, is clear, that i such is the gl^^u^uncertainty of the i law as it at present stands, an unprincipled person may deliberately, in broad I daylight, rob his creditors, and go away from our midst unmolested and in peace. The debtor referred to was, out of pure kindness, finally allowed to assign instead of facing the perils of the Bankruptcy Court. The moment the deed was executed he forthwith violated aJ-'hiß pledges as well as collected money belonging to the estate, which he appropriated to his own use and fled 5 and was brought back only to wriggle through the meshes of the law. There is something "_rottei_rm~tl-.tr state of Denmark" when such things are done. Again, a tradesman's wife may be made the medium of great commercial immorality. The " Married Woman's Property Act" seems to us to be a much greater curse than blessing. Under that Act a woman can hold and dispose of property Jas her own clear of her husband. In the case we have already referred to, the husband we find makes over his property to his wife before entering into business ; but, at the same time he, in point of fact, has the management I and control of it. He, to the general public, is a man of means, and enters I into engagements as such. When the pinch comes, K&wever, the' credi--1 tors find, to their dismay, that he is a \ " man of straw ;" and, as if to add ineult to injury, the creditors find on

examination, that the wife has quietly been pocketing, from time to time, considerable sums of money, and placing them to her own account in the bank* yet strange to say there is no evidence as to how she acquired these sums. We would ask, as the law now stands, what chance has an honest man against a scoundrel ? Perchance the honest man may get a judgment in the court, yet of what avail is it ? The debtor refuses to pay, atttHihe creditor has recourse to a distress warrant. The bailiff is allowed to take possession, but while he is shappily contemplating the scene, behold some Dick, Tom, or Harry thrusts under his notice a receipt purporting to be payment in. full for- the purchase of the goods seized;., and, when the validity of the document and the transaction is questioned, and when on examination it is found that but a trifle was really actually paid for what pur T ports to be a receipt in full, the poor creditor is told that, "though it is plain there has been a gross fraud committed, yet it is a fraud legalized by law, that he has no remedy," and he has to " grin and bear" his loss. And this is justice ! This is equity ! After this we can almost relish the radical ideas of Prince Kropotkin, when he says, "Do away with law and Government." To begin with, we would say, do away with the "Married Woman's Property Act." It is really a cover for injustice. Married woman's property and rights were equally well protected before that Act was passed, if people only undertook the trouble and expense, but the bona fides of the matter covered that. Our commercial laws require amendment and simplifying. As they stand, if a man is a clever rogue he can defy his creditors. Wo want justice and equity more firmly dealt out.