J. C. CAIRNS' BANKRUPTCY.

New Zealand Herald, Volume XXV, Issue 9116, 26 July 1888, Page 6

J. C. CAIRNS' BANKRUPTCY.

ADJOURNED MEETING OF CREDITORS.

The creditors in the bankrupt estate of J. C. Cairns met yesterday morning at the office of Mr. J. Lawson, Official Assignee. The debtor, Mrs. Cairns, sen., and Mrs. Cairns (wife of the debtor) were present. Mr. Cave appeared for the Official Assignee, and Messrs. S. Hesketh, Thome, Cotter, and E. Cooper also attended the meeting, the latter appearing on behalf of the bankrupt. Some discussion ensued at the outset because of a request by Mr. Hesketh that' the ladies should leave the room. Mr. Cooper urged that the ladies were creditors, and that Mrs. Cairns, sen., had given a proof of debt. He pointed out that this had been made a public examination, and he thought it Very improper that public meetings should be held for the examination of witnesses.

Mrs. Cairns said she wished to do only what was proper. , She had been summoned to attend the meeting. Mr. Thome contended that the meeting was a public one, and therefore all creditors had a right to attend. Eventually the point was submitted to Mr. Cave, who said that if the meeting was public, any creditor who had given proof of debt was entitled to be present. Mr. Thorne, who appeared for Mrs. Jane Cairns, said he was satisfied with this ruling, and he would now advise Mrs. Cairns to withdraw.

Mrs. Cairns, senr., and Mrs. Jane Cairnf then left the room.

Mr. Cooper wished to know, before the examination proceeded, whether his friend intended to confine himself merely to the bankrupt's monetary affairs ? Mr. Hesketh said ho could not then say what questions he would ask. Mr. Cooper said he would not interfere so long as Mr. Cairns' social affairs were not brought into question, but immediately they were he would enter another objection. ' In reply to Mr. Hesketh Mr. Thorne said there was a mortgage for £400 at 7 per cent, over 19 acres 17 perches of land at Titirangi. It was from J. C. Cairns to Mrs. Cairns, his mother, as trustee. The bankrupt was sworn, and questioned by Mr. Hesketh. He deposed that he was married to his present wife on February 11, 1874, and it was in contemplation of that marriage that the marriage settlement was prepared, dated January 7,1874. That settlement was £2600.

Mr. Cooper explained that what was termed " a trustless position" had been made by Cairns, and under it £3000 was settled on Mrs. Cairns during her life, then to revert to her children.

Examination resumed; Witness did not suppose that his wife had more than £20 when he married. His wife was the daughter of a farmer.

Mr. Hesketh : What was your wife's social position ? Mr. Cooper objected to this as an unfair question. The meeting had nothing to do with the antecedents of Mrs. Cairns, and he advised Mr. Cairns not to answer.

The bankrupt thereupon refused to answer the question. Examination resumed: He settled upon trustees, for the maintenance of himself, his wife, and any children they might have, the sum of £2500, to go to the children after the I death of their parents, and one-third of a sum of £3000, retained by his father's trustees. Witness had also about £1000 worth of property. He and his wife arrived in New Zealand in July, 1875, and he brought about £300 with him, his own money, which was all that was left of the £1000, * the difference having been lost in farming and in the expenses of the voyage to this colony. He sent interest home to his mother in her capacity as sole trustee for £3000 on his father's estate, not in her capacity as trustee under the deed of the 23rd of January, 1874. He began to send this interest in 1882. In addition to the £2500, he had also from his wife's trustees the sum of £3000, which came out in 1882. This was trust money, retained under his father's trust to pay his mother's annuity. This money was in his hands, and he used some of it, but he had to account for it. He placed it to his credit in the bank, and made different investments with it. His mother came out in 1884, and gradually took the trust matters into her own hands. Mr. Hesketh asked what were the investments with this money from 1882 to 1884. The debtor's books were produced, and he stated that the following investments had been made with the money during that period : —February 10, 1882, loan to Hoyes on mortgage account, £800 ; February 8 and 10, 1882, purchase of land at Stokes' Point, £150 and £400 ; February 22, loan to S. H. Webb, on mortgage, £550; Apple Farm Company, first mortgage, £1200. On July 5 he went as security upon a mortgage of Mount Albert land for £800. He had invested the whole of the £3000, and the investments could be shown by his books. The investments at the present time were as follows : — Bryant, mortgage to Mrs. Cairns, £550; John Griffiths, mortgage to Mrs. Cairns, £450; D. W. Abbott, mortgage to Mrs. Cairns, about £220; debtor's mortgage at Mount Roskill, £400; Smith, mortgage, £220; C. H. Ferris, mortgage, £500; M. W. Letts, Mount Albert, £450 ; 'Mrs. Craig, £75; Tramway Company shares, £140, or a total of £3005. He owed his mother, in her capacity as trustee of his father's estate, £540, and he was also indebted to her to the extent of £460, her private money. He was thus indebted to her in two capacities, but he did not know why Mrs. Cairns had put in only one proof as a creditor. He knew nothing of proofs; he knew he owed his mother the money. He also owed her another £120 on a land order warrant; and there was also £40 due as interest.

After some further questions, the meeting was adjourned till this (Thursday) morning at eleven o'clock.