The Sun.
London, England, 1865-01-11 00:00:00

The Lord Chancellor and the Bankruptcy

Laws.

The annual meeting of the Nottingham Chamber 4
of Commerce was held on Monday—Mr. Thurland
Vickers, president. The secretary read the follow-
ing report on the Bankruptcy Laws :
" The laws relating to bankruptcy have again
engrossed much of the attention of the council, who
at length resolved,—That the present law as to
assignments or the benefit of creditors being found
in practice to throw great difficulties in the way of
the best realisation of estates, this council deputes
Mr. Thomas Ball and Mr. Gripper to attend to
the select committee of the House of Commons to
submit the following suggestions :-Ist, That as to
estates wound up under assignments or compositions
it is desirable to separate the judicial from the ad-
ministrative functions of the Court of Bankruptcy.
The judicial functions of the court would be-Ist,
The decision of all disputed questions as to the
proof of debts. 2d, As to the conduct of the debtor
and his right to a discharge if refused by assignees.
3d, As to any other matters submitted by the as-
signees, creditor, or debtor. 4th, As to certificate
to assignees of having fulfilled their trust. The
administrative functions would be—Taking an as-
signment from debtor to official assignee. Taking
possession of the property by official assignee until
first meeting of creditors, with list of creditors and
statement of assets. Sending statement to assignees
when chosen of estate of bankrupt to be rea-
lised. Auditing of accounts of trustees. The assign- 1
went to be made to official assignee of court of
bankruptcy upon which protection shall be granted
to person and property of debtor. Possession to be
taken by official assignee, and held by him until
first meeting of creditors, to be then fixed for choice
,or trustees within 21 days. Debtor to file within
seven days a list of creditors with affidavit of cor-
rectness and statement of assets with like affidavit.
Copies to be sent by official assignees to every
creditor. At first meeting of creditors official as-

signee to submit report of affairs. List of creditors
and amount of debts to be called over, and if any
debt is objected to, the vote to be taken subject to
appeal by the registrar. Creditors present to appoint

trustees or receive any offer debtors may have to
make ; or, creditors may resolve that estates shall be

wound up by official assignee under committee of
creditors as inspectors. If trustees are appoint&
particulars of assets to be furnished in a book by
official .assignee within days for guidance of
trustees. Trustees to realise estate, and when suffi-
cient for first dividend realised to submit a state-
ment to creditors to be audited by official assignees
and filed in court and dividend declared. Copy of
amount with notice of dividend to be sent by official
assignee to every creditor. Amount required for
dividend to be transferred to special account at
bank, and paid by cheques of trustees. Debtor to
ask for certificate from assignees of having complied
with statute, and if assented to by them order of
discharge to be granted as a matter of course by
court unless creditors give notice of objection, in
which 'case, or refusal by assignees, the court to
decide upon the order of discharge. When final di-
vidend declared assignees may apply to court for
certificates of release from trust. Statements filed by
debtor may be amended by consent of assignees or
court. If found to satisfaction of court that debtor
has put down fictitious debts as due to creditors or
-wilfully omitted property, order of discharge to be
void. Dividends not applied for within 12 months
after second notice to be carried to credit of estate
and divided amongst creditors at final dividend.
Bill for Extending the Provision of The Bleaching
and Dying Works Act, 1860,' was taken into con-
sideration, but the council did not deem it desirable
for the chamber to take any steps either in favour
of it or in opposition thereto."
Mr. C. PAGET, M.P., observed—l will now come
to the question with regard to bankruptcy. There
was a very able committee sat upon the subject
during the last year, and I hope the result will be
an improvement in the administration of bankruptcy,
but there are many considerable difficulties in the
question. I cannot, however, better lay the matter
before you than in the words of the Lord Chancel-
lor in a letter which he wrote to me. I had, per-
haps, better first say that a resolution was carried
by the merchants and traders of the Midland So-
ciety, which I had the honour to submit to the Lord
Chancellor. The resolution was one of thanks to
the Lord Chancellor for the great care and trouble
he had taken- to improve and simplify the adminis-
tration of the Court of Bankruptcy. The following
is a portion of his letter to me :—"'There has been no
thorough superintendence of the administration of
the bankruptcy laws. It was the object I had in
view when I desired to have a chief judge ap-
pointed, but which the House of Commons refused.
I have endeavoured but imperfectly to do the duty
myselff. In doing so it is most painful to see the
amount of dishonesty, neglect, and abandonment of
duty which has been brought to light. But there
is one evil in bankruptcy which I cannot reach. It
is this : As soon as the trader has made a bad debt
and the debtor becomes bankrupt in 19 cases out of
20 he reasons thus—" The first loss is the best. If
I look after this bankrupt's estate I shall have much
trouble and may incur great expense ; I cannot
leave my business to attend myself, and it will not
do to employ an attorney. If I do, perhaps I should
not get more than an extra shilling in the pound of
dividend ; therefore, let it take care of itself." And
thus every estate is abandoned to attorneys, brokers,
auctioneers, and other unnecessary official persons,
and it is eaten up by their costs and .charges. Then
come statements like these :—Assets, 2,1001. ; costs
of solicitors and otherwise in bankruptcy, 1,2001.—
more than half the property. Then there is a great
outcry, and people say it is the fault of the law
and of the Lord Chancellor. I could establish a
board of official administration which should be
bound to collect and distribute every estate at a
maximum charge of 10 or 12 per cent., but if
I propose it I should have the opposition of
every solicitor. How is this evil to be
met ? Will you talk to' your friends who
opposed the resolution, and tell me how I
can secure an honest, efficient, speedy, and
economical collection and distribution of a bank-
ruptcy estate. I should say, continued Mr. Paget,
that this letter is eitirely in accordance with every-
thing I have ever seen of the Lord Chancellor upon
the present subject. At the time when I had as my
colleague in Parliament Mr. Mellor, he and I had
frequent conferences with the Lord Chancellor,
and I was
perfectly impressed with his earnest de-
sire to carry out what was a fair object of ambition
a great improvement in the bankruptcy laws.
de I think has been cer-
The attempt which he ma
tainly a great disappointment to him, and I wish it
had been different. What is wanted in cases like
these is some one person who is responsible for the
good management of the whole, and who has power
and influence sufficient to ask in a voice of autho-
rity for such changes as are necessary to make the
institution work well. (Hear, hear.) The respon-
sibility for change now rests upon a number of com-
missioners who a the
object of making
thingset themselves against it with
impression which I
ceedings of some
treceivedh while reading the pro-
from these reasons hast Bankruptcy Courts, and
in The question as to what sceln h a great measure failed.
for it is a very important oe shall be substituted
ne. It has been said
that the adration
of the
in Scotland g mave t
general Ratisfactibankruptcy laws
many Scotch friends as to how the nti;
i I applied to
work, and they answered in effect thng really did
was made in '54 or '56, and the at the change
of opinion that, it is worked withy
one and all were
great satisfaction.
(Hear, hear.) In speaking with other parties
t
it—with men conversant with the bankruptcy abl7;
in London, they said that " the thing will work
well in Scotland, and not in England, because there
is a difference between a Scotchman and an Eng
lisbman," to which the Lord Chancellor alludes
when he speaks of the feeling of a trader to let* by-
gones be bygones, and not look after the last penny
of an estate, as it is the habit of our most frugal
neighbours to do. (Laughter.) There seems to be
a unanimous feeling on the part of the Scotch that
the thing is working well. You will all notice the
paragraph at the end of the letter, where the Lord
Chancellor asks, " How is the evil to be met ?" I
ammunicated this part to the Merchants' and