RELIEF OF MORTGAGORS.

Taranaki Daily News, 2 September 1933, Page 12

RELIEF OF MORTGAGORS.

(To the Editor). Sir,—With wiser management the Mortgagor and Tenants’ Relief Act will yield finer fruit. The grafting of amendments is unnecessary, but probably pruning is required. Many, suffering hardship owing to the severe economic situation, find their grievances redressed. Quite voluntarily some mortgagees have granted relief. Nevertheless the commissioners must frequently have been able to order justly the fair payment in the circumstances. And with due attention to the principle of co-operation between the parties even better results will follow. What shall be said, however, when the whole obligation is escaped, and a mortgagee is adjudged so unworthy as to be allowed no interest at all? Surely the commissioners would hesitate and only very reluctantly decide that payments less than a half, or one-third, could, pos-

sibly be fair. To relieve from a full demand may be reasonable; but to exonerate completely and to wipe away clean an obligation should not be lightly enjoined. And the mortgagee was willing to forgo one-half, and even two-thirds of the interest! A competent economist fears that private lending will cease. Is it not high time for the equal prominence of an act to indemnify mortgagees for the unfair deprival of their equitable rights? But there is a better way. Our judges, who do really possess a true and responsible conception of the profound significance of the sanctity of contractual obligations, should closely scrutinise the application and result of the methods of inquiry followed by the commissioners, and not take too much for granted in supporting their findings.—l am, etc., PRUNER. Feilding, September 1.