CHARGE OF FRAUDULENT INSOLSOLVENCY.

Otago Daily Times, Issue 6869, 21 February 1884, Page 2

CHARGE OF FRAUDULENT INSOLSOLVENCY.

(Pep. United Pbess Association.)

Wellington, February 20.

Tho casa of Smith and Wilson, wine merchants, of Wellington, against Alexander Macrae, of Christchurch, charged with fraudulent insolvency, wa3 called on this morning. Mr Stafford appeared for the plaintiffs, and Mr B. Shaw for defendant, lie said that a very unusual course had been adopted in hearing the case at Wellington. We held that a defendant was as a rulo entitled to have his case heard as near to his placo of residence as possible. Counsel urged that his Honor should refer the caso back to Christchurch. His- Honor, however, thought differently, and decided to hear the evidence.

Andrew Bloxam, registrar of the Supremo Court, Christchurch, produced two declarations of insolvency of Alex. Macrae—tho first dated and filed December 19,1853, tho second December 23,1883. Proceedings took place on the declarations. A statement of assets and liabilities was also filed.

J. W. Buddie, a merchant of Christchurch, deposed to having had business transactions with Macrae on November 20. Ou that date Macrae called on witness and offered 15 quarter-casks of old Scotch whisky at 63 per gallon. Witness replied that he did not then want to purchase. Later in the day witness made an offer at 53 9d, which was accepted by the defendant. The spirit was supposed to be somewhere in transit between Lyttelton and Ohristchurch. Ho obtained delivery in bond, and a settlement was made in the following month.

By Mr Shaw: Do not remember tolling Mr Holmes that tho whisky was bought on the 29th November. Remember a bill of sale being advertised or registered in the Mercantile Gazette in reference to Macrae, but could not tell the exact date. Have purchased other whisky of same brand since at 63 3d,

E. Wilson (of the firm of Smith and Wilson) deposed having a transaction with Macrae in reference to the purchase of 15 quarter casks of old Scotch whisky. Witness wired Macrae that tho price was .(is 4d. The whisky was shipped in due course, and Macrae sent a promissory note after receiving delivery. The charges on the whisky altogethor would bo about lid to 2d per gallon beforo it reached bond at Christohurch. For the last two years he never had been able to purchase tho same brand at less than (« 3d. The price Macrae sold it at represented a loss of 8d or 9d per gallon.

By Mr Shaw : I paid fa for it. I did not make inquiries relative to Macrae's position until we accepted his offer. B 'fore sending away the stuff I ascertained that Macrae's position was all right.' I gave Messrs Fitzherbcrt, Buckley, and Stafford instructions to recover the claim. Witness and his partner were alone in the present prosecution.

By Mr Stafford: Had he known that the whisky was going to be sold at less than it cost it would not have beon sent.

By his Worship; Do not consider buying whisky here at 6s -Id and selling it afterwards at 5s 9d an ordinary business transaction.

H. Wragge, traveller for Messrs W. and G. Turnbull and Co tJ remembered having a conversation with Maerao relative to a business transaction with complainants. Witness said it was an extraordinary procedure to buy whisky at 0s 3d and sell at 5$ 91. Macrae observed that business men must financn. Ho could not tell tho niarkot price of old Scotch whisky. He had never sold any during the past three years.

■ By Mr Shaw : Macrae was by himself when this conversation took place. The usual custom in commercial circles is that when a buyer order 3 goods and does not accept delivery after notice is sent him tho goods are sold and the buyer is sued for any deficiency. This closed tho case for the prosecution, Mr Shaw contended that the information should be dismissed, inasmuch as there had been no proof that the amount of the debt had not bfieu paid. The informant admitted that he had received a promissory note, or bill of exchange, for the amount; that the bill had been discounted, but he did not know the fate of it.

His 'Worship said ho would not dismiss the information on the grounds given by Mr Shaw. Frank Egan, a merchant residing at Christchurch, remembered having a conversation with defendant relative to some old Scotch whisky. Witness told Macrae that his stocks were getting low, and he could do with 15 or 20 quarter-casks of old Scotch whisky. Nothing was said at this time as to price. Some few days afterwards Macrae said tho whisky had arrived, and named the price at 7s per gallon. Witness refused to take it at the price, as being above market price, believing it could be purchased at Wellington or Dunedin at 5s 6'd or 5s 9d. Macrae said he insisted on witness taking the whisky, and that it cost nearly 7s ; and that it would b9 sold at witness' own risk.

By Mr Stafford: Ho was a trustee in the ostate of Macrae. He was aware there was a bill of sale. Defendant made some bad debts shortly before his bankruptcy, but he could not Rtate tho amounts.

This was all tho evidence.

Mr Shaw again urged that the information should be dismissed. Tha case, ho said, was not an ordinary (inc. It had been shown in evidence that Egan agreed to take the whisky, and afterwards refused to take it. Macrae then followed tho only course open for him, because he sold the spirit to the only wholesale purchaser in Christehuch, and Mr Egnn was hold liable for the loss.

His Worship thought it was a ease to go to a jury, and committed accused for trial at Wellington. Accused was allowed bail by entering into his own recognisance for £50, The other information was withdrawn.