BANKRUPTCY COURT.

New Zealand Times, Volume LXXI, Issue 4332, 16 April 1901, Page 2

BANKRUPTCY COURT.

SUSPENSION OF DISCHARGES.

A sitting of tho Bankruptcy Court o'as held yesterday before t lie Chief Justice.

The application for discharge made by Walter Jounnax, baker, for whom Mr Young appeared, was adjourned till the next sitting, as the bankrupt was working in Hawke’s Bay. , An application for discharge was made by James Paterson, tailor, formerly of Stratford, for whom Mr Izard auuoarcd.

In reply bo questions, the bankrupt .stated that he had been a party in proceedings for divorce. The lady who held certain property in the name of Emma Paterson was not his wife. He had no family. Ho was now working for a tailor in Waitara. O. H. Dickerson, (of tho firm of Edmondson and Dickerson, stated that when the bankrupt’s place was burned 'down, the insurance money was divided between the creditors. Some promises made by the bankrupt to creditors fell through, and the bankrupt went away. Mr Izard said ho went to Invercargill to get assistance. His Honor said the bankrupt had no business to go away when ho was negotiating with his creditors. It seemed that ho had led tho creditors to believe that a residential property belonging to a lady ho was living with was his own. He had some of his hooks in his lodging-house, and seine in his store, which was burned diown. The books saved were valueless; It was a perfect farce for the Court to suspend discharges altogether,' in view of the reckless w r ay in which some mercantile people gave credit. In a case like the present, where a man ran away front his creditors,' lie could not expect any help from the ‘ Bankruptcy Court. In his Honor’s opinion, in cases of this sort, it would he' hotter if the Legislature gave the Court power,.to- order imprisonment where there had been misconduct. ( Tho bankrupt's discharge was suspended for two years. James Henry Palmer, builder, for whom Mr Hindmafsh appeared, was granted his discharge. Tho case of Arthur John Giddings, grocer, was described by Mr James Ashcroft, the Official Asignco, as one of “honest muddle.” His Honor said that a man who, being insolvent, would not file when his creditors wanted him to do so, and who put difficulties in their way, could not expect an, immediate discharge. file bankrupt’s discharge was suspended for six months.

George William Smart, pawnbroker, applied for his discharge. Mr Hadfield, who appeared for the bankrupt; took exception to a statement in the Official Assignee’s report that a sale made by his client was sus : picious.' ‘ 1 ! • "

His Honor : The sale was for a debt, and was made to a relative^' Mr Ashcroft[lt was a, .very old',debt. His Honor: If a man in business transfers a property to bis' brother for an old debt,'And then is adjudicated bankrupt, yoti .cannot say it is not exceedingly suspicious. Tho position of the* bankrupt’s estate was explained by Mr Hadfield, who said the debts included contingent liabilities. Some of the securities would turn out good, as . others of them, had already done. His Honor: When did the sale, to his brother, take.,place? , Mr Hadfield: Eighteen’ months liefore bankruptcy. ' . : His Honor: What ivas the bankrupt doing then P , Mr Hadfield: Ho advanced money on promissory notes, which were discounted. He was pressed by creditors, and bad to file. Then the promissory notes were sold. As is obviouis, they did not, when sold in one lot, fetch anything like their face value. The point of the thing is that the bottom soems to hav e fallen out of money-lending. I am; informed that some companies and firms are on the point of retiring from, the business. . The bankrupt filed eighteen months ago. He lias since rented a piece of land at Johnsonyilie, which he has let out for grazing. If he had had bis discharge he could l recently have obtained an auctioneer’s .license. His creditors have not asked for any public inquiry, or for the institution of any proceedings, and they do not appear to oppose tho present application. Mr Ashcroft: They gave it up as hopeless, I think. Mr Hadfield said that for some reason the bankrupt had not lately been called upon far any information in regard ■to the promisSciy notes. Mr Ashcroft: Since I have-.sold the notes, of course I have had no interest in them.

His Honor said ■ this was a case in which the creditors . should have appeared, if they had wished it to be properly dealt with by the Court. Unfortunately, in most cases creditors did not appear unless there was a prospect that something would ho coming to them. It seemed to him that the bankrupt sold to his brother What was perhaps the most profitable part of his business . for an old debt of £IOOO. He then , engaged in the very risky business ; of discounting promissory notes. When the bankrupt had to allow a .judgment to go. against him ,for, a small amount, as ho did, he must have known. he was not in a sound financial position, and that afterwards he was carrying on, at the risk of his creditors. That sort of thing the Court had 'to look to. It appeared to be plain that/he ought to have filed earlier. It had, however, to be ponsidered that the bankrupt had been without his discharge for eighteen months, and that no creditors now appeared to oppose. . The discharge was suspended for nine months. The bankruptcy of James Cheetham, farmer, was annulled. The Court was adjourned till the 27 th May.