DISTRICT COURT.-In Bankruptcy.

Taranaki Herald, Volume XXXVI, Issue 8004, 24 October 1887, Page 2

DISTRICT COURT. -In Bankruptcy.

Monday, October,24.—B efore His Honor " Mr. -District Judge Raw&on. - f Continued' f ram ' 'column 7.] Mr. Samuel said itxwas his duty. .to point out to his Honqr/thafc the witness would bring himself within, the penal, clause of the Act, if he stated now that he concealed property fronrhiaidre'ditofs. > ; -.; :'' Mr. Hughes wished'Ur. Samuel would confine nimselfHobis dutypn-'ttae case. Mr. Samuel :, It certainly is ifijTdaty to ward the 1 witness, 5 wno has been' called by me, if he is going contrary to his .asvorn Btatement. " ; - J In answer: to his* Honor,, thes witness said ; he only-had an^ occupancy "(O'fi.r.the places, which were of no real 1 value^toshis creditors. - ' ° ■'■ a - ■ " : 1 Evidence ' continued' r Mr." Corfeill kept .my tools for a month of "so. - '/WVafe _very , good friends." " He 'then 'let me^'go back into • the " shop in . Gill/street. The place was' worth £12, per year to v me. . I paid the rates, on- the place, but I never, paid the Assignee anything';for it.,, Mr .: Corkill. said I was to do what he told me, and~then gave - me -back- tbe-kegs.--~He wanted me to sign certain papers which I lef t J with 'yon , But f'wouJd-nofci • ! .Witness went on to state here'tlfot he had .certain -property other ,fchan,in the statement, .when ' Hiß Honor said that bis(witness 7 s) ssvorn statement now before biin showed the•witness's property to~be,£3B according To ; the list (put' in.) --> '". - . -.;•-'/:: Mr. Hughes' was endeavouring -to- .'show', that certain shares-lodged with Air. N.j King hat! 'not- beeii'Vcrcdited ,-tG; -W-allath > when Mr. King sued him; and 'tb'at ; there- j fore 'the Tslmres,shdahi 'be available ■ nsVa . asset,, \\ hen' iifi Samuel haiided'in' a-"fio<M- 1 meni showing" that Mr. 3 King tiad;'d one ;|9, and the matter the^jjropped. '"" ' "i j By Mr. Samuel : The, account dated j December 11,1885, is no doubTflie correct; one sent me by .Mr. Hutchison.' It might; have beenor less.' I could not put downj money owing by Mr.<Hutchison iii the-listj of issetß -because ( I did -'not know the; amouat. When there is doubt I neverf put anytbing'down.; My;deblß^jS4;l ?; 4B:3-J,f with the except'i63 ; p'Bhe os-dividend, were) owing on DecetnbejJZ&b, as on . the l&th,! subject ib thejfiicfrtnatf mariy^B'ig'hecP^heJ receipt as 1 pa/nreiit ? rri' lj Ta\ll' : " The Ne w j Plymouth, Sash.an'd'Dpor.Cp. sent back, Mr; Humphrie8 f> ch¥que^^a J 6a'refuße!i'tb.|elense| me. The cheque' "(P?pefkced)^ wjxa t&ej cheque aentl'o^ttiepd^io the bYat,of myi belief, but be ! 'c6ul'd not' Vouch 1 for the! letter from' (hem i (produced). The Sashj nnd Door Co.'s account, £135 14a Gd, in! list (produced) and/signed-by Mr. Hum-! pbrieB 1 , is about rfght, ; and was' owing byj me to them at the time of my .bankruptcy.] It was'dn'open account, ana J could' hav'ej been aued-for. .. '.\ „ -, . -„,-;■ Willinm^Humpbfies state?-" tßat 'on Dje : j cember 19 ( th',,laBt he interviewed' Messrs., Wallatb and Bellringer in' regard 'to, thfej former's afEaira. Previous to that, ;l ; had' prepared a list of'-his debts, -and^had re- t ceived £20 as wages for rendering ser-, vices. The services I had to render iiadi connection witbthis document (produced). When I was paid the £20 there was,' roughly, £300 to be distributed, and I had tried to arrange with, the creditors of Wallath to give them <ihouLßg Gd-ia Uib,£ as a composition iv full of thiir claims. On the day after the. fee was paj'Jj'.Wallath, was to pay me oil 'lie bud to pay.the'.cornpoeitioD, but he did not pay me anything until DecembeF'l9; when he paid mo £171Previous to receiviffg' the money, I, had had a conversation with Mr." Bellringer on the subject, and he knew the money was 1 going to be paid over to me. He made no protest, but said it was the best thing that could be done. Wallath said that he had ! lost about.£loo, .and Mr. BellriDger" mud that was one of his reasons why the residue should be banded. over to me., Tho £171 was handed to 'me to be equally divided among Wallath's creditors. 1 paid it into the Bank of New. South Wales as a trust account to be operated on -as " William Humphries' trußt account," out of which ou December 19, the same day I gave Mr. Bellringer the check for his debt, and he signed the release. I did the same .with J. Gilmour, £8 7s 31 ; J. McLaughlan, £1 lUs ; A. Standish, £1 Is ; A. DavidsoD, £3 10s ; W. Cow-, ling, £12 10b ; W. Davidson, £2 lOs'j H. P. Humphries, £2 12s lid, and they signed the -release in fu11... In order to deal with all alike, I sent the, share due to each creditor. The first intention, .was that no creditors should get the composition unless as a release in full, but,- subsequently, Wallath gave me written instructions to pay it if the creditors took it as a composition or otherwise. [Witnesses entry in his note-book bearing on the qriei--tioo was here copied v by his Honor.] Evidence continued : I believe- that Mr. Wallath told me that this wub all th> property he practically had, viz., 171. kjomb of the n creditors refused to lake the composition as a "relouso iv full, and some of the cheques were intercepted before they got back to tho bank,

T ~ — -" | By Mr,. Hughes : I was acting- as Miv] Wallath'a apent — a pnid one. "The mouoy that was refused by thj creditors remained j in the bank, but I think the Deputy j Assignee drew it as an asset iv jWallatli's estate. I got no notice that the / ssignee wns going to draw the money. I ,taok care-to ascertain, in preparing Wallath'a list of creditors, that they wero all .therein set/down.' After 'providing for 'the paytn? of the composition there was a |balnnce of £6 13s 3d, which" I handed over ito Mr. Standish. I believe the procedure |waß really for the benefit of Wallath's ,creditois. I havo been, acting as Wallath's 'adviser since hq^has been in the pluco— two, or three years. - I -was bond mnn for >bim iatlie orectiou of tho convent, out of Jwhich the money aame. Ho always comes to mo to get idvise on any b'usiriess'ditrioulty. ; ■ This closeVl Hhe case for tho motion. ! Mr." Hughes said (hat in addition, to calling Mri'Bellrinsjer' He would call the {Assignee, b,utif,hia leurnod friend would •put him in that' would Gave. time. ', I '.Mr.. Samuel said he", would., qot, do Jhat.' jHe had proved his-.cftße^to^liia own antisjf action, 'and.if his 'learned ,f rend wanted the Assignee's evidence he could subpoena hini 'in the interim caused by the lunch adjournfhfcnt. ■' '■ ' - " Mr. HuaheS then slated that tho 'act was not a fraudulent one as asjninab the Assignee, but for. trio creditors benefit. ' ' Mr, Samuel said he did not for a moment' contend that Mr. , Wallath and ; Mr. H,iim-^ iphries, when the. composition was 'm,^e^ to, defraud the orcdi't ora»fci|^ si^aply. •that an act of bankrupicj'y 'Was'-.committed tbythelact.i 'Ha quoted. the section bearing con tho act. - ■ - - .' ' 'i . Mr.' Hughes- sjiid that ho would not alter his views on' his client's position, and ■ he' still "adhered 1 to 1 his^ opinion notwithstanding Ma' l lelirned 'friend's quotation. , '' The .C^'urt , then adjoffrned to 2 oi'clock.^