IMPORTANT BANCO CASE.

New Zealand Mail, Issue 661, 24 October 1884, Page 21

IMPORTANT BANCO CASE.

(UNITED PRESS ASSOCIATION). Dunedin, October 20.

At the Supreme Court in banco to-day, W. G. Neill, trading as Neill Bros., was summoned to show cause why the delivery of certain goods by George Turnbull and Co. to Mr Neill, during the months of March, May and June last, of the value of £1042 18s Id, and a bill of exchange for £3O 13s Id, should not be deemed a fraud within the provisions of the Bankruptcy Act, 1883, the goods and bills of exchange being delivered to Mr Neill within three months before Mr Turnbull’s bankruptcy. In reference to the law on the subject, his Honor said that if the final proviso of section 78 of the Act applied to section 79, as he held it did, then it would be for the Assignee to bring evidence Id the first place to show that Turnbull was not in a position to pay his debts as they became dHe at the time he delivered these goods, and also that the deliveries were made within three months before the date of his being adjudicated a bankrupt. Then the burden of showing the bona fides of the transaction would be upon Mr Neill. The manager of the Bank of New Zealand, Mr Ferries, gave evidence as to Turnbull’s inability to pay, as Turnbull’s overdraft for two years had been from £16,000 to £20,000, and that he preseed him in vain to reduce it. Mr Neill gave evidence as regarded the purchase of the goods, and admitted that at the time of one purchase he had heard rumors of Turnbull’s probable bankruptcy. The case was adjourned till tomorrow, when legal argument for the defendant will be taken.