District Court, Queenstown.

Lake Wakatip Mail, Issue 1860, 26 February 1892, Page 5

District Court, Queenstown.

THURSDAY, 2&SB FEBRUARY, 1893. (Before hit Honor Judge Ward.)

Uadanntad G.M. and Water-race Co., r. Symes and another. Mr Turton for applicants, asked for adjoorment which, he said, had been agreed to by respondents. Adjourned by consent till next June sittings. I» Bankrpptct. Re John Scott, farmer, Miller's Flat—Application for discharge. Mr Turton for bankrupt. His Honor—The order is granted, as the report is a favorable one. Re Francis Leyden, miner, Upper Shotover. —Application for discharge. Mr Turton, for bankrupt, said that the creditors had taken a composition of some 4s lOd in the £. Mr Geisow, deputy-assignee, stated these were no pieferential claims. His Honor —lt is advisable, in all such cases, to insert paragraphs in the statement saying that there are no E referential claims. Order granted ; paragraph to e inserted as suggested. Re B. C. Curno, laborer, Queenstown. —For public examination. Adjourned till next sittiog, by reqnest of Mr Finn, for debtor. Re G. Stoddart, tailor, formerly tailor and hotelkeeper. Arrow.—Public examination, adjourned from the sth November last. The following are the offences with which the bankrupt was charged : L—That you have with intent to conceal the true state of yonr affairs wilfully omitted to keep proper books or accounts. I—thai you have within three years before the commence■■Ht of your bankruptcy failed to keep usual and reasonable books and accounts setting forth truthfully the state of your business transactions. 4.—'That with intent to defraud your creditors you, on or about the 28th day of August, 1691, delivered to your wife Annie Stoddart a certain piano your property purchased from the Dresden Pianoforte Manufacturing and Agency Company. 4.—That with intent to defraud your creditors you on or about the 23th day of August, 1891, delivered to one Cyril E. Gudgeon of Queenstown bank manager a certain piano tout propery purchased from the Dresden Pianoforte Manufacturing and Agency Company. •l—That with intent to defraud your creditors you in or about the month of May, 1891, delivered to one John Ramsay of Arrow-town, wheelwright a certain buggy your property purchased by you from one Edward Thomson t.—That with intent to defraud your creditors you in or about the month of August or September 1891 delivered to om O. Bpoouer of Macetown a certain barrel organ your property. Mr Finn for bankrupt; Mr Turton, for the creditors, said that notice had been served on bankrupt to explain with respect to certain goods, such as a piano, a buggy and a barrel organ. Counsel referred to what had transpired at meetings of creditors with regard to these goods and the reason for having the examination. He then called witnesses. T. Connor, carrier, Arrowtown, deposed to having carted the piano in questioo from Frankton to Arrowtown, about 15 or 16 months ago—could not stata exactly; it had apparently come up from Dunedin. The piano was delivered to bankrupt at the Ballarat Hotel, Arrowtown, and bankrupt paid for the carriage. About the 27th August last carted the piano from Arrowtown and delivered it to the manager of the Colonial Bank of New Zealand, Queenstown, who helped to unload it and took it into the Bank. L. H. Preston, commission agent, Arrowtown, snd supervisor in the estate—in conjunction with R. Pritchard, deposed that bankrupt had a piano about eighteen months ago. In debtor's bank book there was one entry on 7th November, 1889, of £5 for the Dresden Piano Co. Had total receipts from the Dresden Piano Co., amounting to £3O, as follows:—On 14th December, 1889, monthly payment of £1 15s, in the name of bankrupt; on 11th January, 1890, £1 15s, in name of bankrupt; on 20th February, 1890, monthly payment ot £1 15s, but no receipt shown in book ; on 26th March, by Mrs Stoddart, £1 15s and, on 7th May, £1 15s. There was also a memo, on 13th May of cheque sent for £3 10 ; on 2nd July. £1 15s, and oo 18th November, 1890, £3 10s ia the name of Mrs Stoddart. There was no entry in the bank book of two other receipts produced ; one was on 29th August, tor £3 10s and the last was oo 11th March, 1891, for £5 ss, supposed to be a three monthly payment. The piano was at the hotel about 18 months, and afterwards shifted to the old Morning Star Hotel about July, 1891, where bankrupt's other goods were kept until it was known what be intended to do—bankrupt paying the rent of house. The estimated value of the piano was £65 ; some £29 had been paid on it by instalments to the Dresden Co. and about £37 10s was then due on it Considered, if sold at that time, the piano would have fetched £55 at Arrowtown. On th« 28th August, at a meeting of creditors—witness being chairman—the bankrupt sail that he had sent the piano to Mr Gudgeon, at Queenstown, for security, snd he did not think it wonld fetch more than the money owing on it, namely, £37 10s. I took the meaning of " security" to be secresy, and to keep anyone else from getting the piano. Messrs Jenkins sod Pritchard were appointed superviaors at that meeting, which was a private one. After the piano had been sent to Queenstown bankrupt filed and told witness that he had sent it to Mr Gudgeon for security on behalf of his wife. The piano would have fetched more at Arrowtown than at Queenstown ; the estate never got it back. With regard to the buggy it is in possession of Ramsay, wheelwright, Arrowtown. Saw it immediately after the first meeting ; it was not included in the schedule nor was it on the premises at the time. The barrel organ was seen at the Ballarat Hotel, and was afterwards heard at Jopp's Royal Oak Hotel where bankrupt was staying. It wasafterwards sent to the All Nations Hotel, Macetown. I had the books—which were so badly kept that I could not make them out Accounts there I were also marked paid, which were nit so, but af- i terwards paid. For instance, John Cherry, one I suit of clothes, £3 10s was marked paid by bankrupt although it was not paid ; the other amount was to H. Wardlaw who afterwards paid me as superviaor. The hotel book produced is very incomplete, with half-pages cut out I find no entries in the tailor's book from August to September, when bankrupt filed. Most of the accounts were marked settled in August, and on 19: h June a large number of accounts were also settled. Bankrupt's wife was also assisting at the hotel. It was impossible from bis book to ascertain what bankrupt was making at the hotel. Cross-examined—The goods were removed from the hotel to the Athenaum at the end of July or i beginning of August; snd bankrupt was carrying 00 as a tailor next door. I would have given £ls or £2O more for the piano than was owing on it. Do not know how bankrupt became possessed of the buggy ; it was removed, on certain conditions, to Kamsay, who said he had it for repairs. I made no demand for the barrel organ but found, about a month after the bankruptcy, that it had been sold to someone at Macetown. At a meeting of creditors bankrupt told us where a mangle and some other goods, not pat in his schedule, were. Joho Ramsay, wheelwright, Arrowtuwn, deposed :—The buggy referred to belonged to the bankrupt, and it is still in my place; it was brought to me four or five months before bankrupt filed. The buggy was first at the blacksmith's, and 1 agreed to repair and fix it up for £lO or £l2. When I first got the buggy bankrupt said I was to | say it was mine, as he did not want anybody to ! know anylhing about it Cross-examined—The buggy wu not exactly I brought to me for repairs ; we wen a sort of part- | ners in it I had the option of being a partner or of , getting £lO or £l2 for repairs, nothing has been done to it by me, and it is only worth about £l. John Cherry, carrier, Arrowtown, deposed :—I get a suit of clothes from bankrupt nine months or more ago—the price to be £4 10s. He me for the money a few weeks before he failed but I could not give it then. He said afterwards that he did not want the money immediately, but he had scratched it out of his books and I could pay him at any time that suited me. Cross-examined—Bankrupt has nsver esked roe for the money since his bankruptcy. C. E. Gudgeon, manager, Colonial bank New Zealand, Queenstown, Droduced cheque signed by bankrupt The pencil writing on document produced is something like that of the bankrupt Bankrupt's wife has a separata banking secoant with ua. The piano hi question was

brought over to me about 27th Aognit last, and is still ia my possession ; 1 got po—cssion of it from Mrs Stoddart with a view to trying it first (Let* ter produced dated August 16, 1891). I got the piano over privately, and not at all as connected with the bank.

To his Honor—l have purchased the piano from the Dresden Company for the amount of arrears of instalments owing tn them on it. I made no offer to Mrs Stoddart. Ido Dot intend to pay bankrupt or his wife a sixpenee for it, as I coniider the amount paid by me is full value of the instrument. Examination continued—lf there had been any surplus on the £37 odd paid. I should have handed it over to Mrs Stoddart. Was not aware till now of all the cheques paid by bankrupt being for the piano. To his Honor—The piano was iu my possession under offer, and the Dresden Co., demanded it, when I paid them £4O, which I agreed to do.

Examination continued—Bankrupt came to me next day and said he had sold it to Mr G. F. Gibb, of the Shipping Co., but I had already purchased from the Dresden Co. I don't think the instrument was cheap at £4O, especially after it had beeo in use for two or three years in a hotel; £6B, the original price, was an absurd figure to begin with. Cross-examined—l certainly do consider £4O was the full value of the piano when I took it over. F. W. F. Geisow, deputy assignee and accountant Queenstown, deposed—The tailoring books of bankrupt go to 29' h August, 1891, but I cannot say how far the hotel book goes to, because it is like a ledger and has no dates. (Witness here gave the amount which be calculated bankrupt had earned as a tailor for two or three years previous to bankruptcy.) I cannot make anything out of the hotel book, as the cash book contained only the daily takings. Cross-examined—The expense of this examination is not charged to the estate. The tailoring books are kept as well as any respectable tailor would keep them.

This closed evidence for the prosecution. For the defence.

G. Stoddart, bankrupt, deposed—l sold the barrel organ about August last to Mr Spooner for £3, which I thought was a good price for it. Particulars as to the buggy were as stated by Ramsay in his evidence. As to the piano, I had no intention of defrauding my creditors. My wife used to work iu the shop and also assisted in the hotel, and the amount I paid by cheques for her for the piano was iutended as some return for what she had done. The money she paid by her own cheques was got from me. I did not pay her regular wages but thought to give her the piano for her services. (His Honor—The next thing a wife would be wanting would be wages for keeping house for her husband.) With regard to the hotel books and Cherry, I saw the latter after leaving Patersons, when I had made a purchase and wanted money at the time. Went into the hotel against my will—my wife persuaded me to go in. Annie Stoddart (bankrupt's wife who had been sent for) deposed I claimed the piano as my property ; had it on the hire-payment system from the Dresden Co. Had no money of my own—my husband gave me the money for it I used to assist in the hotel and in the tailoring. Mr Stoddart gave me all the money I paid for the piano. The barrel organ was sold to Spooner. Some of the accounts in the book are in my writing. Cross-examioed—Mr Gudgeon got the piano ;do not know what arrangements were made with him for the purchase of it. He was to buy it himself and pay off the £29 already paid. His Honor, in giving judgment said that he thought the creditors were quite justified in preferring the charges against bankrupt, but he could not say »hat any of them could be brought home criminally. The nearest approach to fraud was the way in which the hotel books were kept, for which a little allowance should be made on account of bankrupt not being acquainted with that line of business. With regard to the piano, had it been shown that it was worth more than Mr Gudgeon had paid for it the bankrupt would decidedly have been in the wrong. There was really no frand, however, the piano having been shown to be worth only £4O. Re the buggy transaction it was very suspicious, but as only £1 had been paid for it the amount involved was very small. Case dismissed and bankrupt ordered to apply for his discharge at next sitting of the Court Mr Turton asked the Court to make an order for charges in the prosecution to be paid out of the estate instead of by the creditors. Mr Finn objected, aa it was only by a majority of one that the creditors decided to prosecute. His Honor—That has little to do with the question. All I can say is that the creditors had good reason for their decision. Order made aa requested. With regard to adjourned application for orders for release of the official assignee in the estates of several bankrupts, Mr Finn said that he appeared for creditors in two of the estates, namely Martin Birch and Thomas Richards, and asked for the adjournment of those cases till next sitting. Adjourned accordingly. M* Turton said that Mr Ashcroft, the official assignee, who was unable to attend last silting, had since been in the district and seen the creditors in the other estates, and they had no objection to the release applied for. Orders (except in the cases of J. B. Neal, miner, Rees Valley, and Hugh Crossan, farmer, Bold Hill Flat adjourned for filing of statement of assets and liabilities,) were granted for release of the official assignee in the other estates, as follows:-Hugh Cameron, carpenter, Cromwell; G. Thomas, engineer, Skippers ; C. Waide, hotel-keeper, Baunockburn ; T. L. Price, wheel ivright, Queenstown ; Jane S. M. Johnston, boarding-house keeper, Queenstown ; A. Ferguson, miner, Bannockburn ; J. Barr, miner, Bannockburn; H. M'Kay, publican Alberton ; Elizabeth Reid, publican, Rocky Point ; W. Henderson, labourer, Roaring Meg; S. G. Daniel, accountant, Queenstown; J. B. M'Leely, labourer, Kinlocb ; J. H. Forsyth, woodcutter, Lake Wakatipu ; J. Austin, miner, Alexandra ; G. Martin, labourer, Ophir; C. Dunlop, miner, Upper Shotover ; P. Henderson, carrier, Arrow town ; W. Shore, miner, Queenstown; D. M'Lean, farmer, Hawea ; H. Tobin, farmer, Arrowtown ; A. Joas, saddler, Clyde ; T. Waddell, W. H. Lidston and Alfred Prince, Mr Geisow aaid he wished, with permission of the Court, to ask the Judge's ruling as to a certain matter in connection with the closing of bankruptices, but his Honor recommended that the opinion of a solicitor be obtained. The Court then closed line die.