THE BANKRUPTCY LAW.

Evening Star, Volume VII, Issue 1999, 1 October 1869, Page 2

THE BANKRUPTCY LAW.

At the recent sssions of the Supreme Court at Hokitika, the Grant Jury made the following presentment:— The Grand Jury beg to thank your Honor for the address with which you hare opened the present session ; displaying as it does a perfect knowledge of the local condition of this portion of the Colony of New Zealand, and containing suggestions for the better guidance and general improvements of this community; much valued from the source from whence they come, and the kindly and interested manner in which they have been given; the whole of which the Grand Jury fully appreciate and endorse. There are few points to which the Grand Jury wish to direct your Honor’s attention, but these are so important to the welfare of 1 his community that they tfjpjt your Honor will use the great influence which your position and knowledge gives you to assist without delay in having them rectified. The first is the total inefficiency of the law as it at present stands with regard to insolvents. The law as at present administered enables the bankrupt after the simple form of declaring his insolvency to carry on his business as though nothing had interrupted its course ; and the Grand Jury would beg to suggest the following as $o improyenient on the present Bankruptcy Act (Inserted or added in apy way your Honor may'see most convenient to recommend, so as most speedily to obtain a remedy for the existing evil). That immediately on a bankrupt filing a declaration of

insolvency the official assignee be empowered to take possession of the whole estate and effects of the bankrupt, and that a notice in the paper of the day be sufficient advertisement, instead of the present course of waiting for the publication of a Gazette. This will protect creditors from unscrupulous bankrupts making away with their estate, or portions of it, during the period which intervenes between the filing of a declaration and the taking possession of the property by the official assignee, which the Gran ! Jury regret to say has been of too frequent occurrence in the district. We would recommend that a statement of the costs incurred by the official assignee in every estate (when there are any possessions) be published by advertisement, as the Grand Jury are convinced that much expense is unnecessarily incurred on many occasions in winding up estates. We would also point out to your Honor the enormous charges -which have to be met in the Resident Magistrate’s C mrt in endeavoring to recover small sums of money. These charges consist of fees and costs of Court so utterly out of proportion to that of any other Court of Justice known to the Grand Jury that they would most respectfully beg your Honor to examine into them, and, if possible, to recommend their reduction. And, lastly, we would call your attention to the very unsatisfactory state of education as it is now conducted in Westland, and would beg your Honor to use your influence to have the National system of education established, and a proper superintendent of sohoo's appointed to visit ami see carried out He system in its integrity, as the Grand Jury are most anxious it should be. In conclusion, we trust your Honor may long l« spared to fill the high position you now occupy, holding, as wo feel certain you do, the confidence and respect of every right* njinded individual in the community. His Honor, in reply, said: Gentlemen, I must in the fir.vt place tell you that you somewhat overrate the influence I am like'y to bring to bear on matters which are more properly within the functions of the Legislature. But setting that on one side, I pass • u to say tha‘. I most entirely agree with your remarks respecting the pr sent state of the bankruptcy law. The defect is an obnoxious one, and, strange to say, exists in the new law, and did not in the old. The old law had the merit, in cases where the bankruptcy was brought about by the insolvent's own pett'ion, of at once investing hip estate in the official assignee. It is obvious that it should be so, and you well point out that its plain and palpable effect is to prerent the insolvent dealing with his estate ip the interim. In the new Act special application ought not to be necessary in a bank, ruptcy by a declaration of insolvency. As soon as a man declares that he is unable to meet his engagements, his estate and effects should be vested in the custody of the law. The estate should be taken into execution for the benefit of all the creditors, superseding an execution for the bnefit of one. The notion is that by the new law time is given for arrangement, in case the creditors desire to win'd up an estate in some other way. This may suit very well in an estate where there have been vast commercial transactions, where estates are large, but it does not suit in the instance of small traders, who should at once he divested of any power of dealing with their estates when they are unable to meet their engagements. There may be cases where it is advantageous that an estate should not be taken into Court, but should be wound up by the creditors, either by continuing the trade for a time for themselves only, appointing the bankrupt agent in its management. This is, I think often desirable ; and provision could be made in the Act enabling this to be done, and making the action of the majority biding qij the ipiabr}ty." Am| *-the'alteration in thq Act you speak of could be effected with ad ; vantage. 1 shall forward your presentment to the Government; but if you can modify the too complimentary terms in wlpch yoq have addressed mo, it would be preferable. .Speaking as a matter of bus'liess, if waul 4 bo better, for it is assuming for mo the functions of the Government or its trusted adviser, which lam not. With regard to the matter of fees and costa, I think the Government might take it into consideration, and fees might be diminished where tfie suit is by a trustee in an insolvent estate. The Government has unfortunately, a-i all kn .wj peculiarly heavy calls upon i f , has very heavy expenses to meet, and we are therefore burdened with heavy duties ; the screw is put on wherever it cap be applied, How. ever, something might be done, though of course not until the next meeting of tho Assembly. With respect to the last subject in your presentment, I am personally heart and soul with yon. Ido hold by a national system in preference to one denominational. But I would not aft-mpt to sup rsede tho denominational sj'stem that was doing its w«.rk well, merely on that account. If there is one object more than another, it is the fostering of anything tending to make us a united people. This cannot be effected while religious differences and distinction: are maintained. It is not so much (hat different dogmas are taught in schools, but those that arc at the first separated by distinctions will the longer consider themselves of different nationalities and creeds. What we should aim at is, that without throwing down existing institutions where so much good has been effected, We should raise up qne upon a firmer and broader basis, This, no'wever, is but an bpiniou'of my own, and it is a matter upon which there is a considerable difference of opinion. Good mm have differed, and, I suppose, always will differ upon it. G< ntlenun, I shall have great pleasure in forwarding your presentment with icgard to tho matter of bankruptcy. Ido not think it will be long lefore an amendment is effected in the Act. It is a defect which is very easy of remedy.