SUPREME COURT. SITTINGS IN BANKRUPTCY.

Colonist, Volume XIII, Issue 1343, 9 August 1870, Page 3

SUPREME COURT. SITTINGS IN BANKRUPTCY.

(Before His Honor Mr. Justice Richmond.) FRIDAY and SATURDAY, sth and 6th August. In re Georoe Jambs, of Blenheim, a Bankrupt. Mr. Fell, on behalf of Messrs. Curtis Brothers, revived a prior application, which he had marie under tho 145 and 146 section of the Bankruptcy Act, 1867, for a sale of all lands, included in two voluntary deeds of settlement, and of the goods and chattels in and about the Royal Hotel, Blenheim, comprised in a voluntary bill of sale thereof, all three executed by the bankrupt in favor of his wifs. His Honor said that having taken time to consider the point, he had come to the conclusion that the case did not come within the "apparent possession clause of the statute, but that he would make the order under the 146 section, which provides that if a person iv a state of insolvency conveys any real or personal property by a voluntary conveyance, and is afterwards adjudged baukrupt, the Court may order the same to be sold for the benefit ot the creditors. Order as prayed. In re Monro Brothers, of Marlborough, sheep farmers, who executed a deed of assignment, Mr. Acton Adams now appeared to oppose on behalf of seven or eight proved creditors. Mr. Pitt was for the debtors. Tho following is tho list of estimated liabilities and assets :— Un-

The s s TARARTTA, which was to have left Melbourne on the 3rd instant, was due at Hok.tika yesterda hut h«d not, arrived when the telegraph office i a 'loT.mrht The English mails, via Suez, were "^Tri^Sf l^'th. mails via San Francisco; may be hourly expected, as the, City ol Melbourne, from Honolulu, was due at Auckland on thMiSiia visKUi.-Up to July 27-h no tiding, had been hear.) of the ship Harlech Ca.tle, a»d blue Dunked, both of" -nirt. were bound from Melbourne to Newcastle, New South Wales. inZ Sydney we learn that the schooner Fanny has been wrecked. She was insured in an Australian Insurance office for £700. , The bu-que Santcn, from Liverpool, arrived at Auckland on July 2J_.li. She brought 15 passengers. S Auckland firm, Messrs. Must and Co., are | ahout to lay on two vessels a year in the San Francisco trade. The pioneer vessel is the Santon. TnTThip Star o/tiie South from London, arrived at Wellington on August 3rd. She had no PaCBSSS Palmer, of H.M.S. Rosario, has gone to England, having received promotion. Commancer ChS is coming in the Clio to take charge of the EFoTr men-of-war are now in Wellington harbor. The Galatea and Clio are expected to arrive there Shin a fortnight, and will thus make six war ships afcTHE": B !bRANaATiRA, about 200 tons, has been purchased by Captain Renner, Chief Engineer Mr. Trail and others, for £3000. Mr Collie writes to the Unted States Consul at Wellington, positively denying Mr. HalLs stetemeiit that he had been offered Mr. Webb's boats. Mr. Collie has reduced his demands for the subsidy from all the Colonies to £50,000. Captain Palmer, of H.M.S. Rosario, has been searching the Bounty Islands for castaways, but found none. He describes the Islands as 'a wild, ru^ed, and inhospitable group, the land bem^ low andbarren, without the least sign of vegetation. The missionary schooner Southern Cross, from Norfolk Island, brought word to Auckland that the .chooner Peri is thought to be lost in a heavy gale in which the Cross lost her boat. The barque Huasquina cleared for London, ac Auckland, on July 21. with a cargo valued at £19.155. She had £8388 worth of cotton, and £7775 worth of kauri gum amongst the cargo. Steamer Missing..—ln our Summary number we > reported that the ketch Enterprise had been sunk through a collision with a steamer off Sail Rock. The Southern Cross says:— "It appears now tobequite clear that the Tauranga, bound for the Bay ot Islands, was the vessel. Captain Mundle reports being in company with the Tauranga on Saturday night, about one hour before the time ofthe collision. We hope that nothing very serious will be found to have happened to her, though we feel bound to say that apprehension is felt for her safety amongst our nautical men. Up till a late hour on the evening of the 28th July, she had not made her appearance. The schooner Daphne returned to the Bluff on August 2nd. She met H.M.S. Blanche, which searched the Auckland Islands and found nothing. The Daphne was returning to the Islands to lookfor the Aye men she had left there on a previous visit. The Otago Daily Times of August 3rd, says :— " We fear that to hope any longer that any of the passengers or crew of the ill-fated Matoaka still survive is to hope against hope. Whether she foundered in a gale, was sunk by an iceberg, or dashed to pieces on some unknown shore, will now, we fear, remain for ever shrouded in mystery—unless, indeed, the visit of a steamer to the South Georgias should be attended with any better results, though that is not likely^ The fate of the missing portion of the ■Sfe'r for" which tfie Auckland' YstoTs'fiWMf.e^l such an undersirable reputation. Five more victims have been added to those who have already perished on those shores. Whether their boat was swamped at sea, cracked like an ega-sheil on that ironbound coast, or sucked into the cave which was the grave of tho General Grant, we shall, in all probability, never know." The Archer, a clipper ship, of 900 tons, has just arrived at Port Chalmers, witli Yankee notions from Boston, and reports terrible weather and a narrow escape on the pnssnge from the Cape of Good Hope. On the 29th June, in lat. 46 S. and long. 60 E., a tremendous sea struck the ship on the port quarter, smashing in the side from amidships to mizzen rigging, breaKing staunchion rails and bulwarks, and covering boards, leaving all tie timber-heads bare for the water to pour into the ship ; stove in the poop deck aud broadside of cabin with water, and carrying away all the ship's stores that were stowed each si-io in tho laz-irette; broke down the skids on which the boats were srowed, and carried away some of the lee bulwarks, the interior of the cabin being completely demolished, and the cabin so shuttered us to be dangerous. The captain, second mate, ancl _teward being in the cabin at the time, were buried in the rubbish aud water, and narrowly escaped with their lives, the second mate being badly cut and bruised about, the head and face, and the captain internally injured by two barrels of stores and a large extension table passing over his body at the same time. Although the captain was hurt in his breast and back, and suffering much fever from tlie effects of his injuries, he managed, although with terrible pain, to direct the repairs, having braced his body by winding heavy canvas tight around him, which somewhat relieved his pain. Nearly all of the captain's and officers' effects were ruined or lost, and all nautical instruments, botks, charts, and ship's records lost, excepting mate's quadrant, a chart, and a tew leaves of au Epitome, picked out of the rubbish, which were cleaned and dried. These were all thoy had to navigate the ship into port, with an unreliable chronometer, being badlj injured. The captain says : " There is no doubt in my mind that many a ship has foundered in gales and never been heard of, which which might be avoided by covering between the Btaunchions with copper filling solid before putting on tho covering boards. This is the second time in my experience. It happened once before in the barque Ellen Parsons in 1862, from Boston to Panama, of which I was an officer. As in this'case the ship was in great peril; and if shipowner and underwriters would give this a consideration, it would not only diminish their risks, but be the means of saving the lives of many mariners."— Otago Daily Times. August 1. The following extract from a private letter to a gentleman in Dunedin, from an officer formerly in tne Panama Company's service, and well-known on the New Zealand coast, will be read with interest in connection with the'proposed route from Dunedin to the Strait of Magellan, there to join tbe steame.-s of bhe Pacific Steam Navigation Company, whose Dperations are carried on on the West Coast of South America from Panama to Valparaiso, and thence to Liverpool:—" Since I wrote last to you I have taken i trip to Valparaiso, from which I am now returning. The Patagonia belongs to the Pacific Steam Navigaion Company, which owns the Island of Tobago, in ihe Bay of Panama. They are very fine steamers, .onsiderably larger than the Mataura. The one lam n is 3000 tons, builders' measurement, and is 350 reet long. She steams between eleven and twelve mots at sea without muoh difficulty, while she mly consumes about thirty-four tons of coal a lay, that is to say, one-fourth more that the Otago or Tararua burned. At present they despatch one of he main line of steamers monthly. They make the jassago to Valparaiso in thirty-seven days, including toppuges, and they call at Bordeaux, Lisbon, Bio aneiro, Monte Video, and at a small port in the llrait of Magellan, It is intended by the company to ruild four more steamers, and despatch one every ortnight. They carry a great many French passeners from Bordeaux to Monte Video, and Portugese rom Lisbon to Rio Janiero. Besides thia line, the ompany has a very extensive carrying trade on the

After argument on a few preliminary points, Mr. Acton Adams read affidavits from various creditors, setting forth among others that there was fraudulent dealing with some portion ofthe sheep ; inasmuch a some of them had been branded after the official assignee, Mr. Pollock, had sent a man to take possession of the branding iron 3. Three lambs, it was said, were thus marked and put into the flock which belonged to Mrs. Dillon, and this affidavit further set forth that one of the partners stated that he had purposely kept back one ofthe branding irons, when they were applied for. Upon this, Mr. Adams set up a charge of fraudulent proceedings. We give the main points iv the examination of Alexander Binning Monro, who, being sworn, said : I came to New Zealand in 1858, and commenced business as a sheep farmer, in 1861, at Langridge. Sir David Monro negociated the purchase for me. I paid £1000. I became possessed of Yalleyfield subsequent to 1863. It belonged to my father, and he made a free gift of it to us. In 1861, we bought 500 ewes from Sir D. Monro at £1 oach. We havo paid interest to List year, at 10 per cent. The original transaction with Mr. Codrington was with Tuckey and Blundell. We bought the sheep from them and added them to Sir D. Monro's security. In 1865, we had 6000 or 7000 sheep. We never made a profit by business. In our schedule we *ay we owed £1000 to our father in 1863 and 1864. In payment of Langridge we had £500 of our own ; the rest we received from our father. He sent out a cart stallion, which we never paid for. He lent us £1500 about ; 1865, towards payment for Langridge. We mortgaged that to Mr. Lloyd for £3000 j the money was advanced by Messrs. Morrison, Sclanders, and Co. I do not know if they hold a power-of-attorney. Previously we owed our father £2800, made up of the stallion, the £1500, and other odd moneys. I have an account of it, but it is in Marlborough. The notice to produce was served on 27th July, and the Court was adjourned from 29th July. I have not been home since. His, Honor said the notice waa too short, and insufficient. Examination continued: In 1867, we got £6000 from our father through the Union Bank at Wellington. Sir D. Monro negociated the draft. We received the money. My brother did the business. My bank-book is in Marlborough. That is the last amount we received from our father. We paid that to Messrs. Morrison, Sclanders, and Co., as the amount owing to them. In addition to that there were the sums duo to Mr. Codrington and Mr. Lloyd. Our father has aleo had to meet over advances on wool amounting to over £1000. This business was transacted between myself and Messrs. Dutton and Ferry. Sir David Monro managed the matter for us. The wool has been handed over, and shipped in his name; he drew against it, and gave us tbe money to carry on business. I believe the account was Dutton and Ferry in account with our father, Sir David Monro acting for him. He takes possession of the wool as agent for my father, and we gave him wool securities as such agent. The interest is a first charge on the wool, and Sir David pays it. That wub the case in 1868 and 1869. The last clip of 1870 has gone home in the same way. We have sent home over 100 bales, about the value of £12 each. My father's interest will be the first charge on that clip. We pay my father 7 per cent, on about £10,000. The first security to my father was a mortgage over part of Yalleyfield, the rest being mortgaged to Thomas Ward for £1600. It was a Beoond security over the

remainder. I don't know when the first security was registered. I am not aware that they were registered after the deed of arrangement was executed. Mr. Henry Adams wai the solicitor. When I consulted Messrs. Adams ancl Pitt about the deed of arragement. I was not aware that the deed was not registered. For £000 in 1837, we gave a bill of sale over stock, carrying interest at 5 per cent. We have not paid him 7 per cent. Our father wrote a year ago to say that in consequence of the low price of wool, he would take a lower rate of interest than in the deed ; on the whole debt for that year 4 per cent. We owed interest on £6000, and on £2800. Against the clip of 1868-69 he has taken 4 and 5 per cent., before that we paid him 7 per cent. In tlie first bill o1 sale we paid 5 per cent. On the clip of 1868 wo paid £900. The overdrafts were included in the mortgage of January, 1870. On 30th April, 18R9, we gave our fatner a bill for £6000. This was a renewal of the bill of sale of 1867. We did not understand getting an affidavit of satisfaction filed. Sir David Monro considered the security insufficient. Our father wrote out requesting that all our property should be conveyed to him, and that we owed him as much as the value of the whole. In 1867 we entertained a doubt of our insolvency in the case of the property being sold. In that year my father considered the property ought to be conveyed to him, being so large a creditor. About seven years ago, '62 or '63, the late Captain Blundell put 1000 ewes with us on terms — 30 per cent, per annum increase, and 2s. per head of wool money. Tho total amount of debts are, secured, £11,000; unsecured, £7000, making £18,000, less £3577 of assets available. We owe Mrs. Blundell 3000 some odd sheep. She is a creditor for £600. We purchased wether 3, and were to pay ss. a-head, but did not do so. About two years ago tho sheep fell due, and we agreed to keep them on, and pay £25 a year in addition to the rest of the terms, which were to be adhered to. There was an arrangement to brand Mrs. Blundell's differently from ours. We gave my father a bill of sale for more sheep than we had, the sheep we had being insufficient to cover all. Mr. Codrington's claim was a debt due by us. Mrs. Blundell has proved for a liquidated demand. The wool of the last two or three years has gone through Sir David Monro. He drew on my father for several bales, and requested him to pay rent to Mrs. Dillon, the lease of whose run was taken about five years ago. The rent was £1400 a year. Lately we have paid a wool rent—half the wool. Sir David Monro was agent for Mrs. Dillon aud for my father. We paid the management partly by eale of sheep at the butchery, and partly oy money received from Sir David Monro. I sold one of the horses comprised in the bill of sale to Mrs. Canning's trustees,—to Watson for £30. He paid us £15, and tho other half was retained by him for wages. We covenanted to brand the increase of horses with figures. We did that with one lot; the others with our own brand, without figures. The figures were to denote the increase. We paid our witnesses in the late action with Richings part of the money through Mr. Harry Pitt, our solicitor. I have not paid the remainder since the filing of the deed. I am not aware that my brother has paid Munay or Collins or Douglas. I don't know who paid £30 to Douglas since filing the deed. Redwood was a creditor in tlie first schedule. Since then he told me he did not consider himßelf a creditor, as Dodson was answerable to him. Sir D. Monro has paid Dodson the freight of tho wool. We did not owo Redwood freight on the " Falcon." Sir D. Monro shipped the wool under the Wool Securities Act. Expenses were charged against the wool. After paying interest, my father would get the balance and set it against capital. It is not true as stated in Lawrence's affidavit, that I paid a private debt to Robinson Brothers. I believe my brother has guaranteed the debt, but not on my account. I told Robinson I was going to call on him with assent papor, but he told me he could not, sign without payment of his private account. My brother has told me since that he had guaranteed tbe debt. The hotel bill to George James was charged against the estate. James's trustee told me we owed nothiug; a contra account was due to Monro Brothers. I believe Mr. Gorrie took possession of the sausage machine and tools, which were in tho butcher's shop. Tlie horse and trap were sold to Mr. Hodson when he took possession in September, 1869. Dutton and Co.'s draft on us for £16 was dishonored after signing the deed. I forgot to insert, this. The saddlery I imported was on my own act. I have paid one private debt since signing the deed. We agreed to give up Leafield run to Mrs. Dillon before filing tho deed. We agreed to shear and give Mrs. Dillon the wool of 5000 sheep. Servants were employed hy us, and they shore the sheep on all the runs. Sir D. Monro took the wool. At the time of signing the deed four bales were in the shed, packed and directed, but not sent to Blenheim till after Sir David supplied me with money in order to pay wages. The shepherds were paid part of their claims. Some of our family estates are entailed. lam not the eldest son. I am aware of two dishonored cheques, ono to August M'Call for £8, and one to Hanuam for £3. I don't consider these to be Monro Brothers'. There was an understanding that Morrison and Sclanders were to pay them. I hope Sir David Monro will meet them. Sir David had possession of the wool, and had drawn against it. By Mr. Pitt : Sir David Monro promised to hand ■ over certain wool to Messrs. Morrison, Sclanders and Co., who undertook to meet our cheques for shearing. Sir David had a lien over the four bales sent to Blenheim after filing. M'Call and Hannam's cheques were not presented till after filing, and then Morrison and Sclanders refused to pay them. In 1868, wool fell very much. In that year our overdraft was £900. We bought £1600 worth of stock from Ward, and gave him security over Valley field, interest at 10 per cent. We sold the cattle for £1500. Tho debt now belongs to Mr. Nathaniel Edwards. We had an arbitration with Caverhill on this subject, and had to pay £500 damages. After Richings got a verdict | against us, we had a consultation with Sir David Monro, and went to Messrs. Morrison and Sclauders hoping they would lend money to let us carry on. They declined. Face brands are used with sheep when the ears are too much cut with various marks. The furniture was my own private property. After we filed the deed, Sir David Monro entered on the runs and took possession. He asked me to muster the sheep, and hand them over to Williams, the incoming tenant, and promised me ten shillings a day for doing so. In paragraph twelve of Gorrie's affidavit, he mentions my being on the run drafting the sheep. The sheep were taken to Yalleyfield to be yarded. I told Q-orrie (who is agent for the Inspector in Bankruptcy) there were a few lambs unmarked, and that I should mark them aa Mrs. Dillon's, hut he refused to let me mark them. Sir David Monro branded them without asking my consent. I did not conceal the branding iron from Gorrie. Tbe fleece brand is put on at dipping time. 150 lambs were without ear-mark j Sir David Monro claimed them for Mrs. Dillon ; and he told Qorrie so. As to the furniture, I told Gorrie I thought the furniture was mentioned in the bill of sale. I undertook to he responsible for it, and nothing has been removed. I would not have proceeded against Richings had I thought he would not have been convicted. I called on Gorrie, and asked him if we had. acted fraudulently, and he said " No." By Mr. A. Adams : Sir David Monro took possession two days before the filing of the schedule. I don't think we delayed filing to give Sir David Monro time to tako possession. Mr. Gorrie, in taking possession for tho trustees, aeked me to give up all the brands. I stood by Sir David Monro when he had three lambs branded to establish his rights. I don't remember telling Gorrie "we have been pitch branding sheep." I never told Qorrie I had stowed away a branding iron. Gorrie agreed to remunerate one as a custodian of the furniture. I afterwards refused to let them see it. Laugridge contains 25,000 acres, and'is unfenced. My brother branded the cattle at Upcot, by direction of Sir David Monro. George Hoomo Binney Monro was examined respecting certain payments made to shepherds and others since filing the deed of assignment. Portions of it was money earned since the beginning of April. He gave Robinson Brothers a promissory note on his I brother's account, as he heard Robinson had made some diffioulty about assenting to the deed. In substance, the depositions of this witness corresponded

with that of his brother in the general particulars. Mr. Adams withdrew the charge of fraud. _ The Judge : I think you ore quite right in withdrawing the charge of fraud, for there is not a fragment of evidence to support it. Tbe case which lusted two days, was continued till next Court day.