Friday, February 19th, 1875.

Clutha Leader, Volume I, Issue 33, 25 February 1875, Page 5

Friday, February 19th, 1875.

IN BANKRUPTCY. (Before His Honor Judge Wabd ) RE JAMES REIDS' APPLICATION FOR FINAL DISCHARGE, The attention of this Court, sitting in bankruptcy, was occupied during the whole of Friday, the 19ih inst., in hearing the application of James Reid, butcher, Balclutha, who applied for his final examination and discharge. The bankrupt was examined at considerable length, as were also several witnesses, to the following effect: — James Reid, sworn, in examination by Mr Taylor, on behalf of the trustees, said: — I coratr-enced business as butcher at Balclutha, in co-partnership with Charles Hewitt, sometime in December of 1873. Previous to that date, I carried on business in the same capacity at West Taieri on my own account. I sold out my business at West Taieri to Peter Grant for the sum of L 520. At this time liabilities were between L7OO and LIOOO, and assets amounted to sum realised by the sale of butchering business to Mr Grant. I did not become insolvent at Taieri ; I paid to creditors greater part of sum of L 520-. When I commenced business at Balclutha liabilities were LSOO, and capital LSO to L6O Hewitt had no capital— nothing save a horse. (Laughter.) Stock were bought on bills. At the end of three months, books represented considerable profit. Throughout, retail business was profitable. His Honor: Your business is to explain what became of the assets. ; Bankrupt: Dealing in cattle, wholesale. Never took a mob of cattle to auction in Dunedin but lost money on them. - . .; Mr Taylor: Why did You not, when? you found that your liabilities amounted to IjXOOP/ cease, to deal wholesale in cattle, and come to some arrangement; with your , creditors P, '. '--*- '*•..:'- A A-' ' S' : .' '7' " ' : "Bankrupt: Do hot; Know; thought. l could wors myself deaf.- :"•_■ »- j t A Tayldr.r What hewnie of your partner, Hewitt? . l

Bankrupt : Bought Hewitt out for LSO, and two bills of LSO ? at three and six months. The bills were not met, and appear in declaration cf insolvency. Filed declaration some time in August, 1874 Causes : losses in cattle ; creditors jpusbing for money. ' -' ' - Mr Taylor: You bought some sheep from Mr Duncan M'Neil previous to your becoming insolvent. How do you account for their absence from you** statement? Bankrupt: I don't know; must have foreotten to put transaction in declaration. His Honor : Yet you have sworn to the veracity of your statement ? Bankrupt: Only so far as my memoryserved me. I stated this at the time that I was sworn. A man in my employ named Martin sold these sheep, unknown to me, to M'Laren. Bought 101 sheep from Mr M'Neil at a month's acceptance. Sold 50 to M'Laren, of Milton. | The applicant here contradicted himself I with regard to Martin gelling the sheep. « On being reprimanded by the Bench, he said that he had made a mistake, as it was neither himself nor Martin who had sold the sheep, but a man named B'-ansill in his employ. He subsequently acknowledged having sold the sheep to M'Liren himself, | but had never authorised their delivery by Martin. Mr Taylor : Were you not aware that at the time you gave M'Neil a cheque you had no funds to meet it ? Bankrupt: I did not think of it. I had often been overdrawn at the Bank. The sheep were never paid for. Mr Taylor : Did it not suggest itself to I you to file your schedule at an earlier date? Bankrupt : It did not. It was a sudden thought, brought about by creditors pushing for money. Mr Taylor: After you had filed your schedule, why did you not instruct your servants not to interfere with your property as you had placed yourself in the hands of your creditors ? : Bankrupt : I did not return to Clutha. I was ashamed to face creditors. Mr Taylor: Other transactions have also been omitted from your statement. Have you a bad memory ? Bankrupt: Sometimes. Mr Taylor : Just when it suits your convenience ? At this stage His Honor gave instructions for the production of Martin. Mr Taylor : How much of your statement is to be considered reliable ? Bankrupt : It all, with the exception of the transactions I have forgotten. Mr Taylor: Allowing that your losses amounted to L2OO during the time you were in business at Clutha, it took LBOO to support you (a single man) for the term of eight months. Bankrupt : The money went somehow. His Honor : Did you not lose money by gambling ? Bankrupt : I did not gamble very much — nothing more than " Yankee grab for a shilling a throw. Martin was here produced, and examined as to delivery of sheep to M'Laren. He said he delivered the sheep without any " special " instructions ; and alter Reid had become insolvent, he got a " blowing up" in consequence. After an adjournment of Court for luncheon, the bankrupt was examined at considerable length by counsel for the trustees with regard to several important transactions which had teen omitted from his statement of accounts, including horses, cattle, &c , to all of which, after considerable cross examination, 'he stated that he " must have forgotten them." In the course of the examination of bankrupt, Lis Honor said that in all his experience he had never known a man to give such contradictory evidence. Mr Taylor, on behalf of tbe trus'ee*, at some length, objected to the bankrupt's final discharge ; and Mr D. Reid replied on behalf of the applicant. His Honor said: I am clearly of opinion that the order of discharge applied for by i this bankrupt must be delayed for a lengthened period ; but I must say that he appears ta be a most unfortunate man. He has evidently been born 200 years ioo late. At the Taieri his sphere of swindling «as ; somewhat too limited ; but here he has ; ridden on a regular Border foray. Instead, however, of spear and sword, he has been armed with acceptances to bills of exchange — the great majority of which seem to have been duly dishonored. I am not Certain that tbe old method of plundering was not the best .** those who were plundered had, at all events, the chance of a fii-ht for their sheep *nd oxen, and the plunderer, if caught, was summarily disposed of. The bankrupt's tcbedule does the greatest credit to the primitive simplicity of the Clutha ; there would ecarce be such faith found in Israel* He came to the district over bead and ears in debt •, he had fifty pounds in cash, and bis partner a LlO horse, and on this magnificent capital tbey setup business as butchers, and contrived to incur debts to the . amount of nearly LIOOO in six months.— (His Honor then referred to the various subsections of the 120 th clause ot the Bankruptcy Act violated by the bankrupt.)— Under these drcumstaneee, the bankrupt's order of discharge must be suspended for two years. Let him not, however, imagine that by this suspension he will be exposed to the slightest risk of imprisonment. Probably he is not aware of the tenderness— the romantic affection, I may almost call it— with which an insolvent debtor is regarded by the humane Legislature of this happy Colony. It may be instructive to point, out ho «v marvellously the wind is tempered to the shorn lamb of the Bankruptcy Court— with what care his personal liberty is guarded .from the vengeance of his unfeeling creditors. Supposing a person in difficulties desires to pass through the portals of this Court to the blissful haven r beyond, where wicked creditors cea? e from troubling and the weary debtor, is .at., rest,.' his first act is tb file his schedule, and this at once gives him peace v,r9 tempore* Then commence his. creditors' difficulties. Aesnming a creditor to be able to shew, that the;debt was incurred by gross fraud, he is , not admitted to oppose the bankrupt's discharge— even if his claim be admitted Iby the bankrupt— without proving This debt. If * he;pro.VftLihis 0 debt^however7 minute be r- the dividend "received— he ist deemed^ to have elected to satisfy his claim out of the bankrupt's estate, and is debarred from imprisoning /the bankraptVfor 'the balance' during the suspension of the;ordei\ o/ awcharge.f-JBst.na supple, however,, tlisi such a creditor hag not proved; his

debt, but has stood by during the bank* ruptcy proceedings, and his heard the order of diicharge suspended. Iq such a case, coarse, minded com nercial men might 1 - •. imagine that, if hi 9 creditors' d<sbt werb admitted on the echecfule of the bankrupt, an! if it were decided, in effect, by the suspension of the order of discharge, that the bankrupt had behaved fraude»tly or improperly, then, on the application of such; a creditor, the Bankruptcy Court should! is ue a warrant of imprisonment without further expense or delay. Not go ha«» deemed the wisdom of the Legislature; First, the unfeeling creditor must go through the whole expense of obtaining; judgmeat against the bankrupt for his debt already admitted ; then he mustapplv for an order under the Abolition of Imprisonment Act of last session — and amon^j the regulations under that Act, if 1" remember right, he will fiod it directed that no order of imprisonment is to issue against a person adjudicated a bankrupt. I have not the regulations here to refer to, and therefore speak as to thoaa under correction. It is clear, however, that the Legislature has considered that, in the evens of a return of null* bona to a writ of fi fa, a creditor whose bilU have been duly dishonored should consider himself compensated, both for principal and interest, by the thought of the remorse which hw debtor ought to feel for non-payment in this world; or, failing such remorse, by the prospect of the reti ibution which awaits * him in the next. Doubtless there are \ persons who would prefer the administraI tion of a modicum of imprisonment to a bankrupt dur.ng life to a somewhat speculative post obit, but with such grovelling natures the Legislature has evidently no sympathy. And I am well-assured, said his Honor (addressing the bankrupt), that I act in simple accordance with the lofty spirit of our laws, touching debtors and creditors, when I inform you that in suspending your order of discharge for two yeara I do not expose you to the slightest practical risk imprisonment : I merely express my opinion of your peculiar style- * of business, and abandon you to the reproaches of an agonized conscience*