SUPREME COURT.-IN BANKRUPTCY.

Otago Daily Times, Issue 3252, 9 July 1872, Page 3

SUPREME COURT.-IN BANKRUPTCY.

Monday, Bth July. (Before His Honour Mr Justice Chapman.)

iU'.A IiJNUK AIUOUUNKI',

W. J. T>vkk.—This wiw a motion to declare a deed completely executed.

Mr Catomorc asked that the hearing might be postponed for three weeks. Mr Haggitt, who appeared to oppose the motion, Haiti he bad no objection to an adjournment, but asked His Honour to make an order for tin; attendance of Messrs Dyer and ft. W. Capstick at the adjourned hearing. His Honour granted an order, and also adjourned the hearing until the 29th hist.

John Patkhhon.-—Argument of a petition re Messrs Fleming and Jicdloy's claim. This matter was adjourned until the 22nd inst.

Ai.kxam>kk Mkao. —Mr Harris applied for «ti order calling upon the debtor to surrender on a day to bo specified. As there appeared to be a doubt aa to whether tho order should go upon fresh materials, it was decided that counsel should make his application 011 a future day.

John M'Lkan. — Adjourned summons under section 280. Further adjourned until the 29th inst.

John Ckickmokk. —Adjourned hearing for declaration <>i complete execution of deed.

Mr Stout appeared for Crickmore, and Mr Stewart for a large number of creditors.

The following witnesses were called by Mr Stewart :—

Thomas Redmayne stated that he was a trustee in Criekmore's estate, and attorney for Mr William Andrews. Had received rent on his account from a person named Harding, to the amount of £75, not under the deed. The money was received in April last. Had not security for the balance of rent. Witness gave a certificate, which was prepared in the presence of Messrs Sicvwright and Stout, showing that the deed had been assented to by a majority (threefourths) in number and value of the creditors.

Mr Stewart addressed the Court to shew that the deed had not been signed by a majority. Mr Stout said the only difference that existed between himself and his learned friend about the certificate was regarding the claim of the Bank of Otago. He (Mr Stout) held that the Bank was secured, but counsel for creditors had not included the Bank in his computations. If the Bank was treated as a secured creditor there would be more than three-fourths.

William Strachan, brewer, gave evidence shewing that he is a creditor in the estate for beer supplied, amounting to about £229. He had not received any part of that money, ■neither had anybody told him that if he nigned the deed he would get his money. He had not previously made a statement to that effect. No person ever promised to pay him anything if ho signed the deed. John Crickmore stated that he was still residing at the hotel at Tort Chalmers, but merely as a boarder. He had not any property at the Molyncux ; his wife was possessed of 100 acres of swampy land there. She bought it three years ago, at a Government sale. Witness applied for the land on his wife's behalf. She still held the land, for which she paid £100. The laud had not been utilised. Witness's wife also owned ono acre of laud at Sawyer's Bay, which she purchased about twelve months a?o from Mr M'Dermid for £100, and long before witness •contemplated making- a deed. Messrs Samuel Perry, David Miller, and John Hornby were co-sureties with witness to the Bank of Otago, and lie gave them a mortgage. Witness granted Fargie's mortgage before he thought anything about the deed, to secure a sum of money due to Fargie for goods supplied. Sir Stewart said he was sure the Bank held no security whatever.

His Honour explained that before he could -declare the deed completely executed every doubtful point must be cleared up. He could do so cm a prima Jnc'w. certificate, but if donbt was thrown upon the substantial correctness of the certificate, that would be a reason why he should withhold his hand. Mr Stout paid the objection regarding tha Bank oi' Otago having been so recently made had taken him by surprise.

Mr Stewart replied that he ascertained only recently that the Bank was not secured. Counsel directed witness's attention to the following ' claims :—Muir White, £20 17s; "Chisholm, £7(5 ft*; Jones, £65 16s ; and asked witness if he knew why these claims ■were made.

Witness said he had some idea. An action ■was brought in the IJcsident Magistrate's Court, and the question was raised as to whether he was a partner of M'Leod's. Judgment was given against witness, but he ■stated now, as he stated before, that he was not a partner of M'Leod's ; in fact, he never had been a partner of M'Leod's. It was arranged that M'Leod should take up a contract for the construction of a portion of the •Clutha railway ; the contract was to be taken tip in the name of M'Leod and Co. ; witness arid Lilly were to be sureties; witness had to advance the money necessary, and share half the profits; but it was not arranged that -witness should be a partner. M'Leod told

the workmen, and swore at the Tokoinairi.ro Court, that witness waa not his partner. D. A. JWLeod deposed that when he entered into the contract to construct a, portion of the Clntha line, it was understood by him that Crickmore waa to be a partner- Crickmore wait to find the money, and to share equally with witness in the profite. The agreement wav a verbal one. Witness was to carry on the works, and Crickmore was to find the money. The contract was taken, nominally in witness's name, but as there was some difficulty about security, it was arranged that Crickmore should give his name, witness signing as contractor for M'Leod and Co, Witness filed, h'm schedule in January last. In reply to Mr Stout, witness denied that be stated at the Tokomairiro Court that Crickmore was not a partner. He merely said that Crickmore had nothing to do with the management of the works. Witness considered Crickmore was his partner in the transaction. Witness mentioned Crickmore in his schedule as a creditor, because the contract was in witness's name.

His Honour : If Crickmore was a partner, and you placed his name in your schedule as a creditor, you defrauded your cither creditors.

Witness : I was not aware of that,

Mr Stewart: But Crickmore was a creditor for moneys advanced apart from the partnership. Mr Stout: Well, the arrangement appears to have been merely that Cnekmore should advance money, and get a share of the profits ?

Witness : That's all

Mr Stout here read an affidavit of the witness showing that prior to the declaration of his insolvency he carried on business ob a contractor for the construction of a portion of the Clntha line, and that at the time of filing such declaration he wan possessed of certain contractors' plant, to the value of £1700, lying on different parts of the work. Addressing witness, Mr Stout continued : Did you consider, when you made thi« affidavit, that Crickmore had any interest in this plant ? Witness : Precisely in the same way as in anything else. Mr Stout: Why then call them your horses ami plant ?

Witness : Because they were assumed to belong to me. Mr Stout: Did you tell the tnastec that Crickmore waa a partner ? Wituess : I believe I did.

Mr Stout : Did you not Kay that the arrangement you made with Crickmore was that he should supply you with funds to the extent of £1000, for which ho was to receive half profits on the contract, and iratcrest on the advance at 12,^ per rent, per annum "i You did not say he was a partner.

Witness : That is what I said

Mr Stout: Do you call that a parncrsbip ? Witness did not reply. His Honour Baid he could not declare the deed to be completely executed until the doubt which had been raised was removed. He would adjourn the matter for a fortnight to give counsel an opportunity of removing it. Jamks Caktkk.—This was an application for a final order. The bankrupt stated, in reply to His Honour, that on one occasion he went with one Simpson to Mr Stamper's office ; the former proposed that he should make an assignment; he consequently made an assignment at Simpson's request. The Provisional Trustee : Jo whom did Simpson say you should assign ? Bankrupt :He mentioned no person. A deed was drawn up, and Crawfurti was mentioned as the person to be the assignee. Stamper was not a creditor.

His Honour : What does the property assigned consist of ? Bankrupt : The shot) fittings, 300cwt. or 400cwt. of meat, and book dobts, amounting to £40 or £50, £40 of which were good. His Honour : Who ib the person to whom they were asbigned ? Bankrupt: To Crawfurd, of wliom I had no knowledge. He was recommended to me by Stamper, in the presence of Simpson, the latter being the chief creditor, who said he would compel the other two smaller creditors to Bign. The Provisional Trustee said that Simpson was opposed to the assignment.

The Bankrupt: I may add that I have done everything I could for the benefit of my creditors. 1 refused to take money myself, and made the Trustee acquainted with the change of residences of debtors, so that money might be obtained. His Honour pointed out that the matter was a difficult one. A man could not deal with his property after he liad filed. The Provisional Trustee said that the chief objection which he had was, that the bankrupt set the creditors at defiance. They requested his assistance to get money out of the estate, but he preferred employing a solicitor ; the consequence waa t at besides getting nothing, the creditors had gone to considerable expense. His Honour said he would adjourn the case for a fortnight, and in the meantime the bankrupt must try and place the estate iv the position in which it was before the assignment was made. The Bankm^fc said he thought the deed would not be binding unless the creditors signed it, and he accordingly left it to them. His Honour : You must see this trustee.

The Bankrupt: I am not personally known to him.

His Honour : And place the property in such hands as will ensure ita reaching the creditors.

The Bankrupt: He only recovered from £4 to £7 out of the estate.

His Honour : Ami that was through your act.

Adjourned for a fortnight.

BAY OF KXAMI NATION

J. W. Fish. —The final examination of the bankrupt was fixed to take place on the 22nd iust.

FINAL OItDKRS SL\SI'«NUKI).

I). H. Caiiky.—-The bankrupt stated, in reply to the Provisional Trustee, that when lie commenced business hVe years ago, lie hail £40 or £50. His parents were the proprietors of the honse which he then occupied. He paid them £120 per annum, though no arrangement was made. It required the amount which he paid to keep the house going. Could riot say what the takings averaged. The horse and cart which bankrupt had been driving belonged to his brother, and was never bankrupt's property. He had a prospect of paying 5s m the £ when he executed a deed to that effect; because ho had expected to get some money from a person who afterwards filed his schedule. Bankrupt did not recollect telling the Provisional Trustee that the only prospect he had of getting money was by boi rowing. By His Honour: For the £120 bankrupt obtained the use of everything in the house. Mis Honour : It appears that these persons have been getting £120 a year for the use of the house and furniture, but the creditors have not obtained anything. Are they living in the house ? Bankrupt: Yes. His Honour : You have certainly contrived it cleverly, so that they should get everything there was to be got, while your creditors get nothing. You have been carrying on business at the expense of your creditors; and 1 shall suspend your final order for six months.

William Smith.—The bankrupt stated that he remembered purchasing a horse from one M'Laren, in December, for £27. The horse had not been paid for. Sold it to the landlord for £17 on account of rent, to prevent him distraining, but conditionally that if he could pay the rent he should get the horse back. It was a verbal agreement. Sold crops, &c.,, to Biews and Thompson fpr £78 ; bankrupt owed them £12 j they paid him partly in cash and bills. The goods were delivered about a week before his insolvency, when ho did not contemplate filing. Cashed one of the bills in Tokomairiro, and the other in Duncdin. M'Laren and Co. got £10; a blacksmith, received four guineas, and there were several small ite-ins in respect of goods bought for bankrupt's family. His Honour explained that the bankrupt had given a fraudulent preference, and

therefore his certificate would be suspended fcr two months-

KI-SAl* ORfJgJUE CHANTED.

Orders of discharge were granted to Samuel Jackson and Robert Merritt.

MOttOK TO TKAJJKFEU PKOCEKDISOH.

Jambs Oioiam akd G. J. Coopkr.—Mr Stewart, instructed by Mr Turton, asked Hiis Honour >to grant an order transferring the final examination of the above-named to Oamaru. Coumsel relied on section 57.

Mr Stoat, who appeared on behalf of creditors, said he did not know what power His Honour had to transfer the proceedincs from a superior Court to one of lower jurisdiction. He took this objection, because it was the first time the question had been raised. His Honour directed the attention of counsel to sections 55, 57, and 58, and said he had no doubt about the question of jurisdiction.

Order granted. The Court them adjourned.