BANKRUPTS AND CREDITORS.

Gisborne Standard and Cook County Gazette, Volume III, Issue 359, 3 October 1889, Page 2

BANKRUPTS AND CREDITORS.

THE adjourned meeting of creditors in the bankrupt estate of J, R. Scott takes place this afternoon. We do not expect much more to result from it than is usually to be reckoned upon in matters of the kind. Business men do not like to have it made more prominent than fs actually necessary that they have been made the victims of a loss. There are indeed people who say that it serves them right. Possibly that may be a fair way of judging in certain cases, and even creditors themselves sometimes seem to find a sort of consolation in that view of the question, while ap idea appears to prevail amongst bankrupts generally that they are being badly dealt with jf there is not every effort made to facilitate their progress through “the mill.” Mr Scott exhibits these symptoms of impatience in a marked degree, and is not backward in giving expression to his thoughts. Another example of his self-consciousness is that oi protending to be virtuously indignant when the Assignee alluded to a ‘‘big’

deficiency.” Mr Scott took pains to make it understood that he did not consider there was a “ big deficiency,” though he afterwards stated that he could not offer ten shillings in the pound, nor indeed make any offer. If the man who of all others ought to be able to make the best of things cannot see his way to make any offer, to our mind there must be a “ big deficiency” somewhere, and we know of no method of calculation that can prove otherwise.

Are the creditors themselves to blame ? is a question which cannot be overlooked. By way of reply it may be asked, are there not cases in which creditors may have been deceived by misrepresentations made or implied ? In tbe case of the unfortunate young man Hill, there were no doubt some very careless business transactions, and the Chief Justice pointed this out in language not wanting in force. But that did not prevent Hill, a comparatively uneducated youth, from being sentenced to six months’ imprisonment. There was no denying that those who trusted him were foolish, but that did not lessen Hill’s guilt. Of course we do not use this case by way of comparison, but we believe that if a small tradesman neglected his business, which he knew then to be a losing concern, and went roving round the world with a team of acrobats or something of the kind, he would most likely be made to answer for his conduct. When that sort of thing is done on a big scale it may alter the case and make people more lenient in their judgment ; yet we are too dull to see where the distinction comes in. Ifitisnot gross deception fora man to trip off to the gay sights of the world, leading strangers to believe that he is a wealthy king of sport and tradespeople who trust him to suppose that he would not attempt such an expedition if he were not financially sound, then we know not what is.

When the leading hotel in the district comes to grief outsiders naturally look upon it as a black mark against the place, but in this case it is useless to try and blame the district for one man’s folly. When the manager of a business runs away from his duty while his affairs are in a critical condition the one result is inevitable. In a large business of the kind it is a matter of no light consequence to be informed that no proper account has been kept of the purchases made. If the creditors are satisfied, perhaps no one else has a right to complain, excepting the matter be looked at from the point of commercial morality. As we have stated we expect that the usual thing will take place this afternoon ; that the creditors having lost a certain sum beyond the hope of recovery will not be anxious to Concern themselves further in the matter, and that Mr J. R. Scott will go on his way rejoicing his recent trip he must know that Gisborne is not the world and that there are also green fields beyond the sea. We know that Mr Scott’s passage through the Bankruptcy Court will be unattended with any unpleasantness to' himself, and probably his creditors will meekly submit to it, careless either of the good name or commercial morality of the place. What wonder that “ Poverty ” Bay is notorious !