The Stourbridge Observer, Cradley Heath, Halesowen & District Chronicle.
Stourbridge, West Midlands, England, 1883-03-24 00:00:00

THE BANKRUPTCY BILL.

• Mr. Chamberlain, in moving the second reading of the
Bankruptcy Bill, touched briefly on the evils of the present
system, and defined the chief requisites of a reform to be—
a full inquiry into the circumstances of each bankruptcy,
an honest distribution of the debtor's estate among
the creditors', and the promotion of honent trading
and commercial morality generally. As to the importance
Of an independent examination into the circumstances of
each bankruptcy, he showed that all the authorities were
united, and, that being so, he contended, the machinery
Proposed by the Bill was the most effectual, and
there was no other way of carrying it out except by
employing an independent Department of State like
the Board of Trade. The functionary to be employed
by the Board of Trade would be styled the "Official
Receiver," and he calculated that about sixty of these
Would be required, whose expenses would be provided by
fees and by the interest of the aggregate balances which
would be paid into the Bank of England. It would be the
duty of the Official Receiver to examine into the conduct
of the bankrupt, to conduct the enquiry before the C'ourt,
and to make a report; and while he admitted that on;cial-
lam had been condemned in 18139, he argued that this
ores a different kind of officialism; and that these
offlcial inquiries had been of great service in such matters as
Wrecks and mine and factory accidents. In rev ard to the
collection of assets, the function of the Official Receiver
Would be limited to supervision, so as to secure the fair
treatment of all parties coneerned. Next Mr. Chamberlain
Went at length into the details of the procedure under the
Act, mentioning, among other points, that it is intended to
latablish a preliminary stage of bankruptcy by granting a
' receiving order," which might ripen into a bankruptcy
or not, according to the circumetancea of the case.
The Court would be enabled to order the proaecution of
fraudulent debtors; and, in the case of a bankrupt not get-
ting his discharge, it would make it a misdemeanour for
him to obtain credit to the amount of £2O without stating
his position. All preference claims, except wages, would be
done away with, and in the case of debtors under Zaki the
County Courts would have power to sanction compositions
by which the debtor's assets might be distributed equally
among his creditors.
• Mr. E. Stanhope moved an amendment declaring that the
Rouse, while anxious to remedy the proved defects in the
existing law and practice in bankruptcy, watt net prepared to
entrust the powers proposed in the Bill to any departieent
Of the Government. Re strongly objected to the proposed
iinDosltion upon the already overburdened Board of Trade of
duties which it was unfitted to discharge, and to the
pPlcialisra which the Bill would introduce into Our judicial
o.ntetT.-
4he dftaussion which followed, Mr. Dixon-Hartland,
1111 s,, and Mr. J. Fowler spoke in support of this Bill;
Mr. S. Cowen ea.-pressed apprehension at the introduction of
Officialism Ink private concerns, but would not vote against
the second reading.
A. O'Connor, Mr. C. Lewis, and Mr. Serjeaatt Simon
01/Posed the Bill, as also did Mr. E. Clarke.
Mr. Gregory made some suggestions for the improvement
of the details of the BUL
Sir J. Lubbock thought that the alauses of the Bill which
dealt with the bankrupt himself were a great improvement
9,n the present law; but that part relating to the collection
of assets was entirely in the wrong direction. instead of
Increasing officialism and centralization, what was needed
'Wag to increase the power of the creditors.
bfr R. Giffitrd, while not desiring to oppose the second
.reading, canvassed the details of the Bill, which, he con-
tended, loft most of the evils of the present system un-
touched. The Bill was pervaded )3,y a confusion of thought,
and it was a mistake to mix up the promotion of commercial
Plorality with the administration of acsate.
110 Solicitor-General replied to criticisms, and eepecially
"21244 he suggestion that any desire for patronage had
vrompted OA employment of official receivers. There
Intuit necessarily be sore° officialism, but the amount of it
ru the Bill had been greatly exagserated. It was employed
_Pihfe,fly to secure an investigation, bui, the administration
ptill remain to a great extent in the hands pf the
creditors. •
Mr. Alderman Fowiteraupperted the second reading, think-
Pag that, though the Bill might net do muclegood, it would
• rno harm, and Mr. W.Fowler who also supported the Bill,
101 not per), sanguine about it, and feared that the Board
bf Tied..., would be overworked. Mr. Grantham
and Mr. Cropper spoke, after which a motion to ad-
bourn the debate wits made by Mr. Tomlinson, and this,
' .g been negatived by 84 to 45, the debate was then re-
atO. py Ur. Whitley, who strongly condemned the pro-
:4 interyeptiam of the Bqard of Trade. Mr. Warton
also spoke against the pill.
Alter a long debate, the 4..man4ment was withdrawn, and
the Bill was read a second time.
The Rouse adjourned at twenty minutes to three o'clock.