The Southland Times. WEDNESDAY, JANUAEY 8, 1868.

Southland Times, Issue 878, 8 January 1868, Page 2

The Southland Times. WEDNESDAY, JANUAEY 8, 1868.

Sikce writing on the subject of the New Bankruptcy Act circumstances have occurred in the neighboring. Province of Otago tending to show its ineffective character, and \he necessity for such grave alterations therein as shall amount virtually to a reconstruction of the Act. A debtor having made application in the prescribed form — by a declaration of •insolvency — to have himself and estate brought under the operation of the Act, the Registrar 'of the Supreme Court, as Provisional Trustee, proceeded to take possession of his estate for the benefit of the creditors. It might be supposed that the debtor, having himself petitioned for adjudication of bankruptcy, would have been anxious to facilitate a speedy settlement of the business. In this instance it appears such was not the case, and, availing himself *of a provision of the act by which 21 days are allowed to the declaring debtor before such declaration shall be deemed "an Act of Bankruptcy," \e refused to give up possession of his estate, and appealed to the Supreme Court on the point of law. The decision of the Court has been given in his favor, and is virtually a recognition of the principle of affording an . opportunity to fraudulent debtors (under the sanction of the law, and without fear of molestation during a period of twentyone days) of converting into cash" all the realizable assets of their estates, and of removing themselves from the jurisdiction of the Court. It is, however, well that the impracticable character of the Act has so early appeared, and it is to be hoped that resort will now be had to the simple and inexpensive process, which, in use in the neighboring colonies, has commended itself to the intelligence of the mercantile portion of the community, they being of all classes the most deeply interested in its success. A suitable act for the requirements of this colony may be drafted without any very serious amount of labor, or necessitating the employment of any very great legal skill. It objects should be to encourage the honest giving up of his estate by the debtor in embarrassed circumstances, by affording him the certainty that he will be dealt with, not only fairly, but considerately. To provide also for a searching examination into the bona fide character of the insolvents transactions, whenever such enquiry may be necessary, and to punish fraud or misconduct when discovered, either by withholding the order of discharge, or by imprisonment, or in extreme cases by both ; and further, specially to provide for the speedy possession and realization, of the estates of Insolvents for the benefit of creditors. To attain these objects requires the erection of very little machinery in addition to that already existing in most of the districts of New .Zealand, and necessitates the incurring of but comparatively small legal expense. Let the Act provide for a declaration of insolvency before a Commissioner, by a debtor who, from any

cause whatever, finds himself unable to meet his engagements, and who shall at the same time file a statement of assets andliabilities; and also, for the compulsory sequestration of estates on the petition of creditors showing that an act of bankruptcy had been committed by the debtor. Let acts of bankruptcy be clearly defined, and among them let the dishonor < of a bill of exchange at it 3 maturity and neglect to arrange same within a specified subsequent period be classed, together with the giving of a preferential bill of sale or other security while under liability to other creditors. Under such an Act a Commissioner for the district in which the debtor resides would be required, whose duties might easily be performed by the Kesident Magistrate of | such district, before whom deelaraticns of insolvency might be made, or petitions for sequestration be heard. Such Commissioner should have power to grant protection to the debtor, and to appoint a time of meeting for his examination, at which such creditors as may then and there prove their debts, may in their own person take part. The only other officer necessary would be an official assignee in whom the estate of the debtor should vest immediately on the reception by the Commissioner of his declaration of insolvency, or on his decision on the petition of creditors showing that an act of bankruptcy had been com--1 mitted, aud who should at once take possession of the same. At the first meeting of creditors, to be held before the Commissioner, the official assignee shall report to the meeting as to the agreement of the bankrupt's estate .with his filed statement, and such report shall be an important element in the consideration of the insolvent's speedy or protracted discharge, as necessitating more or les3 further examination into his affairs. At this meeting the creditors shall have the option of appointing the official assignee as permanent assignee* of the estate, with instructions fojf speedy realisation, &c., or of electing one of their number to the office. The former course is, however, ordinarily preferable. The Commissioner shall! thereupon appoint another meeting in the estate, at which the insolvent may apply for his order of discharge, and which may be granted then, or at a subsequent meeting as the circumstances of the case may require. All costs in the matter to be borne by the estate. The whole proceedings need not occupy more than six weeks, and the legal charges — except in realization — need not be more than as many pounds. The duties of the Commissioner in most of the districts of New Zealand would be very light and would be compensated by a small salary ; while the office of official assignee might be filled by some local accountant or agent, and "be paid by commission. Any of our legislators disposed to aid the community by the preparation of a piece of simple yet effective legislation on this subject, might easily qualify himself for the task by an hour or two of consultation with one or more of our mercantile men ; and if he were successful in sweeping the present piece of burlesque from our statue book would receive the thanks of the leading portion of the com- 1 munity. __^