THE Grey River Argus. TUESDAY, JUNE 1, 1869.

Grey River Argus, Volume VIII, Issue 526, 1 June 1869, Page 2

THE Grey River Argus. TUESDAY, JUNE 1, 1869.

It is to be hoped that during the session of the General Assembly which commences to-day some action will be takeu by the Attorney-General toameud the Bankruptcy Acts of New Zealand not only for the purpose of simplifying the present cumbrous mode of proce. dure, but also to make more stringent the penal clauses. However unpleasant it may be to say so, there is no one who has had any acquaintance with our Bankruptcy Courts during the past year but must admit that not only on the West Coast, but also throughout the whole of the Colony, fraudulent bankruptcy is certainly on the iucrease. It does appear as if the remedies provided by the Act were not sufficient to deter parties from entering upon very questionable transactions, and in many instances deliberately and openly committing a commercial fraud upon those who reposed confidence in them. Instances are not wanting in our own town and district in which the most glaring frauds have been practised, and yet in many of them the creditors quietly bore the first loss, rather than run the risk of "throwing good money after bad" in attempting to prosecute when so many loopholes were left open for the defaulter to escape. Cases have come before the Court both here and in other parts of Westlaud which were a perfect disgrace, and in which some much heavier penalty ought to have been inflicted than the mere suspension of the delinquent's certificate for a few months. To a man of the stamp referred to the suspension of a certificate is no punishment at all, for he usually finds ways and means to evade the consequences which might attach to that period, nml is generally to be found enjoying the fruits of his fraud, and apparently living faster than ever. Ary amendment which may be made in the direction iudiuated ought

to be of the most stringent nature, in oixk-r to give to the honest trader the amount of protection which he has a right to expect from the law. Supposing a case in which tfye Oourt has a reasonable doubt as to the legitimacy of spine of the business proceedings of a bankrupt, -\yould it not be well for the trustee to have power at once to take criminal proceedings against him, and to be protected against the result should he fail in proving his case? This would have a very salutary effect, and would place this trustee in the position he ought to occupy. A case occurred the other day in Christchurch, in which the trustee was sued by a bankrupt to recover damages for an alleged trespass and unlawful seizure of ceitain goods. Fortunately for him he was able to prove a glaring case of fraudulent insolvency, otherwise he would have been called upon to pay the costs of the suit. Officers of the Court, in the legitimate discharge of a very onerous duty — and a very wide margin ought to be given to trustees in insolvent estates — ought to be protected against actual loss. There are many other portions of the Act which could, with much advantage to the honest trader, be amended and improved, and, no doubt, its practical working during the last year will have suggested these to the AttorneyGeneral ; at least we have a right to expect some practical amendments if the suggestions and recommendations of the Judges are given eft'ecc to, not the least of which ought to be the shortening of the time before which a trustee may step in, so that the facilities which now exist for dishonest bankrupts disposing of their property may be done away with. We hope the session will not be allowed to pass over without some important alterations and amendments being made to the Bankruptcy Acts of the Colony.