ALLEGED FRAUDULENT BANKRUPTCY.

New Zealand Herald, Volume XXXVIII, Issue 11826, 2 December 1901, Page 7

ALLEGED FRAUDULENT BANKRUPTCY.

CUTBUSH BEFORE THE COURT. SOME FRESH DISCLOSURES. Jiie hearing of the charge against Thomas Watson Cutbush,, of having committed a treach of the Bankruptcy Act, occupied the whole of Saturday, before His Honor Mr. Justice Conolly and a jury of 12, ail d was ultimately adjourned until this morning. On the previous day the case vas called, when the accused pleaded not guilty. The jury. were empanelled, an adjournment being then made until Saturday. The Hon. J. A. Tole conducted the prosecution, Mr. J. C. Martin appearing for the defence.

Mr. Tole, having stated the case for the prosecution, called William Frederick Seeley, late manager for the accused. This witness deposed to having collected certain moneys on September 27, and giving same to Cutbush 011 the next day. On the latter dote he also lent the accused £20, and in the evening saw him off by the Sonoma for Pago Pago. On October 17 witness received a cable via Sydney from Cutbush, instructing him to bank all moneys in his own name and send accused's bocks to Fiji. Before he leceived the cable the official assignee had taken possession of the books- Cutbush had told him he was going to Fiji from Pago Pago,.

Cross-examined by Mr. Martin: He bad been with accused since July. The latter intended going to Suva in the middle of September, but his departure had been postponed owing to the litigation pending in his slander action versus Groves. Cutbush heard on the Friday that the Sonoma was due from Sydney, and 011 the Saturday lie told witness he meant to go by her. When he left there was nothing in the. store but a. few cases of oranges. There was nothing requiring his personal attention. There were consignments of fruit afloat coming to accused. Witness was left in charge of the business, Cutbush giving him a power of attorney. Witness expected him back in a month. There was 110 secrecy whatever about his going, and he showed himself with witness for fully three-quarters of an hour on the wharf and steamer before leaving. Cutbush, before he left, paid back to witness the £20 he had lent him. Witness cashed a £25 cheque for accused at the racecourse out of his winnings. He had won £40 on the first race. The accused received £18 from Knight. Mr. Martin: Are you sure about that? Witness: Yes. Mr. Martin (producing a document): Is this in your handwriting? Witness (examining the document): Yes. But I don't know how it came into accused's possession. 1 never sent it.

Mr. Martin said the letter had been enclosed in another and taken to Fiji by Mr. Rupert Griffiths. It had been in his (Mr. Martin's possession) since it was handed to him by Mr. Turner, who accompanied accused to Auckland after his arrest. '*

His Honor said he could not accept the letter as evidence unless it was a complete document. It did not appear to be Complete, but seemed to be part of a whole. Witness, after repeating that ke did not know hoW accused could have obtained trie letter, stated that it was a complete document in itself, whereupon His Honor said he 'would admit it. The lettei was then read as follows:—"Now, Tom. this is something extra that I would not putin tne letter, knowing what a careless beggar you are, and I want you to just make a note of the items, and then destroy this straight, away, and whatever you do. Tom, don't neglect to burn it at once, and don't keep it about you. I tare made myself a creditor in the estate to the extent of £48, to get as much as -possible out of them. 1 have charged salary at £4 per week from July 1, and also stated that I lent you £20 on the Saturday morning you went away, but got no receipt. I have'also stated that 1 cashed the £25 cheque for you out at the races, out. of a win. , This I am keeping for you. It is banked to, my account, and I have also given W.R.K. credit for £18 which he will pay us after. He is supposed to have paid you in cash the night before you went, so you are supposed to have had the following: Cheques: Sing Kee Jang, £12; Evans, £14; Thornton, £25. Cash: Seeley, £20: Knight, £18: total, £89. Do make a note of fill this separately, and then burn it. You might send me a receipt for the £20 on plain paper, as I was asked for it, but it does not much matter."

.To Mr. Martin: Witness' wife banked the £25 cheque with her other money. It had not been drawn upon. He still said that he cashed the cheque for Cutbush at the racecourse, and that accused received the £18 from Knight. Witness had proved for the £20 he said he lent accused on September 28. although he had said that Cutbush repaid him. He had lent accused three £20's. He had hot told anyone about the other two. Re-examined by Mr. Tole: Witness made an affidavit in support of the petition to make accused a bankrupt. The last paragraph of the affidavit may have been to the effect that Cutbush had made no arrangement for returning to Auckland.

His Honor: I can attach no meaning to that. If I go to Wellington for a month I am expected back, but I don't on my departure necessarily make arrangements for my return. J. C. Entrican gave evidence as to the action taken by himself and others in having accused arrested, and as to what occurred at the creditors' meeting held afterwards. In cross-examination by Mr. Martin, witness said he had signed a paper with a number of other creditors, favouring the present proceedings being dronned.

To Mr. Tole: He would not sign the same paper now, because of what had come to light in the lower Court. The evidence of Geo. Alfred Hodson, purser on the Sonoma, relating conversations with accused, was read. John Lawson, official assignee, produced amended figures with reference to the bankrupt estate of accused, showing that So far as known the total liabilities were £792 5s 9d, and total assets £354 16s lid. there being an apparent deficiency of £437 8s lOd. Detective H. P. Kennedy deposed to arresting accused in Suva. * Cutbush had made no attempt to evade him, but came voluntarily aboard the steamer for Auckland before the warrant was in witness' hands. Accused told him he wanted to be back in Auckland by October 28. This closed the case for the prosecution.

The accused was then called,, and in the course of examination by, Mr. Martin, said that he arrived iii Auckland last January with £500, to go into partnership with Mr. Griffiths. He put this money into the business at once. L T to June, Griffiths,# who was supposed to put in the same amount, bad only put in £100. The partnership was dissolved on Ju?y 6, witness taking over. the liabilities of the firm, which were between £700 and £800. He had paid oft all but £161. Witness had been to Fiji in July or August, arid some, negotiations had keen opened with Mr. Turner, which were to be concluded as soon as witness was able to return there for the purpose. He Could have gone by the Taviuni in .September, but the action versus Groves detained him until too late. He was informed by Mr. Ma bony, his solicitor, that he had until October 28 to pay the costs, and he knew he would have to go to Fiji fox the necessary money. He related the circumstances of. th- trip. Neither on Friday, September 27, nor since, had he received any money from Knight. He had received two cheques from Evans and a Chinaman. He cashed both ,at the racecourse. He was not sure whethei he took the £25 cheque to the races or gave it to Seeley before going out. In any case, no person cashed that cheque for witness. Seeley's statement that he bad cashed it Was Hi*?. He denied having said anything to the .purser of the Sonoma about going oil to Honolulu. On arrival at Suva he had lib money left. He would swear that on going aboard the Sonoma he had less than £20. He sent the: cable for his books. His denial to Detective Kennedy of

having done "so 'was in accordance with his solicitors advice to reply to no questions. He had £20 in the bank the day he left Auckland. Mr. Turner, on the day witness arrived in Fiji, arranged to finance him, and opened a credit with the Bank of New Zeaiaad in Fiji to be forwarded here to pay witness costs. Seeley's letter, which had been read, was handed to witness in Suva by Mr. Rupert Griffiths, who was a passenger from Auckland to Fiji by the Taviuni on the same trip with the detective. The letter was enclosed with another in a sealed envelope, -Having read it witness gave it to Mr. Turrvu'' i e '' vere( it to witness' solicitor, ~e latter handed it back to Mr. Turner, who thereupon gave it to Mr. Martin. He had less than £20 when he left for Fiji, and went away to help his creditors and not to defraud them. Cross-examined by Mr. Tole : He stronglydenied cashing the £25 cheque with Seeley, or borrowing any money from him on the racecourse. Ho did not ask either Peter Ross or Seeley to try and cash the £25 cheque at the racecourse. He remembered writing letters to correspondents in Fiji, on September 21, stating in them that he hoped to be in Fiji before Christmas. He did not, on the day he left, say to Evans that he was going to clear out. He did say good-bye to him : He intended coming back by the 1 aviani before the detective arrived in Suva. Re-examined by Mr. Martin: Evans and Seeley were very friendly. The dav of the proceedings in 'the Police Court, 'Turner, Evans, and witness had a conversation. Evans asked whether Turner would give up the letter from Seeley if he gave him £13 (the £25 and £18). Evans threatened to go to the Crown Prosecutor and work up a case if the letter was not given up. Edmund Mahony, solicitor, stated that before the conclusion of the slander action he knew from the accused that the latter intended going to Fiji. Witness had stated j during that trial in the Supreme Court that accused was going, and even mentioned the day. There was a group of persons present in Court at the time. On September 27 witness told accused he would have about a month in which to pay the costs of that case. The evidence of Mr. Turner, of Fiji, was read. This bore out the accused's statem'ehts as to his visit to Suva and his arrest. William Evans, fruiterer, called by Mr. Tole, in the course of examination stated that on September 27. when judgment was delivered in the sbhder case accused asked hiiii to pay him £14 he owed him. Witness gave him a cheque for the amount. That night accused called again, and said goodbye to witness' family, shook hands with witness, and said. "You'll never see me in this country any more." Cross-examined by Mr. Martin, witness said be Was subpoenaed as a witness by the prosecution in the action in the Magistrate's Court. He had given evidence at the official assignee's office, which was taken 1 down in writing. In that evidence he did j riot say a solitary word about that conversa- j tioii with accused having taken place. He j had kept the matter to himself and j had told no person until that present day j that he could give that piece of evidence. ! He bad then told Mr. Seeley and Mr. Blair j (the Crown Prosecutor's clerk). He men- ; tioned it to Seeley because he heard there was j a lot of dirty work going on. By "dirty i work" he meant the production in Court j of Seeley's letter. Because that letter was ; produced witness bathe forward and gave 1 that evidence. thai day (Saturday) was the j first he knew of the existence of the letter. j Its production Was of no interest at all to j witness. He never threatened Turner that j he would go to the Crown Prosecutor if the . letter were used against Seeley, and tell him , he knew Cutbush was going to bolt. Wit- j ness kneW on the Friday that accused in- j tended to run away from his creditors. He never mentioned it to any of the authorities. Cutbush, Seeley, and himself were all friends. Notwithstanding that he knew . Cutbush intended to run away from his creditors he was willing to go bail for him . when he was brought back. i Re-examined by Mr. Tole: Witness and : all his assistants' knew on Friday, Septem- j ber 27. that accused was going by the mail- j boat on tile next night. Witness advised j him to stay and to go bankrupt. Accused j said in reply, " 0. I'm going to clear." i At half-past five the Court adjourned ■ until ten a.m. to-day. ,