The Daily Telegraph. SATURDAY, MAY 24, 1884.

Daily Telegraph (Napier), Issue 4006, 24 May 1884, Page 2

The Daily Telegraph. SATURDAY, MAY 24, 1884.

TnE experience that has been gained of the working of the Bankruptcy Act in England is of value to us in this colony, as our own Act is almost a transcript of the Imperial measure. It is therefore satisfactory to know that the new law on bankruptcy has justified itself in the eyes of mercantile men. Referring to the operation of the Act the Manchester Guardian says:—"The outcry raised about the high fees and the hardship upon debtors is ' found to have arisen from the classes who were interested in the maintenance of the old system. The possible profits of a receiver and manager under the last Act were well shown in a case which recently came before the Queen's Ben jh Division. There an accountant had been appointed as receiver and manager of a small estate. He collected £142 for the creditors, and in rendering the statement ofy his charges he made it come to exactly the same total. The registrar of the court taxed them down to one-half; but tho accountant maintained that he was entitled to the whole, and had to be sued by the debtor, who ultimately succeeded in getting his money. Under the new Act such an occurrence will be impossible. Indeed, ono main feature of the present system is that the fees will in all cases be known, whereas hitherto they have been for the most part unknown. They seem heavier than they are, but they can always be calculated and allowed for accordingly. It is believed that there will be more speed in the declaration of dividends than we have seen under the Act of 1869. We hear from Liverpool of a dividend having been actually declared under the new Act, which is certainly remarkable, as the whole business must have been got through in about five weeks. The great point for creditors to bear in mind is that they should keep together and refuse private arrangements. The law has now done its duty, as we may say, in providing that bankruptcy shall no longer be a ' primrose path.' Debtors dislike the ordeal; they fear the public examination; they are not fond of the official receiver. Their only chance of doing well for themselves is by frightening the creditors by the bogey of high foes. It may be hinted, however, that the denunciation of the now Act by, certain classes of accountants and solicitors is the best evidence of its merits that can be given to creditors themselves."