A Bankrupt Imprisoned.

Evening Post, Volume XXXVII, Issue 84, 9 April 1889, Page 2

A Bankrupt Imprisoned.

|Bt Telkgeaph.J [united press, association. I Oamabu, Bth April. An important case in the Bankruptcy Court pame to a conclusion to-day. William Christie, an auctioneer and commission agent here, recently filed a declaration of insolvency, the Colonial Investment Company being the largest creditor. The bankrupt camo np to-day for public examination. The Colonial Investment Company, through their solicitor, formulated a number of charges against the bankrupt, amongst them being those of misappropriation of realised securities and obtaining advances by means of false pretences. Front the evidence it appeared that the bankrnfit had obtained large sums of -money , from tfie company as advances on lands, crops, and' stock,' the first advances being , made in 1885. Owing to the' great depro- ' oiafjion in the value of the securities, 1 many I of thorn tfqnld not cover the 'advances, and the practice of the bankrupt to take the realised proceeds from one security ■ and apply them to kaop other securities going was tacitly acquiesced in by the company, throngh their manager, in 1888. The company becoming frightened at the turn affairs were taking, put pressure on the persons to whom advances had been made in various districts, with the result that at about the same time some of the firms came to grief, the company losing large sums of money. In Christie's case the company alleged that he had, after being instructed t? realise on the securities held by him on behalf of. the company, and hand them over the proceeds, exiled oar tain money from the 'securities to pay ' debts contracted by himoelf. It waa held by' the Tjankrcji'a solicitors tLat the money alleged "to .have bsa/i misappropriated wjjfi applied in the payment of a debs contracted on behalf of the compaay to keep their aeb'uifriea going. However, Judge Ward held that as tire bankrupt had applied, after receiving notice from' tte company, a bill obtained in payment of pjroduoo spld from one of the company* securities to another purpose than that specified by the company, be had rendered himself linble to imprisonment, (W}4 be wotdd m&ke an order. The counsel lot tha prisoner rawed the point that the advertisement appointing the time for the public examination of "<4te bankrupt was informal, and tnis had rendered- the proceedings also informal, as the requisite seven days' notice had cot tjeen given. " The" fudge overruled the objeotioa, »nd on counsel applying leave to appeal, and for proceedings "Jto be stayed, said that he had no power to grant leave to appeal nor to stay proceedings. An order was then made for the imprisonment of the bankrupt for four months with hard abour.