The Nelson Evening Mail. TUESDAY, JULY 27,1880.

Nelson Evening Mail, Volume XV, Issue 177, 27 July 1880, Page 2

The Nelson Evening Mail. TUESDAY, JULY 27, 1880.

Committees having been appointed by the Legislative Council and the House of,'|Repre.sentatjvea respectively, to consider and report what amendments, if any, should be made. in the bankruptcy lawa of the colony, these Committees invited suggestions from the Supreme and District Court Judges, the i Chambers of Commerce, and the Law Societies. They also asked for opinions upon certain stated questions. The replies have been received and printed as a Parliamentary paper, and are now before us. That there should be considerable difference of opinion is not surprising, for there is no branch of the law about which people so little agree. Mode after mode has been tried, but not one has proved entirely successful, aud the most experienced and practical men are by no means of one mind as to the principles by which our bankruptcy laws should be regulated. One of the questions asked is, "By whom the bankrupt's estate should be administered?" and in answer we find three statements of opinion — Ist. By an official assignee; 2nd. By some official: person in conjunction with a^ creditors' Trustee; 3rd. As at present by a Trustee elected by the creditors. The first opinion is supported by District Judges Kenny, Shaw, and Harvey. The second by Mr Justice Johnston, Mr Justice Williams, District Judge Mansford, the Law Society, Dunedin, the Law Society, Auckland, the Chamber of Commerce, Wellington, and the Chamber of Commerce, Invercargill. The third — that is for the retention of the present system — by Chief Justice Preudergast, Mr Justice Richmond, District Judges Ward, Broad, Macdonald, Weston (doubtful), the Law Society, Christchurch, the Law Society, New Plymouth, the Chamber of Commerce, Auckland, the Chamber of Commerce, Cbristcburcb, and the Chamber of Commerce, Timaru. Mr Justice Williams says in his answer: — " It must be borne in mind that no system of administration will secure satisfactory results unless there is an estate worth administering. The question of administration is entirely a secondary one. The first point is to have substantial estates to administer. To secure that there should be such legislation as would tend to compel persons in difficulties to come before their creditors at the earliest possible moment, and as -would expose them to unpleasant consequences if they failed to do so, or bad become unable to meet their engagements by fraud, extravagance, or want of due caution." Judge Ward suggests that " stringent r.uleß.shoiild be made compelling Trustees to keep a sepaiate Bank account for each estate, and to file interim accounts in Court. In ca3e a Trustee should improperly withhold any of the proceeds of a bankrupt's estate from the creditors, he should be liable to a penalty of 25 per cent on the amount witheld." Judge Weston makes a very lengthy reply to this question, but does not leave any clear impression as to what his opinion really is, except that he seems to think the appointment necessary of ft a " strong vigorous Judge of Bankruptcy." Some suggestion of the same kind is also made by the Wellington Chamber of Commerce. But we have surely Judges enough, and sufficiently " strong and rigorous "to deal with these matters. 16 is not because the Judges are weak and inactive, but because there is no clear unanimity of opinion upon the principles to be applied on the part of our law- makers and the colonists generally, that our insolvency laws are a source of constant grumbling and discontent. We do not waut more Courts created ; the District Judges ought to be able, as the County Court judges do in England and elsewhere, to transact as Courts of first in- ; stance all the bankruptcy business of the country If all, or any of them, are not competent to do this as part of their ordinary work let better men be got in their stead. Judge Broad, in his reply, says :— -"Li this district the trustee has in nearly every case been a competent man of business, and so the estates have, as a rule, been wound up with business-like despatch, and at moderate cost. I do not believe, therefore, speaking from my local experience only, that the appointment of a paid official assignee would be any improvement upon the present system." But the state of things in Nelson is, as is usual, almost exceptional. As with our Education Act and other matters people here get along without so much friction as appears to prevail in most other places. The Law Society of Dunedin, in their rereply, recommend that, "There should be an Official Trustee or inspector in addition to a Creditors' Trustee or Trustees ; the present system is eminently unsatisfactory, as it is in England. A number of small accountants, most of whom have just started in business, get themselves appointed accountants under the Bankruptcy Act, and they look more to getting their commission than the interests of creditors. The little hole and corner meetings, which at present take place in a sort of cellar of the Supreme Court, should be discontinued, and a suitable place, provided for the public and for reportera." That is to say, this Society thinks the utmost publicity should be given to examinations of bankrupts— an opinion which is generally shared. The Chamber of Commerce, Christcburch, thinks that, "No person should hold more than two proxies at a meeting of creditors. But every Trustee should be compelled to file with the Registrar of the Court every bix months a complete debtor and creditor account of the estate, with a written statement of its position and prospects, or become liable to a heavy penalty. Every Trustee should be made to keep a separate banking account for each estate, and pay all monies into that account. When he files the details of the estate's transactions, he should be compelled to hand in the Bank book with all vouchers made up to date." These are some of the principal suggestions made' by the various persons consulted, in answer to the inquiry, "By whom the Bankrupt's estate should be administered ? " We published last night a few extracts from

the paper before us, but as there are other and more important questions, in reply to which much valuable advice and information has been offered, we shall in a future issue refer to them, and give ample quotations from the evidence of the different witnesses.