SUPREME COURT.—In Insolvency.

New Zealand Herald, Volume IV, Issue 1207, 27 September 1867, Page 4

SUPREME COURT.—In Insolvency.

THTJKSDAY, SEPTEMBER 26. (Before His Honor Mr. Justice Moore.) IN -RE THOjTAB LINDSAY HACKY. This case had been partly gone into on Wednesday when the insolvent was examined at some length. Mr. Wyhn and Mr. Kussell appeared for the insolvent, Mr. MaoCormjck to oppose oi behalf of the Bank of Now South Wales, Mr. Maedonald appeared, for the separate creditors of Gapt. Dacre. .I. L. Macky, examined by Mr. ilacCormick, deposed that he ww-parl; owner in the Tauranga, Oapt. Dacre and I hold each a third, subject to the mortgage of £800. I have a house which I live in, it is not my own. The household furniture was sold, in May or June, under a fi fa, what I have now was given to me by a friend. Mr. Saird bought it for me. I was served by writs about the end of April or the beginning of May. Writs were served by the Bank ofN.S.W.

By Mr. Russell: Baird gave the furniture to Mrs. Alexander, ray sister-in-law. She is a widow and has property of her own. X reiide in the house with her. Faulkner the mortgagee over the vessel haß accepted it in liquidation ol the debt, and released me from further liability. .Efforts have been made to realize the £800, and it could not be done. That is why it was not put down in the schedule. It was on the .2nd October that I knew I was actually insolvent I myself hare had the sole management of the businsss. Captain Dacre was absent from the colonyfor some considerable time. On the 3rd I conferred with my principal creditors, and wrote the letter calling the meeting for tho sth, when a meeting of creditors was helc" Mr. Stirling, tie accountant . attended at the meeting, and fifteen shillings in the pound was agreed to be taken at three, sis, and nine ; months in liea of the old acceptance. Mr. Stirling said that the bank would concur in the arrangement. I stated that owing to tho insolvencies I would not be able to meet that 15s. Within a week or two after I became aware of thifj I called a meeting of creditors, and thero waß a full meeting, Mr. Stirling attended that meeting. The creditors resolved that the estate should bo wonnd up to pay the second ss. On payment of 10b' instead of 15 f, they were to grant me a release, the rest of the estate if. any remains, to be distributed pro rata. The creditors all assented, and did aot ask for any assignment. Mr. Isaacs and ' others appointed to aes?'st me, but no legal power was given to them over the estate. All the creditors have received tho 10s,' except some of my ; own personal friends, who have agreed to wait. . The bank never asked me to go on any other footing than the oth'eru.

A.discussion bete toot place upon the effect of the alleged agreement upon the insolvent's position with regard to the bank. > JJe-examined by Mr. Bussell: When I suspended payment;; my. overdraft | at tho Bank -was £1300 • £4000, £1,315; and £960 were all the claims tho Bank had upon me. The £4000 were dishonoured. My final liability , to tli • -rak was £6,275, and of that . the Bank haa received „1I but £2,750. Tho Bank | discounted our ordinary trade bills after our suspen- . sion, but not a very large amouut. Captain Dacre's private estate contributed about £1900 towards the lOs in the pound, which. wa3 advanced by his rela- , tires. The £750 was to come from one of Captain Daoro'g sons. He was one of the firm. Tb.g money " was to be obtained from a legacy. Every exertion has been made by ng to realise our estate. There were three meetings of creditors. The first was in April and the second in May. Mr. Gilmore, the accountant' at the Bank, was at the second, Mr. Stirling attended the third. It was agreed at the second and third meeting to receive 10s. in the £. Banulph Paore, examined by Mr. "Wynn, deposed that was one of the partners in Macky & Co., and one of the petitioners. By Mr. MaeOormiek; I had about £4000 when I started in the business. I had also some land under Crown grant at Epsom (40 acres) and at Coromandel. I had- the, land at .Kpsom when the account was removed. from the Union Bank. I had land at the Wade, wliich was mortgaged for £1500 in 1858. , ! I had land at Panmure and at Ooromandel. I subsequently acquired land at Wangaparoa, 290 acres, in 1863-4. In February, 1863, I h->d 340 acres lat Coromandel and 7§ at Panmure. I acquired land; at "Wangatio five or six years ago. I have 150 acresjat the 'Howick ranges, which I acquired recently, j I have_ 100 acres at Eaipara. I got the land ;at Hovick in 1863. 1 became possessed of the scrip on account of one of the.old land claims. Captain Dalziel owed me a debt in 1840, and I agreed to take scrip for it, which I did not get until ten years after. I did not receive anything in the nature of an annuity. (The witness was examined at considerable length with regard to his personal estate and the various mortgages executed upon it.) I received £3500 on a legacy in England,

£2500 of "which was expended in trade in Kngland, which ?ai Bent to tha fira. o, Thos. Macky ond 00. £1000 was given to the firm. X told the firm that I should require the repayment of the £2500 to invent for my daughters on my arrival 1 cannot tell exactly what I took from the business. In September, IS6I, there was £3000 oach to Mr. Mucky's and ray credit. When Mr. Macky stopped I was a creditor of the firm to tho extent of £2500. That is the amount I loao. Mr. Macky wrote to me in September, ISCG, that nfter all the losses there was still sufficient to meet them. I nm sure he did not at that period know tho reft', condition of the estate, as X am suro he would not deceive me. Somo large profits were expected upon largo transactions. Ido know that tho Bank of Now Zealand claim more than £1G39. lam not aware that they olaim for £2077 odd. The Bank of Auckland claims £789 9s 9d. Messrs. Isaacs llftVO II balanco duo to thorn of £1200. Mr. Macky made out the schedule. I suppose not having signed the release they claim for tho balance due to them. I don't know [much about tho accounts, Mr. Macky genoraUv looked after them. Mr. Alacfarlane refused to sign the release. Tt ig not usual to ask the bank to sign tho release; they give their word, and it ia always considered b'nding. Mr. Kennedy said tho bank would accept the ten shillings ; and sometimes the Bank of New South Wales would accept it and sometimes it would not. Mr. Dilwoith was a creditor. I cannot toll why his namo docs not appoar. Mr. Macliattio hag a claim, but I nm rot aware that it is omitted from the George Dacre has a claim against the joint estate. The £753 10s was not the consideration for which tho mortgage was given, it was a separata alTair. He lias received a dividend equivalent to ten shillings. It was Dot a part of the arrangement when the account was transferred that I should bo personally liable. (Letter from witness to iponager Bunk of jNow Bouth Wales read dated 14th February in which witness made himßelf personally liable for all accounts against tho By Mr- Wynn: The money I received in London belonged to my daughters, whoso authority X had to transfer tho mouoy in tho way I d : d to save oxpenae of exchange. I never drew any money personally from tho firm. : . Tho further heating of tho case wa9 adjourned untH Monday nest to enable the schedule to bo amended by inserting tho oirittcd claims upon the estate. The Court adjoumci at 2.15 p.m. irat ;i . 10 o'cloc this moin"'ig.