The Daily News THURSDAY, MARCH 14. THE BANKRUPTCY LAWS.

Taranaki Daily News, Volume L, Issue 57, 14 March 1907, Page 2

The Daily News THURSDAY, MARCH 14. THE BANKRUPTCY LAWS.

That there is an improvement needed 111 the bankruptcy laws is plain from 1 the unsatisfactory features— to use a mild term of some of the bankruptcy eases that have-happened in the colony »f late, it is not surprising, therefore, that the Auckland Chamber of •Commerce is moving in the matter of urging upon rthej Government tin! necessity of amending ihe Bankruptcy Act. It is circularising the various Chambers of Commerce of the colony and asking them for their ground's cf complaint as to administration and the operations of the Act, and their suggestions' for improvement. Xh | circular was read at Monday's meeting of the raranaki Chamber of Commerce, which appointed a committee to go into the matter. On various occasions we have had occasion to point out the incompleteness and defectiveness of our bankruptcy laws, laws really that perniit a logue to victimise and "take down" his creditors wiji impunity, and if the Auckland body succeeds in its aim to persuade the Government to appoint some competent person to remodel tile Act it wi.l have done a service of considerable benefit to traders and the public generally. Frequently one hears of a bankrupt who sells his Lusincss anid stock, or the principal part of the stock, and allows one or more creditors to receive payment for a past debt without consuiting 'the other creditors, who have to be content with a proportion of the realised assets.*, llns should not be; one creditor should not be treated dill'erently to another, and this is a, point the Auckland Chamber, we are glad to notice, is bringing up. When, however, this Chamber suggests, as it does suggest-, that* the mere calling of a creditor's meeting for the purpose of considering the debtor's position should be constituted an available act of bankruptcy wo distinctly disagree w.th it. There are many unfortunate business jinen who, seeing shoals ahead, or are in temporary difficulties, consult their creditors, "whosej hejp oftentimes enables the trader to overcome his dillicultics.Some of the most successful men ill the colony have had to compound with their creditors iu their earlier struggles. The action of an unfortunate man, who is forced to meet his creditors, should not be construed as an act of bankruptcy, and we would k" 801 ry to see the "suggestion of the Auckland Chamber in this connection ■V given eilect to. A new section might easily be 1 incorporated in the Act making void any disposal of the whole or major portion of a trader's business and stock-in-.tjf.jJc if th<J debtor be adjudicated a bankrupt within three months of the date of the disposal or sale, unless it can be proved that the fact of the disposal or sale has been duly advertised for a sullicient term. Hie Auckland Chamber seeks, in view of the many failures to secure con%iet.on for failure to keep proper books, to have at lfcast one or two ol the books of accounts required to be kept enumerated. This is a good suggestion, and provision for this could with benefit to all concerned be easily made. A matter of the highest importance to creditors in a bankruptcy case is the existence of means to stop assets being frittered away in legal costs. The Auckland Chamber recognises this, and suggest that a new rate of charge's should be deviled. A bankrupt's solicitor, according tu l"ie present, scale, receives a fee up to CIO through the mere iucideiU liv.it the assets happen to rc ili.se 120!) or over. If they realised £2.") the fee wou.d be but ,€2. which is generally consider- - ed a fair remuneration for the work done. Th's alone shows the neces-ity for the scale of fees being revised. \\''e trust tiie local t liumber will go into the mailer thoroughly, and back up the Auckland Chamber in its endeavor to move Ihe (Jo\ eminent io review and revise the whole of th- laws pertaining to bankruptcy, laws which in ■ lie intere-ts of I lie' public are linl as ellieieiic and complete as they utU'iii tj be, and eon Id easily be made"