Supreme Court—ln Bankruptcy.

Bruce Herald, Volume IX, Issue 891, 23 March 1877, Page 6

Supreme Court— ln Bankruptcy.

Monday, 19xh Maech. (Before his Honor Justice Williams.) RB JOHN CAMPBELL. '. Mr Brent made application for an adjudication in bankruptcy against John Campbell, who failed to appear before the Court. Evidence was tendered to the effect that George Proudfoot had obtained a judgment against John Campbell for £105 in the District Court, Dunedin, and that the writ of " judgment had been returned unsatisfied. His Honor granted the order, an act of bankruptcy having been proved. BE JOSEPH 3I4.CKAY. The .bankrupt appeared, in answer to a summons issued upon the application of the National Bank, for examination as to the disposal 6f his property. Mr B;; Stout appeared for the National Bank; and Mr W. D. Stewart for the bankrupt.-" ; Joseph Mackay (examined by Mr Stout) stated ; I ..gave several statements of my properties to the National Bank during the time I dealt with them. The statement produced is one of these, and I believe the last I gave them shortly before they broke faith with me in March 1876. It does not, however, bear any date, and I cannot swear that it is the same. My dwelling-house, the BruckHeeald Office, and another house, - were valued in my statement at £4450, and there was a mortgage on them of £1200. - "These properties remain still in the same position. I have done nothing with them since. I have sold to Mr Abbott land at Clover Hill, valued at £100 ; sections 1, 2, 3, and 4, Balclutha ; sections 3, 4, and 5, Wyndham, Mataura ; and 18 acres of the farm at Tokoinairiro. Those propertiej were Bold to him, 1 think/.in August or Septem ber last for £400. I gave the properties into the hands of Mr Webb to raise money on them early in the year, but he could not succeed. I received the cheque from Mr Abbott, but in common with all properties sold for years past I never handled a penny of it. I at once handed the cheque and a list of my Dunedin debts to my agent, who promised to settle them without loss of time. Be did so, and I produce the receipts. Several of these Dunedin creditors pressed me ; one firm, Messrs R. Wilson & Co., had obtained judgment against me, and issued an execution, which was returned without effect, as there were then no assets, my properties having all been sold. The amounts paid to Dunedin creditors were not paid by me after my case against the Bank, of 25th and 26th October, was non-suited, but were paid by my Dunedin agent, to whom I had paid the money in August. Mr Webb was usually my agent, but Mr Hogg paid these creditors, and to him the cheque and li3t of debts was handed in August. When I sold the properties I bad been served withawrit ( by the Bank, but they were in too great a hurry to get their money, and made the writ returnable in twelve days, instead of thirty, and in consequence their writ proved of no avail, and they had to pay ail costs incurred thereon. At the time those Dunedin creditors were paid I had other creditors — the Bank and others. The Bank was secured, and have not yet realised their security: and if this is ■wisely gone about, they ought to receive out of it all I am due them. There was no understanding with Abbott that I should be able to buy back the properties sold to him. After the sale to Abbott, I sold some property at the Woolshed to a Mr M*Lellon for £160. T had a good defence to the Bank's action for £5000, as would have been amply proved had your Honor allowed my case, to g j to the jury for their decision instead of your own. I paid judgment creditors with the £100 I got from Mr M'Lellon. The latter paid the money in ' July before I signed the deeds in October. Ths property sold to Abbott was put down in the list 1 gave tg the Bank .as worth £1054. At the time the list was made I considered that the values stated were fair, and they were prices actually realised for adjoining properties of the same value ; but property fell, and I was then compelled by judgment summonses to sell. I produce my Bank book as requested. The judgment debts thus paid were John Rea, John Cunningham, Neil M'Gilp, and D. M. Spedding. "When I gave that list to the Bank, I believed that the amounts I put down were the fair values of the properties, j I sold my property at Akatore — the coal property—in July, 1876, for £670, to Mr Finlay Mackay, ' the mortgagee, with whose * money I originally bought the pit. In a prospectus I valued this prop arty at over £200,000, on well-founded estimates made by scientific men. In the list furnished to the Bank I valued the property at £4000. After July, 1876, I continued to manage the coal mine, by agreement with Mr Finlay Mackay. No difference was made after the sale. J am getting a wage for managing the mine. I considered the property was worth more than £670. Until judgment was given against me in October, 1876, I did not know that I could not carry on my business. I have received £3 a week for managing the coal mine sincß I sold it to Mr !Fuila.y Mackay. T have rendered accounts to him in writing respecting the working of the mine. I have paid the workmen out of the returns. There has been no need for Finlay Mackay to advance a penny for the working of the mine since he purchased it. He paid jne about £70 over and above the amount of his mortgage, which went to maintain my family. There is no profit this season from ,the working of the mine. Ifc is'alightly in debt to me. The trade has fallen off -greatly compared -with previous seasons* owing ta the dull times and scarcity of j money. In my statement the Bruce He*aw>

pUnt is Valued at '£1500 ; Btatioriety stock" £600, and the book debts amounted to £4500. The Bank sold the Bkuce Herald, and the stationery stock ; and I had sold the book debts and good-will to the same parties — John Wells and John , Mackay— privately, for about £600. The purchase money on this sale— which took place about the time the demand was made by the Bank under the bill of sale-— was not rece/vedby me personally, but was, by agreement, paid to my workmen, to whom it was due. I called them together and on this condition they released me of their debts, and agreed to look to Wells and Mackay for payment. I Sold the book debts for such a small sum because money was so scarce that it could not be got. I sold them at about the same proportion below their value as the Bank sold the Bkuce Herald. The Bank sold the plant of the Almanac to Wells and Mackay. I supplied j the brain power. For the latter I got from them my travelling expenses — £1 a day. I was, some time ago, negotiating to sell in Victoria, for £12,000, the Brucb Herald and plant. That was my price for it. I advertised it in the Australian Colonies, but got no suitable offer. They sold it by tender for £300 or £350. I was no party in any way to the sale. They did not "get only that price because I possessed tae goodwill, but because I was out of it. No one would run again3t me in that field, or in any other I entered. I swear that I did not interfere in any way with the management of the paper, and have nob since done so. For the last two months I have been doing astronomical calculations for the Almanac of 1878. lam now editing the Bruce Herald, but have no connection whatever with its financial or business arrangements. I cop fine my attention solely to the literary work. There is no arrangement with Wells and Mackay that I should get back the almanac. I have not sold the horses, drays, and buggy, which were covered by the bill of sale acting under the powers of which the Bank took possession. I know nothing whatever of the business siuce July. Wells did not buy the stationery from me. If he has stated so in evidence here [evidence read by Mr Stout] he has done so in mistake. I swear that the Bank took possession of the book and stationery stocks and sold them. I have seen a copy of the inventory -prepared by the bailiffs while in possession, in which every book in stock was entered even to the file of old almanacs in my ofiice. Neither the Bank nor my creditors can now sell the property covered by that bill of sale. I interfered in no way with the bailiffs, or sought to remove anything covered by bill of sale. The horses and drays were then, and are still, in the yard as usaal, in common with everything required to work ttie business. I filed my schedule in the District Court because on the last occasion I was here Mr Elaggitt was rude and uncivil to me in an uncalled-for way. He threw out dishonesty against me, and dared me to do so. I had filed it in the Court the day before Mr Haggitt was rude to me, but I did not act U2:on it. I did not gaeette it. I filed a second time in the District Court, and then gazetted my declaration of insolvency. I filed in the District Court because 1 was carrying on business in the district. What had more to do with my filing than anything else was that my wife's health gave way in consequence of my becoming a bankrupt, and the usual opprobrium attaching thereto. If it had not been for my wife's health giving way T would not have given in to filing my schedule. It was done at the last momeLt, and my solicitors were no party to it. I did so entirely on my own interpretation of what I should do from a close study of the whole Act. I acted in accordance with its provisions. It was the Christmas holiday time, and I had no chance of consulting my solicitors. They were so angry at my filing that they threw up ray case until I explained matters. I was forced to take a holiday for my wife's health, and could not attend the Supreme Court day after day to no purpose. 1 did not file in the District Co'.ut to harass the Bank particularly. From a statement I have got here I think it is evident the Bank wants to harass me. Mr Dymock attended my first meeting of creditors with the Banks proof of debt, which was lodged by the local manager, Mr M'Kellar, at the adjourned meeting the following day, and he (Mr M'Kellar) has since attended every meeting, and voted thereat, and otherwise acted for the Bank. The Bank has now Bworn to an affidavit stating that they have been no parties to the District Court's jurisdiction. I will harass the bunk so long as there is the breath of life in me. They have had an honest man to deal with whom they have ruined. I have my faults, but dishonesty is not one of them ; and had the Bank had managers of my sterling cast of character their affairs would tty-day be in a more prosperous condition. I have over and Dvec^again offered the Bank everything I had in the world, aa they had, as it were, been partners in my speculations. Mr Heath once spoke of my giving over the Brucb Hebald book debts to the Bank. I said I was quite agreeable, but thpy never asked me to do so. lam an honest, honorable fellow, and personally can thrive on porridge and milk or potatoes and salt. 1 never neglected my business, and the Bank could always find me after hours at my family fireside when wanted, Personal character appears never to .be considered by them. I hold a character for honesty and sobriety second to no one in this Colony. The Bank had not a better friend than I was : through my intervention they have got several agencies in this Petitioning the District Court might have been part of the general harassing process. Mr Dymopk said he had not enjoyed his holidays through it; .that is all the harassment I know. about the matter. The main reason

was my wife's illness. 1" "mortgaged my* household furniture, as part of the consideration to Wells and Mackay. They have not to my knowledge realised upon it. lam paying them a rental for the use of my furniture. I valued it at £300* They seized, the furniture at the time of the bill of sale. A lawyer's clerk accompained them in the usual way, legal possession is taken formally. I may tell you that last week I had no money left to buy my family bread with, and I was too proud to let anyone know my position. Except the sales to Abbott and M'Lennon, I have not realised another penny for any property whatever, although I could have done bo by leasing grass on the farm. I refused £30 for a portion, although hard pushed to provide means of sustenance for my family. By Mr Stewart : Wells and Mackay became surety for me in an action the bank brought against me, which brought their liability up to about £800. At che time I sold to Abbott, M'Lennon, and Finlay Mackay, I tried to laise more money on loan than I received, but was unsuccessful. 1 could have sold M'Lennon's property a fortnight before for £200, but wanted £250, and had 1 not been forced to sell to pay judgment debts, would have strung on the buye*r and got my price privately, as I expected to do at auction. There was only one offer to lend me £400, and tLat was at 20 per cent., by some one in the Arcade. This wa3 on all the properties 1 sold to Abbott and M'Lennon for about £600. Finlay Mackay is no relative of mine. The coal property was mortgaged to him, as his money bought it, and I considered 1 was honour bound to sell it to him. I tried to raise money on it, but never offered to sell it to any one else. I considered I was fairly subject to the Tokomairiro District Court only, because I traded and banked there. Jn my nearly twenty years' experience I never saw such a depreciation in value of property aB has occurred in the Tokomairiro district. The bank own two stores there which they could not realise £200 upon now, though they cost between £3,000 and £4,000 I was always willing to assist the bank in every way. I can live on porridge and milk myself, and I do not wish to have anything better. There is not an honester^fellow in the world than myself, and the bank knew it. If thftbank had had men of m> stamp to deal with they would never have lost their money. I purchased many ot those properties at the instigation of Mr A. Larnach, of'the National Bank, which was to all intents and purposes partners with me in the speculations. I did my utmost to bring in money, and at one time put up all my properties for sale. I have spent more money on those properties than I am due the Bank. Mr Nicholls resigned the editorship of the Bruce He bald about a fortnight ago, because he thought of going to Victoria. He did not tell me he was resigning until he had actually done so. I have been appointed in his place. Prior to this change I was not about the office for months, and I did not interfere with it in the least. I prefer that my proceedings in bankruptcy should be carried on at Tokomairiro. The Bank is almost the ouly creditor I have in Dunedin, and there are about 1 40 of my creditors at Tokomairiro. Re-examined by Mr Stout — When I filed in the District Court, I had about 40 creditors in the Tokomairiro district. Mr Stout obtained an order for the at" tendance of Mr Finlay Mackay, Mr Abbott, and Mr John Mackay, his Honor suggesting that they could give evidence before the Trustee. The Court then adjourned till Monday next.