District Court.

Oamaru Mail, Volume XX, Issue 6211, 21 March 1895, Page 4

District Court.

THIS DAY. (Before His Honor Judge Ward.) IS BAJfKRCTTCY.) In re David Munro (Moeraki) —Application for order of discharge. Mr Roll for bankrupt. Order granted. In re Jacob London-Public examination. Mr Lee (Hislop and Creayh) for the Assignee; Mr Harvey for bankrupt. Jacob London, sworn, stated that Jie was burnt out in November, 1891. Not much was saved from the fire —only some L3O worth. If the newspapers said otherwise it was false. There was no insurance. His other assets at the time were a section at Knrow, a section at Duntroon, and horse, cart, and harness. He owed very little in the colony at that time, and owed M« brother in London about L2OO He started business again, building a new store. He gave bills for the building expenses, and met them by doing work and " getting a little money in." His book debte at the time of the fire were about L6O or L7O. His books were not destroyed in the fire. He continued in business since the fire up to the date of bankruptcy. He denied having said in examination before the Assignee that his books were destroyed at the fire. His Honor: What witnesses were there to this statement ? Mr Lee : The Assignee and myself were present. His Honor (to bankrupt): 1 suppose yoa are aware that you are liable to be Indicted for perjury. Bankrupt: Well, your Honor, I never said so. Continuing, bankrupt stated that he continued keeping his accounts in the books saved from the fire. He assigned hie book debts to Mr Simons. His Honor: What i= the assignment 1 Mr Lee here put in a copy of the aasignment, which assigned book debts and future debts. His Honor : Future debts ! What a swindle. Why you are buying on credit, selling on credit, and assigning the proceeds to your relative?. A more deliberate swindle never was perpetrated. Mr Harvey submitted that bankrupt was justified in securing his relatives. TTig Honor: Yes; but not at other people's expense. Mr Harvey : It's done every day your Honor. TTia Honor: Well, all I can say is, I'm sorry to hear it. Bankrupt, continuing, stated that Simons got his new books. The old ones —ledger, day-book, and cash book—were left in his safe at Kurow, and he had not seen them since. The Assignee had the key. He started 'a new ledger because the old one was full. The same applied to the cash book and day book. [Mr Lee here produced the old ledger with 100 folios still blank.] Bankrupt then explained that he had started a new ledger because a new man was coming round hawking with him. The new cash-book and new day-hook did nob start at the same time as the new ledger. When he assigned the bookdebts to Simons some of the accounts in the old ledger were due. He copied all the accounts fiom the old ledger into the new one. He had had two new ones since the fire. Simons had one, but he did not know where the second one was. It was in the safe when he left.

To his Honor: When getting credit he did not inform his creditors that he was assigning the future book debts to his nephew. Continuing, Mr Lee quoted from the Assignee's report, which bankrupt stated was correct, including a statement that when he borrowed money from Simons he entered it in his cash-book. He denied having said the reverse of this at the meeting of his creditors in Dunedin. He had L6O from Simons, L3O of which he borrowed from him when he first came oat two years ago. He gave no receipt and knew of no entry in any book recording the transaction. His next loan from Simons was LlO about 15 months ago. The money was paid by Simons' cheque on the Bank of New Zealand, Oamaru. The next loan was got soon after—Llo. He got LlO at a time when he wanted it. There were no receipts held by Simons for the loans. He got L 25 before the assignment of the book debts. He never got a bigger sum than L 25. When he made the assignment (LISI 5s 9d) he had nothing to make it up from He did not think it was as much as stated; he though about Ll5O would cover it. He signed for the larger amount because he did not think the assignment would ever appear in Court. He signed anything to get relief. His object was to let Simons get his own money. He explained that Simons did not take the debts when collected after the assignment simply out of consideration and to help to keep him (bankrupt) afloat. The transfer was a bona fide transfer. The assignment was made in August but no notice was given to the creditors until the bailiffs were in at Christmas. He would not say whether Simons advanced him LSO —two cheques for L3O and L2o— August, 1894, just prior to the assignment and subsequent to a letter from Simons' solicitors pressing for a settlement. He could not explain why Simons did not press his dojd. Simons acted no differently after the assignment to before. [Mr Lee here mentioned that proceedings would probably be taken to npset the deed of assignment.] Simons paid in to him book-debts which he collected and did not hold them himself. He first knew himself to be insolvent only very lately. He thought himself "good enough " at any time. He was in hopes last August that the shearing would put him right. It did not because the bailiffs were put in. Thomson and Bridges were the first creditors to sue, about nine months ago. He put his shouldei to the wheel, got the money in and paid them. Thov put the bailiffs in. Mr Bee next sued him, seven months ago ; he settled that case by a part payment; he did not think he was in difficulties then. Mr Bee put the bailiffs in for L3O, on a judgment, which was not really due to him. Immediately afterwards his brother put the bailiffs in. He confessed judgment in bis brother's case. He thought he was still "good enough" then. The first auction sale of goods on his account was held at Fairlie Creek. This was about seven months ago. A wagon and two horses were sold there. Emanuel Simons was in charge. It was a very fair sale. The amount was not entered in the cash book; it would be about LSO. He did not knpw if this included the proceeds of hawking as well. He trusted Simons implicitly, and did not go into this transaction very fully. The next sale was a little sale about six weeks after, at Timaru. A two-wheeled cart and horse belonging to him (bankrupt) was sold. He could not say what the proceeds were. The papers showing the transactions were left at his shop when Mr Atkinson's bailiff came in. They had a little auction sale at Kurow about five months ago. Mr Sumpter sold for him and gave him a cheque for the proceeds. It was not in the cash book. There was also a sale in Oamaru—" A very tiny one." Thei'e were no other auctions. He knew nothing about a sale at Fairlie in November. If there was a sale he would get the proceeds. After Simons' bailiff was in no goods were taken away by a man named Body; Body was taking out goods for him daily prior to this. Body was working for him for LI a week. He was paid mostly by contra ; there was a ledger account. Simons had been tak ing oat gtiods after the baliffs were in and theproceeds werehandedovertohim(bankrupt.) He went out himself also and sold goods. Emanuel Simons took away some of bis own goods, bat none of. his (bankrupt's). No goods could be removed at

night from the premises without his knowledge. None were removed. Whatever Simons took away he had paid for. [Mr Lee here quoted from the bankrupt s signed copy of the Assignee's examination, contradicting his sworn statement in Court.] He (Iwrakrupti did not make such a statement to the Assignee. His cash book did not show all money received. His cash and bank books together would. He believed he could make a proper statements of his accounts from his various books. A break of some months was accounted for probably by his having been up country and the cash-book not having been entered up in his absence. He probably paid the receipts into the bank without entering up the details. It would not be possible now to ascertain the details. His bank-book was practically his cash-book. To Mr Harvey: He had been very unwell since his bankruptcy. When Simons lent him money he did not enter it in his cash-book. He was mistaken in saying he did. He had make a lot of mistakes. Simons gave him cheques for amounts lent, and they were passed through his account. He only gave the assignment to Simons under pressure, and he relied on Simons' statement of the assignment as to the amount owing. He had implicit trust in his nephew. Mr Lee : That's more than the creditors have.

Continuing, Bankrupt was satisfied that about Ll5O was owing. Mr Lee applied for an adjournment until next sitting in order that Simons, who had the books, might be produced. He had been unsuccessful in an attempt to get him present to-day, but would have him summoned for next sitting. It was more than likely that the issue of the validity of the assignment would then be tried. It was unfortunate that some of the creditors were paying under the assignment. Of course that was their own look-out, but every step had been taken to let them know that it would be advisable to withhold payments pending a settlement of the case. His Honor, after again commenting on the terms of the assignment as being a deliberate swindle, granted the adjournment applied for.