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PUBLIC RECORD OFFICE

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mnimnim C.O.885/25

PUBLIC RECORD OFFICE, LONDON

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opinion, remember that this industry furnishes employment to quite a number of people. Our artisans are very good, but are handicapped by the free importation of boots and shoes.

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118. New Industries: Shipbuilding.-A deputation of this committee had an interview on 1st January, 1917, with the Senior Naval Officer (Rear-Admiral Ballard) to discuss the possibilities of utilizing Maltese labour after the War in connexion with various forms of maritime industry. Admiral Ballard stated that, in the event of any considerable reduction of work for His Majesty's Navy in the Dockyard, it was his intention to suggest to the Admiralty that the yard might be used for commercial shipbuilding, as the demand for mercantile tonnage would undoubtedly be very great indeed for a long period after the close of hostilities.

Such a measure, if approved by the Admiralty, would confer immense benefits on Malta by employing large numbers of skilled men at good wages who would otherwise have to seek work elsewhere. The relative cheapness of labour in Malta would more than counterbalance the disadvantage of distance from the coal centres, and if a smelting industry were started in the island Spanish iron ore could be worked up as cheaply as in England. Until smelting works were established all steel would have to be sent out, but, even allowing for the cost of transport, it is known from experience that ship repairs can be carried out as cheaply in Malta as in England, and this would apply to shipbuilding also.

In the opinion of Rear-Admiral Ballard it would be a profitable investment for capital to start private shipbuilding on a large scale in Malta if for any reason the Dockyard was not available after the War. From every technical point of view ideal sites exist for slip-ways and workshops on Jazirab Island and Tasbiesch Peninsula, both of which have rock foundations, easy slopes, deep water surround- ings, and ample acreage, in addition to proximity to the principal centres of population.

It is common knowledge that after the War the demand for merchant ships will by far exceed even the enormous capacities of the home shipbuilding yards. This project, if carried out, will prove of inestimable value not only to Malta_but also to the Empire, as it would assist in the building up of our merchant fleet, and every dockyard or shipbuilding yard within the Empire should be devoted to this end as far as possible.

It would also retain in Malta a certain amount of skilled labour which immediately before the War was becoming scarce owing to the fluctuation of employment at the Dockyard and consequent emigration, resulting in a shortage which on previous occasions must have caused inconvenience to the Dockyard, and night in the future become serious in case of emergency.

119. Other Industries.-If the suggestions contained in this report as to the formation of competent boards, and as to the granting of temporary concessions. are adopted, individual enterprise will be stimulated, and a number of new indus tries, although not of such importance as shipbuilding, will consequently spring Your committee has been informed that there is a fair number of new industries that could be profitably introduced, among which those mentioned in paragraph 02.

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120. Alteration of Laws adversely affecting Trade and Commerce. In order to remove the disabilities under which local industries and trade are suffering owing to the difficulty of obtaining credit, certain alterations in our laws are necessary, and we recommend that early steps be taken by the Government of Malta to amend the following laws, viz. :-

121. Writs of Sequestration.-(a) The present system creates confusion It frequently owing to the indiscriminate manner in which writs are issued. happens that the garnishee is puzzled as to the identity of the person against whom the writ is issued, as he may have banking accounts or trade transactions We recommend that with several persons bearing the same name and surname.

the person in whose favour the writ is granted must give the full address and other particulars necessary to clearly indicate the person against whom it is issued, and that the garnishee be relieved of all responsibility if bona fide he makes a payment believing the writ to have been issued against a different person.

(b) By local law writs of sequestration may be issued in execution of a judg- The first class of writ ment, and may also be issued as a precautionary measure. remains in force for, certainly, three years, and probably for an indefinite period; the second for six months if not renewed within that period.

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We are of opinion that the time limit of a writ of sequestration should be clearly stated on the writ itself, and that the period be of six months for both classes of writs.

(c) It is not quite clear whether a writ of sequestration can be enforced against documents or goods to be delivered against payment or against an accept- anco. We suggest that in the list of moneys or goods not subject to sequestration, which already exists in our laws, the following should be added :--" All documents, bonds, and goods deliverable against payment or against an acceptance of a draft, provided they are delivered against actual payment or acceptance."

(d) Numerous writs of sequestration are issued on bankers or merchants against drawers of bills accompanying goods or documents. Mercantile law and mercantile custon are well known in the sense that the endorsee of such bills is, for all intents and purposes, the owner of the goods. It happens, however, that questions arise whether the endorsee who sends the bills or drafts to a bank or other person in Malta is, or not, the real owner for value received, or is merely the agent for collection on behalf of the drawer. We suggest that, to make matters clearer, an article be added to our commercial code on endorsements, to the effect that the endorsee be held the holder for value unless the contrary be shown in the endorsement itself. The agent in Malta would then consider the endorsee as the holder for value, so that no writ of sequestration against the drawer could be legally obtained.

122. Hypothecations. Hypothecary inscriptions in Malta give a preferential claim even on movable property while in the possession of the debtor, and on all moneys due to the debtor until actual payment. We are of opinion that the law should be amended so that all hypothecary inscriptions registered after such amend- ment should only affect immovable property, and not goods, merchandise, or other movable property in the possession of the debtor. The solvency of the trader is generally judged by the extent of his stock-in-trade and punctuality in making payments. It is quite impracticable before entering into a commercial operation with anyone to go to the Public Registry to verify whether he has registered debts or not.

123. Bankruptcy.--The bankruptcy laws require revision. We do not recom- mend any radical change, as we are of opinion that our laws on bankruptcy, properly understood, compare very favourably with those existing in other countries, but they require small alterations to save time and to facilitate the winding-up of estates by simplifying the procedure. For example:-

i. It should be lawful for a merchant, who, having assets which may not be immediately realizable exceeding his liabilities, if in momentary difficulties, to apply to the judge of the Commercial Court for the appointment of a trustee to administer the estate for the mutual benefit of himself and the creditors, thus avoiding bankruptcy proceedings.

ii. The time within which the official receivers, or, as they are called in our law, curators, should present their preliminary report should not exceed one month, and this term should by law be fixed as peremptory. This limit of time is estab. lished by Article 272 of Ordinance XIII of 1857; that law, however, does not fix such period as peremptory, but allows it to be extended. Any such extension is useless, because the report is, and cannot be other than, preliminary, as the final report can only be made when claims and other liabilities are ascertained and allowed by an order made by the judge.

iii. Bankruptcy claims are at present allowed by an order of the judge of the Commercial Court, any appeal from which is heard by the same judge sitting in the Commercial Court. From the judgment of that court an appeal lies to His Majesty's Court of Appeal. All this procedure entails enormous loss of time; the law should be altered so that claims should be allowed or disallowed by the Commercial Court, and from the judgment of such court there should be an appeal to His Majesty's Court of Appeal by summary proceedings. In 1857, when the ordinance was enacted, the Commercial Court did not consist of one judge only, but of a judge assisted by two merchants styled as "consuls," so that the law originally intended to make a difference between orders made by the judge and orders made by the court. Orders made by the judge were practically reheard by a full court. At present the Commercial Court consists of one judge without consuls, so that the order made by the judge is reheard by himself.