The Sun.
London, England, 1861-02-12 00:00:00

curnstances that ace, erepanied the introduction of that bill
was its ponderous a- evearance. I have deferred to the opi-
nion. then expresse' 1, and surrendered my own judgment to
the feeling that p et:wailed ; and I am happy to trey that the
bill which I no- .c propose to introduce is lees by one half
than the bill ote last session. (A laugh.) lent you will do me
-the favour t, recelleet that the bill whech I then introduced
a ce-esolieating, as well as an amending measure.
,(Hear.) The law of bankruptcy is entirely lex scripta. It
is coenposed of statutory provisions, and those provisions
are to be found scattered over a great number of acts of
Parliament, all of which must be consulted in order to ob-
tain a just idea of the law. (selrear, hear.) As there exists a
general opinion that acts of Parliament ought to be conso-
lidated, I felt last year fillet it was my duty to attempt to
consolidate the whole of tbe written law on the subject of
bankruptcy. The presesat, however, is only an amending
bill, and is therefore of a fragmentary and disconnected
character, the provieions of which cannot be at once per-
fectly understcr el from the want of those lights that might
be cast on them £r em other statutes which are left untouched.
In framing te
.0 present bill I have entirely abandoned con-
solidttion, thtough my feelings and sentiments are all in
favour of a consolidating measure ; but it is at all times
desirable to propose that which is likely to pass, and if I
can succeed in inducing you to pass this measure during
the present session—a measure more than ever demanded
by the mercantile community—it will in some future session
probably enable us to consolidate the whole law of bank-
ruptcy, of which this bill, if it receives your approbation,
evil/ form an important element. (Hear.) I will very
shortly remind you of the important principles which it was
desired to establish and carry into execution by the measure
of last year. You will remember, probably, that oneof the
great evils which I thought called for a remedy was the con-
fusion that now exists in bankruptcy between the judicial
and administrative functions of the court. These are con-
ducted in such a manner that the one has no order, or eco-
nomy, or regularity, and the other has neither dignity nor
efficiency. (Hear.) One object of the last bill, therefore,
was to separate the judicial from the administrative func-
tions; to bring home to the body of the creditors all those
duties touching the administrative part of the law which it
is necessary should be discharged in the first instance ; and,
at the same time, to give to the judicial functions of the
court that uniformity and certainty of decision, and that
elevation of judgment, which would wipe away the reproach
that now attaches to the law as it stands. (Hear.) One of
the other features of the late measure was to restore to the
creditors of the bankrupt the power of settling their own
affairs. The principle on which the law of insolvency rests
is, that the moment a man becomes clearly insolvent his
estate belongs to his creditors—(hear)--and the creditors
are the parties who should be consulted as to the mode of
administering and disposing of the estate. (Hear.) Unfor-
tunately, the history of the law shows that partly from the
apathy of creditors, and partly from other causes, great
evils existed in the modes of administration formerly fol-
lowed. Great changes were made in the hope of remedying
these evils, but nevertheless it was found that creditors re-
fused to avail themselves of proceedings which they fancied
to be injurious to their interests. There was an enormous
amount of formality and technicality, and officials were
established who destroyed that property which it was their
duty to protect. To remedy these evils was one of the objects
'of the bill of last year, and all that it was hoped to accom-
plish by that bill in this respect will be embodied in the
present measure. Another object of that bill was to effect
a reduction of the great expense incurred by the law charges
of the Court of Bankruptcy. It is quite unnecessary that
I should justify the introduction of a measure on this point,
because the evil is universally admitted ; but I shall shortly
enumerate to the house some of the different sources of that
expenditure, which exists in consequence of those changes
that have at different times been made since 1831. On
every estate brought into bankruptcy there is a consider-
able sum to be paid on its first introduction ; then there are
charges for the messengers, gentlemen who are receiving
very considerable incomes for the performance of very slight
duties; then there are fees paid to the auctioneer, the
broker, and the accountant, fees on public sittings, regis-
trar of meetings, and fees for sittings ; the building fund,
ad valorem percentage fees to the official assignee, allow-
ance to bankrupt for maintenance, allowandes or dividend
and excepted articles, and solicitors' charges. (Hear, hear.)
Probably it will be remembered that last year I showed,
from returns before the house, that the charges on the ad-
ministration of estates in bankruptcy amounted to not less
than 33 per cent. (Hear, hear.) Another object of the bill
of last year was to establish an effective audit and the control
and superintendmice of creditors through the medium of
- official assignees ; and also to inform creditors, by the trans-
mission of the proper accounts, of an estate and the manner
of collection. Another object of the bill of last year was
the subjecting the insolvent or bankrupt, when applying for
his discharge,to a proper tribunal, with the power of punish-
ment in cases of fraudulency. (Hear.) All these different ob-
jects it hae been ney endeavour to provide for by this bill.
(Hear.) But, before entering more particularly into that
point, I may be permitted to say that in presenting this
measure to the house, I present it as in my judgment the
best that is attainable under the circumstances. (Hear.)
Any one who approaches this subject with the intention of
reforming the law finds the ground covered with establish-
ments which have been again and again modified until the
Legislature has become, in regard to bankruptcy, jealous
and suspicious of all farther attempts at reform, and is ad-
verse to permitting any expenditure of public money in
this direction. Under those circumstances little can be
done except to modify that which now exists. .Undoubtedly
by giving away money under that odious name " corapen •
nation," it would be possible to build up a much simpler
form of administration of this important part of the law.
Whatever, too, may be dorm by way of enactment, a great
deal 41 requisite for the reform of the administration of
bankruptcy, which must be left to the prudence, care, and
superintendence of the creditors themselves. (Hear, hear.)
?to act of Parliament can supply that want of care, atten-
tion, and supervision--(hear, hear)—and whatever safe-
guards Parliament may devise, if the creditors are indif-
ferent to their interests, if they show a perfect disregard
whether they will or will not call for accounts, and exit•
mine the conduct ef their debtors, we may expect to see the
frequent exhibition 'of things that shock the feelings of
morality and integrity that ought to prevail, we may ex-
pect to see enormous defalcations, or some great and out-
rageous instances of commercial delinquency such as
have lately been made manifest, and which hive, unfor-
tunately. remainedeinpnnished. While therefore much may
be Alone by the Legislature, much will still remain to be
done by those who ought to watch over their own interests.
I will first direct the attention of the house to the altera-
tions proposed to• be made in the formation of the Court
and the manner of administering the law, and I will then
give a sketch of the procedure in bankruptcy as it will
exist under thin bill if it should be passed. I will then
pass on to another and separate branch of the subject—
namely, the propriety of abolishing the present jurisdiction
for the examination and discharge of insolvent debtors.
1 thought last year that it was desirable to have one
Ittw of ineolveney, and to subject the trader and the non-
trader to onei use eine system of administering the law if
they becarneeheelvent. The house will recollect that it
received last emeion with approbation the proposal to give
a chief judge to the Court of Bankruptcy. At present the
law is adrniuisti,,red by numerous commissioners, and as to
a portion, of the eases by the County Court judges. It was
thought that therevrati great difficulty in obtaining unifor-
mity of decisions unless there were some ready means of
'approaching a court of appeal. The house was unanimous
ht thinking thatit would be proper to have a chief judge at
the head of the adrainistration of bankruptcy to secure uni-
formity, certainty, and dignity. (Hear.) I have, therefore,
retained that portion of the plan of last year. One of the
proposals of the bill of last year was, however, to abolish at
en co tho five London commissioners and to place two other
commissioners in their room. That proposal involved the
necessity of giving to those gentlemen fer the rest of their
lives retiring, annuities to the full amount of their present
salaries. That proposal did not appear acceptable, and I
have thought it right to continue these commissioners in
precisely the same situation as at present. Their duties
under the present bill will not probably be greatly (tug.
wonted, considering the appointment of a chief judge and
the proportion of labour that will fall on his shoulders. That
-will be, at all evorits for the house to determine, but I pro .
pose, in the present bill to retain that pare of the existing
system without any alteration. The bill of last year proposed
the abolition of Ithe Insolvent Debtors' Court, and with it
the removal and discharge of the commissioners of that
court. One .of the commissioners, Mr. Sergeant Murphy,
has since died. Another commissioner was appointed in his
place, but'onthel iindeietanding that if it pleased Parlia-
ment to put an 'end to the court he was not to be entitled to
any compensetion. Atpresent, therefore, so far as compen-
sation is concerned, there is but one commissioner of the
Insolvent Court, end, if the present scheme is carried into
effect, it will ;leave, the administration of justice, both in
bankruptcy anti: insolvency in the London district, in
one and the same court. That district is exceedingly
extensive, stretching from the extremity of Norfolk on
she( side to the borders of Hampshire on the other.
There will, therefore, bo in the London district a chief
judge, :and five. London commissioners, to discharge
the duties- of the law of bankruptcy and insolvency:
Another part
of the bill proposes to augment the jurisdiction
of the County e•
-east . By the former bill power was given to
creditors to tie the administration of bankruptcy from the
District Courfa ieoitate. County Courts. It provided, hews
ever, that those
Bent of the creditors estates
only
should be transferred by con-
.wil:ert;tre.hore the Bankruptcy Courts to the
County Courts
4 no
reason
do not exceed £l,OOO. I have
mince thought th
genfoerxtbists for that limit, that the
creditors 'c ere eto elle
eiraeelves on this point, and
had the right to do so.
Power
of therefore propose to con-
Tear.)
tinue to the cre'fitws fh(pi
removingeeurt without an
an estate from
the Conit ooe.eremptsy to the County
eindertdhhe formery
limit in p it. ( e :acne. (Hear, hear.)
bill it was propi..ed thut the County Court,,
wshboeurletbevesthe
right to take ad Ministrations in bankruptcy
did not exceed MO. It has, however, been represents:lts
me that it is difficult to say whether the assets do or dome.
exceed £300,. end I propose that all petitions for removing
bankruptcy shall he presented in the first instance to the
Court of j3arnkriq cy, except in those limited cases where the
debts of the-trader de not exceed £3OO. The facility of ap-
plying to the County Courts has led to many endeavours en
the rut of fraudulent traders to escape from justice, and I