OF NEW ZEALAND INTEREST

Otago Daily Times, Issue 21054, 17 June 1930, Page 10

OF NEW ZEALAND INTEREST

SOLICITORS’ FIDELITY * GUARANTEE. (Fbosi Oxjb Own Cobbespondent.) LONDON, May 8. In an article in the Solicitors’ Journal the working of the Law Practitioners’ Amendment (Solicitors’ Fidelity Guarantee Fund) Act, 1929, is explained in some detail. It is pointed out that, section 23 of the New Statute gives power to inquire into the affairs of firms, which for any reason are under suspicion;’ ‘’ The audit of the accounts of a big firm of family solicitors-who failed with liabilities running into hundreds of thousands of pounds, would, of course, be an extraordinarily difficult matter,” says the writer of the article, “ especially if the partners were hostile, i Such firms in the course of business deal with large 'sums of cash on behalf of dozens of different clients, and. misappropriation and concealment of misappropriation, is particularly easy. The auditor's task, however, though difficult, might yet result in exposing a long concealed insolvency, and preventing further loss. The New Zealand Statute, therefore. No. 15 of 1929, is 1 certainly worth the consideration, of the profession here, and could no doubt be modified "so as to be made the basis of a somewhat- less ■ ambitious .scheme in thiscountry." ‘ , FAILURES IN ENGLAND. ' i The subject’ is- also, dealt .with in the Daily. Telegraph. The writer recalls .that about 30 years- ago two or three big firms of family solicitors in London failed tor hundreds of thousands of pounds, the head of one being sent to penal servitude, while-the head of another only escaped that fate by committing suicide. It was a matter of general knowledge in the profession that both firms were insolvent,but naturally other solicitors had to be careful of libel, and could only wait until the equivalent of a '“run on the bank” came about, with consequent collapse. ■ “It is. no doubt, the small cases which bring discredit on the profession generally,” the writer continues, “ for the educated classes and business men, who arc usually trustees of large estates, should be able to protect themselves. “It may .be remembered that Armstrong, who was hanged for murdering his wife,,made a strenuous attempt to murder another solicitor, because he was,unable to produce money* which had been entrusted to him by a purchaser of land, while the other solicitor, representing the vendor, was pressing him to complete the matter. “Possibly, then, it might be in tire best interests of the profession to establish such a guarantee fund'as that now to be raised in New Zealand, with some limit on the amount to be paid to any one person—in New Zealand there does not appear to be such a limit —and, perhaps, confined to the honesty of solicitors personally, and not of their clerks. Such a fund would, of course, be protected, as in New Zealand, by giving the trustees of it. certain powers of audit of a firm’s accounts in ease of suspicion, or even powqr to exclude them altogether from the Scheme, on notice to the public. i “ The establishment of the fund would, no doubt, prove that solicitors generally placed the highest possible value on the honour qf their profession.” Dr G. A Weekes, late Dean of Nelson, spoke at the anniversary celebrations of the Cambridge branch of the Colonial and Continental Church Society. lie based his remarks on the diocese of Nelson. The difficulties .of the diocese, he said, were many. The people were chiefly dependent on the coal mines, which were on the west side of the country. There was also sheep farming and fruit farming, but most of the settlers were struggling and finding life pretty hard in one way or another, despite the good climate. Other difficulties included the problem of reaching the people, but the surprising thing was the promptitude with which the people gathered together for services. Tire* Roman Catholics were very strong down there, and there was also much communism. . After illustrating by many humorous stories how very unconventional the colonial clergy had to be, Dr Weekes appealed to the audience to support the colonies. One had'to remember, he said, that many of the settlers had gone ou’t with borrowed money, and after paying the interest on that money they had very little left for the bare necessaries of life. The moment, however, any community or parish was able to be self-supporting there was quite enough virile spirit to keep it going. By helping the overseas dominions people were helping to carry out and extend the Christian work of. this country, _ and wore rendering most valuable service to the Empire.