1.—5

1882. NEW ZEALAND

JOINT BANKRUPTCY LAW COMMITTEE (REPORT OF THE).

Urouglit up Qth July, 1882, and ordered to he printed.

ORDERS OF REFERENCE. Extracts from the Journals of the House of Representatives. Friday, the 26th Day oj? May, 1882. Ordered, " That a Select Committee be appointed, to consist of nine members, to inquire into and report on the operation of the present bankruptcy law, and whether it requires any further, and, if bo, what, amendment; or whether any, and, if so, what, other system would, in the opinion of the Committee, be more effective for the objects to be attained; the Committee to have power to call for persons and papers, and also to confer with any similar Committee appointed by the Legislative Council; three to form a quorum ; to report within a month. The Committee to consist of Mr. Dargaville, Mr. Fisli, Mr. Holmes, Mr. Levin, Mr. Montgomery, Mr. Peacock, Mr. Shrimski, Mr. H. Thomson, and Mr. WynnWilliams." — (Hon. Mr. Dick.) Tuesday, the 27th Day of June, 1882 Ordered, "That the Bankruptcy Law Committee have leave to postpone the bringing up of their report for a fortnight." — (Mr. Wynn- Williams?)

REPORT The Joint Committee have had before them the English Bankruptcy Act of 1869, the Amendment Bill, 1879, and the Amendment Bill, 1881; as well as the interim report of the Joint Committee of the two branches of the Legislature in 1880 ; also the questions and answers thereto forwarded by their Honors the Chief Justice, Mr. Justice Richmond, Mr. Justice Johnston, and Mr. Justice Williams, of the Supreme Court; and the answers received from the various Judges of the District Court; and they have also read the letters from Mr. T. B. Craig and others, and also a voluminous report from the delegates appointed by the various Chambers of Commerce. The Committee consider, looking at the numerous attempts which have been made since 1825 in England, and for many years in this and neighbouring colonies, to establish a sound principle for bankruptcy proceedings, and the utter failure even of the last and most carefully-prepared Act— namely, the English Act of 1869 and the amendments thereto—to effect this desired end, that it is most difficult to provide against the frauds and various other contingencies which arise out of the reckless, or at least too easy, trading which is carried on under a system of indiscriminate credit, especially with regard to the smaller class of tradespeople and their poorer customers. It becomes therefore almost an impossibility to frame an Act which will meet all the various phases of bankruptcy arising from such causes as these. The above views with regard to Bankruptcy Acts are confirmed by the various and conflicting opinions of the Judges and others, given in the report referred to. (Journals and Appendix, Legislative Council, 1880, No. 2.) A reference to the report above referred to will show that even the Judges of the Supreme Court, whom it might be expected would be the most competent to offer opinions on the subject of bankruptcy, have found it difficult to answer satisfactorily many of the questions put to them, and in some instances have not answered them at all. There are various and conflicting opinions on that muchvexed question, viz., the desirability of doing away with bills of sale, and the learned Judges have not given much assistance in enabling the Committee to arrive at a satisfactory conclusion on this subject. In the answer of one of the learned Judges as to punishing fraudulent bankrupts, it is recommended that creditors should prosecute by leave of the Court, a course which appears to your Committee to be almost prohibitive, as it involves the necessity for indicting a bankrupt and proceeding according to the usual costly and dilatory process of the Courts ; and. it has therefore been recommended that the Court should deal with certain cases summarily.

I—l. 5.