SUPREME COURT.

Lyttelton Times, Volume XXIX, Issue 2298, 5 May 1868, Page 3

SUPREME COURT.

In Bankruptcy. Saturday, May 2. (Before Mr Justice Gresson.) The second sitting of His Honor under the Bankruptcy Act, 1867, was held at the Old Town Hall, at eleven o'clock, this morning. RE URQUHART MACPHERSON. Liabilities, £563; assets, £49; deficiency, £514. 'lhe bankrupt carried on business in Cbristcburch as a Commission Agent. He now came up for last examination and discharge. He stated that he had complied with the terms of the Act in gazetting his application for relief from his liabilities. His Honor said that the report of the trustee (Mr John S. Legett) was favourable to the bankrupt. The bankrupt said he would yet he in a position to pay his creditors in full, His Honor inquired how he could do so, when his assets were so small. The bankrupt replied that he expected assistance. His Honor granted the order of discbarge. RE THOHAS TENNANT. The bankrupt was described as a publican and storekeeper at Prebbleton. His estimated liabilities amount, on his own shewing, to £1174 7s lOd; and assets to £1585, leaving a Surplus of £4lO 12s 2d. Mr Wynn Williams applied for an adjournment of the hearing until next sitting, on the ground that the bankrupt's statement of accounts had not been filed. Dr Foster, on behalf of Mr Twentyman, the trustee, consented to an adjournment; and bis Honor adjourned the case accordingly until the 27th May. RE JOHN PEPPERELL. The bankrupt was of Avonside, fellmonger, and came up for last examination and discharge. From the statement of accounts, as arrived at by the trustee (Mr Graham) the liabilities amount to £1129 ss, made up of £lll9 5s to unsecured creditors, and £lO to be paid to creditors in full. The assets amount to £342 5s 2d, made up of the following items:—good debts, £3417s 6d ; doubtful do, £5; bad do, £3 18s; net value of property given up to trustee, £l9B 9s 8d; property in hands of creditors, being excess on advance on wool shipped through them, £100; Bhewi g a deficiency of £78619s lOd. The trustee's report stated, Ist, That the bankrupt had kept no books, but he shews Touchers for all his transactions with the Tarious firms through which he has sent fellmongered wool to Kngland, and he attributes his failure to the heavy loss returned to him in the weight of wool so shipped and advanced upon, and also to the fall in price in England on said wool. 2. The bankrupt's assets, even should they realise the amounts set down in the accompanying statement, will not enable me, after paying the necessary expenses, to pay to the creditors more than fivi shillings in the poun i. Mr Wynn Williams said that in this case also, he must apply for an adjournment, as the statement of accounts had not been filed within the time required by the Act. His Honor adjourned the hearing until the 27th May. RE JOSEPH GORE OSBORNE. The bankrupt carried on business in Christchurch as a publican, in the premises known as Mills' Hotel. According to the trustee'! statement of accounts, the liabilities amount to £874 178 9d, made up thus:—Unsecured creditors, £265 lis 2d; holding security by bankrupt's acceptances (15. S. Dalgety and Co.), £SO'J 6s 7d; rent to Hadfield to 31b7 March, £IOO. The assets amount to £255 12s; namely, good debts, £SB 2s; doubtful, £2O 2s 6d; bad, £63 7s 6d; stock-in-trade, £33153 lOd; net value of furniture, £54 4s 2d ; goodwill, £25 j shewing a deficiency of £619 5 s 9dThe trustee's report stated—That the bankrupt has kept books by means of an assistant, which exhibit his receipts and expenditure, eeneral and household. But I cannot gather from these how he has made so large losses in his business as hotel-keeper, at the house called Mills' Hotel. I have had charge of this hotel for one month and have found the business unprofitable, owing to the hearv rent and the expenses of goods required to Ee|)upthestock,butlhaTenodoubt he bankrupt will be able to explain how his losses, in two years and three months, have B niountedto£6l9 ss9d. Mr Joynt applied for the bankrupt's discharge.

His Honor, on looking over the accounts, inquired how it was that the bankrupt's business had turned out so 'I he bankrupt replied that it was in consequence of the heavy rent which he had to pay-namely, £250 a-year. His Honor asked how long the bankrupt had been in business.

The Bankrupt: I was carrying on business as an hotel-keeper for nearly two years and a half. At the end of the first year, I found ray business to be a losing one. His Honor: Why, thon, did you continue ? The Bankrupt: In the hope that the business would turn out better.

His Honor remarked that the bankrupt's charges of living (£176 a-year) were not ao heavy to result in such a small amount of assets.

Mr Joynt said that the bankrupt had entertained the hope from time to time that his rent would be reduced. In reply to his Honor, Mr Graham said he had no objection to urge against the order of discharge being niHde. Order of discharge made. BE WILLIAM DB TROY.

The bankrupt was described as of Avonside, schoolmaster. The application for discharge stood adjourned from the 12th March. Liabilities, £722 13s sd; assets, £254 10s; deficiency, £468 3s sd, His Honor said it was impossible to gather from the bankrupt's statement of accounts, what his style of living had been, his wife's and his own statement of affairs being ao mixed up together. In reply to his Honor, the bankrupt said that since July 1864 up to the time of tiling hisdeclaration, thesum which iiereceivedfrom his wife was £3OOO.

His Honor: I quite agree with the report of the trustee (Mr Graham) that there is no knowing what the bankrupt's mode of living has been, and whether his dealings have been reprehensible or otherwise, The Bankrupt: Since that report, I have given a fresh account, Mr Graham's report is framed on theoiiginal statement.

Mr Graham said that it was so. His Honor: What is your statement on the present information ?

Mr Graham; My report states that the bankrupt has furnished these details, which I have furnished to the supervisors. They make no remark upon them j they meiely take them for what they are worth. His Honor: The greater bulk of what you have received has been from your wife.

The Bankrupt: Your Honor will see that I was in the receipt of about £3OO a-year from the College. His Honor: I don't see anything here from which I can gather what your yearly inCome was.

The Bankrupt: It was indefinite, your Honor. My income depended on what I required.

His Honor : What do you mean by saying that your income depended on what you required ? The Bankrupt: If my debts amounted to £'<oo, my wife would furnish me with funds to meet them out of funds which she had in England.

Dr Foster informed the Court that the trust was for the separate use of Mrs De Troy. His Honor: Surely Mrs De Troy had no power to draw unlimitedly on any fund ?

Dr Foster: She had out of her own fund. His Honor: Am Ito understand that this deficiency £468 3s 5d is made up of deficits from the period of July, 1864, until the present time—that it has been running over that whole period ? The Bankrupt: It does not ruu over the whole period. I think that about a year and a half ago I paid all my debts, It must have been within the last 18 mouths that the deficiency occurred. His Honor: Well, as I said before, it is impossible to understand this statement from the way in which your wife's affairs are mixed up with your own. Mr Graham, have the supervisors been in consultation with you?

Mr Graham : One of the supervisors (Mr Henry Thomson) is in Court now. There is an item of £llß paid to Prince, which he wishes to have explained. The bankrupt said he didn't remember paying Mr Prince £llß. The bank-book was subsequently produced, and the item was found to be £4B instead of £llß.

Dr Foster explained that the putting down of £llß had occurred through a clerical error. His Honor said the bankrupt had no one to blame but himself. The item was so large that his particular attention ought to have been attracted to it.

The bankrupt said he had not been aware of the error.

His Honor: I really cannot understand these accounts; and, unless the bankrupt had a very favourable report from the trustee and supervisors that they are satisfied, I should not be inclined to give an order of final discharge. Under these circumstances, I think the best thing to do would be to adjourn the case until the next day of hearing, in order that the bankrupt may have an opportunity of satisfying the trustee and supervisors in the meantime. Upon the whole, there is no ground of imputation against the bankrupt, I can quite understand the trustee, although he knows more about accounts than I do, finding himself in a position of difficulty with regard to these accounts. I admit that the bankrupt is in a difficult position, and for that reason he ought to have gone over these accounts before coming into Court, so as thoroughly to satisfy the trustee. The matter was adjourned until the 27th May, Mr Graham intimating that himself and the supervisors would be most willing to go over the accounts with the bankrupt. RE EWEN CAMERON M'MILLAH. The bankrupt was described as of Christchurch, clerk. His application for discharge stood adjourned from the 12th March. Estimated liabilities, £2OOI Is 7d; assets, £775 4s lid; deficiency, £122516s Bd. Dr Foster asked for a further adjournment until the 27th May. The trustee (Mr Raphael) was going to leave the province for some monihs, and he desired that Mr Graham should be appointed to the charge of the estate.

His Honor adjourned the matter until the 27 th May, and appointed Mr Graham as truitee in the room of Mr Raphael. RE FERDINAND ANODS THIEL. The bankrupt was a commission agent and accountant, lately of Christchurch. The application for discharge stood over from March 12. Estimated liabilities, £426 9s 8d; assets, £176 15s 2d; deficiency, £24914s 6(1. Mr Joynt said he was merely the solicitor on record for the bankrupt. The matter bad been adjourned, on the application of Mr Garrick, to have time to investigate the accounts. Since that time, he (Mr Joynt) learned that Mr Thiel had disappeared, and he must therefore leave the matter in the hands of the Court, His Honor: But for the creditors, I should be disposed to dismiss the petition. Mr Garrick has furnished no objection, knowing, I suppose, that the bankrupt had left.

Mr Joynt: It seems to be the impression, your Honor, that the bankrupt has absconded. His Honor—Under these circumstances I should be disposed to dismiss the petition. Mr Raphael (the trustee)— There are some assets in this estate, your Honor, which will pay the creditors who hare proved, from 15s to 16s in the pound. I would, therefore, ask your Honor not to dismiss the petition. His Honor—l was about to do so in order to punish the bankrupt. Dr Foster, on behalf of Mr J. H. Hankins, a creditor, aho asked his Honor not to dismiss the petition. His Honor adjourned the matter until the 22nd June. RE OKORGE JURBT, The bankrupt lately carried on business as a publican and theatrical lessee, in Gloucester street. The liabilities amount to £1426 8i 3d, namely, to unsecured creditors, £573 18s 3d; holding security (A. J. Francis), £290; Working Men's Building Society, £125; W, T. L. Travers, £352; rent of theatre, £75; wages £lO 10s. The assets amount to £787, namely, good debts, £l3 14s 6d; doubtful do, £$ 6s; bad, £3 ss; gas shares, £2O; Music Hall shares, £10; rents due, £36 ss; property in hands of secured creditors taken and sold at a loss of £683; deficiency, £579 18i 9d.

The trustee's report Btates—(l) That the bankrupt has prepared a detailed statement of his receipts and expenditure from his books, and which he has compared and found correct. (2) That when appointed trustee, I found the bankrupt had by deed of gift made over to his wife certain properties in Christchurch, which, although they were mortgaged, would, if this deed had stood, have deprived the estate of certain accrued rents, Mrs Furby has, howeTer, waived her claim to these, and her son also to two gas shares which he claimed, by which the estate may benefit about £6O. (3) That the statement of accounts shews available assets amounting to £79 19s 6d, which will be swallowed up in expenses and prior claims for rent and wages, leaving nothing for the creditors. His Honor (to the bankrupt)— This report of the trustee is not a favourable one. There is really nothing left for the creditors. The Bankrupt—l have given up all. His Honor—There was extremely little to be given up, Mr Joynt—Your Honor will see that some of the property was sold under mortgage. The principal cause of MrFurby's bankruptcy was, his failure in theatrical speculation. His Honor—l seethatthe amount expended for the support of the bankrupt's family, for the year preceding his bankruptcy, has been moderate (£150). Mr Graham—Very moderate, indeed. I have consulted with the supervisors, and they thought it was not worth while to make any opposition.

His Honor: There is nothing in his conduct throwing an expressed stigma on the bankrupt. Mr Joynt informed the Court that there were two houses below Ward's brewery, for which the bankrupt had given £7OO. There was a purchasing clause in the deed, to have effect in three years, and also one of forfeiture, and the bankrupt not being able to purchase right out at the end of the term, the forfeiture clause was taken advantage of by the owner, who had re-let the houses.

His Honor: I am afraid that this instance is only a repetition of the result ot theatrical speculations: they are always a losing concern. I do not see any grounds for refusiug the order of discharge, Order made accordingly. bankrupts' costs.

Mr Joynt inquired whether, under the Bankruptcy Act, bankrupts would be allowed their costs, as was the case under the Debtors' and Creditors' Acta. Under the 12th section of the Act the Court could make an order for costs in whatever cases it thought proper to do so. His Honor: I should like to consider that point a little; and 1 will mention the result to the Registrar. I see that.l have the power to give costs. RE WILLIAM THOMAS BAUGII. Liabilities, (estimated by the bankrupt) £500; assets, £625 15s 7d; surplus, £125 15s 7d. Mr Joynt applied for the discharge of the bankrupt. His Honor: I perceive that the trustee has no property in hand. Mr Hankins (trustee): Nothing but book debti, your Honor. I believe there are book debts to the amount of £309. There is a claim by Mr Hill which I think may be reduced. His Honor made the order of discharge, there being no opposition. RE WILLIAM KENTISH M'LEAN. The bankrupt lately curried on business as a commission agent, in Chiistchureh. He estimated his liabilities at £516 Os sd, and assets at £569 19s 3d, shewing a surplus of £53 188 lOd.

The report of the trustee (Mr Graham) stated:—!. That I have perused the statement of accounts filed by the bankrupt, and believe same to be true and correct in every particular, the bankrupt's statements appearing to me to be clear and straightforward, and supported by sundry vouchers and memoranda, as he kept no regular set of books. 2. That it appears to me that the cause of his failure has been trading without capital, and his having upon him certain liabilities not directly incurred by himself. 3. That I have no reason to believe he traded with any intention to defraud his creditors, and therefore I have no grounds, as trustee, lo oppose his final discharge. His Honor remarked that, the bankrupt, being a commercial man, should hare kept a regular set of books. The bankrupt replied that his transactions were of so small a eharacter, that he did not think it necessary to keep books. He had vouchers for all his transactions.

In reply to the Court, Mr Graham said he had consulted with the supervisors, who did not seem inclined to make any opposition, the estate being so small. His Honor male the order of discharge. RE JOHN BOSH. The bankrupt was a farmer, residing at Kaiapoi. His estimated liabilities amount to £536 3s 4d, namely, unsecured, £144 0s 7d ; liabilities on accommodation bills, £392 2s 9d; assets: good debts, £l3 14s 6d; doubtful, £97155; three stacks wheat, and three stacks oats, £lB5 ; deficiency, £287 5s 4d. The bankrupt had been in prison for nearly twelve months.

Mr Graham's report stated that the bankrupt being cinfined in the debtors' prison at Lyttelton, he had not been able to render him any assistance in the realisation of his estate; and he begged, therefore, to append his own statement of accounts without any further comment than that he (Mr Graham) had not as yet been enabled to realise the grain still in Btack, and could not report as to the value of the estate.

Mr Joynt applied for the bankrupt's discharge. In answer to his Honor, Mr Graham said that until the grain was thrashed, it would be imposiible to speak as to its value. So fur as lie had seen from the inwstigation of his accounts, there was nothing which created a suspicion against the bankrupt. His being in custody had prevented the realisation of the estate, thereby causing an injury to it. Mr Joynt pointed out that the bulk of the bankrupt's liability (£392 2s 9d) was occasioned in consequence of his bavin? unfortunately been led into the backing of bills for the purchaser of the Waiiiwkariri Arms, who went through the. Court. Otherwise, by removing that liability, he was solvent. He might also mention that the bankrupt's family bad, during his incarceration, been depending on the Government for assistance.

His Honor—What is the name of the detaining creditor ? Mr Joynt—Edward Thomas, who sold the Waimakariri Arras t» Stewart. The bankrupt bucked Stewart's bills; Stewart failed, and then liiomis came on Bu-h.

The detaining creditor appeared, and stated that he did not wish to oppose the bankrupt's discharge. His Honor made an order of immediate discharge from custody and liability, the bankrupt to pay the costs incurred by the gaoler in coming to Court. KE THOMAS TENNANT, Dr Foster here appeared in Court and made application to his Honor for an order calling on Mr Walton to produce the bankrupt's books. Mr Walton was the holder of a conditional bill of sale which the trustee was trying to up et. An order had been made on a previous occasion, but Mr Walton refused to furnish the books. His Honor made the order as prayed, directing Mr Walton to produce the books in Chambers at one o'clock on Friday next, BANKROns' STATEMENT OF ACCODNTS. Mr Joynt asked whether his Honor would intimate his opinion as to what period of time the statement of accounts should run over in bankruptcy cases. His Honor—That would depend on the circumstances of the debtor himself. If a bankrupt were in business nine, twelve, or fifteen months, he would be expected to furnish a statement of his affairs for the whole period. And twelve months might in some cases be unnecessarily long and in others short enough. If a bankrupt had been in business twenty or thirty years, it would, of coureo lie unreasonable that his statement of affairs should extend over all that time. I am not inclined, therefore, t» ezpreaa any

opinion, as the matter depends entirely on the varied circumstances of the bankrupts. The Court then rose.