SUPREME COURT.—Thursday. UNKNOWM

Daily Southern Cross, Volume XX, Issue 2239, 23 September 1864, Page 5

SUPREME COURT.— T hursday. UNKNOWM

ITis ITonoi the Chief Justice entcicd comfc at cloven o'clock this morning, when the liisohency business was commenced IX ltr JOHN IMTL'RU, A IUNKuUPI'. The case of John Uattiay, bankiupt, of tho film of Me--sis ltattr ly and M ithesou, came on foi examination. Mi. Mcimnan lcpicscntcd the bankmpt. Mi. Biookfiehl appealed loi Ml •Tones, Mr Wymi foi Ah ILowaul, Mi. .1. R Macfulano, and Mi Geoigo Lane , ami Mi. Uoveiulge foi Messis J R. Micfailinc and Co, Mcssi-, J fonder ->on and Macfarlane, Mcssis Buchanan and Stcwaifc, Messis Woolley and Co , Mi \\ llhain Kattiay, diaper, and Mc>si s. E. and IT. faaacs Tht.se wcie the pi mcipal eieditois of tlic estite Mi. Wynn applicl to Ins ITonoi foi some pioccss to piocuie the attendance of tlnee important wit nesses foi evaimnaho I—Mi.1 — Mi. James Stono, nieichuit, Mi. William Momson, mistoi of the ' Lady Young,' md All Homy B Macnab, secietuy of tho Bank of Kew Zealand, He made tho application on an aiTulmt ot Mi J S Macfirlane, which statedth.it since the petition m the cuise -was hied, a ve-scl oallid the 'Lady Young' hid umal m Auckland, withacaigo ot iloui, \ allied at €10,0(J0, consigned to Mi 3 lines fcitoi c, md that a. moiety of the c ngo belonged to the bmki upb ]hs Ilonoi said the application could bo made aftei the examination of the bvnkiupt and obsoived that the lull of lading would show w liethei a poition of the cu^o had been consigned to the bank I apt Mi Biool field ■wished to know if tho Coiut intended to piocecd on tho co pai tiiei-dup cstitoof II itti ly and Matheson, oi the pu\atc estate of 1' Iti \y himself His ilonoi sud tlioio was a fcohng of jealousy existing among some of the cicditois, at paiticulai poisons getting the whole cstite. The cieditois, ho und i stood, did not ngieo at the meeting, and the whole question was uhcthei the m.ittei should be a<si';nc(lto tho oftici tl assignee foi winding up Mi. Biookhold sul Mi M vtheson wis absent, and had left no lastmction with Mi. R itli iv to iile such a petition The oidei foi sequcstiation was for tlie pii\T,tc estvte of John Kxttiay, Ins paibnci's name being left out His J l onoi sud it w is an estate in pai tnri->lnp. Mi. Biookhold submitted that tiio o Lei il ass'gnec ha I acted lin^iopjily m selling the ■whole estate. Hi-, Ilonoi concern ed tint the ofliu il assignee had done whit was light, it bung a co partnership estate Mi Bi >okhe!d di 1 not think that gentleman had any light to mttiieiu viMi Mi. Mathesons pmate estate Ihs Tloiioi w is not awaic of my private estate m the nmttei, but he pie^umcd tint a cicditoi could not be m i iinbc po-itio'i in this ca'-e than ho would be hy juiijmiiii He (the Chic f Justice) umld not understand how they could deal with an mulnided ni'iietj of tho cst \te Mi Biooklicld did not sec cleaily how matteis '•tool , they weio not m a \ety sitisf ictoiy state His Ilonoi wo.ild not decide the question until aftei Mi Uatti.xy's crimination John Itattii), ba'iluupt, was then c vile I and <-woin. M^i. Menimiu liandcl lura what piupoited to bo an amended "-Uiodule netting foi th tho assets and delimits In iepl\ ti lii-> Honoi, M^i Momman said lio lia 1 not a second copy of the amended "-chtdnlc , ho hid only icecned tho copy produced tint moiimi/. John liattia}', cro« examined by Mi. Mi_iiiman This is an amended schedule I have scm it befoio it contain-, a tine iccount of the qcnoial debt, •and a>-,cts, md include-, tho whole issots and debts of cac'i paitnti [Hivately To fie bo-,1. of my opinion., it it a tine account of the pm ate estate ot Mathe^on The pin ito cstxte \\ i-. sold, F bchose. by tho same puty wlio took possession of mine , I am, ho\.cv«, not sine of tins '1 he hou chold iniiiibi.ilo belonging to mjsdt andpiitnci cost C3jO It was sold by Jhdmgs and Dowden, by tlie an thontyof the (Joint Mj poi'mn lcxbsed about Cl5O, and Mathoson's botwc n J. 10 and £oO Tins schedule contains a fan statement of the pai tnei-.hip debts, as well as the eiedits Mi. Biookheld heio .uked for a buef adjoin nmont of tho case, in oidoi to ha\e tho banki upt'-. l)ook produced. There was no balance- ,hcct, but an estimate of assets and deb's Hi-, Honoi &ud there must be a piopor accountant to make up the schedule and who could sweat as to the coiicetness of the se\eial amount^ Cio<-s-e\anuncd by Mr liionklield I commenced tho paitneishrp with Mi Matheson m IBSS Ibe heve lie is m NeubuiyPoit, Massvclm^et's. Tie ltft in November last, lie went thcio to piuoliaso a vessel That was the sole reison of his going thcie. He could buy a vessel much chcapei. [Ie purchased the \osscl not foi the firm. alone, but conjointly with Mi. Tayloi, Mi Ilowud, and Mi Williun llittiay He took away about C 250 m four cheques o£ X(52 10-. each, and built di if it, ioi it, 500, to in ai as I cm lecollect. I think lam collect One of the cheque-, was given by the him, and the otheis by the three othci pai ties We bickodeach othei wilhpiomisboiy notes, which laiscd the €4,o(IO, foi the puiposo of haMng them discounted I ,ij loi's pionnssoiy note was not discounted , he ulv .need tlie money. Tho piomi-iSoiy notei wcie accommodations They weic given in Xovomboi, ju-it befoio Mr Matheson left 1 can't say whcthei the pi onussoiy notes weio all taken up George How aid has taken up his Theie is no entiy of that in the schedule Kadi piomissoiy note was foi £1,150. Theio is an cntiy ot the liansaction in the amended schedule — vontuietoAmeitca, €1,27S 10-> —subject to Tiyloi's hen of £1,150, leaMiig a balance of £12S Bs. lOd, in fa\oiu of the estate His Ilonoi . Theio is no such entry in tho oiigmal schedule. Bankiupt Mi Matheson has pui chased a vessel, to the best of my bchtf, foi about £j,500. T have had a-communication fioni Mi. Matheson, to tho ofleet that the \o»sel would cost that amount This was attci he had bought her. He did not tell me tho actual amount he was to pa}'. r l he vessel was in couiso of building I did not give up the lettci, as E only leconed it by last mail. 1 have given up all papei s. This schedule was made out about tluec weeks ago. It was dohveied to Mi. Bevendgc I think it was in possession of our ckik for some tune after it was made [ had lcceived a communication about the vessel by tho pie.'ious mail. I did not give it up, as ] considoied it a pnvate letter I gave up all my pipois, with the evcoption of private communications T con&ulcicd hii> communications, or paitnership affairs, as pnvate letters. I did not intend them to be hhown, unless requned by the Court. Tins was the fiist communication I had hoaul from him, as to the probable cost of tho vessel. Tho schedule was made up by My.

Gilmour, miv clerk. r J'ho books weie not in any position, but I had ,an idea as to bhe general correctness of the items. The idea spi ting fiom the amount of asset* in the former schedule. The former schedule was made out in a hurry, by two or tluee patties, and was subsequently alteied by our cleilc, at the suggestion of Mr. Bevoi ulge. The amounts were not nlreiod. It was altcied in foim. I did not make out the schedule. In older to ascertain the conectuess of tho fiist schedule, I got the two clerks to m.iko up the amounts of assotd and debts ; and by looking over it and companng it with the books, I came to the conclusion that it was collect. I ihiuk theie was no mention of this ship ventmo in the foimer schedule. This, among othci aff.uis, was putiutotho amended schedule. In making up tlio £1,278 8s 10d., we coiuuleicd ho was entitled to wages for acting as agent in tho puicliaso of the vessel^ and up to time ot making tip the amended schedule. Wo may lose or gun upon tho vessel. The asset of £128 is only api obablo one Tho pai tnciship commenced in June oi J uly, 1 SjS "Wo commenced m tho business of fnowood cutting, at the junction of Queen and Wakcheld sticets I eommpiiceil tho business of stoiokecpcr about October, 18G2 lam not ceitiim as to tho month Wo still continued tho business of htcwood cutting m the bush for boating and sale, and gave up tho fnewood cutting by machinery at Queen and Wakefield stieets. J cannot tell with what capital I commenced as stoiekeepci. I cannot tell that we had any capital. 1 believe we weie m debt. We commenced fiiewood cutting with £200. "We woio in debt C 1,200 when wo commenced stoiekeeping. It was uicuiied paitly fioin losses, mouey lent, and expenses of electing mao'iiiieiy. Some of thp debts then inclined had been paid. "Wo weie both paying and leceiving money on account of the foimoi busmcis The whole of the debts owing fiom us picvious to Octobei, ISO 2, I cannot swear h.ivc been pud. We lan the mouey of one business into the otliei, and had no separate accounts. rlhisr Ihis amended schedule includes debts ansmg out of tho hiowood business I cannot say positively that the debts have all been |)aid. My books would show if pioduccd. Of my knowledge the amended schedule is conccb according to the books. The books wcienndo up aftci the insolvency, and before the amended schedule was diawn up. I swoie the schedule was. collect, paitly fiom the books and pai tly fiom momoiy. The books wcte m a baakwaul stito [had twocloiks employed in bunging the books fuiwaui. Tho books had not been fully posted foi nine oi twelve months. 1 did not actually know the state of my aft'uisduinig that time, else I would ha\c dioppod tho business twelve months ago. I was not aw.uc of the debt of £1,200 that was hanging o\ ei us when we commenced stoiokeepincr I did not then know the state of our afTan'a. I didn'b bonow capital fiom Oapt mi Kattiay oi any one else to enabld me to iom business. 1 didn't discount any piomis=ory notes to enable me to laise capital to commence the business of stoie-keeppi. We had at commencing a ledgci, diybook, and a bill book. I think my books would show what capital [ had then in the bank 1 kept no dcbfcoi and cicditoi account of piolit and loss. We weio gcnoial tiadcis — gencialdealcis, pimeipally m piousions When pmchasing goods I piid cash and piomissoiy notes. 1 paid in cash as Ion <j as T could (Laiightei.) I always paid by cash when 1 had it I can't tell how long that was. (Laughtci ) We did not bil mco the accounts oi take stock. We went on buying goods up to August, ISOI, not knowing how we stood ; leaving the books sometimes unposted for about nine oi twelve months befoie that date Pnoi to twelve months ago Mi. fiilmoiu had been posting tho books that had not been piopcily kept up to that penod We nevei kept aptifect oi piopoi set of books since 185S up to the time of filing the schedule We could not tell coilectly ju what condition we stood fiom the fust books Kept We ncvei could foim any idea of how "we stood foi siv "\eiis wo went on blindly dm ing that time w ithout knowing om tiucpontion. The last half-yeaily baliiiciiig at the bulk showed that wo weie turning oui about £75,000 annually , tint was laigei than the piCMonsyou. v lt was not an avei age amount. All transactions of any amount weie always enteied in the books, all lulls, payable and icecivablo, and cash paid and leceived. I think the books contained cntues of all sales and pui chases I cannot vouch foi this owing to tho state of the books I estimate m the schedule the assets as £8,336, and the Labilities as £21,000 In lound numbeis theie is a deficit of £13,000 I think lint lo^s will appear on the books. I account foi the deficit fiom losses on timboi, and losses on othei goods of various descuptions Timber and potatoes aic the main items. The losses weie made bcfoioaud aftei I commenced business as stoiekcepei. I got accounts of sale on caigoes in some ca-cs within tin co ol 1 four months, and sometimes ncvci gotpajmonb On some caigoes I leceived a gain, and on othois sustained a loss. We have now two acceptances foi XGdO long due, which I expect Will be paid soon. About sjv weeks agolicceivcd intimation of one accept nice foi £287 ISs Sd , which wou'd not likelj be paid; it is set foith in the seludule Some of the debts m the schedule aio, I think, seemed The ium is not indebted to my fithu Theie is moitgigc held by him foi £2 000 o\ei the whole of tho Custom-house It is a fust chaige on the whole piopeity. It was given to Captain Hattiay m Juuiaiy, ISG3. The amount sccmodis all we owed him — it was advances not e\ cculun: that amount 'I heie wis a balance over and beyond that oE €1,500 expended on the building. Mi "■> imucl C'ochi vie dons not hohl a moitgage fot €l,oooas secmity foi £500ad\anced 'lho moitgago to Mi. Cochimewas to scenic a limning accouub Tho schedule is substantially collect Tl'e moitgat;c to Cocluane was executed aftei the estate was assigned to Cocluane and I'Mmonds foi the benefit ot my cieditois I nevei asked the consent of my cieditois. Mi Cocluane had given brick the a'^igument, it was done without consulting the cieditois Some tin eo oi font weeks after Mr Covhiine had given back tho assignment-, I executed the moitgage to him. I executed it be foi c filing the fust schedule, at Mi S Coehia >c's ii'st nice Tdi 1 believe I was then solvent , I did not know that I was then m solvent 1 believed myself and putnei could have pud 20s in cash to the pound to all the creditor. I was not awaie of the state of afiFuis by tho honks The estate would 1 believed, leahso payment of 20s m the pound When I got an estimite made out by Mi (iilmoie, and saw the style of the books, I then knew that T was not then solvent. I em't state the lime [ did not call the eiediloi-. togediei Iw is not pitsent at the f n -=t meeting ImxJcthc unmnt, as I wished to know w hat, tho estate would iodise Tho buik ot New Zealand was iinnn,' the cieditois summoned I had cicdit at the Bank , but they lefused to continue to cis'n oui cheques oi d.scount om bills. They had done so to the amount of €1,200. Uheic was no gnai.uitco The Bank allowed u-. t> oveidiaw without aiy secuuty or any bill!-. (Laughtci ) I think we owe nothing to the Buik now , I nc\ei inquuod I believed nijself insolvent when the assignment was made Mr. Maefailauc, of the ium of Jlendci~on and Macfailanc, called the meeting of cieditois ibout fouitecn days aftei I undo the is-igomont 1 could foim only a lough estiinato of the stito of my afFau? bofoio the meeting 1 had two clciks woiking up the books. The lough estimate was fnoiuablc. 1 believed mysclr solvent with extended time foi payment, when I attended the meeting I estimated that it would t ike tw olvc mouths to pay the debts The majonty agi cod to giant that tune , one oi two icfusod It was aftoi this meeting I ga\o the moitgage to Cochianp, to secuie a i mining account The Couit was hoie adjoin ncd for half an-hour. On the Comb lesuminf;, His IJonoi oxpiessod his disatisf iction at tho way in which tho case had been btouglit befoio him, in not being furnished with a copy of the amended schedule foi his guidance It wis the duty of the gentleman lopiesentmg the bankiupt to have fin nishcA the sbvtcmcnt of all pecumaiy tiansachons. John Rath ay, le examined by Mi. Biookfield Theie was a quinhty of sponn oil tent by Captain Polling, valued foi £330, who look it to Knglaud. 1 don't know of £600 due by us. The oil was sent home as a lcimttancc for goo Is foia\ aided Tnsti notions weio sent by Mi. Coombe foi Captain Dow ling to st">p the oil. Tho goods weie sent by my uncle Pctci Ratti ly, Dundee, "whose claim was t'7!7 Anolhoi poilion of tho oil was consigned and sent to Mi. C-Seoige Webstei. Tho purchase money foi the stoic is sot down at £200 pci annum 'I he light of puichase F iiK foi the stoic is £2,000 foi foui ycais fiom this time, with the option to puichase it at ai.y time between the twenty one )eais following The htoie is subject to a moitgago of £2,000 Tho stoic alone is valued at £3,ooo,lneluding the leasehold Itis let foi £450 per annum; €250 of which is for giouncl lent I am out £3,000 on the building. The potatoes mentioned in tins schedule woic included m the whole schedule Pait of them weio in the hands of Bobeitson and Giahani They weie bought in joint speculation with Mi. David Gi i''am They weie paid for piitly in cash and pit tly in our own bills. Mi. Giahun'a name did noi ippeai on tho bil's He gave sc\eial piomis oiy notes to piy foi his shaio 'lho bills weie discounted in tho usual way, and then wo gave our bills for the whole amount to Mi Robeitson Mi. Robertson knew that this was a joint speculation between me nnd Giaham. £7 per ton was tho pnco of the pota toes, bought at Otahuhu and Mannkau. I put them down as an asset far £700. Mr. Graham had

l'afc »ofc possession of them. The 100 tons were all that remained at the time I made the amended schedule. Tlio flour contract was another joint transaction. There was no other joint transaction with the exception of the vessel, potatoes, and flour. Cioss examined by Mr. Wynn : The £136 ss. 6d. bill was given by Mr. Home for goods which were never deliveipd to him. It was tobacco. I bought the tobacco from Mr. Lawrence. I paid for it. Mr. Lawrence was fiom Sydney. Ido not remember the quantity I bought from him. There was not a third poison in the transaction. The 8136 £>s. 6d. was his sJiaie of the tobacco. Mr. Home had to pay the bill. The bill was discounted by Mr. Cdchiaitc. I didn't know Mr. Lawrence. The tobacco was Hot deliveied to me. I believe it came by the 'Xanthe. ' It came in ordinary tobacco packages. I didn't see the* packages. I can't tell who landed Hie packages. I had bought the tobacco foi Mr. Lawience, in Queen-stieet. I did not see a sample of it. I gave 2s. 9d. per lb. for it. I didn't know whether this included duty. I never asked the question. It was colonial tobacco of veiy fan quality. It is not worth more than 2s. 9d. or 3b duty free. Mr. Lawrence was to deliver it m Auckland. I afterwards sold the tobacco for between 2s 9d. and 3s. Cd. Ido not Know whether duty had been paid or not on the tobacco. I saw Mi. Lawience after this transaction. 1 am not awaie of having delivered over any of the tobacco Lo Mr. James liorne. The firm made a bttle on this speculation. I entered the transaction accurately in my books, I owe Mr. Rich £69 16s. tor tobacco. I made a mistake in the pievious pait m not saying that Mr. Taylor paid Ins share in cash. Mr. Howard gave his promissory note to Mi. William Rattiay, sen., who gave it back again. 1 gave oms to Mi. Taj lor. Mr. T.iylor ga\ c -3ash for our bill, as well as ins own. I think Mi. How-aid gave some cash, and letuined his bill to William Battiay, sen. There was only one bill discounted. I have a entry of the bills in the billbook. We kept a cash book, but it had got back like the othei book". The cash was not placed to our credit m the bank. The hen of £1,150 to Mr. S W. J. Taylor, for venture to Ameiica, I think is set foi th among the liabilities. Mr. Taylor came and told mo that the bill for £1,150 would soon become due. A. told him I was not prepaied to meet it. JJeask(xfme foi security. This was about the Ist Noveinbet-j 1863. I had not then, heard from Mr. Mathesou lespeeting. the ship. Mr. Taylor would not give time for the payment of the bill. I have no documeut legauling this transaction. Ido not know that Mr Taylor sent the power of an attorney to Mr. Mathoson. I never authoused him to do so. Mt. Matheson did not say in whose name the ship should bo enteied when he went to purchase liei m Amouca. I never wiote to him to enter the ship in Mr. Tciyloi's name. I expect him here in Match next wich the ship. I have not written to him about my insolvency. I did send word that aflans were m a bad state, and that I feaied I would ha\e to pay twelve shillings iv the pound. I 'wiote two letteis. I did not keep copies of them. T know Captain James Stone ; there is an outstanding bill of mine iv his favour for £4,000. It was an accommodation bill, and I do noc know whether it is oveulue. The bill was given in the flour contract. Mr. Stone proposed to take the half of the ilout. He had the Government contract at the time, and I agreed to go halves with him. I told Mr. Taylor that he might have the half of my mteic&t in the Hour contract. Ho agreed to take the half. I vent with him to Mr. Stone, and explained to him that it was better for me to give up the half of my portion to Mi. Taylor. Mr. Stone consented I gave the bill for £4,000, a day or tfro pievious to the sailing of the 'Lady Youn«' from Auckland foi Valparaiso, foi tho cargo of flour. I gave the bill mciely as an accommodation, and not as, my contiibntion towards the contract. I was to paiticipate in the profits of the caigo of flour. My piopoitiou of the contract would have been £2,000. I gave the bill to enable Mr. Stone to piu chase the caigo, and not to cover Mi. Tayloi's share and mine. Mr. Stone was not to find the capital m my shaie of the venture, but he did so. The ' Lady Young' amved with her caigo. 1 have no idea of the value of the cargo. I made no mqmiy Mi Stone transmitted about £7,000 to pin chase the caigo, as fir as I can lemember. I believe one-halE of the ship belonged to the captain oE her. I don't know who owned the other half. I don't know whether my bill foi £4,000 is due or not. I lathei think it is oveidue. It was in favour of Mr. Stone, for three or four months. Mr. Taylor simply asked mo if I would give an accommodation bill for the £4 000 I knew he was going to make use of it to scud for the caigo of tho 'Lady Young.' I was to hive aqnaitei sh-ue in tho ventuie, and I gave the bill to complete that transactio i. Mr. Stone was to have the half, and Mi. Taylor the lemaining quaiier. I should have had to pay a quarter of the ven tone out of the £4,000 I didn't considei myself entitled to moie than a quaiter of the ventiuo, although I advanced Mi. Taylor his shaie. If Mr. Stone had filled, I would have had to meet the £4,000 1 don't know what the cargo is woith. I don't know what quantity of flour has come, or is to come to Mi. Stone I did not take an active pait in the transaction fiuther than giving the bill. With lespoct to the potatoes, Mi. James Robot tson did not come and a->k for the piomissoiy note. Mr. Goodfellow did do so, and I w as to i,'i\ c back the potatoes which I had piuehascd by the bill foi £550 I nevei obtained the bill 1 never saw the potatoes. I boiight them m the held when glowing. I made an assignment of them to Ml. Coclnane aftenvaids. Mi GoodWlow said it wad better foi him to £>ivo up the bill and keep the potatoes. Ihiwe put D Graham down for £1,500 iv the amended schedule. It is made up of promissory notes, and on account of potatoes which he has paid for This £1,500 was for a joint transaction I had w lth D. Gi iham foi a Government contract Graham had enteied mtj the Go\ eminent contract after this a«iecmcnt was made with him. I told him I had 150 tons of potatoes for sale. I agieed to take oneh lit ot hi* contract The conditions of the contract weie then published If he succeeded in obtaining the contract I wis to get one-half. Two months after the contract I made an agreement with Mr. Graham as to the nibtho lof payment. I was to buy all the potitoes lequnod, and if I wanted any mouey to pay foi them he was to give me acceptances. There w\s no arrangement as to the specific amount of the shaies IE lie took half he was to pay me the other half Tho £062 5s 3d to Jas ttobeitson was paid in two bill->. It was foi potatoes for the purpose of the contract. I didn't get any acceptances then. I obtained the £1,(500 m acceptances fioin D. Graham at diffcient tunes, I didn't ob 1 am an accept anccfiomD Graham for payment of J. Robmtson. I didn't got any money foi any paiticular puipose. I generally obtained his acceptances foi any amount I might lequve m payment of potatoes. He knew that 1 had to make payments in cash for potatoes and onions. Mi Graham knew what quantities I bought I asked him for money, without stating what it was foi, unless ho put the question to me. His shaie, at random, was one-half, and 1 took his acceptances to that extent T got several bills for £500 , £750 was the largest amount. I got acceptances to the amount oE £3,500. Out of the £3,500 I obtained £500 as a ienew.il. The remaining £1,500 was equal to half what we obtained fiom him. Tins is moiely an appioximation. The £1,000 duo to Joseph Paget was money lent by liim at one tune. I gave a piomissoiy note foi £500, and my fathei gave one for £500. My father's promissoiy note is m the bank and ho is not liable foi it, because I got tho whole of the £1,000 myself. I got the £500 fiom Mr. Paget, and my fathei also got £500. We gave him our piomissory notes for these sums. Mr. Paget gave my father's piomissory note to me to keep for safety. It was discounted bj the bank iv our favour. I endoised it, and put it into the bank foi collection. Mi Paget mstiucted me to do so. It was not thtee months due when it was discounted by the bank. It is not clue yet. Our account, I picsume, was o\erchawn. The bank will discount bills in order to corlect an ovei drawn account. (Laughtei ) I did not lequest the bank to withdraw the discount and place it to my account book, I hscei tamed that the account was oveichawn I cannot tell that the pioceeds of this bill moie than coveied the oveidiaft or set the account at the bank light. I do not lemember le ceiving any intimation fiom the banker that the account was ovenltawn and that I must take steps to put it light. The £500 bill foiins no pait of the mortgage to my fathei. By Mi. Eeveudge . My stoic was situated in Lowei Queen stieet. I had connection with another business in Qneen-stieet, m conjunction with David Graham. We leased a store in Ellis's Buildings for tho sale of potatoes. David Graham was responsible for half of the lent. He was joined with me m the sale of potatoes. We weieeach to pay the half of the potatoes brought into the stoic. He was not to pay the half of any othei goods with the exemption of onions. I used to send othei goods theio on my own account — piovisions of almost eveiy descnption. D. Graham had no inteiest in the flop sold theie When I became ombanassed theie was about £400 woith of pro visions in this store, besides potatoes and onions. D. Graham took possession of them. I gave bun no permission to take possession of them. Ha took them_ against my wish, and I found fault with him for doing so. The debt to Mr. Coohrane was incurred immediately previous to the assignment to him and Mr. Edmonds. I

gave him bills as »ecurity for the £900 on the Monday after he exchanged the chtque for that »utn. The bill* amounted to £1,200. Mr. Cochrane was to giro m» £600 two days afterward*. He did advance the £600 to me a few dayi after the Grit advance of £900. £ made the osiignment to Cochrane and Edmonds abolit a fortnight after the advance of theie two amount*. I had not given Mr. Cochrane any other promi*»ory note prior to making the Assignment with the exception of the £1,200; two or three days after the assignment I gave him either £300 or £400 value. I can't say when I gave him any more, bat in all I gave £2,200 in bills. There was a meeting of creditors held after the assignment; it was to arrange for a second meeting. At the lecond meeting it was agreed by the majority of the creditors to give me twelve months to wind up the estate, and on the understanding also that no preference was to be given to any creditor. A few days afterwards I signed the mortgage^ to Mr. pochrane for £1,000. I did not give notice of this to any of the other creditors. I did not think the estate could be wound up in the manner pioposed, and i6~ was to induce him to deliver up his account. I have never seen the account since. Mr. Gilmour has seen it. I think I put down the property in Mount Albert, as well as allotments at St. Mary's, Brookville, and elsewhere, to the amount of £800. I have an allotment in Newton which is not in the schedule ; this allotment cost £27, a few years ago. I told Mr. Andeiton, the official assignee, about it. Mount Albert and Newton property are mortgaged to the Land Society No. 5 for £200. 1 have ten shares in the Land Association upon which I have paid up upwards of £100; they are not in the schedule. I told Mr. Anderton about them. This closed -Mr. Beveridge'« examination of the bankiupt. Mr. Meiriman, in reply to his Honor, said he would have two copies of the amended schedule prepared. The Court was adjourned at half-past »ix o'clock until ten this (Friday) morning.