Evening bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1895-1912, 1901-04-20

Makes
Report

At Friday morning. session Of the
Senate. the following important report
by Mr.. White for the majority of the
judiciary Committee on AN Act to
provide for filing. foreclosing. limita-
ton and priority Of chdttel mortgages,
was presented:
Your committee believes that all ques
tions Of credit and security are deli
cate matters and should be treated
with great care. With that belief, the
bill under consideration has been treat
cd. Your committee finds; that there
is now no law upon the Statute books
OF Hawaii covering the subject Of this
bill by which the honest creditor and
the honest debtor are alike protected
in pledging personal property as secur-
ity for the payment Of a debt, thereby
allowing Shylock creditors to defraud
and rob helpless debtors by taking the
law Cor rather want of law into their
hands.
This bill. If enacted, will allow the
creditor to take what legally belongs to
him, principal. interest and costs, but
will allow him to take no more. IL
the debtor is so unfortunate as to be in
default Of payment this law would pro-
tect him to the extent, that the proper
tsyauy gHnt.1I hn cold nt nNI1in
auction after due notice and II such
resulted in a greater sum than enough
to pay the debt, he would be entitled
to receive the surplus. This is true as
to real estate mortgages. Why should
il not be true as to personal property
mortgages.
Section ! provides. and the courts
generally hold. that chattel mort
gage, although duly executed and de-
livered. admits of the presumption that
it is fraudulent unless It is either, fol-
lowed by an actual and continued
change of possession or, that It be filed
and indeXed upon the public records
as notice TO subsequent mortgages. pur-
Chasers and other creditors. Without
this provision, a chattal mortgage can
be made a cloak for fraud and con-
spiracy. With this provision 1t serves
all honest purposes and prevents bogus
mortgages being held 10 cover personal
property in fraud of subsequent credi-
tors in good faith.
Section proceeds upon the presump-
ton that county government will soon
be an accomplished fac. II this Ter
ritory is really a part Of the United
| States. no other presumption Is admis-
sable; but should county government
fail TO materialize at this session, 1t
would only render this law imperative
until such time as counties shall be
duly organized when It would go into
force and effect.
Section 3 properly makes the life OF
the mortgage two years with the priyi-
lege of one years extension upon cause
shown by affidavit of the MORTGAGE
The nature of personal property Is
such that mortgage thereon for q
long or unreasonable period is presum'
tive of fraud and collision as against
subsequent purchasers OF creditors.
All the other sections have been care
fully considered and throughout YOU
committee finds that the bill has beer
carefully drawn to protect The
honest creditor and honest debtor alike
In all honest transactions, and that the
doors have been as carefully CLOSED
against fraud and collision, by thu'
protecting both debtor and creditor IN
lawful transactions II enhances the
value Of personal property as security
(which Is generally the only class of Sc
curity the poor man has TO offerl with
out fear Of eXtortlon and confscation
which now prevails,
This bill also protects the mOrtgage'
from fraud upon the part Of the mort
gagor Section II provides a punish
ment by fine or Imprisonment on botl
IN case the mortgagor seeks 10 defrau'
the MORTGAGE,
In Wow Of the great necessity Of suel
a law, your COMMITTEES recommends th'
passage nj the bill,
WA, WHITE,
\, Rl'SSlll.,