The Sun.
London, England, 1864-10-27 00:00:00

The New Bankruptcy Act.

Yesterday was issued, in a blue book of 530 pages,
the report of the select committee appointed to in.
quire into the working of the New Bankruptcy Act,
together with the evidence heard before them. This
report is simply a postponement of any decisive re.
commendations until next session. It is as follows:
The length of time spent in the important inquiry en-
trusted to your committee has rendered it impossible for
them to do more than report the evidence taken by them,
while fulfilling the duty imposed on them. To report use-
fully on so difficult and intricate a subject requires great
care and much thought. Many attempts have already been
mode to legislate with effect upon this important branch of
administration, and the failure of these manifold efforts
makes it imperative upon Parliament to act with great cir-
cumspection and deliberation in all future proceedings in
this matter. Your committee therefore hope that at the
commencement of the next session of Parliament they may
be reappointed, and thus that suffieient time may be off gded
for a due consideration of the many intricate questions that
have to be decided before efficient legislation is p 05.11,10.
It appears, however, that a long draft report was
proposed by the chairman, Mr Moffatt, and read to
the committee, though the above, proceeding from
Mr R buck, was ultimately adop't d. This draft
report, which is of considerable length, contains the
fullowirg p.rvgrsphs respecting the conetniAmers,
the official assignees, the credi!ors' assignees, the
registrars, the accountant in bankruptcy, the mes-
sengers and the ushers, denoting to a certain ex-
tent the nature of a great part of the evidence :
That as regards the commissioners, there is concurrent
testimony as to the great uncertainty of their decisions;
complaints are numerous as to the delay of all matters ad-
ministered in the court, and also as to neglect is exercising
the powers of punishing fraudulent debtors with which
they are invested by the Act of 1861. That considerable
public inconvenience Las also been experienced from the
irregular hours and short periods during which the courts
aro open in London for the transaction of business, and
that the affairs of the district courts appear to be adminis-
tered in a still more objectionable manner. In one case it
was proved that a commissioner of the Leeds court, who is
in receipt of £l,BOO per annum, resides in London, and
attends the court et Leeds for a few hours only once a fort-
night. It will be obvious that such laxity on the part of
the commissioner, being the head of the court, gives the
tone to the other officials.

As respects the Official Assignees.—There appears to
be a considerable amount of negligence and indifference in
the collection and distribution of the funds. A case was
quoted in which so long a period as nine months elapsed
atter a dividend had been declared before payment was made,
although the money was lying at the credit of the official
assignee's account. Much of this negligence is stated by
several witnesses to arise from the alteration in their mode
of remuneration by commission to fixed salaries of £l,OOO
or £1,200 a year; this view was supported by the evidence
of Mr. Commissioner Ilolroyd, Mr Miller (the chief regis-
trar) by Messrs. Lewis, Lawrence, and Reed, experienced
London practitioners, and by Mr. Sampson Samuel Lloyd,
President of the Associated Chambers of Commerce ; all of
whom concurred in advising that if the services of official
assignees are retained, their remuneration should be partly
by salary and partly by commission. There is no uniform
system of keeping accounts ; no sufficient control, either in
respect to their duties or their accounts ; that they stand in
an anomalous position with respect to the creditors' assig-
nee, who has, in the first place, to audit the official assig-
nee's account, the official assignee in return auditing the
accounts of the creditor's assignee. The system of audit is of
an incomplete and unsatisfactory character, being usually
made in a crowded room, where the accounts of 20 or 30
different estates are all frequently audited at the same time,
amidst much noise and confusion. It was further proved
that very serious defalcations have occurred in the ac
counts of the official assignees ; that they not unfre
quently obtain power to sell the property of the
estate previous to the choice of the creditors' assignee,
and to the detriment of creditors. That these
gentlemen aro not selected on account of any fitness for the
offices. In the case of the Birmingham district court, it was
stated that two of them had been bankrupt, ono as a banker
and ono as a stockbroker, ono was a newspaper editor, and
the fourth a clerical agent. That the principal amount of
labour in the collection of the debts is thrown upon the
creditors' assignee. That it is clearly proved that no check
or supervision exists as.to whether the assets are collected
or left uncollected either by the official assignee or the cre-

ditors' assignee.
As to the Creditors' Assignees.—The existing act places
upon the creditors' assignees the responsibility of collecting
and settling all debts over 10 in value, but does not provide
the remuneration previously apportioned to the official as-
signee, and therefore the affairs are frequently handed over
to solicitors, whose charges prove very onerous to the estate.
The arrangement has consequently not been found to work
advantageously, but it is suggested that payment by com-
mission to creditors' assignees would partially obviate this
disadvantage,
As to the ltegistrars.—These gentlemen appear to hold
an anomalous position, occasionally discharging the func-
tions of the commissioners, and when Lot so occupied their
duties appear to be such as would be better discharged by
experienced accountants; their utility under the existing
system appears to be of an extremely limited character;
is to the control which should be exercised by the regis-
trars over the meesengers of the court, it appears that in
one of the district courts two of the registrars were actually
under pecuniary obligations to the messengers of the court,
and had been so for many years. The registrars are entrusted
with the audit and taxation of the passengers' bills of costs
against the bankrupt estate, and in the cases referred to,
cacl-, of the messengers is reputed to have overcharged
sums, amounting in one case to £1,423, and in the other to
£1,566 in two years, which overcharges had been allowed
by the registrars, and retained by the messengers.
As regards the Accountant in Bankruptcy—This officer
appears simply to discharge the duties of a treasurer, hav-
ing uo control whatever over either the official or creditors'
assignees, or their accounts.
lAs to the Messengers.—The payment of the officers fal-
-1 quently censtitetese to very heavy charge upon the assets,