The Ashburton Guardian. Magna est Veritas et Prevalebit. MONDAY, JANUARY 29, 1883. A Case for Enquiry.

Ashburton Guardian, Volume IV, Issue 854, 29 January 1883, Page 2

The Ashburton Guardian. Magna est Veritas et Prevalebit. MONDAY, JANUARY 29, 1883. A Case for Enquiry.

Nothing is of greater moment to a commercial community than that some efficient means should be provided whereby those unprincipled men who, year after year, take advantage of the

existing state of the bankruptcy laws to defraud honest traders should receive the punishment they so richly merit. There can be no question that our bankruptcy laws are as rotten as they well can be, and it is no figure of speech to say that the proverbial coach and four can be driven through them with consummate ease. A startling instance of this was given in a recent case brought before the Christchurch Supreme Court, which we purposely refrained from referring to while it was sub judice. Now, however, that the case is concluded, we may mention a few of the facts in connection therewith. A man named William Brown, who carried on business in Ashburton as a contractor, filed his schedule in September last. A meeting of his creditors followed, and, as a matter ol course, the debtor obtained the protection of the Court. A trustee was duly appointed, and, according to the bankrupt’s statement, his liabilities were £n 7. while his assets were stated to be only £6. These latter consisted of book debts, which afterwards were found to be worthless. Brown was then examined as to the whereabouts of certain horses, harness, and implements used in his business up to the date of his filing, and which were still in his possession. This property the bankrupt said did not belong to him but to a relative, and receipts were produced to prove the truth of the statement. An examination of these receipts, however, gave iise to a grave suspicion as to the bona fides of the alleged transaction, inasmuch as they were dated February and March of last year, while in two instances the signatures on the documents were written over stamps that were not issued till late in April. sThis seemed to the creditors tolerably conclusive evidence that a fraud was intended, and a seizure of all goods and chattels on Brown’s premises was immediately demanded. This was accordingly done, the goods were sold, and a dividend declared by the trustee. The bankrupt was brought up before the Jocal Court, and the evidence against him was so clear that, on his being committed for trial, the Crown prosecutor took the case in hand. In his charge to the Grand Jury, His Honor Judge Johnston dwelt at some length on the law relating to bankruptcy, and very clearly set forth the facts in this particular case. A true bill was returned, but, greatly to the astonishment of those interested when Brown was place in the dock, the Crown Prosecutor announced that as he felt sure the prosecution must break down he had determined to abandon the charge. The Judge having acquiesced, the prisoner was accordingly discharged; Considering how strong was the evidence brought against Brown in the lower Court, the abandonment of the case at the last moment could not fail to be a matter of surprise. The reason of this action as we understand, was that the debtor, had on filing his schedule omitted to swear to the affidavit required when insolvency is declared. In short, he was legally not a bankrupt at all, and therefore he could not be tried undlr the charge in the indictment. That some gross mistake has been committed there can be no doubt, and a searching enquiry should be made as to who is the person responsible. Surely it is not fair that the creditors should be made to suffer from a mistake of an official whose duty it is to see that such documents as the one in question are pro: perly prepared and attested, to siy nothing of an unprincipled man allowed to go scot free, and enabled to snap his fingers at those whom he has taken advantage of. While it is possible for a dishonest trader to save himself from the,consequences of his acts by means of a legal quibble, it must be confessed that the bankruptcy laws as they at present stand are in need of amendment, and it is to be hoped that another session of Parliament will not pass before something is done in this direction.