The Herald. PUBLISHED EVERY EVENING. MONDAY, SEPTEMBER 7, 1908. THE BANKRUPTCY ACT.

Pahiatua Herald, Volume XIII, Issue 3114, 7 September 1908, Page 4

The Herald. PUBLISHED EVERY EVENING. MONDAY, SEPTEMBER 7, 1908. THE BANKRUPTCY ACT.

.V petition was presented to the House <it Representatives recently by Mr F. C. Haumo, member for Auckland East, from the Auckland ffhnntlier of Commerce ami Auckland merchants, asking for a commission of inquiry as to wind amendments to the bankruptcy laus 0.l the Dominion are desirable. It is asked that the commission should consist of the senior Oflicial Assignee of the Dominion, with one or two lending merchants and a similar number ol experienced accountants, and that it should be empowered to prepare cr cause t i he prepared a. mew Hill in substitution of the present Bankruptcy Act. The petitioners ask that the law should be remodelled and amended, "so that while insol-

vents, as at present, receive every protection when their conduct has been bona llde, the general public and (lie commercial community, whom the bankruptcy laws particularly nfli'c. 1 , should have their interests safeguarded, and he afforded more adequate protection against dishonest traders and insolvents.” It is stated that since the present Act was passed

in 1882 there has been a large increase in population and trade in the Dominion, and that the Act now fails to meet the altered conditions of trade. “That the administration of the Act is not considered satisfactory,” says the petition, “is also proved by the large and increasing number of private assignments to creditors’ trustees, a practice that is inimical to the best of the commercial community.” A reduction in the size of bankruptcy districts, increased remuneration for Official Assignees and the appointment of one or more judges to attend solely to bankruptcy business, are among the amendments desired by the petitioners. The remodelling of the Act was recently considered by the 'Wellington Chamber of Commerce Council, as the outcome of a communication from the Auckland Council, when it was resolved that the Minister should he approached by way of deputation, so that a Bill might be drafted which the Chambers could consider during the recess. The. suggested conference of Chambers was considered, and it was decided to defer holding the same until March next. In the meantime the Pahiatua Chamber might take into consideration the same question. Amendment of the Act is imperatively necessary, as honest traders’ interests are not fully safeguarded against dishonest involvents. The administration Oif bankrupt estates is also a matter that will hear investigation, as in many instances creditors are comi pletely in the dark as to whether : these estates are or are not administered in their best interests. The present Act is certainly an excellent medium for bringing grist to the mill . of the legal fraternity, but it affords little protection to honest business people. The average dividend in estates is about balf-a-crown in the pound, and often much less, and creditors frequently speculate as to j whether the game is worth the candle in going to the trouble of secur--1 ing these small dividends. The much, i abused credit system is responsible for ! many bankruptcies, and if traders ! could be protected from “bad marks” there is no reason why the bankruptcy . law should not in time be abolished. gj..g: S