JUDGE WARD ON THE BANKRUPTCY LAWS.

New Zealand Times, Volume XXX, Issue 4355, 5 March 1875, Page 3

JUDGE WARD ON THE BANKRUPTCY LAWS.

The application of one James Reid, a bankrupt, for a fiual discharge, was heard by his Honor Judge Ward, at Balclutha, on the 19th ultimo. In delivering judgment his Honor is reported by. the Leader to have thus expressed himself on the Bankruptcy Laws in general and Reid's case in particular : —I am clearly of opinion that the order of discharge applied for ,by this bankrupt must be delayed for a lengthened period ; but I must say that he appears to be a most unfortunate man. He has evidently been born 200 years too late. At the Taieri his sphere of swindling was somewhat too limited ; but here he has ridden on a regular Border foray. Instead, however, of spear and sword, he has been armed with acceptances to bills of exchange—the great majority of which seem to nave been didy dishonored. lam not certain that the old method of .plundering was not the best : those who were plundering had, at all events, the chance of a fight for their sheep and oxen, and the plunderer, if caught, was summarily disposed of. The bankrupt's schedule does the greatest credit to the primitive simplicity of the Clutha; there would scarce be such faith found in Israel. He came to the district over head and ears in debt:, he had £SO in cash, and his partner a £lO horse, and on this magnificent capital they set up. business as. butchers, and contrived to incur debts to the amount of nearly £IOOO in six months. (His Honor then referred to the various sub-sections of the 120th clause of the Bankruptcy Act violated by the bankrupt.) Under these circumstances, the bankrupt's order of discharge must be suspended for two years. Let him not, however, imagine that by this suspension he will be exposed to the slightest risk of imprisonment. Probably he is not aware of the tenderness—the romantic affection, I may almost call it—with which an insolvent debtor is regarded by the humane Legislature of this happy colony. It may be instructive to point out ho.v marvellously the wind is tempered to the shorn lamb of the Bankruptcy Court—with what care his personal liberty is guarded from the vengeance of his unfeeling creditors. Sujiposing a person in difficulties desires to pass through the portals of this Court to the blissful haven beyond, where wicked creditors cease from troubling and the weary debtor is at rest, his first act is to file his schedule, and this at once gives him peace pro tempore. Then commence his creditor's difficulties. Assuming a creditor to be able to show that the debt was incurred by gross fraud, he is not admitted to 'oppose the bankrupt's dischargel—even if his claim be admitted by the bankrupt—without proving his debt. '.'lf'..heprove his debt—however minute be. the divir i dend received—he is deemed to have elected" to satisfy his claim out of. the bankrupt's estate, and is, debarred .irom imprisoning the bankrupt for the balance during the suspension. of the_ order of discharge. Let us suppose,' however, that such a creditor;has-not.proved", his debt, but has stood by during -the bank-i ruptcy prpceedings, and has heard, theorder of discharge suspended. • In such a; ease, coarseminded commercial men might imagine that if 1 his creditors' ■■ debts were admitted on the schedule of the bankrupt, and if it were de-; cided, in effect,, by, the • suspension of the order of discharge, that..the, bankrupt had behaved fraudulently or improperly, then, on the appli-, cation,■ of, suclr a- creditor, the Bankruptcy: Court should issue a warrant of imprisonment, without further, expense or ■ delay.,, Not so has. deemed the iwisdqm'.of the. Legislature. First, the unfeeling. ; cr'editor must go through the , whole expenseof obtaining judgment against the bankrupt for his debt already admitted ; then he must apply for; an order under the Abolition of Imprisonment Act of last session—and among the regulations/ under. . the Act, if I remember right, he. will fiud.it directed that no -.order .of imprisonment.'.: is ' to issue against- a.'person adjudicated a I have not the regulations here to refer to, : and, therefore,- < speak, i as :to ' .those under 'correction.■'.' It- is .■ clear, however, that the Legislature'"''Tias "*~considered" thatr event of a return-.of • nulla ,bona ;; to a writ of fi. fa., -a- creditor -whose-bills— have—been duly'dishonored <should-'considerjliimsolf com-,' pensated, both for principal and interest," by the thought' of /the "remdrse which 1 his - debtor 'ought H*f -feed' for nonpayment in this world por,-failing Trach; remorse, bjrthe-pros-.. pect of the,'retribution which (waits him in the next/ Doubtless 'there ! 'are''persons.' who : would prefer the administration' of a modicum of imprisonment to a bankrupt • during, life :to a somewhat speculative post obit;' but with such grovelling natures the Legislature, has evidently no sympathy. ; And I am well, assured, said his Honor (addressing the'.bank-' ' nipt), that I act in simple accordance' with the lofty spirit of our laws, touching debtors aud creditors, when I inform you that,', : in suspending your order of discharge' for two j years, I do not. expose you to the slightest practical risk of imprisonment :'■ I .merely [express my opinion of your'peculiar .style,of j business, aud abandon you to the reproaches of an agonised conscience. "-.'■ ['.