SUPREME COURT.-IN BANK RUPTCY.

Otago Daily Times, Issue 2200, 23 February 1869, Page 2

SUPREME COURT.-IN BANK RUPTCY.

Monday, 22nd February.

(Beforo H's Honour Mr Justice Ward.J

ADJOWKK.I a FINAL EXAMINATION AND DISCHARGE.

Re «]•■:.n W. Fegeii.—Mr Ward applied fr.r '.iia final order. The report of the Incisional Trustee, Mr Bathgate, having b^eu read, tho bankrupt wais examined, -rmd he asserted that hw.hadiH** propcrirv. An Order was gran ted Y» yi.y. / Rk JiIARY Peiuiv.—A JiniHorderfwiA also granted in this estato on the appJicarf: _ ' tiori of Mr Ward. ';:"•"■- * Rb Albxanper Mab#ham#—-Mr Ward" also supported tho application for a filial order in thifi estate. The bankrupt, ifc was mentioned, ia a publican, and assigned aj his causes of bmkrnplcy, sickness in fi.mily and depression in busmen*-*. After tho report of tho Provisional Trustee had twen considered, an order, aa applied for, was granted. Rb John It. Hodusox.—Mr Wilson. appeared for tho bankrupt, and Mr _ Stewart to oppose. Mr Stewart examined' tho bankrnpt, who stated that, when, in business, ha kept books. Ho had saved ono, butr ths (.•tliors wero lost. He did not hand over? tho book retained to his trustee. It. did not contain particulars repecting aU hia transactions. Tho book skewed sums I owing to him which were incurred whikfc he was at the Prince Alfred Hotel. Dntten did not p»y any part of the money which he owed him for cattle. After the; bankrupt had been crossexamined ct r.ne or two points by Sfc Wilson* - .

Mr &:<-wart cm-tended that ihe.baafcr rupt had bien guilty of gross misconduct He hiul poisested land and cattlo at thft

Molyneux, and Bold that property to Button without getting payment or security. The bankrupt came to Dunediu with a small sum of money, about LCO. His Honour reminded-Mr Stewart that the bankrupt had said tbat ho paid LIOO to go into tho Prince Alfred Hotel.

Mr Stewart admitted that such was the case, ana then-proceeded to say that eventually tho bankrupt carried on business almost entirely on credit, and that after ho had obtained credit to the amount of about L4OO, he came into Court with a very small sum ao assets. Thero was a draft spoken of, but it was worth lens. The learned 'counsel cited sub section four of auction 120—im to tho inability of debtors to meefen'gagements—urged that tho bankrupt bad not been solvent for a considerable length of time, and tliat ho had persisted in disponing of furniture, obtained from one creditor, to another person—a second-hand dealer. Tho Court would, ho thought, agree with him, that the bankrupt ought to have filed a declaration of his insolvency boforo his property was entirely ;Bwopt away. Again, tho liooks of the bankrupt had not been brought forward ; they ought to have been properly kept and handed over to tho trustee, to enable Mm to realize. Although theL4oo was owing by Dutten, it had not been mentioned inthe bankrupt's schedule. Had the bankrupt not been examined, tho creditors and tho trustee would havo heard nothing of it; but if that debt had leonlhserted in the schedule, tbo creditors would have had an opportunity of proceeding against the parties concerned. In fact, it waa not. Proper for a bankrupt to withhold any debt. He should account for every debt, ahd leave it to the discretion df tbe trustee aa to whether or not ho would proceed against the debtors. His Honour admitted that it was tho duty of the bankrupt to havo accounted for tho. sum alluded to.

Blr Stewart .thought 'hat tho transaction in connection with Button should bo regarded with somo suspicion. Ho was an old acquaintance ol tho bankrupt. Thero was another circumstance which would, he thought, tend to onorato somewhat strongly against lhe bankrupt obtaining bis final order. Ho purchased gooda on credit from Messrs Craig and Gillies, and sold at a sacrifice to another party. Ho thought that tho Conrt would, under all the circumstances of tho case, see fit to refuse to grant tho bankrupt his discharge on tho present occasion.

Mr Wilson pointed out that Button, as it appeared, had not paid tho bankrupt, because ho foil into diflicultios, Tho bankrupt ultimately commenced business* aa a publican, and faUed through a distress for rates and taxes, which became duo prior to tho timo when he got involved in tbo transaction. He was also arrested and imprisoned. After remaining in prison for some months bo filed his schedule. With regard to his transaction with Dutten, he contended that thero was nothing to shew that thero had been any intention on the part of tho bankrupt to defraud, although ho might havo committed an error of judgment. Jn fact, bo maintained that no attempt was made to defraud tbo creditors. The only opposing creditor ho believed was Mr Hay.

Mr Stewart mentioned tho name of another gentleman, who, ho said, was also an opposing creditor. His Honour thought that tho conduct of tho bankrupt in somo instances was reprehensible. Ho first, it appeared, disposed of a largo number of cattle, &c., without obtaining security, and afterwards came into town, and carried on business almost entirely on credit. With respect to his placing tho sum mentioned In tho -schedule, tbe charge was mot to a certain extent by tho fact lhat tho debt was incurred a long time ago, and that it was considered hopeless to expect payment from Dutton. But there remained tho fact that tho bankrupt purchased goods at a high prico from one firm, and sold them to another party at a sacrifice. 110 had, however, been in gaol for some time, and ho therefore thought the ends of justice would be mot by suspending tbo issue of a final order for two months.

Final order suspended for two months accordingly. Rk, John Bum. MuniK.— Mr Haggitt appeared for tho bankrupt, and Mr Barton represented the Bank of Otago. The bankrupt was examined by Mr Barton. Tlie former stated that ho had been a member of tho firm of Royse, Mudie, and Co., and of Royse, Mudie, and Miller. Ho recollected an action being,instituted by tho Bnnk of Otago. Witness defended it, and it resulted in a verdict against him for LOOOO. A bill of exceptions was tendered and abandoned. Ho considered, at tho time, that ho had a very good ground of defence. He )xarf_ expressed a desire to compromise tho caso, stating tbat if tho Bank would not accept a certain sum, ho must go through the .Court. Ho did not, he thought, uso tho expression, < that his firm existed: by the forbearance of creditors. The liability to the Bank waa of threo or four years standing. Ho signed--judgment against Bell, lino, and Co.- for L3l,"000. Tho real debt to tho Bank of Ota^o was L 12.000 i or L 15.000. Tho Bank'of Otago did not Eay an overdraft to the Union Bank on is account. Tho business was indebted to the Bank of Otago about L 14.000. Thero was a deed of trust under wliich that debt was to bo paid oft. When tho action was instituted witness know that ho was liablo for something, but did not know how much. Ho oxpected that a verdict would bo given ngainst him fornsmallsura. Ho had thought, .when tho proceedings commenced, that ho was in solvent circumstances. He had been living as economically as ho possibly could. A friend of his did give a party shortly beforo tho proceedings in bankruptcy woro initiated, and ho boro a part of tho expense. Very few of the debts wero good. Tbo debt1 of tho Bank of Otago waa for accommodation. His monthly income which bo received from tbo lighters for which ho was agont was perhaps LllO. The amount ho derived from that source did not exceed L2OOO a year. It was about LI3OO or LMOO a year. Ho misjht have discounted bills, but ho -did-* not recollect doing so. If Mr Barton mentioned the name of any •gentleman for whom ho had discounted a bill, ho would bo ablo to give him a definite answer. (Mr Barton said ho would rather that the witness himself mentioned tho name of any gentleman for whom he had discounted bills, if bo remembered that he bad done 50..) He (witness) said ho did not recollect having discounted a bill to the extent of LSOO or LOOO. He onco discounted a bill of Mr Togol's for an old debt due to him. •; Cross-examined by Mr Haggitt : Witness had not mado sufficient profits out of tho lighteragobusincss to pay his expenses. It was entirely a new business. He never received any consideration in connection with the dobt of tho Bank of Otago. Had not received an account from tho Bank. Tbe Bank know that ho never had a farthing of consideration for those bilk to which he put his name. HiailftiMehad been used as agent, and although his name was nominally iv tho business, it was actually carried on by J3ell. Tke'Bank sold, and ho bad re ceived no account of tho proceed*. Tha

was ono of tho grounds on which he defended tho action. Tho action waa brought upon renewals of two bills of exchange. Ho was advised that he had a good defence.

In answer to Mr Barton, witness said he did not know that hia defence was several months old before the plea of non-stamping of the billa was put on the record.

Mr Barton addreased the Court at considerable length, contending tliat the bankrupt had, among other things, which evinced a laxity in his conduct, omitted to set down in his schedule an asset of value. It waa true that with regard to the lighterage agency, it was stated that the expenses exceeded the income, but that waa no reason why the matter should have been passed over.

Mr Haggitt waa beard in reply, and

His Honour said it could hardly bo staled that there had been a fraudulent concealment, although it would of coi.rse havo been better if the asset had been stated plainly in the schedule. With regard to the defence of tho action, it waa stated that the bankrupt did not receive an account from tho Bank. Under all the circumstances of tho caso, ho should grant a final order.

A final order was accordingly granted. Ri: Stephen Stamp Hutchison.—Mr Haggitt appeared for the bankrupt, and Mr James Smith represented the Commercial Bank.

C. Caldwell, manager of the Bank of Australasia, deposed that tho bankrupt bad kept an account at tliat bank, but that his credit was stopped in February of last year. Witness refused to mako moro advances on hia behalf because ho liad become involved with another bank. The bankrupt stated at tho time that he did not hold himself liable, and that the proceedings brought against him on the part of that Bank wero vexatious. Witness had no reason to doubt hia statements. In tho transactions ho had had with him he always found him trustworthy ; in fact his statements were always borne out by facts.

' Mter/.nome remarks from Mr Haggitt, His Honour remarked that tho bankrupt had disposed ''ot* his property, and it had been suggested that he did so to.dofeat any claim that could bo poaalhty made against him by reason of a verdict on behalf of the Bank. Ho ought most certainly to havo placed the Bank in the same position as the remainder of his creditors. Under tho circumstances of the caso, he should suspend the order for discharge for two months.

Final order suspended for two months accordingly.

FINAL EXAMINATION AND DJSCiIAKOE

Rk Edwakd Jamkk Saundekh.—Mr M'Keay supported tho application for a final order, which waa granted.

Rk John Baptist.—Mr M'Keay also appeard on behalf of tbe bankrupt in support of a like order, which waa granted.

PETITION YOU, AWJ.UIUCATION.

Rk Alexander Be<iq. —Mr Begg appeared in person. Adjudication was granted, and a meeting fixed to be held on tho 2nd prox.

Rk Isaac Ci.auk.—Adjudication was granted. Mr Howorth appeared in support. Creditors' meeting appointed to be held on the 2nd March.