BILLS OF SALE.

Oamaru Mail, Volume I, Issue 323, 7 May 1877, Page 4

BILLS OF SALE.

▲ molt important decision respecting tha value of bills of sale has been given in the Supreme Court, Sydn-jy, by the Chief Justice, Mr. Justice Hargrave. and Mr. Justice Faucett. Heretofore (says the Sydney Morning Herald) it has too often b««n the practice of persons in difficulties to go to a money-lender, behind the backs of their creditors, and obtain loans at exorbitant rates of interest, to enable them to carry on business. The better to conceal the transaction, the bill of sale is not registered, as that was not required by lair, within 30 days, and for this non-re-giatration the borrower sometimes pays a fee. But before the expiration of that period of time the document is renewed, always with advantage to the moneylender and to the loss of the unfortunate borrower, or rather of his more unfortunate creditor. This goes on, it may be, from month to month, until, when the borrower is about to collapse, the lender Mgisters his bill of sale, comes in and takes possession of the property over whieh it. is given, and the other unfortunate creditors are left to whistle for their money. The, effect of this state of things is simply, to iallow a businessman, in insolvent circumstances, too hopeful of retrieving his fortunes—for what business returns a profit equal to the interest which la charged for a loan under such circumstances?—to denude himself of everything before going into the Court with a mountain of liabilities. The decision of the full Court the other day will check this

by Carroll and Johnson, insolvents, over j their stock-in-trade in Hunter-street, was really given for past debt, ancl therefore had the effect of preferring Cohen to the other creditors of the insolvents —a preference, it may be remarked, that is not allowed by law. Mr. Cohen will therefore have to give up the proceeds of the goods which he sold, and come in and take his dividend with other creditors.