In Bankruptcy.

Daily Telegraph (Napier), Issue 5488, 29 March 1889, Page 2

In Bankruptcy.

(Before His Honor the Chief Justice.)

After we went to press yesterday afternoon the Bankruptcy Court continued its sittings. BE J. 0. KINBOS3*S BAITKROTTCY. A motion was made iv this matter by tho Assignee to sot aside and declare void a mortgage on tho e.s. Ahuriri for £800 executed by Mr Kiuross to Mr K. Whito. Tho grounds wore that the mortgage was an illegal preference within the meaning of the Act; it was also contended that tho mortgage had not been properly executed, not being, sealed, and had boon alterod after registration. j

Mr. Bell, together with Mr. Williams, appeared for the Assignee, and Mr. Carlile for Mr. K. Whito.

Edward Patten, Collector of Customs and Ilegistmr of Ships for the Port of Napier, deposed that the mortgage over the Ahuriri was executed in his proeenco on the 11th October, 1888, Mr. Kinross signing the document.

To Mr. Bell: The document now was not in the same state as when executed. A week afterwards discovered mistakes in tbo document, the words "eight hundred shares" being written instead of " eight hundrod pounds." The correction was not made by Mr. Kinross until the following January. He (witness) registered the deed as though the words had been " eight hundred pounds." He believed it was after Mr. Kinross's bankruptcy that_ he asked him to come and make the correction.

There was never any seal on the document, but believed that Mr. Kinross put Mβ finger on the document and said " I deliver this as my act and deed." John G. Kinross was subjected to t>. very lengthy examination. He remembered the execution of the mortgage on October llrh, 1888, and there had been a prior arrangement with Mr. White regarding the mortgage. It was after the wreck of the Sir_ Donald that the circumstances under which the arrangment in connection with this matter arose. : Moneys had been received by Mr. White from the insurance companies in connection with the wreck of the Sir Donald. Asked Mr. White, who was connected with the firm, if he would put that money into another steamer if one was bought by him (witness). It was in May 1887 that the wreck took place. Mr White received the insurance some weeks afterwards. He (witness) entered into an agreement fer purchasing the Ahuriri in July 1887, and the actual agreement was executed on August 31st. The vessel was delivered in January, 1888. Mr White consented to advance £800, and of that sum £500 was paid in one sum, and a bill drawn by him (witness) on the builder of the vessel was also paid by Mr White. Tho £800 was paid by Mr White by October, 1887; the security was not given to him tiil October, 1888 ; the reason of that was because it had been agreed in the specifications that the vessel should be classed 100 at Lloyds. On account of a dispute in connection with this, the matter was referred to Captain Babot. of Wellington, who decided in favor of him (witness). He preferred to wait until they received the registry of the vensel from Wellington before executing the mortgage. The sum of I £3200 was paid for the steamer, and of that one-third was paid; a mortgage for £2000 was given to the Colonial Insurance Company, which took place in January, 1888. The Ahuriri was insured in Mr. White's name. The Assignee paid off £700 of the mortgage after the bankruptcy to the Colonial Insurance Co., and a liability of £1400 was left. The Ahuriri was disposed of tho other day subject to that, liability To Mr. Bell: Owed Mr. White moneys other than the £SOO, the subject of the mortgage. Also owed money to Mr. Goudv. Tho further examination of Mr. Kinross was adjourned till the conclusion of the case of Bank of New South Walos v. Graham.