SUPREME COURT.-This Day.

Auckland Star, Volume XII, Issue 3354, 27 April 1881, Page 2

SUPREME COURT.-This Day.

Civil Sittings.

(Beforo His Honor Mr Justico Richmond) National Bank v. Bbdisll and Field.

This case was continued to-day.

Thomas Macffarlane, Trustee in Bankruptcy, deposed that he knew Mr Hood, of the Masonic Hotel, who whs some time ago compelled to seek relief under the Debtor's and Creditor's Act. Messrs Bedell and Field were amongst the creditors proved. (Bill of particulars put iv.) Mr Kirkwood gave him notice uot to pay their dividend, as Cruickshank and Co. had beeu in some way security. He had not paid it, and Mr Bedell had not eecu him on the matter.

Herman Brown, of tlie firm of Brown Biirrett and Co., gave evidence iv reference to the bills taken over by Bedell and Field from W. J. Suiter, a brewer.

William Thomas James Bell, insurance a(.eut, and member of the firm of jKyan Be.l and Co.,} knew one Suitor, a brewer. His firm and Suiter's were jointly liable to the National Bank for the cash credits of Maclean and Blaydc3. His linn had tho spirit and Suitor's the beer trade of the hotels. These were existing liabilities at tua time of Suiter's meeting of creditors. Ho and Suiter held securities from these people, after Suiter filed a deed of arrangement, the beer trado was supplied by Field and Bedell. Ryan, 801 l and Co. paid thoir half of tho cash credit, Field was often down nt their phice about the accounts cf Maclean and Blaydes. He negotiated for their half or Suiter's half ot tlio account. Blaydo's security were iv tlio same condition, with a claim of the trustees of Ryan, Hell and Co. for I*loo rent. There was uothing to como out of Blayde's securities. Maclean's security brought £37, and this was entered to their credit iv Ryan, Bell and Co.'s books,

Mr Heskoth announced his willingness to withdraw tho lirst count uud tho issues upon it. His Worship said that whatever could he recovered under the first count, could also ho recovered undor tho third.

This concluded tho case for tlie plaintiff. Mr MoOormiok pointed out that if tho account was closed on January 24th last, no further interest could ho claimed. Thoy did not dispulc tlio rato of interest—lo per cent.—

Mr HcNkcth said ho proposed that tho calculation for compound interest bo up to 18th May when the demand wus made, aud simple interest tj Novombor.

His Honour said this could uot make much difference. Of courso it might if allowed to run for soveral years.

Referring to the amount puiil to Mr Heather, His Honour said interest could oulv be charged ou the balance from tho £2,200.

Mr Hesketh Biiid lie was willing to strike out the hum of £70 ss, making tho account free from all charge for interest.

Mr McCormick suid ho was satisfied with Unit.

The case for tho defence was then opened by Mr Mouorinio k.

Arthur (leather was called and deposed that he was a merchant carrying on business in Auckland. Ho knew Mr llcan, tho manager of plaintiff's bauk, and defendants. He became surety for tho firm at the request of Mr Field, who stated that thoy contemplated buying Suiter's brewery. This was in November, 187. He snid the bank would advance the money if he became surety. Ho agreed to act. Hud interviews with Messrs Bedell and Field, and tho Manager of tho Hank, before the 18th November, 1870. Ho went to ihe Bank with Bedell and Field on the 17th, and had au interview with Mr llean regarding tho advance Mr Iledcll on the morning of the 17th was anxious to know about tho cash credit, as to how long it would remain, uudalsoas to 'liooxact amount they wero going to pay. They wont to the Bank to havo thoso points settled. Ho was not a creditor of Suiter's, and was not aware that Bedell and Field had made arrangements with tlie trustees in Suitor's estate to purehaso tho brewery trom tlieiii. At tho Hank, Mr Bedell asked the terms which Mr Hoati would give. Mr llcan asked a Hum to be reduced about £50 per month. Both Field and Bedell said that could uot pay anything for a month or two, but would reduce it ot the rate of £500 in twelve-months. Mr llean said he would be .satisfied it it was reduced at that rate. It was made clear that it could not bo paid oil' monthly for the first fow months. £2000 was the amount of the advance. The [laying of the advaneo to the Bauk of Now South Wales necessitated the signing of the bond that day. Mr licdell had to withdraw his deeds from the Bank of New Soutii Wales in ordor to givo necurity. Tho cash credit bond was signed beforo the cheque was drawn lor tho Bank of New Souih Wales. Witness did not want to sign It till he had the security, but Mr llcan soid the securities could not be obtained without the che<[tie. Ho fancied they all signed at the samo time. It wiih stated that the Bank's claim against Suiter was £12')0, but Mr llean said it was nearer £1,400, or would not exceed £1,400. The security ho was to have was the second mortgage on the brewery, and security over the private property of Bedell. When Bedell mid Field wout to give the mortgages, they found that the mortgage on the brewery was given to tlie National Bank. He went to Mr Mean's ollice, and told him there was a a mistake iv the deed. He asked him if the mortgage was not to bo made out to him, and he said it was. Ho gathered from Mr llean that it was a mistake of the lawyer. Ho was satisfied by Mr lletui saying that he would realize on tho brewery, believing that there was no other claim. He understood that the £1,400 due from Suiter to the bunk was mado up by ccrtaiu bills. He had not seen any documents by which Bedell and Field had undertaken contingent liabilities to the bank to the amount of about £I,GOO. Up to 6th December, 1879, ho had no notice whatcvorof any such undertaking by Bedell nndField.

(Loft Sittin ..)