CHAMBER OF COMMERCE.

Star (Christchurch), Issue 3798, 17 June 1880, Page 4

CHAMBER OF COMMERCE.

A spivial c i '" t '*"fil m. ethi{; t the members -of the Canterbury L'hataber of Commorcc wa> held at three o'clock yesterday afternoon, foi the purpose of considering certain proposen 'amendments in the Bankruptcy laws, a* suggeste 1 by the Committee of the Chaxher. There were' present' Mr G. G. Stead (President), and MrssM* J. Inglis, T B. fraig, Hargreaves, Hori J. T' Peacock, Struthers, Mitchell, Cameron, P. Cunningham, Com al, E. Walton M'Dougall, Pavitt, Graham, Cuff, •Bobinßon, and Carrutheis. The President Baid that Mr Wilson, a member 'of the Committee, had requested an apology to bt< made for his unavoidable absence. The purpose' of tha meeting of today would-be gathered from the advertise--ment. "The Committee had held two long meetings to consider the subject, questii ns liaving beeu received by telegram from the Bon J. N. Wilson, Chairman of Committee Legisla-tive-Council, and' Mr W. T^'wnie Stewart. Ohairman of Committee i' >use of Representatives. Those question* 'iad been published in th 3 newspapers, a-- ' ho would now •read the suggestions made b> the Committee. 'SJbey were asfollows : — 'fl. On whose application a debtor Bhould lie made- bankrupt ? The Act of 1876 gives power to both debtor and creditor to file a petition in. bankruptcy under certain circumstances, and iB sufficient. M 2. By whom the Bankrupt's Estate Bhould bo administered ? The estate should be 'Tested in the* Registrar until meeting of creditors appoint trustee or trustees who . need not necessarily be - creditors, aB in Act •1876, but every trustee or trustees Bhould be •-compelled to file with the Registrar of the Supreme Courfc> every six months a complete ■'debtor and '-creditor account of the estate, with a written statement of its position and • prospects, or become liable to a heavy penalty. (Court to provide rules and decide penalty for non-fulfilment of • conditions). Every . trustee should he made to keep a separate banking account for each eßtate and pay all monies into that account, and when he files the details of the ■ estate's t 'ansactions he should, be compelled to h-- < in the bank book, -with all-vouchers mad pto date. ?3. The circumstances wl .' • should disen•title a. bankrupt to- his disc' -^c? The Act of 1867 is eefficienb for ;.il: a, "beginning at dame 120. . 1 4. -Whi ther any, and if so, what alterations should be made in the law relating to •-bills 'of tale ? ' The present law remain in force, but should- be amended to meet the following resolution- recently passed by the -.Chamber : — The practice of taking transfers of ' fire policies by way of security, without taking any security over the goods insured, ought to be made illegal, and the transfers of ■policies ought to be included under the Bills of Sale Act, and registered accordingly, and be made subject in all respects to the provisions of ths". said Act relating to assignments • of personal chattels, including bankruptcy. "*s.\\Whether the right of distress for wartents should not be modified ? Clause 83 of the Acfc-1876 gives a right of distress for rent aftertthe bankruptcy tor 12 months. Rents for town properties, should be preferential for '6 months, and -country properties for 12 months '*4s.'<By whom a- bankrupt -hall be prosecuted, and whether any fu- ' ought to be created out af- whioh tbe •• -ts should be paid 1 ? The Crown Proßecu ••-, if instructed Dythe trustee or trustees, or -ipon an order being given, by 'the Court. All unclaimed dividends and. other estate surpluses should be pnt toa fund,, out of which the cost of all prosecutions should be paid as far as practicable, the balan'-e/if any, to be provided for at the public expense. ,e f?. What claims.should he treated as preferential ? • In clause 106, present Act, a clerk is entitled to six months' salary in full, but a workman is entitled to two months. We can-not-see why there should be • any difference. We would make them equal, by giving them three months' salary, and allow them to prove for the) balance. j "■6. Whether the present mode of arrangement by deed should be continued ? —Yes. "9. Whether any debtor should not obtain hk discharge, after open hearing in Court ? j — Tse. .And any .. creditor should be able . ottheron persoH. or. by his solicitor, to oppo»e ! his (discharge. A bankrupt not getting his disohargo shQaldv.be liable to be sued or j his goods seized > by the trustee at any time. " JRecommendation . of Co'nmittee : — We would suggest that any creel i or writing to the trustee Bhould be entii I- >, seven dars after .serving such notice, to u«e a clear statement tnd position- of any estate." Übe Committee were .indebted to Mr Walton for the major portion of the suggestions. They were submitted by him in writing, -and the Committee went very carefully through tbem, discussing every item aB it came up. 'Fully two-thirds of the suggestions were adopted jusfc as. received from Mr Walton. The Chairman .added that he had received suggestions from a leading solicitor. The writer,.in concluding. his remarks, suggested — " That a clause should he introduced empowering -the Court in any proceedings in bankruptcy or by deed pf arrangement, filed mndsrthe Aot, to make any judgment and decree in a summons to be issued by the trustee against the debtor, or every other person holding .property of the debtor's, in the same manner and with the same . jurisdiction, that the Court or a Judge paw has to make any order, decree or judgment, upon being satisfied in evidence -that the trustee is entitled to such property. This power would put a stop to a great number of frauds which are now perpetrated with perfect impunity." The President added, that b fore -forwarding the various suggestions to (Wellington, the Committee had deemed .it advisable to call a meeting of the Chamber, the matter being so important. It might he that membors would wish to suggest amendments , in the answers before they were sent up. Mr Inghs thought it quite right, to answer the questions very much in the direction indicated. He understood the intention of the Government to be not to make anew Act, for which there was not time, but. to introduce amendments in the present Act, leaving the making of an entirely new, law for a future time. The speaker would support the recommendations of the Comniittee, which followed the same line that had always been adopted by this Chamber. Mr Inglis sketched the history of the movement .in connection with the bankruptcy laws on the .part of the Chamber, showing that a Jaijge amount of time and attention had for many years been given to the subject. He specially referred -to the disappointment caused by Mr Bowen's Act, and eulogised the present recommendations, which he believed would be endorsed br the Committee of the House. He was yglad to see that the Committee had .so con,*iitently followed the principles agreed upon .all along by the Chamber, and before the , recommendations were taken seriatim as pro_poied, he would briefly comment upon .some ,of .them. Mr Inglis deprecated the~existing proxy system, as allowing sometimes ob- . jeotionable trustees to be appointed. When auph a system of canvassing went on as obtained at the present time, it was incumbent that something should be done to put JMtop to it, and he would suggest that proxies should not be received from persons . residing within a radius of say 15 miles. The . speaker referred to one or two other points. . ,Mr .Walton said that Mr Bowen really produced anf Act which was bo utterly unwork- . jable that he had to do away with it, and substitute, the present Act which appeared to be . a hurripd. ..collation from the Act of 1867. ,'Xhat Act .of 1867 was — with certain amendments perhaps the best ever introduced in Zealand. Clauses 157-8 gave power to •search any premises, and to seize any goods, ,ptx6. it gave a certain right over after-acquired .property, whether that was equitable or not. The speaker referred to the syßtem of touting, jmd^said that it h*d got to be the practice for snenvwho oould obtain nothing else to do, to at#rt as trustees in The system of .recognising an trustee until the meeting of creditors,*tended to oheck, in a J*7oat measure, the propensity to touting ; and ttie official-trustee couldc-through the registrar — - he. called 4o account at^my time the orediton wished,. At the same, time the bankrupt naturally lpoled to him Spr advice and in--ttruetton. As it was now, everything seemed to be in a state of oonfusiQp, with no one directly reeppnaible. The Act of 1867 appeared to .give alUhe powers oroditors could require, ahd this might well be taken by the Government as the grand basis of ; a jtiew Aot. Some portions had been taken, but others, constituting its very .essence, had been left untouched. The President proceeded to read the awmtions and replies ttriaiim. In oonneotion with clause _J, the President explained more in detail the views of the Committee, who had considered that in the •majority of estates a trustee appointed from Jfo general body of CTp&top Rpnjd b# better

able to conduct an estate successfully thnn an . flieiil rt.'eignee, who would prooably have nb u-chniddl knowledge of the business being d.'iilt with. : It was true that in an estate where therti were no ass.-ts an oniciul trustee would be useful. air Walton, in answer to a remark- which had fallen from the President, claimed that au ofliciil touter would, afc ;all -events, be a respectable one, and that the appointment 0,l a lavge -eroditor. as trustee was often more a question •of sympathy than ability. He fejt thafc nt the present time the trustee was extremely difficult to get at 5 he was often a mj th. Mr Inglis contended that Mr Walton's arguments were not sound, and that creditors wero juet as cafe inthe hands -of a private trustee atsio&amofficial one. A member said tbere were now -two classes of trustees— the pi irate one and the certified accountant. In the last mentioned ease there was no guarantee for. his solvency, and this, .perhaps,' was a. point- which the Chamber might take into consideration. Mr Hargreaves felt,- from personal experience, that Mr 'Walton's theory did not agree with his praotice in days gone by. The speaker had known cases in which creditors had been ■ seriously -interfered with, and he considered that they- should not . be even annoyed iin thei.management of what was really their own property. He would-be glad if the Committee could see their way to pufc some suggestion before 1 the Government, so that there might not be,- as at present the chance of some outside person thrusting himself into the room, armed with proxies, aud claiming precedence over, the creditors. Further expressions of opinion .were made to the effect the -use of proxies should, at any rate, be- kept wi' hin well-defined limits. tmsm^^Z Mr Connal suggested that tbere should be a limit placed, upon tbe>- voting power of any non-creditor. He would move—" That a person not a .creditor who attended, a meeting should be entitled to use not more than two proxies." The President suggested., that the motion should be put into such a form as would make it an addition to the answer 'of the Committee. Mr Harley. suggested that the, question of voting by iproxy should be .made, an extra clause in the answer. ., After, the words "as in Act, 1876," there .might be added ?f but who muat be a certificated accountant in bankruptcy." Mr Connal moved .that after . the . words "As in Act, 1876," there be inserted : "And that no person present shall -hold more: than two proxies'" Mr Inglis seconded the motion. Mr Bobinson cited, a case within .his \experience, with 'the object of showing ithat the limitation of .proxies would occasionally prove an injustice <fco the. general body of creditors. He thought bhat the. good sense of the creditors would generally, keep the .pnoxy system within due bound? j and he would point out that there must be one of two. systems in vogue— either that ,. of < .Government interference, or of allowing creditors to work their own way. Mr Uonnafs addition * was .carried by a majority of one vote,, and the answer, as ao amended was agreed to. The remaining answers were agreed to. In connection with the added recommendation of the Committee,* Mr Craig pointed out that by rale 43 of the- Supreme Courfc a creditor could, on payment of one shilling, see such statement within .reasonable hours. Mr Walton characterised that rule as a vexatious and obnoxious one. He considered the recommendation of tho Committee a very good one, and much; fairer, to tho trustee, giving time, if necessary j for the,. preparation of accounts. The recommendation. of the Committee was agreed to. Mr Walton moved — "That it be a recommendation to the Government that- the five clauses in the Act of 1897 relating to the concealment of property, should. be embodied in the present Aot." Mr Cunningham thought, that, perhaps the matter was best met by the recommendations which had been read from a legal, gentleman. He would move — " Thafc the ppini.on.be embodied in the recommendations, to tho Government." The motion was seconded by >Mr Walton, and agreed to. The President called attention to, the nonprovisicn for punishing a debtor for false swearing, notwithstanding tbat they, piighfc.be heard upon oath. He might swear as falsely as he chose to the trustee, .and there was no remedy against him. Members considered that iin. s.uch case an information ought to be laid hy the trustee io the ordinary course, and the man should be punishable. The same punishment ought to be awarded, if a man committed .perjury before a trustee, as if he perjured himself before a magistrate. Mr Cunningham remarked that . in. several cases where the trustee had felt doubtful, the debtor had been taken before a justipe of the peace and re-examined. Mr Walton moved — " Thafc the attention, of the Government be called to an omission in the present Act." A trustee can ezamine.upon oath, bufc no penalty is provided in .case of falBG swearing. The proceedings then terminated.