The Globe. MONDAY, DECEMBER 9, 1878.

Globe, Volume XX, Issue 1502, 9 December 1878, Page 2

The Globe. MONDAY, DECEMBER 9, 1878.

There is one danse in the Debtors and Creditors Act Amendment Act, 1878, which is likely, in some cases, to cause a great deal of trouble. It amends section twenty-four of the old Act, and runs as follows: —“ The debtor shall, within twenty-four hours after the registrar has appointed the time and place for holding the first meeting of creditors, send notice to each of his creditors of the time and place so appointed. The notice shall either be delivered personally to the creditor or his agent, or sent by post, addressed to such creditor or agent at his or their residence, so far as the name is known to the debtor. The debtor shall, before such first meeting is held, file in the Court an affidavit that he has complied with this provision.” The provision thus made, for notice in writing of the filing being served on each creditor, cannot be found fault with. It is easy to understand that, under the previous system, creditors might bo unable to see a Gazette until many important steps had been taken in bankruptcy proceedings without the possibility of their interference. This, in fact, has often occurred and great inconvenience and loss has resulted therefrom. The course to be pursued as now laid down will, therefore, effectually cure that defect. But in providing a x’omedy for one difficulty, another source of trouble has been created, which, indeed, seems to bo the outcome of most of the Amendment Acts that from time to time overlay the legislation that is done for us. It is ordered that “ the debtor shall within twentyfour hours after the Registrar has appointed the time and place for holding the first meeting send notice to each of his creditors ” of that step having been taken, the notice must be delivered personally or sent by post, &c. And the duty of so doing cannot be entrusted to an agent, or, at least as we read it, the debtor must make the notice and despatch it himself. Now, there are many debtors who prepare deliberately for bankruptcy, they, most likely, will have everything in such train as to be able to comply with what is thus required; but, on the other hand, wo cannot but suppose that the majority of insolvencies are not prepared for —they generally are the terminations of long struggles, and the disaster is not faced until the very last moment. If at that time everything is not in readiness, and there are a largo number of creditors, the chances are greatly against the Act being complied with, and, on the face of it, it really seems as though the Act supposes everybody to be always getting ready for bankruptcy. If an ignorant man has written or even signed fifty or sixty notices —delivery is out of the question —but to post them might mean travelling miles on the errand, and if any accident happen to himself while they are in his possession so as to delay him beyond the time allowed the consequences might bo serious. And ho has nut only to forward them, but ho must make affidavit that lie has done so all within the twenty-four hours. Wo know, of course, that if by unavoidable accident the delay should occur, there is scarcely any Judge in the country who would encourage oppression as its consequence, but delay and expense would certainly ensue where enough probably had been incurred before. It may bo said wo are supposing what might never occur; no more it might, but still it is possible, and possibilities have an awkward way of realising themselves at times when least expected. In tine, so long as the debtor is compelled to deliver or post the notices, wo see no reason whatever for not adhering to the old four-day system, or, if the alteration is made because it is thought the creditor has not enough time between the receipt

of bis notice and the expiration of the minimum time allowed between tbe serving of notice and the first meeting of creditors —seven days,—then let that time bo extended there is no objection whatever to that, certainly not to the creditor, and it must be the object of the debtor to wind up as quickly as possible. The explanation given of the prolixity of our legislative enactments is the necessity for providing for every contingency, but there are cases, and this is is one of them, whore, as we said before, in the attempt to cure one vice another has boon created, and the operation has not even the merit of abbreviating an Act that was much too long before.