In Bankruptcy.

Lake Wakatip Mail, Issue 1587, 29 April 1887, Page 5

In Bankruptcy.

The examination by the official assignee of Al Qnie, Chinese storekeeper. Queenstown, was resumed on Saturday morning. The examinatior was lengthy and tedious, owing to the necessity o: having an interpreter, a Chinese police constable from Southland, and it involved enquiries about i number of business transactions, such as the purchase of goods from European houses in Dunedin and Invercargill; advances made by these to enable him to retire his bills of exchange ; the manner he obtained further credit up to three days before his declartion of bankruptcy ; how he had disposed of a large quantity of goods to a Chinese miner, who, he alleged, had lent him money to carry on his business with, which goods were resold to another trading firm in question, viz., Hang Long and Co. Another question arose a3 to whether Hang Long and Co. had bought the goods from Chow Sing Ling in a bona fide manner. Both parties pleaded ignorance of such knowledge, and at the resumed I proceedings they pretty well agreed upon a detailed account of affairs. To report in detail would occupy more space in this journal than can be afforded, so intricate a revalation of Chinese customs and habits of business. The official assignee more than once expressed an opinion that the affair was a swindle. He said it might be difficult to dispute the evidence of a Chinese miner (Chow Sing Ling), as to lending bankrupt so much money as £260 (but in various sums at different times) upon an account entered on a piece of dirty paper, and it might be more difficulty to prove that Hang Long and Co. purchased these goods otherwise than in an open way. The scratching out of brands on cases sold by Ah Quieto Chow Sing Ling, and done by the latter, was a suspicious circumstance. The creditors, however, would have to judge for themselves as to whether the parties conspired together with Ah Qnie to defraud. It was a significant fact that the account of these transactions, presented in part the previous day, did not correspond with the detailed ones now put in. It looked as if the business—if it could be called so—had been arranged during the adjournment. It had the appearance of a gross case of fraud, at least on the part of the bankrupt. Ah Quie. Some goods also ordered were just stopped in time in transition to avoid becoming part of the estate. After the examination of witnesses the first meeting of Ah Quie's creditors was held. Mr Carter (representative of Procter, Jones and Co., Dunedin), Mr W. M'Pherson (M'Pherson ana Co., Invercargill), and two or three other creditors being present. Mr Smith represented some of the creditors, and Mr Turton appeared on behalf of bankrupt. The official assignee, in opening the meeting, dwelt upon the evidence taken at the examination. He said it was a remarkable fact that bankrupt, who had a very small stock, had a much larger quantity of goods two months ago- He acknowledged having sold goods to the amount of £'2lo to one Chow Sinn Ling, about a month ago, as payment for money lent. These goods were at the Chinese garden, and strange to say, Hang Long alleges that he bought thsm from Chow Sing Ling. It look at least as though they were preferential creditors, and the goods had been therefore locked up at the p.;li:e cimp. It was a very doubtful question whether Hang Long did not know the true position of bankrupt. Mr Ash croft said he would like to know what the creditors proposed to do. After a short discussion, it was resolved, on the suggestion of Mr Geisow, that the meeting stand adjourned till 3 o'clock p.m., in order that Chow Sing Liug might first lie examined. (The examination of Cliow Sing Ling referred to bis business relation with bankrupt. He did not know Ah Qnie was in trouble ; he bought the goods from Ah Qnie in payment for money lent, and sold them again ten days after to Hang Long, who paid £65 9.i in cash and gave four promissory notes at £;">() payable monthly. He gave the notes to one Ah How. who had lent witness £2OO without charging interest, but who took off Is in the pound (£10) instead. Ah How had since gone away to some diggings. Witness produced a book which contained all his money transactions for about teu

years.) At the adjourned meeting at 3 p.m. the only creditors represented were Messrs Proctor, Jones and Co., M'Phersou and Co., and Mrs Du Beer (Mr (ieisow.) The official assignee said he thought the evidence taken was eminently unsatisfactory—in some respects, and that bankrupt at least (if not others also) had laid himself open to a criminal charge. The best thing the bank nipt could do would be to compromise matters. There was no question the creditors had b"eu disgracefully defrauded. (To Mr Geisow.) The clerk of the Court cannot hold a public examination, and if the creditors wait for that event before taking action, it will be nearly six mouths. Mr M'Pherson said he should propose :—That, pending further enquiry into the transactions between Ah Qtiie, Chow Sing Ling and Hang Long, the offkial assignee be requested to retain possession of the goods seized, and that the necessary steps he tak*n to prosecute Ah Quie for fraudulent bankruptcy, and Ah Quie, Chow Sing Ling and Hang Long for conspiracy; also, tiiat the creditors present undertake to indemnify the official assignee in above actions. Mr F. M 'Bride, a creditor, but who had not proved, here entered. The motion was p-it and carried. Mr Geisow, who voted against, said he wished his dissent to be recorded on the minutes. He was quite willing if anything was wrong that the creditors should prosecute ; but he had been present all through the examination, and considering the straightforward replies given by witnesses, and the way all information had been given tint was needed, he thought the creditors were not justified in taking the stand they had in the resolution. He was of opinion the evidence was given in good faith, and woulJ like the questions raised to have been decided by a judge—at the same time leaving the otlicial assignee power to retain the goods. Mr Tnrton said he had voluntarily brought Hang Long and other witnesses for examination in order to facilitate matters, and he thought that the creditors were rather sharp. Besides Hang Long's business would be injured by depriving him of the goods. The official assignee said that bankrupt had gone to sec if he could not make arrangements for a compromise. Personally he was in favor of arrangements being made, and if a fair offer were made he would be in favor of settling the matter—although there was a prima facia case seeing that bankrupt had been buying goods from Europeans up to the very time of his bankruptcy. After consideration it was decided to stop further action, pending any propositions that bankrupt or hii friends might be prepared to make at a private meeting to be held at Mr Turton'a office that evening. The meeting of creditors then closed. The meeting at Mr Turton's resulted, it is stated, in an otfer cf 7s in the pound being accepted by the creditors.

The following are the liabilities and assets in the estate of Ah Quie. Liabilities:—Dunedin—Proctor, Jones and Co., £347 9s 9d ; R. Wilson ami Co., £S3 2s Id; R. Murray and Son, £24 13s 4d ; J. Edmonds, £35 4s 2d; Sew Hoy, £6 18s. Queenstown— Hang Long, £ls; L. ue Bter, £8 18s; Mrs Black, £lO 10s; W. J. Thomson, £2 19s sd; J. v. d. Walde, £3; F. M'Bride, £4 10s. Invercargill—MTherson and Co.. £127 2s 6d, and other small sums; total, £691 13s 3d. Assets:-Stoek-in-trade, £100; book debts. £200; cash in hand, 4s Id; furniture, £lo—total, £3lO 4* Id. Deficiency. £3SI 9s 2d.