IS IT VOID?

Sun (Christchurch), Volume I, Issue 150, 31 July 1914, Page 10

IS IT VOID?

A BANKRUPT'S SECURITY. DECLARATION ASKED FOR. In the Bankruptcy Court this morning' his Honour Mr Justice Sim heard an application in re George Kinley. a bankrupt. It was asked that a declaration be made that a security given by bankrupt to Matson and Co., on September 3, 1913, be declared void as an act of bankruptcy, and that Matson and Co. be ordered- to pay for the benefit of the creditors in the estate the sum of £442 11/6, the proceeds of the sale of sheep. Mr Beswick appeared in support of the application, and Mr A. Blair (of Wellington) for Matson and Co., to oppose. Mr Beswick had- outlined the case yesterday and the matter was adjflfcrned till to-day to enable evidence to be called. His Honour asked Mr Blair if it was admitted that substantially the whole of the bankrupt's property was transferred to Matson and Co. Mr Blair: Yes. We do not admit that we were aware that it was substantially the whole of his property. Mr Beswick said it was purely a question whether Matson and Col knew the position and knew there were other! creditors.-' 1 j Mr Blair said there were two matters, I one the question of knowledge, and the' other the question of whether and Co. knew this was substantially the whole of bankrupt's property. N George Kinley, the bankrupt, said that prior to August 13 he purchased a quantity of stock in the neighbourhood of Rakaia from Messrs Pyne aud Co., the National Mortgage Company, and Matson and Co. ,On August 13 the sheep were drafted at Addington by representatives of the mentioned. Each firm offered for sale the? sheep that had been bought through that firm -by witness. " Few of the sheep were then sold, but on August 29 a private sale was made through the Farmers' Co-operative Association of '675 hoggets. Witness did not seek the sale. On. the fallowing Tuesday a representative of Matson and Co. called oij witness. He told witness to sell the hoggets, and- witness told him they were sold. Witness gave liim an order on the Farmers Co-operative Association, but he returned later in the day and told witness that the order had been dishonoured. Later Mr Watson, senior salesman for Matson and Co., said bankrupt must gtVe either the money or the sheep. Witness gave him what sheep he had. On the following Wednesday witness gave Watson an order, and the sheep were taken away. Later in the day Watstin asked witness what he owed the National Mortgage Company, and witness replied " Three figures."" There was no other discussion as to his position. In consequence of a request, witness went and saw Mr Leicester Matson after the bankruptcy. Prior to this Mr Watson had seen him and had told him that they (meaning, he thought, Matson and Co.) could not aftord to lose the money. Cross-examined by Mr Blair, witness said he had made a mistake in stating in his affidavit that he saw Mr Leicester Matson and gave him the order on the New Zealand Farmers' Co-operative Association. He must have told Watson before he signed the order of September 2 that he had 12S wethers at Springbank. Mr Blair: What other imaginary sheep did you tell him about? Witness: No others. He had told him that his wife had house property at Rangiora and money invested in the North Island. Before lie bought the sheep from the three firms mentioned he owed £533 to the Farmers' Association and owned two dogs. He made no arrangements with the firms. The Fanners Association had a security over the equity of witness's wife's property at Rangiora. This wan subject to a big mortgage. (Proceeding.)