E. J. SEARL'S AFFAIRS.

Dominion, Volume 1, Issue 219, 9 June 1908, Page 9

E. J. SEARL'S AFFAIRS.

EXAMINATION concluded. The public examination into the affairs of E. J. Scarl, bankrupt, was concluded yesterday afternoon before the Registrar, Mr. D. G. A. Cooper. Mr: Myers represented the Official Assignee (Mr. A. Simpson), Sir. F. E. Petherick represented Mr. T. P. Lyons, a creditor, nnd Mr. A. Dunn appeared for the bankrupt. . Air. Myers raised the point as to whether Mr. Dunn could oxamino tho debtor. I The Registrar said that , tho question had not been raised before, but lie thought that tho debtor should be allowed the assistance of counsel. Mr. Myers: Hero is tho transfer from you to your wife of your interest in Searl and Lyons. When was it signed?— Bankrupt: At the.time of my bankruntcy. Is this signed by iliss Palmer?—l told you already she signed it. I put it to you: Is the writing of E. J. Searl the same as that of tho other signa-ture?—-No. You signed " E. J. Searl" ?—Yes. Were,, you in negotiation for Godbor's through an agent?—l'cs, through Harc'ourfc and Co., The firm of Sedrl and Co. paid a deposit of £800. . , This was forfeited ?—Yes. Mr. Dunn:-Your wife .signed a deed in tho interests of your creditors, and she was to indemnify you against your debts ?—Yes. • This arrangement,was subject to your partner's, consent?— Yes.' •,.'.. ••How was it drawn*'up?—lt was at your suggestion first. ' ' In what way? What was your object?— More monoy was required for the business, and I had to go to my wife. Mr. Myers suggests that you did tlis to defeat your creditors. —My wife ' was going to give mo money to pay my .debts outside of .the partnership. ■ , . She was to tako your place in the partnership?— Yes. v J . You told Mr. Lyons what it was proposed to do? —Yes. 'What did ho /say?—Ho demurred. I thought! something .was wrong, and it fell through.' l \ •.You'told Mr. Myers that you had been persecuted,!)}' Mr. Hannah. How wa> this? —In the matter of the rents in Cuba Street.

Li what way?—l-was harassed so much that it killed tho business, and I.w:s ("impelled to/give up.tho property, valued at ;£2-155," for £200 .for; a half interest, to-Mr. Lyons, and tho things wero moved to Willis Street. Tho Cuba Street insurances wero £1100. j : ' . ' ' This valuation was made by Mr. AV. A. Drury in tho ..'interests of tho company ?— Yes: ' ' - • ; It.is correct?— Yes- . you spend a largo sum in fitting tho place up ?—Yes; about £550. And Mr. Hannah' got tho benefit of tho improvements ?—Yos. \ : ■ What did you pay him?— About £900; ' Did. you try to arrange with him?— Yes; I offered him a bill of T. P. Lyons's and a security; of my'wife's, but he would accept nothing but the hard cash, and he had mo adjudged bankrupt. / When was tho half interest ,sold to Mr. Lyons?— About June. Prior to .the;dissolution Mr. Lj'ons had tried to sell for £680 ■to Mr; Newson: Mr. Lyons wanted my half for £50,- failing-which he would-havo me in court-. ' -Did he quote tho price at. which ho wanted; to sell?— Not till, be brought Mr. Newson along. . ' .. ■ ' . . ' - - In' your opinion,- was £680 a fair valuation?—lt was, if. the liabilities which Mr. ■ Lyons .ivould havo had, to' meet , wero taken Anto consideration. . ' ■/. For hoiv much did the sell tho, half interest.to Mr. Lyons?—^£s. Was that a fair value ?-r-I should not like to say. ' Undor the deed of partnership there was a provision for, dissolution?—Yos. It/was inot .availed of by Mr.-Lyons?— No. . _ ■■■ ", Wero'' you willing to agree to a dissolution?— No. .■„■-> rj At-all. events, Mr. -Lyons had ; a means of getting out?— Yes., • ■' Was, it ever suggested to you that, in your previous ..bankruptcies .there :was any fraud?.—No, n'ot until Mr. Lyons did. / , Have you obtained discharges ?—-Yes,- from .all .'three) and without difficulty; except 'the. last'.one.;-: In that' one,' an 'asset -of : mine was sold for £32,500, and. it had never been accounted'for. ' ■ ' ,-i

Mr. Dunn. wanted further particulars of this matter, but MrMyers objected, and the'.Eegistrar upheld 'tho objection.' .. You said, that Mr. Ashcroft was pre-, judged against 5*011.. In what way?—As soon as my meeting was opened, he stated I had twice previously 'been before him, which I. thought was a very , improper thing to say before the present bankruptcy was!.investigated. 1 . , j: ■ Ajj 'question regarding the cause of: Mr.. Aslicroft's alleged prejudice Was not allowed. "' ; ; , : Mr. Dunn asked it to be recorded that ; the creditors, were opposed • to a public , examination. _ . Mr. Petherick said that Mr.Lyons's yo.to was riot included ,in 'that, matter. \ | Mr. Myers, said' that. Mr. Ashcroft; intended that' a public . examination should be 'held, ancl Mr. Simpson (his successor) concurred. ■i The Registrar ruled against the request. :• Mr. Dunn : Are tlii) costs ,of the examination being paid y for by the estate or somo .individual creditor? —Thero is nothing in the estate. • You never concealed your position from thoso of whom you borrowed?— No. : They were, personal friends?— And - relatives. * You' might have succeeded,except for Mrs. Scarl becoming ill Pr—Yes. " She 'was. ill' for fifteen months,. . ' ? I understand that: you made your businesses pay?— Yes. The money was lost on the transfers!*. When I left Cuba*. Street I must havo lost £1800, and when I left ,Willis.Street..l lost all I'-had :thero. i 'As 'regards , trade, thero was; a profit?— Yes-. ■ • It is alleged that you never kept proper books since:• your last bankruptcy P—l kept suitablo books at\Babingtoii, House: , Since that, I was not in. business on my own!account; ' ■ 1 Mr. Petherick accused you of stealing £18. What do you say to this?—l did not steal it. I paid £36 in May for the ,Pine rent. ,1 borrowed it from you' (Mr. Dunn). Mr. Lyons paid you £18 to mako his share good?— Yes. Through Mr. Petherick?—Yes. Did ho challenge it?—No, Mr. Petherick was acting as solicitor for the'two?—Yes.

In reference to items of £12 from the Letter Carriers' Association ' and £5 from Turnbull'.and Gooder. they'wore entered iu a diary ?^—Yes. Tho diary'was given" to "Mr. Lyons./ The latter knew that there was such a diary, for ho had often, looked' at it. i' Every penny you had went into the partnership business?— Yes. You wore entitled to £3 per week.' Did you,draw it?—No; I drew about 14s. some weeks and worked eighteen hours per day arid every day of tho week. Members of the family also'worked at tho business. Did you spend any money in gambling ?— No; and I never had a drink iii m.v lifo'. Thero is no truth in tho suggestion "that I spent-money on women. Did Mr. Lyons find fault with your conduct? —No, but he has spokon of tho girls outside. Has Mr. Lyons ever complained of' tho 'thoft of tho £17 ? —Yes, just about, tho timo of tho dissolution. It was suggested that you said that those two items wero not paid.—That is not. truo. It was shown iu a newspaper report that you admitted that the takings on one par-' ticular day fell to £2. Is that correct?— It is not correct. . . You could produce vouchers for tho amounts said to ho misappropriated ?—Yes. Every account was seen by Mr. Lyons, and ho never complained. It is stated that you broke into a desk. Was it in your possession at the timo of tho bankruptcy?— Yes. It would be'a fortnight or threo weeks after being adjudicated a bankrupt. The assignee mnde no objection to my action. There was a wages book in tho desk, and I took it, as it was required for tho court proceedings. Thero was lip secrecy about it, and' it was taken during n' timo people were having meals in tho shop-

Was there any delay in prepaying a statement of your accounts as required by tho assignee?— Yes. I explained tho difficulties to him, and I gathered that ho recognised them, and that ho was not going to press nic. I have tried to get information from creditors, but I have, had the greatest difficulty. I never saw or touched tho hooks. Atkinson and Bennott's affair was purely a friendly action?— Yes. Tho compromise'was with tho consent of tho assignee. Did not Mr. Atkinson insist that tho Assignee should know what was being done? —Yes. At any rate, it's not your fault if tho Assignco did not know?— No. Is it a fact that you borrowed £50 from Mr. Lyons?— Yes. You made every possible C/fFort to avoid bankruptcy?— Yes. I tried to make all sorts of arrangements. I had about £700 owing to private creditors, only ono of whom was against mo. Very fow of your creditors are represented at this examination?— Only those to whom I owe £13. Mr. Pcthorick represents a joint creditor. Tho great hullc of your other creditors are personal friends? —Yes; that is so. There were no tradesmen's debts?— No. Had you b'den enabled to keep going, you would havo paid your creditors? —Yes. Regarding tho difference between £296 Gs. and £209 disbursements, can you explain tho matter? —If ono month, was put against another, they would be found to balance. Re-examined by Mr. Myers, bankrunt stated that at the time he. went to tho desk, ho was not awarn that a demand for tho kev had been made upon his solicitor. The examination then terminated.