THE BANKRUPTCY LAW.

Stratford Evening Post, Volume XXXI, Issue 45, 7 October 1911, Page 7

THE BANKRUPTCY LAW.

At the annual meeting of the Masterton Chamber of Commerce, Mr It. Brown moved;— “That an amendment of the present law is desirable, providing that no private assignment of estates shall be made in future without the consent of a Judge (or Registrar) of the Supreme Court.” in speaking to the motion, MiBrown said that private assignments of estates x wcre becoming very common. Meetings of creditors were hold in out-of-the-way places, and private assignments made,. Tbei-e should he hotter protection for the smaller creditor. Were the- matter delegated to a Judge of the Supreme Court, the interests of all parties would ho,

protected. Mr J. C. Ewington stated that he was thoroughly in accord with the motion, and spoke feelingly on the subject. He knew of half a dozen cases in connection with private assignments in which he was interested, and of,these only one had been a legitimate one. The Chamber would do well to support the proposal. Mr J. Caselhcrg desired to know

in what way it was proposed to protect tho smaller creditor. He pointed out that they wore already protected. Mr Brown said that they were not protected enough'. Mr Keith: I do not think there-is much to bo gained by such a proposal as wo are discussing. Outside creditors can always sue for, what is owing to thorn. A. private assignment doesn’t get a debtor out of paying what he owes to a person not a party to such an assignment. Thej-c is no great grievance, (pid I think ! a resolution such as thik would bo, simply feeding tho lawyers; 1 1 : Mr .). Brown moved, as an amendment, that the matter bo referred to the Council to deal with.

Mr Ewington: “The .system is being abused, and too many are being whitewashed.” Mr Ewington said he knew of a private assignment gt, which the principal creditors belonged' to Wellington. They sold no everything, and there was nothing left for the small man. Cases wore goingon in Masterton at the present time that should not be allowed. Mi Keith said that an alteration m the Bankruptcy Act was really needed to deal with cases of persons owing a small amount going bankrupt and thus being “whitewashed.” Alter some further discussion, Mr if. Biown said lie was fjuite agreeable to the matter going to the Council. The amendment was then carried with the addition that the Council also go into the matter referred to by Mr Keith.