THE BANKRUPTCY REPORT.

Tuapeka Times, Volume V, Issue 235, 1 August 1872, Page 5

THE BANKRUPTCY REPORT.

The fourth, annual report of Mr Brodie, the Accountant in Bankruptcy, appeirs as a supplement to the New' Zea'and, Gazette of the 15th inst. It summarises the results which have been adduced from the information before the accountant as follows :— There has been a considerable decrease in the number of bankruptcies during the past year, which ended the 30th Nov. last. The accountant, while he draws attention to this desirable result, regrets that two of the producing classes— viz., "farmers and settlers" and "miners"— still continue te furnish a large proportion of the number of persons who seek the protection of the Court. The following is a comparison of the number of bankruptcies which have taken place annually since the present law came into operation in December, 1567 :—: — O i-H OO O t^- ITi>. 00 os o CO CO «© t» 00 00 00 00 i-H I— l i-t I— l Auckland ... 25 71 187 94 Canterbury ... 68 134 123 90 Nelson ... 10 20 21 21 Otago & Southland 82 120 148 131 Wellington ... 23 48 81 51 Taranaki & Hawkes Bay — 9 7 20 Greymouth ) Westport \... 86 118 148 86 Westland South) 294 520 715 493 which shows a decrease during the past year of 222 or over 31 per cent. The total number of bankruptcies for four years was 2022, or an average of 500 per annum. Of this number, four classes — hotel- keepers and publicans, storekeepers, farmers, settlers, and minera — contributed in 1868-9, nearly one-half of the insolvents, who, during that year sought relief fro.n the Bankruptcy Court. For the year Nov. 30, 1870, the proportion was over three-eighths ; and for the past year there was a similar average — the four classes enumerated supplying 198 out of a total of 493 bankruptcies. In addition to the number of persons who have been adjudicated bankrupts during the past four years, there have been upwards of 750 declarations of insolvency, in which no further proceedings have been taken, the insolvents not proceeding to adjudication. " Very few of these declarations," observes Mr Brodie, " hay« been followed by a s ji^lement with the creditors— the insolvents, I am informed, taking advantage of the interim protection allowed by the Act to realise what they could, and proceed to some other Province or Colony. In practice the creditors do not take advantage of the provisions of the law to continue the proceedings to adjudication." Mr Brodie is only able to five an approximate estimate of the number of case 3 pending at the time he drew up his re ort, the trustees in a good many cases not having furnished the necessary mfoiination as to the precise number, position, and estates in their hands. He states the number of estates wound up by division of funds during the year was 14 ; estates in which there were no assets, returned as closed, 129 ; estates wound, up by a composition or arrangement, 5 ; annulled, 2 ; remaining in dependence on Nov. 30 last, 493. During? the year there were settlements by arrangement or composition in respect of five adjudications. The rates of composition are not generally reported : the highest was 10s in the £. The number of discharges granted during the year was 341. Of these five followed on composition settlements, and the remainder were granted without composition. In 53 cases the final discharges were s spended for various periods. In Auckland there were three cases of suspension, varying from three months to a year ; in Canterbury, 16 cases, varying from one to twelve months ; in Otago and Southland, 13 cases, varying from one to twelve months ; iv Westland, 17 cases varying from one to two years ; and in Wellington and Napier four cases varying from three months to three years. Writing under part 6 of the Act, which has reference to the proceedings of the accountant in cases of complaint against trustees in terms of section 227, Mr Brodie says :— "The accountant has had to take action against several trustees. In one case, where the Provisional trustee was sole trustee in a large number of estates, his position was brought under the notice of your Honorable Court, and he was relieved by it from his trusts ; a new Provisional trustee being appointed. Id another case the accountant discovered a considerable deficiency in the balance at the Bank, as compared with the amounts set forth in the books of the trustee as due to bankrupt estates in his hands. This deficiency was made good, and the trustee instructed to place the trust funds in each estate to a distinct account at bank, considerable confusion having arisen from making common cash of the proceeds derived from a number of separate estates. The remaining cases were settled satisfactorily, and do not call for any special comment." Attached to the report are tables showing the aggregate amount of reported liabilities of adjudged bankrupts ; the maximum and minimum amount of such liabilities, and comparing the number and aggregate amounts with the results for the previous year ; the condition of every estate brought under the operation of the Act during the past year ; and all estates not reported in previous years as finally closed, showing the amount of funds realised, the manner in which these funds have been disposed of, and by whom the balance (if any) is held.