DISTRICT COURT.

Press, Volume XLVIII, Issue 7781, 7 February 1891, Page 3

DISTRICT COURT.

ASHBURTON. IN BANKRUPTCY. Friday, February 6. (Before his Honor Judge Ward.) IN RE H. DE B. WILSON. This was a motion to set aside certain securities held by the Bank of Australasia. Mr Harper appeared for the Official Assignee and Mr Wilding for the Bank. Evidence was taken at length last Court day, and the case was allowed to stand over in order that Mr Wilding might call James Jameson, who was now present, and stated that on May 15th last he waa manager of the Ashburton branch of the Bank of Australasia. The stock mortgage and the wool lien were signed by Wuson on that date. The stock mortgage was signed first. A guarantee for £10U0 was signed by Ross. All the securities were signed at the one interview, the interviewlaating about half an hour. The signatures were witnessed by Low, the teller. Wilson then drew out a cheque for £1000, and witness produced notes representing that amount and got Wilson to fill up a credit slip for this amount, and the teller took the notes and slip away and the £1000 was placed to Wilson's credit, who was told that he could then operate on that account. The stock mortgage and the guarantee were given to cover_the £1000. Five minutes afterwards witness took a wool lien in part security of the £1000 aud further advances. There was a covenant in the stock mortgage that Wilson should give the wool lien. Wilson could have operated on the -.1000 without giving the wool lien.

By Mr Harper—Wilsou arranged the loan with witness in Ross' presence a week previous to the deeds being sigued. The security offered was the stock mortgage and Ross* guarantee. The wool lien was produced uuring the interview. Witness filled up the wool lien and after some demur Wilson signed it. The loan had been submitted to the head office previous to its being signed, the securities shown being the stock mortgage and the guarantee.. This was all the evidence and his Honor reserved judgment. IN RE JAMES M'CRENNOR. On the application of Mr Russell, who appeared for the Deputy Official Assignee, t_e public examination of the debtor was allowed to stand over till the next sitting of the Court. OFFICIAL ASSIGNEE IN BE M'CRENNOR V HIBBS BROTHERS. This was a motion to set aside a preferential payment of £8916s 6d, made by McCrennor to Hlbbs Brothers within three months of McCrennor's bankruptcy. Mr Russell for the Official Assigdee, Mr Wilding for Hibbs Brothers.

Jonathan Hibbs, of the firm of Hibbs Brothers, Methven, said that on March lOch, 1890, McCrennorowed the firm £911.8 Bd. Of tnis amount the sum of £3- had since been paid by cash. Received an order signed by Surtees fur £55 from McCrennor, but this order had not been paid. McCrennor still owed the firm about £12 plus the order. McCrennor was selling Surtees some horses, and the order was to be taken from McCrennor and charged to Surtees' account. McCrennor's accouut was credited with the order and the cash paid. After the order was given by McCrennor, Surtees. discovered that there was a bill of Bale over the horses, and the horses were given up to Friedlander Brothers, who claimed them; Surtees was not now held responsible under the order. The horses were sued for by Friediander Brothers before tbey were given up. The witness released Surtees of the order, and gave a third horse back to McCrennor. Had no idea at the time he receivtd the order signed by Surtees that McCrennor's horses were under bill of sale to Friediander Brothers.

William Surtees, a contractor, said that he arranged to buy three horses from M'Crennor for £55 cash and gave an order iv payment on Jonathan Hibbs, who had agreed to let him have what money he required at 6 per cent. He took possession of the horses. A few days afterwards he bought another horse from M'Crennon for £18 lOs. Afterwards heard there was a mortgage over the horses, and gave three of the horses up to Hibbs Brothers, and the other was stolen out of the paddock. Hibbs had not asked him for payment of the order, neither had he received the order back. Did not pay M'Crennon for the fourth horse, but M'Crennon gave him a receipt for the horse.

James McCrennor stated, that just before March 10th last he had in cash about J. 40. He had no other property. The hordes he had were mortgaged. He got an order some time before this, signed oy Surtees. Handed the order to Hibbs Brothers for his store account, which was about £91. Gave Hibbs £33 or £34 out of the £40, and went- away a few days afterwards. He gave Ruddick in payment of about £100 a team of horses. Ruddick afterwards brought the horses back and put them in a paddock he was occupying. By Mr Wilding—He stopped at Methven about a mouth after paying Hibbs the £34, but was idle the wnole time.

. Counsel addressed the Court at considerable length, and his Honor made on order for the repayment to the Official Assiguee of the £3. Ids 6d without costs.

A similar motion against J. Baker for the repayment; to the Official Assiguee of the sum of £10 stood over till next Court day.