SUPREME COURT Bankruptcy Jurisdiction, Tuesday, June 28. [Before Sir 'George A. Arney, Chief Justice,]

Daily Southern Cross, Volume XXVI, Issue 4010, 29 June 1870, Page 4

SUPREME COURT Bankruptcy Jurisdiction, Tuesday, June 28. [Before Sir 'George A. Arney, Chief Justice,]

Hyman Joseph.— Mr. Hughes' and Mr. Weston for bankrupt ; Mr. J. B. Russell and Mr:, MacCormick appeared , to conduct the case'forthe opposing credstors., The examination of bankrupt -was continued, by Mr. Russell: I found myself . insolvent when I was requested by thedBank to make good my overdraft of £190 and '.could not do so. I could have done so, bufyonly by sacrificing a, quantity of goods, against which were other liabilities, being what I owed to my general creditors. During Jmy experience in trade, the last five^ years, there have been instances previous to my going away to Sydney ia which I had "forced sales" to small amounts. After I went to Sydney, £1,000- worth of goods, bought from Messrs. Me Arthur and Co., of Sydney, were thrown into the auction of B. Tonks, before my return from Australia. ; The whole of that was a "forced sale." There were also £202 worth of goods from Messrs. Braum and Co. sold by a "forced sale;" also, £183 from Woulgner and Co. These were all aold by B. Tonks. There is no entry of these sales in my books. There would be about £1,370 worth of gooda so disposed of, at a loss of about £600. When I returned from Australia I found myself indebted to Tonks in a sum of £400 for cash lent by him upon goods placed in his auction by Mr. Lee. Those advances were made upon the £1,370 worth of _ goods placed with him to be sold. I afterwards .got a bill from Mr. B. Tonks, for £247 10s., to help me to carry on my business. That increased the lien Mr. Tonks had upon the goods in his sale-room. Thelbill is enteredin mybillbook. (Examining the book) : It is not entered, and is a gross omission on my part. I kept the bill-book myself, and was not aware till this moment that the entry of that bill was omitted. I requested Mr. Tonks to sell sufficient of the goods to realise his lien upon them, and to give me back the rest. He said, things were then so bad that they would not sell at all. There was another £1,000 worth of goods in the hands of another auctioneer, Mr. Cohen, and drawn against in the same way. There were no other goods to dispose of by auction to meet current liabilities, on my going 4 to j Sydney, -without clearing my shop. I don't know what became of the goods sent to Tonka. I suppose he has sold them to cover his lien upon them. I have never received the account sales of them, and cannot say what ; prices were obtained. I wrote a letter on the 27th January, 1870, to McArthur and Co. for goods, enclosing a Post-office order for £3 18s. 4d., at the time that £1,000 worth of goods were in Mr." Tonka's saleroom, with a lien upon -thdm of over £400, with an additional lien of r £200 odd. (The letter was read, from which it appeared that the order made amounted in value to something over £500.) The firm of Messrs. McArthur, Shera, and Co., Auckland, waited upon me with the invoices for this order, and informed me that the goods were being sent through that firm. I declined to receive" them. I never asked Mr. Shera for the goods mentioned in that order, I consulted my solicitor respecting my insolvency, or making some arrangement with my eieditors, a few hours before calling a meeting of my creditors, I think it was on the 4th of March, I would not be positive but what I consulted Mr. Edward IsaaoB on the same day that the goods arrived for that order. I was then in doubt as to what my position should be with regard to them. My creditors came to a resolution that I Bhould give up my books, stock, keys, and everything appertaining to my business, and "walk out," and be dealb with as a future meeting should determine. I refused to do so in consequence of advice from my legal adviser. Afterwards a resolution was carried- that my books and papers were to be "carried out of the establishment." I said, " No j the books and papers are to remain in my establishment. " - 1 was resolved that, after working five years, I would not be turned out like a dog. I didn't see it. The meeting was held on a Friday. Mr, Hughes, my solicitor, might have said at that meeting that, if a letter of demand on me from Bing, Harris, and Co./* were made, Mr. Hughes would not wait"for the ibsue of a writ, but would petition the Bankruptcy Court immediately. Mr. MacCormick made an observation to the effect that he would cause to issue at once a writ, unless Mr.. Hughes should give a guarantee that a petition would be filed directly. It was on the 27th of March that I petitioned the Court. I was served with a debtor's summons before I sent in my petition. £ do not think that the delay was occasioned because ' 'the goose was not well enough plucked before that." — Mr. MacCormick would like that the case be adjourned. Since the sitting of the Court on the previous day he had seen the manager of the Union Bank in respect to the bankrupt's transactions there, but who refused to give any information unless he were compelled. He would therefore have to make^ application for an order for a subpoena, calling upon him to appear in Court, and give the information required. — His Honor was willing to have the case adjourned, for there had been disclosures made that day which left an impression on the mina of the Court as yet unfavourable to the bankrupt.— The order asked for by Mr. MacCormick was granted, and the case adjourned until August 11. Graves AiciCEN.—Mr. J. B. Russell made application for the complete execution of a deed a deed of assignment in this debtor's estate. — Mr. Wynn opposed upon the ground of reckless trading by the debtor, his contracting debts which he had no prospect of paying, &c. He did not dispute Vie preliminary steps as being irregular , but a notice had been served upon him to appear and be examined, and that he had disobeyed, as there was no debtor now before the Court. — Mr. Russell replied that the debtor had done all he could for hia creditors — he had not even reserved his personal clothing. — His Honor ruled that the debtor should come to the Court and be heard, and, if a guarantee were given that he would be present, he would adjourn the case until eleven o'clock to-day. — Mr. Russell gave a promise that Mr. Aiok'en would be present, or else he should withdraw from the case, and. the debtor would not get the complete execution sought. The Court accordingly adjourned until eleven o'clock in the forenoon.