CREDITORS' MEETINGS.

Dominion, Volume 4, Issue 1076, 15 March 1911, Page 6

CREDITORS' MEETINGS.

Th£ Official Assignee has again come into conflict with a. meeting of creditors and again severe strictures have been passed on the methods of this public, officer. Some of the creditors concerned in the estate of the bankrupt whose affairs were under consideration yesterday ex.' pressed themselves so strongly on the methods '. of' this. .State ..Department that it seems desirable that the matter should be probed a little deeper if the public interest is to be served. So far as the facts disclosed in the bankruptcy in question are concerned, the dates of certain happenings which are important to the issue do not appear to have been clearly stated. It would-seem that the bankrupt, one Jacobs, a baker, had succeeded in accumulating very heavy debts in a very little time, and the creditors desired a public examination of the bankrupt in order to get to the bottom of things. Owing to delays which took place the bankrupt was enabled to leave the Dominion before the order for the public examination was made. In fact, the man seems to have left New Zealand some three months, or thereabouts, before tho summons against him was issued. This was early in November last, and it was only very recently, apparently, that the creditors learned what had happened. The Official Assignee, in answer to their protests against Jacobs being allowed to escape in this way, talked somewhat vaguely about delays clue to the absence of a Judge from Wellington, 'and so on; but his explanation was not received with any degree of approval by _ the creditors, and it is not surprising in tho circumstances that this should be the case. The explanation on tho face of things was'a very' lame one and calls for further inquiry as to the steps taken, including the date on which the Officiar'As'signce first moved in the matter and his subsequent efforts to carry out. the wishes of the creditors. The tone of this public servant towards those brought into contact with him on questions connected with his Department has on previous occasions been strongly resented, and with good reason. Apparently he does not always realise that he is tho servant of the public and not in a_. position to assume dictatorial airs entirely out of keeping with his office. ■ The most serious aspect of yesterday's meeting, however, was the allegation that merchants in the town have lost confidence in the Official Assignee's office,-and that this accounted for" the large number of private liquidations that, are taking place. 'Whether or not this is correct wc cannot pretend to say. . That the tendency in business circles is towards the private liquidation of embarrassed estates is undoubted, and the result is that the public knows a great deal less than it used to about what is going on amongst traders and business people generally. The bankruptcy returns which at one time were regarded as a kind of trade barometer are quite useless for that purpose to-day. Whether this is due to the methods of the Bankruptcy Department or the class of officials appointed thereto, or to some other cause, may be a debatable point; but the condition of things existing renders it all the more necessary that when definite complaints are made against the Bankruptcy Office they should be closely investigated, and if changes are necessary they should be made. On present appearances the Official Assignee's Department would seem to be almost a superfluity—it might very well be _ dispensed with, altogether and licensed liquidators appointed in its place.