CHAMBER OF COMMERCE.

Evening Star, Volume VIII, Issue 2189, 13 May 1870, Page 2

CHAMBER OF COMMERCE.

A special meeting of the Chamber, to consider the report of the Select Committee appointed to take into consideration the bankruptcy laws, was held this afternoon ; Mr Turnbull presiding. The Committee recommended that in order to do away with the existing difficulty of obtaining adjudication of bankruptcy against a trader who may have voluntarily acknowledged his insolvency, but refuses to take steps to protect the interests of the general body of creditors, that insolvency admitted or proved ought to be declared an act of bankruptcy ; that the words “or suffer execution of a judgment, decree, or order to be levied by seizure and sale of his personal property, or any part thereof,” with which the sth clause of the definitions of acts of bankruptcy concludes, should be constituted a separate clause, so that their meaning may not be modified by the previous words, “with intent to defeat or delay his creditors ;” that a provision ought to be made to secure instant possession being taken of a debtor's assets for the benefit of creditors upon his being adjudicated a bankrupt ; that arrangements should be made for cases in which the debts do not exceed LIOO being dealt with in a summary manner by the inferior Courts ; that the principle introduced into the English law by the Bankruptcy Act passed last year, in accordance with which the debtor is deprived of the right of petitioning the Court on his own behalf, should bo adopted here, to obviate the chance of any distant cieditors’ interests being jeopardised, all creditors should be allowed to share in the proceeds of any execution levied within thirty days of bankruptcy, and that the right to petition for adjudication should ba granted to any creditor whoso claim amounts to LSO, or to any number of creditors acting in concert whoso just claims reach that amount; that the administration of estates should be made compulsory on creditors, but at the same time every possible facility should bo given to creditors for proof of debts and for joint action in regard to tho common interest; that the power at present given to a few local creditors to accept any arrangement or composition offered by tho debtor should be withdrawn, and tho rule as to the numbor of creditors whose asssent shall make an arrangement with the debtor binding on a’l, should be the sanie as an ordinary assignment—viz., a majority of three-fourths in amount; that a simple form for proof of debts should be given in the schedule to the Act; that a proof of debt made upon information properly furnished, tendered by an attorney or authorised agent for an absent creditor, should stand good unless the claim could be disputed on its merits; notice should be served on all creditors immediately after adjudication, or advertised in every Province in which the bankrupt may have creditors, and proper time should be given for proof of debts to distant creditors; that the English principle, by which a debtor cannot obtain a discharge (except by consent of the creditors) unless a dividend of 10s in the £ is paid, should be brought into force—a fair period, say two years, lo be allowed the debtor to make up a dividend of that amount, if his estate fail to realise so much ; that the law costs incurred on the debtor’s account should not be made a charge upon creditors, being paid out of the estate ; that a part of debtors’ future income should, upon order of the Conit, be made liable for the purposes of dividend until 10s in the £ is paid ; that fraud where manifested in connection with a bankruptcy, ought to be pro -edited by a public officer and at the public expense ; that bills of sale should only be valid when given over specific articles which can be scheduled and specified. There was a lengthened discussion. The first part of the report defining an get of bankruptcy, was adopted as read. The second paragraph was so amended, as to read that provision should be made lo secure instant possession of the debtor’s assets, upon an order of adjudication being pronounced, whether absolute or not ; and in the third paragraph, tho juris lietion of the inferior courts, was increased to L3OO. The elimination of tho fourth paragraph, depriving the debtor of the rights to petition the Court was moved by Mr Bathgate, bub lost, and the paragraph adopted in its entirety, as was also paragraph 5. Paragraph 6 was so amended as to read that during the two years allowed for payment of a dividend, protection should he given to the debtor ; but if the dividend be not made up to that amount at the expiration of two years, proved debts should be considered as judgment debts without inte rest. The remaining paragraphs were adopted, and the following clause was added :—“ That in the event of the right to make a declaration of insolvency being continued to the debtor, provision ought to bo made for the taking of instant possession of the estate ox; benalf of the creditors on the filing of such declaration. ”