MEDDLESOME REFORM.

Hokitika Guardian, 7 November 1922, Page 4

MEDDLESOME REFORM.

SPECIAL LEGISLATION

(The Mercantile Gazette)

We iire not very much in love with Mr Massey's special legislation lor the protection' of companies against the daiihs of creditors. We. prefer the good old rule that “it is the duty of everyone who Owes a debt to seek out his creditor and pay,” and not ask for the interference of the State to protect him against the claims of liis creditor. If he cannot pay, the. law provides a means by which his estate, if he is insolvent, can he sequestrated and a release given to him. We think the relief to he given under the Amended Companies Act will have n boomerang effect, and is' likely to embarrass as much as to help. The period of twelve months is not sufficient to enable companies lending on land to realise upon their securities, and if it were extended, credit would he curtailed, as few will be inclined to lend money or to sell on terms when they know that the repayment, or payment., may he blocked by other creditors invoking the provisions of the Act. *

While on this subject we wish to record our protest against legislation being placed upon the statute hooks, not because the same is desired by the people or is wanted by them, hut ho satisfy the wishes of Departmental heads', or of those who are able to impress the Government privately that something they put forward is necessary.

The Public Trustee appears to have the right to pass any legislation he wishes to relievo himself :aml his Department of all responsibility—legislation which completely alters the law governing the dealings with trust estates which has been that of England for one thousand years. Quite recently wo mentioned the amendment to the Public Trust Act which enabled the Public Trustee to discharge debtors under a mortgage from the covenant !o pay the principal. Since then one of our Judges has officially protested against the .legislation which has been passed putting the Public Trustee in a position quite different to that occupied by others. “I like not the man who wants to be a trustee,” a Judge said long before anyone living to-dav was born.

We dissent from legislation passed at the instance of individuals and for tleir own benefit and not asked for by the public.