SECOND EDITION. S.M. COURT.

Bush Advocate, Volume XXI, Issue 295, 17 June 1909, Page 5

SECOND EDITION. S.M. COURT.

THIS DAY. <Before Mr S. McCarthy, S.M.) Judgment l)y default was given "n the following cases: — Maletsky v. W. Tutaki, £9 7s od, costs 355, solicitor's fee 21s. E. Adams v. Olliver, £2 8s 2d, costs 19s. ■» Brandon v. O'Donnell. — Agreed to adjourn this case to Ormondville, plaintiff to pay costs, 10s 6d. Abraham and Williams, v. A. Carlson. — Judgment entered for 13s costs. R. Brown v. W. Meads,' claim £3 12s od, costs 10s, solicitor's~fee ss. Jones v. E. Foley, claim £1 18s lid. Jones v. Nikor^, claim £3 ,7s Bd, costs 17s. / . Hamilton (Mr Blakiston) v. Hogg, costs 255. Tiratu Sawmilling Co. v. A. Mudgway, £2 17s 6d, costs 12s 6d. Brandon v. Ratanau, claim £1 11s 3d, costs 15s. . •_ Balfour (Mr Fitzherbert) v. Puro Teha, claim £2 8s 4d, costs 17s; Calder, Drummond and Co. v. Mrs Diggle, claim £11 18s 2d, costs 255. A. Sugdei\v. A. Hegh, claim £7 2s 3d, costs 18s 6d. ' D.C.A. (Mr Blakiston) .v D. Morrison, claim £19 19s, costs 33s 6d. J. L. Scott v. W. C. Webb, clainr £8 15s 7d, costs 23s 6d. JUDGMENT SUMMONSES: Calder, Drummond and Co., v. Derlil .— rAdjpjirned. French (Mr Fitzherbert) v. Bergersen. — Order for immediate payment, in default one month's imprisonments Loader v,' C. • White.— Order made that defendant pay 5s per month, in default 21 days' imprisonment. Gurr v. Henossey. — L. Hennessey, sworn, said he was a contractor, and judgment in the claim was given four months ago, and was against himself and partners. Judgment debtor was examined' as to his earnings, and as regard £80 3s 4d paid to Mrs Ross. Had no property.'' Did not know whose horses he worked when on the contract. Had been out of work two months. — Ordered to j>ay amount of £141 in instalments of £2 per month. BREACH OF BANKRUPTCY LAW. (Continued from page 7.). N. G. Gurr's examination was continued: Bankrupt filed an affidavit (produced) as an answer to the requirements 'of the judgment ; affidavli handed in, exhibit H, dated 26th January, 1909. Statement No: 3, purports to be a • statement of accounts between L. and J. J. Patterson. Totar entries on the debit side amounted to £4285 16s. Uetween Bth August, 1905, and "2oth August, 1908. Bankrupt's books did not convey any account such as was contained in the statement attached to the affidavit; bankrupt did not obtain any information from witness necessary to make up sneh a statement. Bankrupt did not come to the office to see the books to make up the . statement. With the pxirpose of investigating books he had employed a bookkeeper and a qualified accountant. " First employed Mr Thorburn. Employed Mr McCullough, a qualified account. Bankrupt's statement was put in. To Mr Lloyd : The counter books were only debit notes. He could produce them. Argument took place between counsel whether "these wore books of account. Mr Lloyd asked that they be produced. , "* Wm. McCullough, authorised accountant,, said he had been employed by Mr Gurf" on. investigating the accounts of J. J. Patterson. The investigation had been carried oji in Dannevirke, Napier, and Hastings. Inspected the books produced. Had seen the counter books. From the books bankrupt had evidently carried on business as a solicitor, moneylender, sawmiller and storekeeper ; had investigated as far as possible bankrupt's position in all the books. He referred to bankrupt's statement of affairs which Jie filed with his petition; had 20 years' experience as an accountant. Investigations in the estate occupied a considerable number -of days; was acquainted with the requirements, of solicitor's bookkeeping. Had not been able to trace the- transact ions' of bankrupt, as a solicitor, from, the book lie examined. It was not possible to say how much'bankrupt had earned daring the last three years. Had sufficient knowledge to .say books .should be kept in a sawmilling business. Examined books with an endeavor to ascertain bankrupt's position with regard to his sawmilling business. Bankrupt's books did not comply with the Act as required by a sawmiller. Was acquainted with hooks requisite for a storekeeper's business. The books of Wvlie and Co. did not sat forth the transactions of the last three years sufficiently. Bankrupt took a .considerable number of bills of sale during the last three* years. Could not say how many there \vi>ro: Harl search notes submitted to him in regard to such bills of sale. Kvom loth August to 18th August he had 20

search notes of registered bills of sales. There were entries referring to these bills of sale in a book which ho called tor distinction a private ledger. Only three of 20 are referred to in Patterson's ledger. There were no entries in any other books submitted, referring to these bills of sale. Bankrupt's books as submitted, taken as a whole, do not contain sufficient information to make out a balance sheet at the time of his bankruptcy. For the purposes of these accounts no proper books were kept. From . his investigations and bankrupt's statement he could not tell how much Mr Patterson owed Mrs Patterson. Had seen the copy of the affidavit filed in answer to the requirements of Mr Justice Cooper. Affidavit purported to give information on bankrupt's financial position, comparing' affidavit and book/ witness said, the books did not support tlie affidavit statement ; four and five were partly supported by notes, etc., in the ledger. Bankrupt's books did not tally with the statement as a whole. Twenty-nine items totalling £882 in the Ivoru Co.'s accounts, due to unsecured creditors, of Avhich only : five agreed with the ledger. Fourteen of them don't agree in amount with the -ledger . «? Teh were not shown in ledger at all. There were accounts showing amounts clue to creditors which did not show in tho. filed, statement. In bank statement lodged with the assignee he showed under the head of ledger balances £29,603; Koru, £229; Wylie, £2500; total, £32,342. He understood "ledger balances in this case to mean book debts, which were estimated to produce £10,000. This he took it as apart from Wylie and Co. and the Koru '• Saw-milling Co. The books submitted would not support a balance - sheet on this basis. Speaking generally on the -books, especially the private ledger, many items were simply memoranda. He I found many transactions in the led- [ ger recorded on behalf of Mrs Patj terson, and in many cases bankrupt's money appeared to have been entered in his wife's name. 'There was no realisation account in regard to the Bunnythorpe property, and no information as to what money was received in regard to that sale. No, books had been produced in regard to the Ruahine Sawmilling Co., P. M. Cohr and Co., Bosher and Bennett; Imar Anderson and Co., in all of which bankriipt was a partner or sole proprietor during three years^back from the bankruptcy. Pages 426 to 429 and 438 to 445 were missing. The ledger index showed that 435 contained a list of sundry debtors, and ; 438^contaiiied land tax:.: ">., There was no separate trust account as required by the. Law Practitioners' Act. A purchases day book, sales day book, cash book, ledger and a bill book should have been kept in connection with Wylie and Co.'s account. There was a bought ledger in place of the purchases day book. . This boughtledger was not properly kejjt. Mr Cornford held that enough had been submitted to show^ a" breach of the Act had been committed. In answer- to Mr Lloyd, .witness | said there was a etish book, ajeustom- ■ ers' ledger, and what purported to be a bill book. ! After lunch Mr Lloyd asked that tho other side put in the books promised. He said he did not propose to call evidence and he. left, his Worship to decide whether a, prinia facie case had been made put. > The defence was reserved, and a plea of not guilty was entered.. Accused was then committed to take his trial. at the nest sittings of the Napier Supreme Court on the 2nd inst. Meanwhile he would bo admitted to bailxxn his own recognisances.