COMMISSION OF INQUIRY.

Inangahua Times, Volume III, Issue 96, 30 March 1877, Page 2

COMMISSION OF INQUIRY.

Ilf THS MjrtTßß OP InSOLVBWCIBS. (Bt Smroßß.) Daring the year Jane 75 to Jan* 76 there were ra New Zealand 982 gazttted Insolvencies. I was requested to inquire into the causes leading to these commercial breakdowns. I called for the first examination John Smartmaa, who deposed as follows j— He perfectly uiderstood the present Bankruptcy Act, especially the loose clauses, Insolvency in the Colony waa an institution which he con* I sideied equal to anything to be found in Magna Cbarta. It was a beneficent law which showed a man the way to pay off all his liabilities when he had nothing to pay them with. v The Insolvency laws enabled a debtor To protect himself, leav* ing the creditor the privilege of writing off whatever sums appeared on tie left side, and for which the Government did not exact any fee. How many times had he been insolvent? Well, leaving oat several compositions which he had made (the process of which was most unsatisfactory, inasmuch that to make a composition a certain amount of money had to be banded over to creditors), he had been insolvent three times and was making arrangements to go through the mill for a fourth event. He never intended to compound again. It was too expensive a luxury. To file a schedule involved no trouble and no risk. For the matter of a few pounds a lawyer undertook the whole job and brought you out a deeply injured and mach appressed victim of misfortune— as one, indeed, who had been subjected to the persecutions of his creditors and who was deserving of public sympathy, accompanied by

.the presentation oft parse of ****** , instead of cold->teod pefMiitkm. EU had never received tfrujjfi^jg? of sovereigns, notwUh*tending JU fc^l been bankrupt three timesfjas U W already informed the jOßuaterioa, * thougkoe knew those wW bad «lj beat through ttoCotirtofce. * Could he account for bis ftns insol> vency? Yes, he caul*. Ketakg was easier. He had oonimoncKdlwitutiSi tne nature of which he koe* piaing ftboot Restarted aHoget her flit jbwiowul oapitaf. He bought 10 tons of Hour at £tt per ton : *™ tons of sugar at £63 per ton, and 50 boxes of sperm candles at tea and • half. He bought all these oo a three months bill. He sohi the ftour at £1$ per ton, the sngar at £36\ and the can* dies at erabt and three quarters, til for cash. The ready money enabled nta to purchase a fine horse and a newly imported baggy j also to take offices in » leading thoroughfare and engage a dterk. He then advertised to make ewb advances on wheat, oats, artd general dair? produce, wool, tallow, hides, and skin«» He found producers generally preferred to sell to taking an advance, and so be purchased all that was oHered Inn at something over what any other firm weald have given. He gave his note of hand for all brought to him for a month t» to* two* months. Then he shipped- hit par* - chases and drew' against 4he tills of lading, which placed him once more in funds. This enabled him to give a few dinner parties iv a larger home than tne one be bad previously occupied. Bemg in fnnds he found himself in credit. Hr bopght his- house opon bills* and then succeeded in obtaining a mortgage: upon it. 4 fterwards he * bought a cargo of timber, at two, three, and four months, at eight and six superficial alt round. He sold this lot at s> discount upon cost to enable* him to retire bills which were maturing, and allow him to eater into mete ex. tended transaction*. He eouida't aay how it came about, ontj that it was no fault of his he was unable to eoflsply with the demands of unreasonable sad uarea* soning creditor* who refuted to- take : hi* promissory notes, bnt demanded eato, - He consulted hi* fegai adviser, witffe* commended him to " file," and h« filed accordingly, and in t'mey thtefbfe " got throng'. 1 * He then took ao hotel r which he purchased with some money Ms* wife by strict economy had saved. He-, was advised to engage the services of a handsome barmaid^ which adtiee he fol« lowed. It was the barmaid herself whoadvised him. After a time it was found) that the hotel had not sufficient accommodation for the- barmaid tad his wife.. So it was arranged the wife should fake lodgings and the barmaid reside in the house. To encourage the barmaid m thedue performance of her duties he felt it incumbent on him to make her presents of silk and moire antique dresses* * gold watch and chain, a pair of diamond sirrings, besides underclothing of anexpen* rive character. The barmaid proved un* grateful, for after receMng all the encouragement he eonld give her in tne way.of presents snd adding ten p mod* a year on to her salary, she absconded with a commercial traveller— leaving a note on ■ the table of her bed-room saying her heart was another's, and she'newf aonw be>mine, even though- I was enabled to obtain a divorce from my wife. Mf wife, although frequently and urgently tolicite* on my part, refused to eoflw beck to *t» hotel. My spirit merchant became not only importunate in hts demands ft*-. money, but he wa» absolutely rude, a» was also my landlord, who would eon* tinoe week after week saying k« would beobliged to sue me for mf rent. To paaisb these two for the pain and annoyance they had caused me, I went to mf legal adviser, and requests* him to fie,? I W no money in my possejmoto, wteMiK sented to carry me thraagh for fewreatesof three* brandy, a piano* and a lewshair sofa, which I had not indodedHa my schedule. I came ont flying. My next enterprise was the chartering; of two vessels to carry diggers to a new rush. IdrewaUstfthepeasagfrmoaejf, and would hare paid the owner* if it bad not been thai I lost the whole in twonight* at poker. I found outaftewarf* that mr opponent played with markedcards. Witness- then wentontosayWfca# sold his gold watchandabutw^ofebtflßfT together with a doaW^barrelW (none of which had been for) to «M hi* lawyer to pass hint through the mOP again. The Judge in BtolcrapteyVj* giving him hie final discharge, shed tears at the piteous spectacle of Jug* of snch industry, energr, and enterpnse being subjected to »ueh hard mage aj*e lawyer had shown he had received. The witness had nothing to •» against ftsv present bankruptcy laws. Bethoagktno attempt ought to- W •mendsnaaNA them, • ■ '■ ; i A second witness exsniced, deposed at follow* j Had been a bankrnpV and » sidered the wl*le tfcnK t*j«W».ft^ Credito-s who opposed always got the worst of k, and had to pay em » maefc of expenses^ and this made ton aortal wild. He came out front o«a* wittl * thousand pounds, WDe»listteefe a ftneytft billiards. It cost as much to laaffc to ffay billiards as it eosttolei»» ¥***&*' Indeed, he thought it eo*htm aiwev »• practised the spot stooke by six months, and then, when ne ttooffttn* was proficient, was beaten brji ««Ooa marker, with whom he lo«t£sov Won be ran oat of his money f**®* 11 )* 1 W" old man at Home tor and .got a money-lender to gire him Ji«Sr Mfor* the awney-fender did not make hy »» Transaction, fof nis old "f^* I "*^ dra»t reached Mm» refisssd to ess* *. Served the money-lender «** ]J™* was he now doing for a living? *£}» declined to say. He any more questions unless they stood Sam. He hadtft aeqoJred his expartence^w nothing, and he wasn't gowg to pnt j peopte up to "moves" without he saw his way clear to get something by it.