A Decision in Bankruptcy.

Wanganui Herald, Volume XXIII, Issue 6885, 20 August 1889, Page 2

A Decision in Bankruptcy.

1 — ♦ — A reconfc decision of the London Registrar 3 of Bankruptcy is worth a passing roforenco, i as opening up new ground. AMr Laurence, j described as an Australian merchant, was tempted by the copper movement into speculation outside of his legitimate business, ami [ as a consequence of a first disastrous loss of P £1900 plunged more widely with the hope of recovering tho loss. Tko Paris collapse > of last March mado his position irretrievable, and ho had to coino to tho Bankruptcy Court. [ He offered 10s in the £, and with every prospect of paying it out of tho realisation of tho 3 estate free from bankruptcy liquidation. This tho Registrar admitted was likely, 1 while compulsory realisation only meant a 1 payment of 5s in the £to tho creditors, but i he rofuscd to sanction tho composition on > public grounds, viz., that tho Registrar is > more interested in the maintenance of a fair 1 standard of commorcM morality than tho t moro or less of insolvency of this or that ' particular firm. Tho London Times in re- !■ ferring to tho caso states : — , Tho duty of an official receiver is to mii form tho Court as well as to guard funds for tho advantage of creditors. In its oieoulion Ij ho could not, while admitting the scheme to be for the benefit of tho creditors generally, refrain from observing that it had boon I rondored necessary by rasli and hazardous 7 speculations. With that roporfc before it, f tho Court, as the registrar oiplained, was • obliged in somo way to express its grave i disapprobation of the dobtor's conduct. Unt lucky as it might bo, he allowod, for the ,' creditors that tho arrangement should be » roiceted, the Court was unablo, by aflirnii ing it, to relievo a trader " who had gone f out of his way to speculate and gamblo" i from any censure upon such an offoneo.