The Daily Telegraph. FRIDAY, APRIL 6, 1883.

Daily Telegraph (Napier), Issue 3659, 6 April 1883, Page 2

The Daily Telegraph. FRIDAY, APRIL 6, 1883.

The AVellington Chamber of Commerce appointed a sub-committee some time ago to examine the neAV Bankruptcy Bill prepared by the Government for introduction : to Parliament next session. The sub-com-mittee, at a recent meeting of the Chamber, presented its report, which is very lull and exhaustive. 'It will be remembered that, last June, a Conference of delegates from the several Chambers of Commerce was held at which certain recommendations were' made to tho Government; for the amendment of tho Bankruptcy Act. The report of the sub-committee therefore, to a large .extent,. deals with a comparison between those recommendations, and the

provisions of the new Bill, the manner in which they have been embodied, or ignored altogether. A AVellington contemporary summarises the report, from which we learn that, Avith reference to the proposed appointment of tAvo special Bankruptcy Judges, tho committee regret that the Government have not adopted the suggestions. The defects m tho existing system are in a great degree defects of administration, and they fear that there Avill not be a satisfactory' administration of the law until special judges are appointed for bankruptcy without any other functions. They also regret that the recommendation that_ a debtor should not, except under special circumstances, be entitled to his discharge unless or until his estate paid 10s in the £, has not been accepted. The object of the delegates in making this suggestion, Avas that it might come to be understood to be the duty of traders to place their affairs in the hands of their creditors so soon as they find that their assets represent less than 20s in the £ of their liabilities, instead of continuing until their assets are still further dissipated. It is submitted that Avith the saA-ing clause provided in sec. 164, no hardship or injustice Avould be likely to occur. The sub-com-mittee further suggest that in clauses 168 and 169, the Avords which make oomictions depend upon a jury being satisfied as to the existence of fraudulent intent should be omitted, as it has been found Aery difficult to get juries to convict under such circumstances. The mere fact of the bankrupt having committed the acts specified should be enough to render him liable to punishment, subject to the discretion of the Judge. The committee regret that the proposals were not acted upon—(l) that no debtor be allowed to file aa-lio has not £25 worth of assets beyond excepted articles as the present condition leads to great frauds, as there are some persons who file periodically and put doAvn their assets at £25, or less, in excepted articles; (2) that any undischarged bankrupt getting goods on credit subsequent to his declaration, and not informing the seller that ho is an undischarged bankrupt, and not eventually paying for such goods, be held guilty of a misdemeanour. They consider that insufficient poAver is given for the arrest by telegraphic message of absconding debtors. They urge that a debtor who failed to satisfy the Court that lii.s bankruptcy arose from circumstances beyond his control should not be alloAved to hold any public offii/ial position until he has paid a dividend of-ten shillings in the pound. They fear that the provision in the Government Bill against fraudulent bills of sale may ahvays be evaded by passing fictitious cheques, and advocate the adoption of the Alctorian plan. They further recommend — (1.) That the security to be giA-en by the assignee should be not less than £5000. This Avould tend to secure a first-class man. (2.) That the papers of a bankrupt should bo open to the inspection of any person on payment of a fee, as is the case at present. (3.) That a secured creditor should mean a creditor holding security o\-er any property of the debtor, whether given directly or indirectly through another person. (4.) That proxies should be signed before a J.P. (5.) That, in regard to leases held by a bankrupt, the landlord or other person interested should be required to give notice to the assigned, calling upon him to exercise his election, as in some cases the assignee might be ignorant of the existence of a valuable lease. (6.) That the secretary, manager, or other responsible officer of any company, society, or corporation in which the debtor held or Avas entitled to hold any shares, money, or securities,- should, without demand, inform the assignee of the facts, and should hold such shares, money, or securities to the order of the assignee only. (7.) That in cases Avhere tho debtor has any reversionary or contingent interest in or towards the realization of which it should be necessary or ach-autageous in the interest of the estate that an insurance should be effected on tho life of the debtor, the debtor shall submit to medical examination, give information, and do or ulloav such other things as may be necessary to facilitate such insurance. (8.) Tliat the assignee's commission should not be chargeable on sums used to pay off mortgages or other incumbrances, as that \voiild be tantamount to paying double commission on such sum. (9.) That the supervisors' commission should not exceed -A- per cent, in all (as recommended by the joint Parliamentary Committee), and further that it be reckoned on the net receipts of the estate. On the Avhole, the sub-committee consider that a strong- endeavour has been made by this Bill to meet the AAdshes of the mercantile community, and they anticipate that it Avill be found to exercise a very beneficial effect if it becomes hIAV.