BANKRUPTCY COURT.

Dominion, Volume 1, Issue 213, 2 June 1908, Page 4

BANKRUPTCY COURT.

e — .. . PUBLIC EXAMINATION. A RESTAURANT-KEEPER'S AFFAIRS.. ALLEGATIONS OF PERSECUTION.' A public . examination in bankruptcy of Edward John Searl, restaurant-keoper, -was hold yestorday aftornoon boforo Mr. D. G'. A. Cooper, Registrar of tho Supromo Court: Mr. Myers appeared on behalf of • the, OBieial Assignee,' Mi'. Dunn' for tho debtor, and Mr. Ayson for Mr. Lyons,V Messrs. Flockton and Co., and Messrs. Bunny, Pethorick and Co. , • Mr. Dunn submitted that Mr. Lyons could not be represented, becauso his proof of debt had been disallowed. Mr. Myers: Disallowed at, ono meeting for tho purpose of voting only. Mr. Dunn: It has never, been admitted sinco. Only creditors can be represented. Mr. Ayson: We have had no notice 'whatever of tho-rejection of tho proof, ,Mr, Myors: Tho proof has been.-.accepted; Tho Registrar: That ..being s°, Mr. Lyons is .entitled to be represented. '.V;, .: . -' Tho debtor, : under •* examination ' by ' Mr. Myers, stated that lie was adjudged bankrupt on November 15,'1907, -oil ;tho petition of Robert Hannah, a creditor. In your statement you' attributed your position to illness in tho family and persecution on tho part of a fow creditors ?■ —Yes. What do, you mean by' persecution?—l mean the actions, of Messrs. Hannah'-and: Lyons. "' •" . s In;what way?— ; ln.tho first.-place therewas a disputo between Lyons' and myself. He offered mo £50 to hand over my share of the partnership to hini, and t-hreatoned' in the event of my failing to accept to have me adjudged bankrupt! Then Lyons called a meeting of joint creditors in; the, partnership. , Thero was talk 'of wrecking l tho' business and- suing. ■- Do;.y-ou., disputo .that you .were . indebted to Mr. Hannah for'the'sum of £30 or over? —No, but ho never troubled mo for four months,, until, after . the threat made by Lyons. _ Where was tho persecution on the part of Mr. Hannah ?—I spent, £.500 1 on ..the premises, and when I. was only two days in arrears of rent lie put in tho bailiff.. Before I spbnt tho money on improvements I paid the rent when I liked. Is; it not a fact that —rightly or wrongly—>! Lypns complained of .your having ,'misled hiiii?—He never; accused .mo of anything .until '-.at the meeting of creditors. ', You have complained'of : the actions of . the •Official Assigneefr-Yes, -!' said that'-'ho ;had : prostituted >his . position.. ■■ '' ') , , ' t ', And you complained of the actions of'tho previous Official . Assignee?— Yes; ho had no to say. certain things to my creditors until ho bad seen nift ■; -Is this not'your fourth- bankruptcy?—] decline to answer. .: Mr! Dunn:' It is not right to go iritp'details fof. previous bankruptcies..... _ ... The Registrar: There will be no' necessity to go. into all the details. Mr;' Myers: Part of tho object:' of.-tho examination is to ascertain whether debtor is a ;'proper person to whom a discharge should be granted. . ' Debtor again refused to answer, ; , stating that . object of-"the 'quostions-,was ; to,smudge him over in view of his,.lawsuit with -Lyons. Ultimately,' howover',''he' 'con-' sented to. answer the;qjjßstionsS.' u,x : i v 4:. f. Did' your first bankruptcy' take place at Mastijrton in 1894?—1t '.took'/placovat terton about that date.,. .y : Did: you say at your first meeting of creditors on tho occasion of the. present bankruptcy that you paid 10s. in tho £ in that bankruptoy P—As a matter of fact, I paid 16s. in. tho £. J\ ■,?; •'- j~' I The official intimati<)n;,;befproj,mo:;is";tnat your l;debts on that occasion 'totalled £756, and that assistance of friends, you, found £189 in"cksh, i.e., ss. iii tho'£?— (Yes, that'is so. , ' . i YodPyttbWbttllkfapto?'' wa"s in • July, '1897- ? —Yes. . >, On: that occasion-did-"not.,your-unseoured liabilities total £217, and is it not a fact that ,-po- dividend/fwascpaid P/rr®ha|t.vjA»«e.«;.-i S • Was your next bankruptcy in 1902?— About that date".-V .- ' ; .• ; Your unsccurodi'.dobt's ,<sn> "that/.'occasion totalled ' £1880,' on' I 'which' not'' a penny was paid by way of dividend mjistbojrememborod that tho Official' Assignee failed to account ..-for* assets it.os-tho, /valuo-.-bf;. £32,500 P-^-I; want - taat • taken'; . down 1 ju-i'my-statement. ■ ~ v, " -A' On vthe.ocoasion of youri;,third bankruptoy you charged tho .pfficial Assignee, jvith persecuting you?—l'told;,, him. ~that " lib,, was, not. doing his dutyAnd you got .your after I had; paid all hiy preferred claims,' including amounts due for wages.

■ Don^t. jpji, thinlythat,,.by.. writipg .a,.letter, (produced) to tho Official Assignee you wore attempting to intimidate' him. in tho execution of lits duty, after lie Had thought "fit" to recommend a publio examination ?—That is not tho way I looked'at it.Why did you write tho letter? —Because I thought his action was contemptible. And you, thought it proper to threaten himp—l liavo not' threatened him'; I have dono it. You'will; see. .•> ;/. What business dirl you start in after your bankruptcy in 1994? —I kept .Babington Boardinghouso at Seatoun. ' • * What capital' had you at that date?—r. £200, which VI borrowed; , ; Prom whom? —£100 from-'a Mr. "ty. G. Gilbert, tjjieirat Masterton. _ :.■• J ' Havei you .any documents in connection with tM transaction? —I think thore arb somo in a desk., , ■... ■ ,; • How did you receiyo.. tho money—byCaSh or cheque?—l, think his wifo camo down apd gave tho fiiohey to my-wifoU" ; How did ; you pay it back ?—By dribs and drabs. . yProm whom'else did you borrow?—A Mr. Kent. .'.l; .. . How did you got tho money ?—ln cash, I think. , Have you any writing.ini. connection with tho matter?—No, but I can: give you his address.', ; Anybody else?— Yes, a Mr. J. L. Murray, of Masterton. >• Havoyoii/any,document'in regard to the transaction?— N0. .: From whom did you acquire the ;bpardinghouse ?—A". 'Mr. Wylio, and' 1- 'furnished it myself. .• '. What did-tha furniture cost?—£6oo, of Which I, paid i^; cash £100, \vhich I borrowed from Mr.--W.ylie. The fiirnituro was sold by auction at the instance of tho D.I.C. I don't know tlio amount of the proceeds. 1 was £1200 to the bad' When I loft there. Whoro did 'you get, the capital, with which to start business in Cuba Street?—l got £500, ; which my wifo borrowed through Mr. Wylie. She had some money out on mortgage. I bcliovo she had £1200 or £1300. How long were you in that business?—' About two years. " What was. your position when, you .left Cuba' Streot?—l must have been in debt to tho extent of £800 or £900, exclusive of tho money I bad borrowed from Mrs. Searl. r Then, when you left Cuba Street you would bo probably £1700 to'the bad?— Yes. . You went to'tho bad -£500 in' Cuba Street ? —That was . not through trading.. I speht money on improvements, which" I had to leavo behind.

Don't yon think you ought to have taken your creditors into your. confidence after you loft Cnba Street ?-rl'had no creditors— I mean butchers' and bakpr?—troubling mo at tho time. ; v Did you kdop books-at;Babington House? —Yes, a diary and ; passbook. Where are tho books?— They are among my things I bavbr.applied to Mr. Simpson for them, but ho .has; refused to let me have them. '' ' •' Wiion did you^form Searl,". Ltd. ?—ln 1906. Mr. Bennett was £our partner?— Yes, but ho brought nothing 'into tho business. How much did it cost Mr; Bennott to got out of the business?—l don't know. ' ' AYould you beisurprisod to-know"that he lost. £1000?— I don't know. Ho was .managing director. ' v , -Did 'ho persecute you?—l don't suggest that ho (lid. .. Did you get £1000 from Mr. Bennett or his firm ?—Thero was a suggestion' that I should get'£lsoo by' bill of safe'to oxtond the business. I sold my share to his father, and .took over tho Cuba Street business from, the ..Company. ; That wits ahout three moiitlis before Lyons joined mo.. Tho total ehare capital of the business was. Bennett and myself