HON. G. F. RICHARDSON.

Mataura Ensign, Issue 457, 12 July 1898, Page 4

HON. G. F. RICHARDSON.

~* : BANKRUPTCY PROCEEDINGS. At Wellington last week, the application of G. F. Richardson, surveyor, ex-member for Mataura, was supported by Dr Findlay, and opposed by Mr Campbell, on behalf of Cummins and Co., Wanganui. Mr Campbell submitted that the bankrupt had been guilty of misconduct in not seeing that Cummins and Co. were paid with the other preferential creditors, who had been Eaid in full. The bankruptcy proceedings ad been held over on the debtor's express assurance that the debt would be satisfied, and that money was in the hands of his' solicitors for that purpose. His Honor pointed out that the Statements may have been bona fide at the time, but circumstances may have prevented the carryout of the intention. If that were so, it •should not prevent the bankrupt from getting his discharge. Mr Campbell submitted that in any case the bankrupt had been guilty of carelessness and recklessness. He should have made up a list of the debts due, and distributed the moneys pro rata. It was wrong to make preferential payments, and leave other creditors out in the cold, especially creditors who had taken proceedings by which others had heen benefited. Bankrupt's conduct had been such, he submitted, as ought to prevent him getting his discharge. In reply to his Honor, the Assignee said he understood bills of costs amounting to £150, which came in quite unexpectedly, had reduced the money in hand for. payment of creditors. Mr Campbell said that amount would not have been sufficient to meet the liabilities. Dr Findlay said the money out of which creditors had been paid was not raised until shortly before the bankrupt was compelled to file, and he had to pay £100 as premium after several negotiations had fallen through. In addition, the firm of Richardson, Reardon and Co., in which the bankrupt was a principal shareholder, made a demand upou him for £200. As a partner filed the whole burden of the debts of the firm fell upon Mr Richardson. If it had not been for these things he would have been in a position to pay his debts in full. If Cummi-ns and Co. had taken the offer of 10s in the £ as the other creditors had done, the bankrupt's son would have withdrawn his claim upon the estate, and the bankruptcy would have been avoided. They would not accept the oiler, and Mr Richard- 1

son, jun., proceeded with his olaim. Creditors had benefited to the extent of £600 or £700 -' by the transaction,' which the ' opposing creditors complained of, and the bankrupt's son threw in the whole of his patrimony to help his father to avoid bankruptcy. Cummins and Co. had simply been cutting off their nose to spite their face, because if they had withdrawn their opposition the bankrupt's son would have withdrawn his olaim, and thoy would havo benefited with the rest of the " creditors accordingly. There. hadbeen no misconducted on the part of the bankrupt. There never was any assurance given that the money was actually available. The statement was that transactions were under way. The debts which Mr Richardson had paid were small sums to tradesmen. That due to Cummins and Co. was owing by the'eorporate company of which the bankrupt was a member. He submitted that as far as possible the bankrupt had done as much as he could to honorably satisfy the debt. In reply to the Official Assignee, the bankrupt said the firm of Richardson, Reardon; and Company had considerable assets, but it would take a long time to get in the money owing. He was unaware of the debt , to Cummins and Co. until Mr Cummins told . him of it. Believing the debt could be easily met he gave a bill for three months on behalf of the company, and afterwards at Mr Cummins's request gave a personal bill. He was not personally liable for the account. The Official Assignee said that since the bankruptcy Cummins and Co. had. charged him with all sorts of special pleadings and favors towards the bankrupt. All he had wanted to do was to get the money,- which was offered to avoid the bankruptcy, but he did not get it, owing to the opposition. Replying to Mr Campbell, Mr Richardson said there were originally four partners in his firm, all holding equal shares. Messrs Seaton and O'Donahoo retired before Cummins and Co.'s liability was incurred. . His Honor considered that the facts adduced showed that the statements of the bankrupt were not made with deliberate fraud, or under circumstances amounting to . fraud. Nor did there appear to have been anything in the nature of fraudulent preference, inasmuch as the funds raised to dis- ' charge the debts were raised by another person — namely, the bankrupt's sou. The opposition therefore fell to the ground, and the bankrupt must get his discharge.