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extends to all the assets of the firm in the Colony, the v
The
the security in those araes oanot be ascertained until thổ ninete arg sil realised. The other is that, na the charge in some quses setmewr the bank in respect of claims against other branches of german firm outside the Colony, it is quite impossible for the bank to say at the moment what those claims will amount to.
position is by no meɛng the sme as that in bankruptcy, for in all tha ouses in which the question arises it is only one branch of the firm which ás being wound up and the other branches are still
on business outside the Colony and are entirely beyond
the reach of my legal process which British ore:li'oro sun invoka. The situation is a difficult one and is probably unprecedented, and the Government would gladly welcome any contributions towards the solution of this question. They would also be glad of particulars of the specific onese which the Committee have in mind.
There is, besides, a class of secured credit-
-ore represented by the London finanes houses, some of whom have complained that they have not had their claims promptly paid in full. The trouble in this case is that the German firma, whether
with or without the knowledge of the finance houans is not daur, consistently failed to set apart the procode of goods received by them on trust receipts but mixed such procenda with the general. moneys of the firm. This did not affect the are fitore in question so long as the German firma vere carrying on business and worn akli to meet their bills at due date out of their general usoets, but when the enforoad stoppage of business occurred and the support of the hand offices and other branches censod, and the general asseta proved insufficimt to meet the claims of all the are:litors, the situntion beame noute. The legal position created is a difficult one and has been under consideration for some time, both by the Government and by two leading lool firm of solicitors, one considering the question from the point of view of a socured creditør and the other from the point of view of the avait te lly unsecured creditors. The first thing to be done was obviously to
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