THE BANKRUPTCY ACT.

Otago Witness, Issue 1897, 12 June 1890, Page 11

THE BANKRUPTCY ACT.

MEETING OF CREDITORS. A meeting of the creditors of Thomas Lindsay, of Palmerston, stock dealer, was held in the office of the official assignee on Friday afternoon. The following creditors wore represented:— Maclean and Co., Donald Reid and Co., Farmers' Agency Company, New Zealand Loan and Mercantile Agency Company, H. S. Mackay, Wright, Stephenson, and Co., and J. Everest. The bankrupt's statement showed the total liabilities to be £2576 7sl7d, and the [assets £172 6s 7 d, leaving a defiolenoy of £2343 Is. There were aeoured oreditors to the extent of £450 13s sd, and the estimated value of seourities £510. The principal unsecured creditors are: Donald Reid and 00., £1077 16s 9d; Farmers' Agency Company, £920; John Everest (Palmerston), £133; Reid, Maclean, and Co., £55 13s 4d ; Fleming and Hedley (Oamaru), £85 ; Lawry (Palmerston), £50; H. S. Maokay (Palmerston), £50 ; J. W. Millar (Hweburn), £37 10s ; J. Culling (Hillgrove), £30 10s ; A.B. Kitchener (Dunback), £30 ; Wright, Stephenson, and Co., £26 16s Gd. The secured oreditor was the Colonial Bank, and the security consisted of mortgage overtreehold sections. The assets were made up of 23 head of cattle and 800 sheep, valued at £35 and £75 respectively, and 800 shares In the Victoria Quartz Mining Company, and one-fortieth share in a Nenthorn mine, together valued at £3.

The Official Assignee said he had received a doctor's certificate stating that the bankrupt was suffering from rheumatic fever, that he was uuablo to leave his bed, and that it would iv all probability be five or Bix weeks before he would be able to leave the house. The bankrupt's solicitor (Mr Findlay) had sent down the papers, which were now before the creditors. On hia way from Oamaru he (Mr Ashcroft) had stayed at Palmerston and made certain inquiries. He wenfc into the matter of the bank account, and asked the officials to send down a statement of the account for three months. This account he had just; received. It appeared that the bankrupt's debit balance at the bank on the 28th of February was £464, and at the time of flltDg £414. In the meantime the account had been dealt with to the extent of £1500. He went over the previous six months' business, and found the transactions amount to about £6CiOO, but there was only one cheque thai required explanation, and that explanation had been since given. 'Jhia cheque was respecting a racehorse, for which £50 had been paid to M'Gee. The only other assets that were known of besides the 23 head of cattle and some few sheep that had been sent for, were a few head in a paddock, which Mr Keid, of the Bank of New Zealand, had distrained upon for rent, £7 10s. As to the racohorseß there were four— Kuby, Fossicker, Peasblossom, and Seacltff. The trainer had certain charges on these. On Kuby, valued at £50. there was £15 payable ; on Fossicker, valued at £15, there was £15 payable ; on Peasblossom, valued at £5, there was £8 payable; and on Sencliff (siu.ee sold) there was £3 10s payable. He suggested thit the horses should be put up for sale as soon as possible. Ruby was the only one that was likely to yield more than the claim on it, and if it did not, then there would bo nothing.

Mr Donald lteid eaid he was aorry the bankrupt was ill, but that fact should not prevent him saying what ho would have preferred to say in the bankrupt's presence. The statement showed that within the last six weeka the debtor had had from him some £700 worth of »tock, and within three months £1080 worth. Nothing at present disclosed showed where more than half of that had gone to, asßum'ng that all the piyments that had been made had come out of it. The first ti ansactioa he had had with tha debtc.r wns with reßpecfc to some lambs bought from the Kartigi estate, £1080. He (Mr Reid) agreed that this should stand over till shearing time, and he gave his word of honour, as far as that would po, tlmfc they were not to be sold or deposed of. The other stock he purchased were to be paid for on delivery. He sympathised with the bankrupt, but sympathy on account of his illness could not hide the fact that the debtor only a few weeks eince tried to get l,im to deliver to him 1000 sheep from the Wanska Btation, the last communication regarding them having been made on the 12th May, when the debtor was absolutely insolvent. If a highwayman met them they had some defence from him, they could defend themselves, aud the law would seek him diligently, aud prosecute him severely ; but when met by a man with a fair face and a good reputation, who alleged that he waß doing a safe business, and by lying pretences got hold of their money, they had no protection whatever. A highwayman was nobhiDg like so bad as such a man. Highwaymen were generous and left something to the people they robbed ; but the men he referred to robbed them of more than they possessed, leaving them in debt to others. It was surely time they should speak up and ask that the bankruptcy laws should be put on such a footing that they should no longer be a terror to those who did well and a praise to those who did wickedly, but that they should bo "a terror to evildoers and a praise to them that do well." He knew that the assignee could not alter the law; but surely they were not to meet in solemn farce aud see money tat.en from them and the men who took it go about the respected of the lund, while the losers spent anxious days and nights iv consequenceof the wickedness of those who defrauded them. Of course if creditors did anything to brirjg such debtors to book they were hardhearted and tyrannical, and the others were poor and depressed and worthy of all sympathy. He would undertake to say that none present, with the exception of Mr SteplK-nson, could keep a racehoise. He himself had enough to do to keep a hack ; bub this man, who had a thousand pounds of his money, for which he should not receive a thousand shillings, had a stud of racers. Was it not a crying evil that the only remedy for this was that a man who acted in this way might not get his discharge ? What did this matter ? A man who did not get ills discharge could trade in his wife's name, and the highest iv the land -provided they had not suffered through him — would take him by tho hand, and ho would carry on us high a3 ever. Just prior to the meeting of Parliament they ought to dheefcattenliou to tin's slate of things, and ask the legislature to devote some time to finding a remedy. Ho believed ho could suggest a remedy, and he certainly hoped that one would be found.

The Assignee remarked that he was not sura there was no remedy. It was clearly a very disgraceful case.

Mr Reid eaid they had had simi'ar cases. In one the debtor had given a seoarity over the security he had previously giveu to him (Mr Keid), and that man was to-day prosperously trading in his wifo'n name, lv another c<ise of glaring robbery he hml told the solicito. 1 to spend it need bo hundreds of pounds tv make m\ example of the wrongdoer, and the reply was: '"Jho difficulty when you have to proceed against an unsmupulous man is that you may spend money to get yi-nrstOf into trouble. 1 would ad visy you to leavo him alone." That was the state of the law; men dare not take proceeding's against the wrongdows. It was true that if they proved a man to have deliberately swindled them, and were prepared to rjieni pni-haps twic- as much aB they bad lost, aud rt lb'> the ribk ot punishment ;n well, something might b j tone; s ul, fchero should )m some simpler remedy. It need !>■} the Government, ought to take act ioti in hioli ea^es for surely nonu desired that it uh-mUi ( .o forth as the reputation of their 'dopted country tJiat nono but rogues and swindlers could succeed iv it.

The Assignee entirely avnuiatlilsod with the romarks Mr lioid hail made us to the disgraceful character of thn.e transact 011. The act whs defective, and the judges had discountenanced summary proceeding* ; a very strong caae waa needed to secure a con victioi 1 ; the sentences were short, and in one or two instances the convictions had been upset in consequ 'lice of technical defects, attributable to t) c fact that forms were not provided In the act. In the new bill it was proposed that the Governmei fc should t»»ke the whole responsibility if the Crown prosecutor advised that there wi.s a case. If this bill passed it would be of great, assistance, as at present there w..t a' ways a certain amount of risk in tal.iug proceedings against a debtor, and uulesa backed by th» creditors he could not take that ri&k.

On the motion of Mr D Ei i.i it. was unanimously resolved— •' That the a6aiguee ruke uteps to find out, what stouk has bden bou«lit and sold by the dtbtoiduring the last six months, to trace ihe proceeds, and. if necessary, t', take leta! advico " Mr Grindlev moved, nn-i it was resolved—" Th tl the racahoraeß should be sold on the following day by Mr Steplieiiion " The meeting waß then adjonrne.l for a fortnight.

Mr J. G. Ward, M.H.R , delivered an address «m Federation at InverrargilJ, on (Monday night, speaking strongly iv favour of the movement and of New Zealand joiuhig in. A vote of thanks for the address given aud another expressing confidence in the speaker as a representative were passed.

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