CHIEF SCOUT

Wanganui Chronicle, Volume 79, Issue 30, 5 February 1935, Page 8

CHIEF SCOUT

ARRIVAL AT AUCKLAND ■ ! GROWTH OF THE MOVEMENT ' [ Per Pfchii AMociarion. ] AUCKLAND, Feb. 4. As the Aorangi drew' alongside the wharf this morning, a contingent of Boy Scouts raised their voices in a haka of welcome to the Chief Scout i Lord sßaden-Powell), who, leaning over the rail from the boat deck, shouted his thanks. Lord Baden-Powell was accompanied by his wife, two daughters, and Colonel Granville Walton, commissioner for the Rover Scouts in Britain. They left England on October 27, and at each port inspected Scout and Guide rallies. The Chief Scout spoke in high praise of the international jamboree al Al el bourne, being particularly impressed by the brotherly spirit of the Australian boys in welcoming the visitors from Oriental countries. He said that there were in the world 10-day 2,269,545 Scouts and 1,204,869 Guides. The mox.ement began 27 years ago. The outstanding need in the upbringing of youth to-day was an adequate system of health culture. Signor .Mussolini and Herr Hitler had recognised that, but the training in Italy ami Germany was compulsory and had a military aim. There were only three countries without, the, Scouting movement* Germany, Italy and Russia. Scouting in Gvrinany had been superseded by the militaristic youth movement. In Italy Signor •Mussolini had adopted man of the leachings of Scouting. Scouts were, not recognised in Russia because they were unable to take a vow to God. Lord Baden Powell, who will be 78 years‘of age this month, hopes for a quiet fishing holiday in the North Island after the Auckland welcoming functions are oxer. ~

pear equitable on to-day s values might prove to be grossly inequitable in even so short a period as twelve months. Existing Legislation “In the Bankruptcy Act there is on the Statute, Book adequate machinery for the settlement- of creditors’ claims if a person be insolvent. “The proper course for a debtor who is unable to meet his obligations in full is to effect a compromise with his creditors by mutual arrangement, and failing his being able to do so, to invoke the protection uf the Bankruptcy Act. It is the considered opinion of the committee, that if the present Mortgagors’ Relief Act were repealed today, the number of farmers who would find it necessary to file in bankruptcy would be very few; not only so, but of those who did file, few would be dispossessed of their farms. The conscientious, capable farmer would be almost invariably reinstated by his first mortgagee on the property the moment he got his discharge.

Assistance From corporation. “The committee is very strongly of the opinion that the proposal that the Mortgage Corporation be authorised to take over, at its discretion, existing mortgages, financing these at a low rate of interest, up to an amount not exceeding 80 per cent, of the security as revalued, the State accepting a contingent liability for one-eighth of such mortgages, is utterly and totally unsound. “In the section of this memorandum dealing with the Mortgage Corporation, the committee has expressed the strong opinion, which it now wishes to emphasise, that any mortgages taken over by the Corporation should be taken over after revaluation on a sound lending basis without contingent liability, either on the part of the Corporation or any other party. “Mr Coates’ pamphlet left, in doubt the question whether the private mortgagee whose mortgage might be taken over by ’the Mortgage Corporation would be paid by the Corporation in cash or in bond. Mr. Coates has assured the committee 'that in such cases the mortgagees will be paid in cash. The committee urges further that in no case should the Mortgage Corporation take over private mortgages without the prior consent of the mortgagee. “Assuming that there is some real necessity for further legislation, the committee considers the proposals should not be limited to one section <»f the community, namely, the farmer. If there be any reason to make special concessions to mortgagors, the committee cannot see any logical reason for discriminating between farmer mortgagors, and other mortgagors. Why should not similar concessions be made Io struggling country storekeepers who have done their share towards keeping the farmer on 'the land, and xvhose difficulties are largely due to th inability of farmer, customers to pay for goods bought? In the opinion of the committee, if the proposals go through in their present form, they will involve the ultimate bankruptcy of a large number of country storekeepers. Equality of Sacrifice. “If it be necessary that sacrifice should be made to maintain the farming industry, then it should be national and should be shared by the whole community. Under the. rehabilitation proposals as explained in Mr. Coates' pamphlet, sacrifice is demanded of one class of the community only, namely the farmers’ creditors. The committee would stress that the sacrifice will fall only on mortgagees of land, stock, and chattels, but also on al] the unsecured creditors of the farmers. “This principle is unsound and inequitable Hitherto the special assistance extended to the farming community has been at 'the expense of the community at large, and if further special assistance should be given it should not. be at the expense, of the class which has already suffered great losses in the. financing of the man on the land. “The proposal that one class of the community (the farmers’ creditors) should bear the cost of the rehabilitation of the farming industry is inequitable and unjust. The committee believes that such procedure would have far reaching effects and would cause widespread distress among many classes, as well as among mortgagees. In the long run the effect may very well be further to damage farm credit and ultimately to injure rather than nsit time whom tin* propoab are de signed Io benefit. Astounding Proposal rhe proposal that, an insolvent person should be allowed to retain 2d per cent, of the xalup. of his assets is an astounding one. If a trader or a pro-

fessional man has, through misfortune, to invoke the protection of the Bankruptcy' Act, he is entitled to retain furniture, clothing, and tools of trade lo a value not exceeding £5O. On the other hand, an insolvent farmer, whose assets are valued at, say, £lOO,OOO, is lo be allowed to retain £20,000 at ’ih® expense of his creditors. ‘ ‘ Why should tho farmer bo arbitrarily allotted (at the expense of his creditor*, of whom the State may be one) a 20 per cent, equity- in his properly, whether or not swell equity exists to-day Is not the competent tradesman or shopkeeper, or auv other class of competent worker who has met misfortune and is to-day insolvent, also entitled to a similar concession? “The commi'tee thinks that the suggestion to allot arbitrarily to a farmer an equity in his property' at the expense of his mortgagees and creditors cannot be justified, but if any pro-

posal to this nature is given effect to, then the amount of such equity should be. determined by an impartial tribunal and should be subject to a modest maximum limit not based on a percentage of a valuation of assets. What a farce it would be if a farmer with £lOO,OOO of assets, and liabilities exceeding those assets were allotted, at the expense of his creditors, an equity of £20,000 —a fortune to most people —while the storekeeper with assets of £5OOO, and liabilities exceeding those assets, has to seek lhe protection of the Bankruptcy Act, and is allotted a maximum of £5O in personal effects and tools of trade. Conflicting Interests “The pamphlet is exceedingly vague on the question of the relative rights of various ..lasses of cerditors. In the axerage case which will come before the proposed tribunal, it will be found that the mortgagor owns; Land live stock, plant, and implements, and other < ?sets. His creditors may -be classified as follows: Mortgagee or mortgagees of land; mortgagee, of chattels, preferential creditors (for instance, wages and rent ), and ordinary unse* Cured creditors. Under bankruptcy law the relative rights of these different classes of creditors are clearly defined. Mr Coates’ pamphlet docs not make clear what position is contemplated under the proposed legislation. “The committee urges that thy established priorities ami relative rights of creditors be left untouched.

“JUSTICE CAN BE DONE’’ ALTERNATIVE PLAN. RELJ EF LEGISLATION. “It will be understood from the. above 'that the committee regards the rehabilitation proposals as unsound, unjust, and dangerous. It believes that justice can be done to all parties concerned, including the farmer mortgagor, without wholesale repudiation of contracts, and without the unjust discrimination against one class of the community—the farmers’ creditors. “Again the problem resolves itself into two distinct divisions State mortgages and private mortgages. The committee makes the following constructive suggestions in lieu of the Minister’s proposals:— State Mortgages. “So far a mortgagors to the, various State departments are concerned, the committee has suggested in this memorandum the creation of boards with full power lo effect settlement with these mortgagors. Such settlement would be at the expense of the whole community, and would not prejudicially affect any particular section. Private Mortgages. “It, is, in the opinion of the committee, <•011101011 ground that the [iresent relief legislation is not altogether satisfactory. From lhe viewpoint of the mortgagor, the relief afforded is nicely temporary by way of suspending payments with a power of writing-otT, limited to arrears of iirterest. Mort gagees on the other hand, complain, and with some reason, ’that, there is no uniformity of practice. Gases apparently similar are dealt with in varying ways in difl'eren‘l districts. Much as the committee dislikes any proposal which validates repudiation of a contract, it, recognises that there is some necessity for amendment of the recent legislation. It urges that, hav-i-.g instituted a system of dealing with disputes between mortgagors and mortgagees, the Government should, if that, system has proved somewhat unsatisfactory, endeavour to improve upon il rather than to scrap it. ami substitute an entirely new and untried system. “The committee therefore suggests hi respect of private mortgages, an follows: • ‘‘(a) 'That orders under the present, legislation may be made to be operative until December 31, 193'.i. (The present Act expires on December 31, 1935, and orders may he. made under it having a currency of two years't. The proposal of the committee there-

fore means an extension of two years. “(b) That the existing Adjustment Commissions be reconstituted on the lines of the proposed special Court of Review, that is, an independent chairman and two associate members - [one representing mortgagors’ interests generally, and one representing mortgagees generally - thus increasing public confidence in these tribunals. “(e) That it be laid down distinctly that the, Judge (or magistrate) is bound to hear and consider evidence offered by either parly which was not available at the hearing before the Commission, and if necessary refer the ease back to the Commission. “(d) That a. full right of appeal to the Court of Appeal be conferred. This is essential if public confidence in mortgage lending is to be restored. “The committee had hoped that before completing the preparation of this statement, aA’lxance copies of lhe legislation would have been available to it. Unfortunately, such drafts have not been available, and tho foregoing comments are therefore necessarily based on the information gix on in the pamphlet bv the Alinisler of Finance, together with sinh further information i»s was afforded the committee in its <-onferem-es with lhe Minister and his staff. “The committee urges thal the Minister l ireii’ate tho draft of the pro posed legislation at the earliest possible moment, to give ample time for public consideration before its introduction to Parliament. “ The eommilli’o expresses its willing ness to co-operate xvith tin' Govern merit in further con s'3 •,”i ini of alternative measures for lhe sohilimi of the a d ni i 11 cd I x’ difTieuli problems of