SUPREME COURT.

Otago Witness, Issue 658, 9 July 1864, Page 9

SUPREME COURT.

SITTING UNDER THE DSBTORS AND CREDITORS' ORDINANCE.

Wednesday, 6th July, (Before His Honor, Mr Justice Richmond.) ALLEGED KKCKLESS TRADING,

Be Chaklb3 Williams.— Mr Ward appeared for the insolvent, and Mr Main for Messrs. 8011. Rae, and Co., timber merchants, who are creditors.

In reply to Mr Main, the insolvent said— l sm npw out of business. I was latterly a wool«taS"er and fsllmonger. I bought the timber from ell, Rae and Co., for some buildinsra in Stuart Street. They r.ever have heen completed, J mortgaged them to A. (*. Fisher, ami he sold them for less than the mortgage money. 1 mortgaged to Fislmr for a £300 bill which I discounted. The land included in the mortgage had aground rent of £120 a-year. I h-id not much money when I bought from Bell, Rae and Go , but they knew my circumstances I think it was at the end of December fiat 1 gave the order, and not in Janu-iry. The mortgage was on the 15th January, and I paid wages to the men building the houses, on the 18th. The houses soli for L2OO, or less than the co=t of the timber. I mortgaged my woolshed in Pelichet Bay to Fisher, for L501 19s Id nett. The buildinsr cost from LI2OO to LI3OO, but there was a forced sale, and only L 550 wa3 realised. The mortgage was in the shape of cash advances. A p»:tion of the woolshed was mortgaged to F. Moss and Co. for Ll5O. It appears by my statement, that Fisher paid Moss L 250, but the difference was for pressing bids which Moss held. I always used to go to one or the other wheu I wanted money— they assisted me oheu and greatly. It was not a mortgage to Fisher for L£ol. The mortgage was only L 150; but I authorised a sale, and after meeting liabilities to the amount of L5Ol 19s Id, there was a balance of lid due to me. I had a store at Pelichet Bay. I have always been too fond of speculating. I came to grief by it, in Victoria.— By Mr Ward : I must Dave lost LISOO by the wooi&hed. Bell, Rae, and Co. knew how I stood when I came here ; but they said I could have what timber I liked. I must have had LISOO worth from them, in all. — Ke-examined : No member of the firm ever charged that I had swindled him— nothing of the sort was ever said. They did say that I ought to have taken more care of them. Mr Main said that it was clear that the timber for building the Stuart street iiouses was obtained when the insolvent had no aciual or probable means of paying for it. ' Putting the insolvent's copduct in ti>e mildest, way, there had been very reckless trading. The Insolvent, in reply to the Judge, saidFisher stands in my schedule for L 407, and Moas for L 244. The sale of the Stunrt street property reduced Fisher's claim by L2OO 1 repeatedly told Bell, Kae, and Co, ot my circum stances ; but I cannot siy whetuer they knew of the heavy advances by Fisher and Mos-. The Judge said that, upon the hire tacts extracted from the insolvent there wns great reason to characterise the proceedings ot the insolvent is reckless trading— a term which, lie regretted, w,i* deserved by a great deal of what *;ia carried on here. Bit he was not sure that there hid not been reckless tnidina also on the part ot the opposing creditors. Frot- what aope.red, tho were fully aware of the insolvent's precarious circumstances ; and, at any rate, the slightest inquiry would have shown them tint he was simply a man of straw. He (the Jud^e) did not think the ca»e was one in whici there should be a refusal of protection. The order would bo for an assignmeut to Henry Nathan and Walter Bdl, on the usual terms, and the case would be a 'journe J to the ßth August. Mr Ward applied for interim protection. The Jutfge: No, he must take his chance until the next sitting. He has barely got through.

DISPUTE AS TO BIOKB.

Re Oliver Cooper -Mr Barton, for the insolvent, said there bad been a mcetin" 1 ot creditors, at which it. was agreed tbat nasignment ah«uld be made to Henry briver and John Thos. Wright. The Judge ordered assignment to the gentlemen named, on the usual terms, for the benefit of creditors who prove within six months; th° final hearing was fited for the 3th August; and protection was extended. Mr J. Smith, for the trustees, aslcd that all documents of account blioul'l be handed over.

The Judge said the trustees were ol titled to the documents. They wuli have n right ot property in the book* after the deed was signed : let that be done within seven days. He did net know tbat the > interim Bequ"strntor (Mr I) iver) could not maintain an action in the nature ot trover for the books.

Mr Barton : They are ia the hands of the Sheriff, at present. The Judge would not make any order except for assignment. If there was a contention between a judgment creditor and the assignees, they must fi^bt it out.

Mr Barton said that as it was a great injury to the estate that the outstanding accounts could not be got in, be bad prepared the deed already ; and perhaps it might be signed at once. * Mr Smith said he also represented some of the creditors ; and they were quite willing that Mr Cooper should have his dkcharge at the earliest possible moment.

The Judge aaid tint he would be ready to give a final order of discharge as soon as the deed was executed. Before the Court rose, the executed deed was submitted, and the final order was made.

JOINT AND SEPARATE CREDITORS. Rb Jc T. Collins.— Mr Baiton, for the petitioner, said that Collins and Lowers had made an assignment. By that assignment, Collins transferred certain leaseholds which were of bis separate estate ; but when a division came to be made, the joint trustees refused to allow the separate creditors to receive any dividend. The petitioner bad accoi dinglv refused to surrender the leases ; and he now came to the Court for relief, because the leass really belonged to his separate creditors, and not to the jobt creditors of the lats firm. He was ready at once to do whatever the Court might order. TheJndge: Was he indebted to the firm on his private account?

The Petitioner : No, your Honor, it is rather the other way. It was an agreement between us not to draw more than we could possibly help. Mr Barton said the trustees had declared a dividend of 12a lOd to the joint creditors. Mr Main said he opposed on behalf of four or five creditors, iacludiDg the leseors. The leases

were brinpinff in nothing at present, and might well be handed over.

Mr Burton: fluiely, joint creditors, who have received a dividend, navrt no locus sfandi here. Mr Main said that his clients opposed because the petitioner would not grant to them what was of no value to himself. It was not a justifiable art to refuse to surrender.

The Judge : He is justified if the leases are of his separate estate. Are the leases to Cohin9 and Lewers ]

Mr Main : No ; to Collins alone.

The Judge : Then you cannot expect him to do that which, would defeat his separate creditors. Would you object to a universal assignment, on trust to satisfy the separate creditors by payment of 203 in the pound, ntd to hand over any surplus t« the trufltees und r your dccii.

Mr Main said that that woul I not suit at all. Some of the property in George street was going to ruin, and they wanted to get it The Judire : Have you not provisoes as to reentry, under which you could enter, and then do justice to any sub-tutiants ?

Mr Main raid that there was a julgnient debt of about LloO, which they would be willing to forftsjo, if they got the property back. Mr Barton thought that the assignees should elect to take the leases as of value, and pay what was due on the private estate, or to abandon them.

The Judge said that r provision enforcing "this existed at home, but was not iv the New Zealand Ordinance. lie thought the petitioner properly withheld surrender at present. It was not for one in the petitioner's circumstances, to say whether the leases were valuable or not.

Mr Main said that at present, Mr Ick, the lessor of the promises in Princes street that were occupied by the late firm, could not get his policy of insurance bonded over. Suppose the place wa' to be burned down.

The Ju'Jce saia it was reasonable for the landlords to wish a settlement; aud it was for the assignees to elect what they wou'd do. The Petitioner, in reply to the Judge, said - The lease of the trade premises in Princes str et is f'rein Mr C. T. Ick to myself. The rent, was piid out of partnership funds, according to the terms of the deed. 'Ihe lease was for 10 years and has 8^ yea'-s to run. I have throughout considered that the lease was mine. lam not aware that there is anything in the deed making the lease a partnership matter. The rent is nearly HI a wuek in all ; and I don't consider the property a valuable estate. The property in George street is at the corner of Hanover strpet, and is leased from Mr Wright. I took it for mv own use, but petting promises in Princes street sub-let it. My rent is LI^O a year, and I (jet F. 126 10s from the property. My private debts amount to LCoS. Th<; firm has reaped benefit from the rente, because I have paid in the money to partnership uses, and that has brought me into my piesent position. After some further aigumcnt. The Ju ige saul he tliouaht t';e u»u .1 order for assignment to trustees would do. with the addi tion. " upon vuch further trusts as may be directed by the Court before the final henrintc." Before the Bth Adjust, there would be time for the parties to consider how the assignment 'houM be ilrnwn ; it would be submitted to him before execu'ion ; and he woali approve of it, if it cou ! d be so managed as to i.iolule a direo tion to 'he trustees to surrender t.lies° iea^holfis to the .'r-sors. Let Mr Beverly aud Mr Walla ■!) be name I as the trustees.

An order wa« m-ide accordingly ; the final hearius was fked for the Bth of Augcu-t; and protection was extended.

THE DISPUTE A3 TO BOOKS. Re Walkwr _ Thompson.— Mr Barton, for the petitioner, slid that this \*as the conipauion et-t-ite to Oliver Cooper's.

Mr James Smith opposed on behalf of Driver, Maclean and Co.

The Petitioner, in reply to. Mr Smith, said—] hive bern in partnership with Oliver Cooper. I entered on the Btlj M.-xy last year, but I <lid not take in active share until July. I was to brina in L3OCIO or thereabouts. I was to superintend the in-dnor work, and I kept the books, having a book-keeper under me. I cannot say without my ledger, how inucn I put into fie concern ; but it was close upon LOOOO. I h.tve not tta bank book and do not know where it is. Ido not re member seeing it during the fortnight before the place closed, about Christmas last. The bookkeeper had chiuge of the bank-book. I remember while Mr Cooper was away from the Colony, that I gave a cheque for L 370 oJo, for TomJeur and Co of Melbourne. It was to rover a bill that had matured, and which had some irrcjulai if y on the face of it. The cheque was for 36 quarter casks of brandy, which 1 bought on behalf of the firm, and of which the firm had the bnnffii. Theeluquo wa-i drawn abjut, the end of September. I don't know of any such per sun as t'hnrles Mansforo or Mensford. Thr B"»nk cf New Zealand pu 1 iv au execution on our i'roinise^ atid the businpss was clostd in a few dttys J have not since then collected any debts ; but Bellamy, the collector, did get in Home. You pur in an attachment on the debts and then I told Bellamy not to collect any more. He hai.ded me LIOS odd as his balance. I offered it to Mr Maclean for the benefit of creditors, if he would allow me enough to pay expenses in this Court, if I had to come, for we then expected to make an assignment. He said he hid no power to consent ; and as I was badly off for money, I kept the T.lflG — and a very small instalment it was on L3OOO. I have not received a ahilling of the firm's debts, beyond what I have stated, since the stoppage. Money has bean effered me, bnt I bnve declined it,* sayiug that it belonged to the firm. . It was lonef before my petition that I got ihe LlO6. The books will show every transaction up to the stoppage ; and you or the Bank, have got the books. Tho sheriff s ized the safe, books, and money in bund. 1 think the average takings nt the time of the stoppage were L4OO a week; but the bonks will tell you oxac'ly. I have net been carrying on any business since I filed my ecbedule. I was four months doing nothing, and then I was clerk with Curiie und Smith for eight weeks. I did not buy spirits saved fiom the Staffor '-street fire. A fdend of mine named Fletcher did ; and I interested myself in the re-sale, but I did not get a shining for it. Fletcher was with Murray, Kerr and Co. and is now at Picton. No auctioneer has sold any agricultural produce for me. I have not been a plaintiff, in the Resident Magistrate's Court— nor a defendant cither.

Mr Smith applied for an adjournment, on the ground that there were not, at present, sufficient means of investigating the insolvent's conduct. Mr Buvtou opposed, on tho gtoiwd that the

other side should have brought the books into Court.

There was a discussion on the point whether the Sheriff seized on brhaif of the Bank of New Zealand or of Drivev, Maclean and Co.

The Sheriff (MrR. H. Formau) was called. He sail— l seizfd in the matter of Oliver Cooper's estate, for the Bank of New Zealand, and the books have been in my possession ever hince. They would, of course, be held as for any otVr writs that may have issued.

The Judgn said he should order an assignment to Henry Driver and John Thomas Wright, on the usual terms, and subject to such further trusts as hn might hereafter order. Nothing telling ngainst the petitioner appeared at present ; but In the interval before the Bth August, the parties might inspect the books, so that Driver and Maclean might decide whether or not further to oppose at the final hearing. Meanwhile, the conveyance must not be executed.

Order made accordingly, and protection was extended.

In reply to an application for .in order on the Sheriff to give up the bonks to the sequestrator, The Judge said ho was at present sitting odlv with powers analogous to those of an English Comorisnoner of Bankruptcy; and as such he was tot going to make an order interfering with a process of the Supreme Court.

Mr Smith subsequently said that the nonexecution of the deed by the petitioner would delay the collection of debts ; and he (Mr Smith) had agreed to a suggestion that if, upon an ex. amination of the books, it should be found that there was no real ground of opposition, the petitioner should be put upon" the same footing as Mr Cooper. !

The Judge said that he would take the execution of the deed as a compliance with the present order, varying the terms as might be necessary.

Re H. C. Hertslst.— Mr Macgregor waa for the petitioner ; and he Raid that the assignment in this case would be a pure matter of form. The Petitioner (in reply to the Judge) said that he surrendered nil bis property in compliance with an order of the O'urr, 18 months ago ; but that wns under the old Act, and he now came to ask protection.

Assignment to H. E- Nathan and Alexander W lliamson was ordered ; and the final hearing was fixed for the Bth August, protection being extended.

A3BIGN3IENTB ORDERED.

Tn the following cases, assignments were ordered upon the usual terms, except where otherwise stated ; and August bfch was fixed for the final hearings : —

Re James Laverty.— Mr Ward for the petitioner; assignee, James Keenan.

Re Frank A. Harris.— .Mr Ward for the petitioner ; assignee', Alexander M'Landress and James Miller.

Re William Henry Monson. —Mr Barton for the petitioner ; a c s>igneps, ft. E. Nathan, John Gray, and Henry Bayliss.

Re John Me!os«i and Andrea Aeorio.— Mr Macgregor for the petitioners ; assignee, Robert Jones

Re James I>. Jones.— Mr O'Longhlin (for Mr Ward) frr the petitioner ; assignees, John Gray and Krancis Cookft.

Re Frederick Dick.— Mr Mnc regor for the petitioner ; assignee, Walter D.iy. Re John aad George Bunroyne.— Mr Wilson for the petitions ; assignee, John Crawford Anderson, of Inver< i ai gill. Mr Wilson said that an assignment had been made at Invercargill, and fewo dividends paid. Be George B. Vause.— Mr Barton for the petitioner ; assignees, James Finch and Rridijraan. There has been au interim sequestration

Ro William John Blake.— Mr Ward for the petitioner; a°Bt{rne&«, A. G. Fisher and Henry Farley. The petitioner has been imprisoned nine weeks; interim pro'ection. was now granted. R*. George Walker. -Mr War 1 for the petitioner; assignees, — Clark, of Invercargill, and William Towers. The deed to be witnessed by the ' Resist: ar for Southland.

Re Samuel A. Wind —This case was adjourned to the 81.!!8 1 .!! August.

Ke William Meikle.-The petitioner did not appear. Mr Barton said that the creditors had accepted terms at proposed. No order was made.

FINAL ORDERS

Re John Wasstaffe —Mr Q'Loughlln produced assignment ; and a final order of discharge was granted.

Ke James (Jillon.— Mr Wilson pnduced assignment ; and a final order was made.

FIRST HEARING. The following petitioners came up for first hearing ; and in each casq a meeting of creditor was appointed for the 12th ins., aud the second hearing was fixed for the 8h August: — Joseph Loui(ley, Ft^phen Uoxon, Thomas Wright Rowe, Charles Fairweather Arman-1 Augan, John A. Petherick. \fc. B. H. Robertson, Willi im Evans. Patrick Paby, James Beuuett, Joseph Gray. D. 8. Sorley,'john Lewis Klli*, Joseph H. Greville and Edward VY hiting, Maxwell Strange Watt, Henry Elliott. Joseph Anrons, Gk P Feilowes, Jo-eph Ballinger, James Doughty. William M'Letlaad. Andrew Lookie, A. H. Telfer, C. O'Hara, John Pullar, Henry Elliott. SEQUESTRATION.

Ec He *ry Mobwitoh. — This petitioner should have been heard ; but it was said that neglect to publish ttie required notice in the number ot the Provincial Government Gazette for which ii was sent in, had rendered the heaiiug impossible. » Mr James Smith presented an affidavit from three creditors, as to the ill effects that would result from the deloy, unless there was a sequestration ; and interim sequestration waa granted to Alfred Cleve.

TRUSTEES CARRYING ON BUSINESS. Be William Loggik.— Mr Macgregor for the petitioner, who was examined by Mr James Smith, ior Driver and Maclean. He said — I have executed an assignment to Mr Smith of Tokomairiro, aud Mr JN . J. B. Macgregor. The property wa« live stock ; and the assignment was for the benefit of all the creditors. The trustees have put in n man who is still carrying on the business, that of a retail butchering business. They intend to do so until after this hearin?. Driver and Maclean are creditors for LI 160. When I stopped, the book debts end stock would be worth L2OOO. ' Mr Smith said that Driver and Maclean did not wish'to oppose the petitioner in any way ; it was only a queation whether the trustees might not make ducks and drakes of the estate. The Judge : You can file a bill agaiaat them. Mr Smith apprehended they were officers of

the Court. He was going to apply for an order upon them to account to the Court. Mr Macgregor : We will give you every information.

The Judge said that enough of creditors, in number or value, had not assentel to bring the deed within the Act. 111 1 stood as a private composition deed.

Mr Macgregor tsaid that he would write to the trustees to attend the meeting of creditors. The Judge Baid it was most unadvisable that trustees should carry on an insolvent's business. They could not have any profits, and they were liable for all losses.

A meeting of creditors was appointed for the 12th inst; and the second hearing for the Bth August.

A HCRBE CASE.

Re Alexander Maokbnzib.— Mr Macgregor was for the petitioner ; and Mr Barton examined on behalf of Thomas Redpath.

The Petitioner 6aid— There was lately a judgment against me in the Supreme Court, for the value of a horse, cart, and harness. The judgment was for 1.100, and I sold the things again for L3O. I gold to a man named Coutts, who was at the time the overseer for Mr Valpy. The money was paid me in notes. I applied it ia defraying the expenses of the trial. I did not get |a bill as well as the money, and nothing more than the L3O waa bargained for. Bedpath had injured the value of the horse, iy giving it the character of a "jibber." I had two other horses. I sold them long before the action waa brought against me. I had a gray and a bay horse [when Redpath served me with a writ, f sold the bay for L 6), and for the gray L 25, a man whom I believe to be called Sel'ars being the buyer. I had been a carrier on the roads. I had three other horees which I sold— two for L3O or L4O each, and the third for nearly LIOO. I sold these three before the sale to Redpath which led to the action against me. When I gave up carrying I had four horses and a dray. I h> d an open haystack at Caversham, which I sold to John Anderson, the Postmaster there, for LIOO, or as good ; it waa some time before the trial. 1 have never owned any land; and I never offered any for sale. It may be true that I received L 420 at short intervals. I never kept a banking account. A portion of the money went to pay a bill I gave ior the first two horses I bought here I had six men harvesting hay for me, at Is an hour, for three weeks ; and they cut and harvested oiten hay over about 20 acres. I sold the yield for L 10 0; it was the first crop off the land, and was not very good. All my creditor have been pressing me. I owed Anderson L6O when I became insolvent ; it whs a balance due for board and lodging aud mon'y Jent. The Judge said ihat what was wanted was a statement or receipts and expenditure over some given period before the insolvency, and to get that was one great object of the meeting. The Insolvent -By Mr Macgregor : I was advised to resist the action brought by Redpatb, and Mr Barton acted for j»e throughout the matter.

A ineetinc of creditors was appointed for the 12th inst ; the second hearing was .fixed for the Bth ingust; and interim protection was refused.

A HOTEL SPECULATION.

Re William HALi.iDAT.--Mr Macfrregor was for th«i petitioner. Mr Wilson opposed for Mr W ilne and other creditors.

In reply to Mr Wilson, the petitioner said— I have been eleven mouths in this Colony. I had not much capital when I arrived ; I had more ttian L 29, My son gave a bill for my pas. sage money, I won't swear I had LlO in cash when I landed ; but I had more than that ia value. I bought a piece of land down at the Water of Leith for LI 12, and have paid for it out of ray wife's money. I have married 9ioce I cwae. The public-house 1 put up cost L 951 odd. M-ire than hair the limber has been paid for, in cash. The hone m mortgaged to Pole, Dods, and Cameron for L3oo— that is for money lent or puid far timber. To secure my wife's money, I executed a marriage settlement" of the house. Thi3 was previous to my marriage ; for my intended wife wiuld not advance money ualess I did so. She advanced me about L3lO. The house is far too good for the locality— that's what has caused my difficulties I made it better than I intended, probably, because Pole, Doda, and Cameron bad promised to help me. They advanced money to enable me to finish it; and the settlement is subject to' the raortersge. Pole, Dods, and Cameron advanced me L 232 nett, aud my wife advanced L3tO. I was married «q the 23rd April, the house huvinir been opened on the 16th. I filed my petition on the 6'h June, My debts, including mortgages, are LB4l. The Judge saM that Pole, Dods, and Cameron were not included ; so that the. total liabilities were Lll4l.

Examination continued : John M'Lean, trustee under the settlement, and a creditor, held a bill of sile over the «tock and fa-nitnrej he would not supply stock unleis I trave the bill. The house ha? been sold— the whole thing went for L 750. It never paid working expenses. Daniel White was the purchaser. The Judge: The result is that debts to the amount of L 6Q 1 ) have been made in this period, and that the creditors have nothing to look to. Examination continued : I don't know how they dealt with the money. I understood it was sold subject to a mortgage. It was sold by M'Lean and my wife. I don't know whether my wife has got L2OO paid to. her. Wo removed out of the house last Hatunlay. I did nottliinfe of calling my creditors together— the moment I opened the door, I was worried by them. By Mr M'Grepor : I have not pocketed one single shilling. AH the while I was in the place I only sold one hojrsheaJ of English ale and five of Colonial. I was deceived, and so were all who supported me— they thought it would bo the best speculation in Dunedin. My wife has lost her business as a storekeeper, and L2OO besides.

By Mr Wilson : All the ftirnittue was sold, but our bedroom furniture was presented to my wife because she complained so bitterly. A meeting 1 of creditors was appointed for the 12th inst ; and the second hearing for the Bth August. BFPBOT OP A PETITION BEFORE THE COURT.

Bb Francis Cooks.— Mr Barton was for the petitioner; Mr James Smith, for the interim sequestrator, James Rattray ; and Mr Main, for Frederick J. Moss, a creditor. Mr Main, said he wished to take objection to the petition, oa the ground of its informality. He had attempted to do thia before Mr Justice Chapman, in Chambers ; but His Honor said that the proper time would be when the psiitioner was in Court for his first hearing. The first objection was that (he assent^ to foe ttliufi of

the petition was not sufficient. The only assent set forth was that of Youugman and Co., who signed per procuration of cne Isaacs.

Mr Barton submitted that the petition had been received by Mr Justice Chapman ; and the only course ppen to Mr Main now was to give notice of motion to set aside the Judge 8 order.

Mr Main : I take it, the. petition is received as of course.

The Judge : Not quite that. The Judge in Chambers must be satisfied as to the truth of certain things set forth in the petition.

Mr Main said that if those whom he represented were not allowed to be heard at thi< stage. they would have no chance at all of succeeding in what they wanted.

Mr Barton thought there should at any rate have been a notice of this attempt to oust tbe petition. No doubt thi3 was tha first opportunity .Mr Main had had of saying anything. Mr Smith thought that the only locus standi of Mr Main was to show, on the merits, that the final order ought not to be gr rated or ought to be delayed, The act of the Judge in Chambers, in fixing a day for the hearing, was conclusive that the petition wos to be dealt with.

The Judge : I think that the act of the Judge in Chambers in receiving the petition is conclusive. Substantial objections to the petition may, no doulJt, be urged; but I see no power at all at this moment to revise, on formal giouuds merely, the acts of the Judge who has apuointeu a day for hearing it. I see no reason either for believing that the attorney top a creditor may not concur in the filing of a petition. Mr Main conceived that he could show that the petition ought to be rejected, as not complying with thp requirements of the Act. Bat if His Honor ruled that he could not be heard, he would not say another word. The Judge : I have not said that. Mr Main : I have substantial objections. Ii I succeed, will the petition be dismissed ?

The Judge : No. I think not. The question then would be, whether the petitioner is entitled to relief.

Mr Main : Why, where, and when, is it possible to show that a petition is not in proper form 1 My client will be seriously damnified by the difference of opinion between your Honors. The Judge : Stop ! Mr Main. I really cannot allow you to talk like that.

Mr Main : Am I to understand thr.6 if f show that the petition is informal, your Honor cannot interfere 1

The Judge : Very probably, if you show that the petitioner has made a perfectly false statement of assets, or anything like that, it will prevent his getting relief. Mr Main : But, your Honor, that refusal of protection would not benefit my client ; and I have no desire to prevent the petitioner getting relief- quite the reverse. Mr Barton (after reading an affidavit} said that what he proposed was, under the 20th section of the Act, to take the estate out of Court. That section provided that if it shall be made to appear, to the satisfaction of the Court, that three-fourths of the creditors in number and onethird in amount, or three -fourths in amount an i one-third in number, who are resident in the Colony, desire to have an estate wound Up _ under a deed of arrangempnt or composition, the Court shall order all further proceedings unf'er the petition to bs stayed, tor auch period as it may think fit; shall order a deed of arrangement or composition to be prepared and submitted to it ; and, it it shall con aider the terms of the deed to be reasonable, and for the benefit of the -general body of the creditors in the Colony, it shall order the estate to be wound up under such deed. The Judge: There is a sequestration. That will expire, will it not ?

Mr Barton said that all must be done in the Court. There was an Koglish creditor for several thousand pounds; and that fact would prevent the 23rd section being brought into operation. The Judge : Then what do you want now 1 Mr Barton : Simply that proceedings may be stayed until the next sitting. Mr Main said that the Sheriff had been in possessfon for his client ; but there was no arrangement beyond that sitting day, and of course the officer must go out now. The Judge asked whether Moss had signed the affidavit.

Mr Barton said that Mr Moss had not signed, because he was a judgment creditor. The learned counsel read a draft-deed which he had prepared. He aaid that if his Honor was satisfied with the deed when it was submitted, it would be registered in the (Supreme Court* ' The Judge : That will not help you against those creditors who choose to stand out.

Mr Barton : Yes, your Honor ; the Act proTides that a' deed so approved and registered shall ba as binding on any creditor who has not executed It, as if he had executed it.

The Judge said he would order that proceedings be stayed until the Bth August. Meanwhile, it would be only prudent that the draft, before engrossing, should be perused by those parties who were naturally more or less adverse to the general body of the creditors; and if they could show him good reason why the deed should not be approved by him, the whole thing would fall through. If counsel for the petitioner, to save time, chose, as he had intimated, to get the deed engrossed at his own risk, let him do it.

Order made accordingly, and protection extended. The Court rose at half past four, the list having been got through.

A case which was brought before the City j Gourt in Melbourne, illustrates the iatochief attending on an absurd system of advertising adopted by some of the tradesmen there, viz., that of printing a fictitious order bearing the name and signature of the issuer, and made to assume as closely as possible the appearance of a banknote. In this instance a young woman ' who appeared to be, as she said s,he was, a domestic Bervanr, was given into custody on a charge of obtaining goods upon a valueless note. She had, in fact, paid one of these worthless scraps of paper, which bore a very close resemblance to a Ll-note, and which was headed and signed with the came of A. Nicoll, tailor, as a Ll-note in payment for some goods which she purchased in a drape r's shop that morning. From her statement it seemed that she had received the paper as a note for th^'iamount which was priuted opon it. lluring the Bearing of the case, it was mentioned in court by Mr Inspector Hare that many acts of j dishonesty $'ere being continually practised by means of th&e fictitious notes, of which a great many were m circulation. As there was nothing ' to prove fraudulent intention against the prisoner, jibe waa discharged, *