SUPREME COURT.-Bankruptcy.

New Zealand Herald, Volume X, Issue 2907, 23 May 1873, Page 3

SUPREME COURT.-Bank-ruptcy.

THURSDAY, MAY 22. [Before His Honor Mr. Justice Johnston.] The ordinary weekly sitting in Bankruptcy was held this morning, when the following petitions were heard : — Re Charles Mieller.—Mr. S. Hughes appeared for the bankrupt, who is master cf the schooner Dauntless. That vessol iraded at first to Tauranga, and afterwards to the Islands. The bankrupt getting into debt, lie sold his interest in tbe vessel for £102, and divided it at the rate of 3s in tho pound. But several of the creditors would not sign his release unless he gave a promissory note for t.he balance. Iu July, 1572, his liabilities wore £310. Between July and January, 1873, he received £56 in wanes. In Jan*ary, 1873, his

liabilities were £3G9, without any assets. The bankrupt swore to the correctues3 of his final Blatement, and passed his last examination. Kb Patrick: Gleeson. —Mr. Armstrong appeared for the bankrupt. The bankrupt is a miner from the West Coast, where he set up business in a store. He had £1400 to commence business, and was successful for some time. But when the gold field on which he was collapsed ho got into trade difficulties. The bankrupt had £2000 duo to him, but those who owed him money were "decent people and he believed quite " honorable it they had the means of paying.—His Honor was of opinion that the account tho bankrupt gave of his affuirs showed some

laxity iu trading. He did not know that there was anything specially wrong in this particular case, but tho Court could not fail to take notice of any misconduct which affected commercial morality. People rushed into purely speculative and often reckleis trading, witnout turning their attention to legitimate industrial business. The Court must show its sense of such conduct by withholding tho bankrupt's discharge.—The certificate was suspended accordingly for six months. Re Alexander Macdoxell. —Mr. Armstrong, with Mr. Rees, for the petitioner ; Mr. Whitaker for opposing creditors.—Tho bankrupt described himself as butcher, baker, and storekeeper. About tha commencement of

she works on the Kaipara railway he uto partnership with a person named Hull, is storekeeper, &c., to supply the workmen with the necessaries of life. The bankrupt, according to the trustee's roport, is jrother-in-law to Mr. Kdgar, and there vas some arrangement by which the workpeople were to be paid at the bankrupt s Itore, and, to use the words of t.ke official •eport, a sort of truck system was cornnenced, the men buying goods from the store. Jnder this system, the provisional trustee aid there ought not to have been any ( losses >ut the first month there was an indebtedness o the extent of £244. A cash-book was kept ,t the first, but ceased to be kept after tbe Lrst five weeks, and it was stated ' that one ot he clerks managing the business had been - .idden to keep a cash account." A person named Durfrae went into (he business paying £50, ,nd who was to endorse the bills for the firm, lull went out of the business, receiving &IUO, vhich he paid to one Hunt, to whom he was ndebted. Carfrae received £50, and is at .resent out of tlw colony. After the diseoluion of partnership, the business waß handed ,ver to Carfrae. Petitioner borrowed from tlr. Edgar £100, and other moneys to the mount of £250, for which Edgar held., bill if sale over the store. In March, 1872, the labilities were £1,176, and the apparent .ssets £712. The liabilities in the same nonth, 1873, were £910, and the assets £314 !s.—The bankrupt having been examined! as o the correctness of his statement, iVhitiikei' said he opposed the bankrupt, s di,■l'iirgi- upon the grouiiJ that c\rlam t.'U'fc-

were omitted from the final statement which should have been found there ; that on other matters important information which should have been given to the Court was not so given.—A lengthened argument took place upon the practice adopted under the Act, as to whether a petitioner was entitled to his discharge immediately upon his "last examination."—Mr. Rees applied for leave to amend the bankrupt's schedule.—Mr. "Whitaicer objected upon the ground that the application should have been made before the last examination was commenced. — Mr. Rees applied for an adjournment. — His Honor : A bankrupt with no estate has no right to come here day after day and ask his creditors to be at the expense of opposing hiin. In the first place it is a boon that a debtor should be freed from his liabilities, and then they ask another boon, when passing through the Court, for their own convenience. The further hearing was adjourned to the next Court-day by consent.

Re Thomas Ckaig.—(A new phase of an old litigation.) Mr. Rees applied to the Court for an order calling upon John Sangster Macfarlane, the assignee of the bankrupt, to render an account of the property in his possession belonging to the bankrupt estate. The learned counsel said that two or three years ago Craig had been adjudicated a bankrupt, but that upon the failure of the first meeting of creditors no further proceedings were ever taken. Mr. Thomas MaciTarlane was appointed trustee. The bankrupt made an affidavit in which he said that all the time of his adjudication, or immediately before it, he owed J. 3. Macfarlane not more than £1,500. Tliat he assigned his estate to the said J. S. Macfarlane, under the following circumstances, viz., that Macfarlane came to him in the street, and told him Mr. MacCormick had a writ against him for a large sum for law costs, aud that he would be in gaol within an hour; that the said J. S. Macfarlane told deponent to go to Messrs. Hesketh aud Richmond, who were his (ilacfarlane's) solicitors, and get them to make all right; that deponent's estate was assigned to ilr. Macfarlane for the whole of a debt which did not exceed £2,700 ; that at the time the deponent's estate was worth at least £16,000, so that he was not at the time insolvent ; —the truth being that he acted under the control and influence, aud at the representation of the said J. S. Macfarlane. The deponent valued his timber lands at W aitekuri and Opitonui at £GOOO ; 800 logs in stream, £3000 ; logs lying ou tlio land, £2000 ; mill, &c., £3000, and various items amounting to the sum named. He estimated his debts at £270 J to J" S. Macfarlane ; £1700 (secured), to Mr. Bnrtt, trustee of Harris and Laurie's estate, together with various items to tradesmen, T. aud S. Morriu, and others, not exceeding £6000. —His Honor : In wliat wuv does this matter come before the Court? If the bankrupt was solvent, ought not the motion to be, that, the petition be dismissed.— .Mr. Rees : The application is to make the assignee account for the property in his possession.—His Honor : Should not the trustee be the mover in that case? —Mr. Rees: We ask that the assignee, Mr. Macfarlane, shall be restrained from selling this property. According to the affidavit., Mr. J. S. Macfarlane had told the bankrupt that if Craig annoyed him, ho would sell the property. —His Honor: Should not the motion be made before the Court sitting in banco. The application being for relief, the bankrupt cannot mako the application, therefore it devolved upon the trustee. I do not think I could depart from a practise so definitely laid down. Hauris t. Macfarlane : Judgment.— Mi\ Rees for tlio plaintiff ; Mr. Heeket.h for the defendaut. —The motion was for a rule | for a new trial, on the ground, among other:-, of misdirection. The verdict was (■ivfln for the plaintiff, with a farthing damages. The defendant pleaded ail easement over = ihe \Vaitekuri stream, granted by the owners of both the Wnitekuri land and the land of Hikutawatawa. It was alleged, in support of this plea, that eight persons (natives) were owners of AVaitekuri, and that three of these owned Hikutawatawa, upon which land, subsequently granted by natives in fee to plaintiff, the plaintiff complained of defendant, trespassing.—His Honor was of opinion that there was nothing, so far as appeared, which showed that anything was reserve 1 which would take away from the rights belonging to Hikutawatawa. And when the three natives granted the fee of Hikutawatawa to Harris, no exception was made of any right or privilege appertaining to that block. His Honor was of opinion that the rule should be discharged.

I>- Baxco

Giiiniu t. Thomas—Mr. MacCormick concluded his argument in support of the rule for u new trial iu this case, tried at the lust session of the Circuit Court.—The particulars of this case have been published.—His Honor said he would reserve judgment. The Court rose at 5 o'clock.