DISTRICT COURT.

Timaru Herald, Volume XLII, Issue 3423, 17 September 1885, Page 3

DISTRICT COURT.

TIMARU, Wednesday, Sei>t. 16th. (Before His Honor Judge Ward.) His Honor took his seat at 11.20 a.m. IN BANKRUPTCY. The public examination of tho following bankrupts was declared closed, no creditors appearing to ask questions, viz. : — William Walker (Mr M. J. Knublcy), Georgo Meredith (Messrs White and Co.), Thomas Joseph Shute (Mr Lynch). Orders of dischargo were granted a* follow :- James Tait (Mr Lynch), P. Kyne (Mr Hatnersley), C. Bourn (Messrs White and Co.), J. T. Burgess (Mr H. L. Forster), J. G. Maekay (Messrs White and Co.). Solicitors' costs were allowed Mr Knubley out of the estalo of R. Storm and Messrs White and Co. out of estate of C. Bourn. Mr Forster's applications for costs out of estates of Leo Pastorelli and J. T. Burgess were adjourned, the affidavits filed not being m proper order. In re W. A. Murray, a debtor. Mr Perry moved that the trustees' claim to retnin certain money bo disallowed, that a final dividend be declared including same, and that tho report, balance sheet and statomont be filed. Mr M. J. Godby opposed this, and asked that tho matter bo adjourned to next Court day. A number of very important affidavits had, a day or two ago, been filed m the case, and ho had not yet had time to go thoroughly through them, or consult with his clients upon them. The adjournment was granted, it being stated that the Court would most probably sit on tho 2nd October. civil casi;. Mads Hanscn v. James Sanderson — Claim £140. Mr Perry for plaintiff j Mr J. W. White, instructed by Mr Forster, for defendant. The hearing of this case, which was commenced on September 4th, was now resumod, Mr Perry for plaintiff culling Alfred Albeit Hasel, who Baid : — I was a soap - milker. I had business trans actions with Sando and Sanderson. Thoy started mo m a soap-making factory, thoy to find tho capital. The business was to bo carried on at the top of Arthur Btreet, Timaru. I was to make soap for them. That is my signature to this document (bill of sale Hasol to Sando and Sanderson, amount £105). Sanderson asked mo to sign tho bill. He said they had spent £'JB, and asked mo to give thorn something for their trouble. Previous to giving tho bill Sanderson inspectod tho works, and put down tho stock m excess of its valuo. I drew his attention to this, and ho snid it did not matter. I signed tho bill of sale tho day aftor this. The soap factory was a shod on a quartor-acro section, and I put up an addition to it for a boilor house. The affair was very roughly put up, and was made mostly of old iron I bought for IBs. I valued Die shed at £3. I cannot say if tho bill of ealo was read over to mo or not. AH I know was that it was a bill of sale over tho Boap works and stock ; I knew nothing of particulars. At tho timo tho bill was signed tho valuo of tho stock and plant on tho premises was between £70 and £80. After tho bill of salo was given, and before the partnership was ontorod into, I gave orders for monoys on Sando and Sanderson, which thoy paid. (Somo of tho ordors put m and identified by witness ) I entered a list of tho ordors I gavo m this book (produced). Tho book shows all tho orders givon between tho let Novombor, 188 i, and SJlut January, 1885. Tho total amount, of theso ordors was £20 16s, aud thoy represent all tho monoys 1 rcceivod from Sando and Sanderson, botweon dalos mentioned. Tho ordors wore given for tallow, household cxponscs, and getting things to carry on tho works. Botweon the dates named I manufactured soap, nnd a good deal of BOiip was m stock bosides. Thirty cwt,. of it. was sont to (ho West. Coast, 6 owt. to Greymouth and li cwt. to Makikihi. I valued the soap sold betweon tho dates mentioned at about. £37 10», and m addition to this I paid Sando and Sanderson some £8 or £9 m cash. Mr Perry then asked wit noss about drawing out orders for Hasel and Co. Witnons said : I drow out all tbo ordors for llascl and Co. Th« ono d»Wd 28rd January, fo? £7 4«, is for

fat supplied by Peacock and Geaney. Tbo fat had been ordered previous to the partnership being entered into. I gave no other order for a similar amount at that time. The order of tho 24th January m favor of one Powell, for £3 ss, is for the balance of an account (jE-t l*s) I owed him on starting business. The ouo dutcd 11th February, for Howens, Knott, and Scarf, for £6 4s 7d, was drawn previous to tho partnership. I gave one, and was asked by Sanderson, after tho partnership to give another. I marked it " duplicate-." The order before tbo partnership was paid to Howens and Co. The duplicate was given direct to Sanderson. I never authorised a second order for £7 4s to be given. After I signed the bill of sale I went on at the factory as usual. Soon after this I had some conversation with Sando about a partner, and he said he would try and get me ono. Soon after this Sando introduced me to llansen, saying " I havo got a partner for you." Sandothcnexplainec) thatHansenwasto put m £50, and I was to put m £50. 1 remarked I had no money ; Sando replied " I'll find the money " This was about a week or ten days before the deed of partnership was signed. Tho next meeting was the timo we signed tlie partnership at Mr Forster's offico. There were present, Sando, Hansen, Sanderson, Forster and I. Sando again explained tho terms of partnership. Mr Forster read over tho deed of partnership, but I could not hear half-a-dozen words of it. I was entirely ignorant of the contents of it. After signing the deed we went on with tho business. About ten days afterwards I saw Sando and he gave me tho receipt for the bill of sale for £105. I was taken by surprise when I learned this money was paid by Hansen. I showed the document to Hansen and he went to Sando's office about it. Shortly after this I had a conversation with Sanderson about the bill of sale, no asked me whero I had put it. I replied at home. He told mo to tear it up. I cannot say the exact dato when this conversation took yiluco. .■■ooll after this I was m the ofiice with Hanson and Sando, when the former said Sando had befooled him. Sando replied to this that Hanson's house was not mortgaged ; they had only advanced money on it. This was the first time I positively know Hanson's money had been made use of to pa)- off the bill. I knew nothing of the sale of the business to Hansen and mo. Sinido and Sanderson nover told us about it, or rendered an account of the sale of the business. The plant and stock at the timo the partnership commenced was worth £(JO. I was quite ignorant that the works were sold for £150, as stated m Sanderson's defence. I received no purchase money ; all I got was about 15s a week. I bought a horse, cart, and harness after tho partnership commenced. There is a bill of pale over them to ono Annett. I was agreeable to this. The firms'* money was used for buying things after the partnership commenced. I could not say if a balance was owing to Saudo and Sanderson at the close of the partnership ; I kept no books. I received advances for tallow. About 27 casks were shipped Homo through Sando and Sanderson, and accounts were rendered for them afterwards. It being now ten minutes past one, it was decided to adjourn till a quarter to two, Mr White to then exumine witness. To Mr White: Sanderson was up at the soap works with me, but I don't know what value he put on them. I asked Sanderson what money they had laid out on til.- works and he said' £^8. They wanted £70 for their trouble. I had been m charoe of the soap works from the commencement. At the time of the signing of tho bill of sale and of the giving of the promissory noto for £100, I believed I was buying the stock. It was done for tho purpose of making me owner. I was agreeable to that money being given. I was careless ; I had no money to lose, so I didn't care. I went mto do the best I could. I was anxious that the business should turn out well, but I was careless as to my own interests. If Iliad not been careless I should havo investigated the bill of sale and been inquisitivo irf the matter. The stock at tho time of the signing of the bill of sale was worth about £70 or £80 ; I can't say exactly, but it was not worth much more. At the first going off a business like that does not pay. I commenced work m the beginning of July. From then to November I was stacking timber for the sawmill, which took up a considerable portion of my time. It was agreed that Sando and Sanderson should advance the money to start the works, and I was to give the bill of sale. I did not give the bill of sale for the purpose of securing the promissory noto or bill. 1 told them at the time I gave the bill that I should not be able to meet it. I gave the bill and tho bill of sale at tho same time. When I gave the bill to Sando and Sanderson they said they wanted mo to sijn something else. I signed tho document they asked me to without knowing its contents. I don't recollect signing any document m ft lawyers ofiice previous to or since this bill of sale without knowing its contents. I did not hear anything said about its being a partnership deed. Mr Forster read over the partnership deed, but I did not know what he was Baying. I did not hear him read over the bill of sale. I signed the bill of sale to oblige Sando and Sanderson. They merely wanted security over the place for their own safety. The bill of sale had nothing to do with the discounting of the bill, nor had it anything to do with Sando and Sanderson getting back the business. After tho signing of tho partnership deed I gave orders on Sando and Sanderson for outside expenses ; partly for my own household and partly for tiillow*. I gave an order to Peacock and Geaney m January for somo fat. The fat wns on tho premises some short time previous to the partnership. Ab a partner m the firm of Hase! and Co., I do not think it was fair to havo given such an order. I did not think to wrong Hansen. I don't recollect whether I gave it. at tho instigation of Sando and Sanderson. I waa m tho habit of giving orders and previous to the 21st January, signed them "A. A. Hasel " and afterwards as " Hasel and Co." I told Hansen about giving tho orders, and he was greatly annoyed. I did not tako any steps to put the matter right. I spoko to Sando or Sanderson about it. On tho 11th February I gave to Sanderson a duplicate of tho order I had given to Howens on tho 21st January for somo fat; the original order was signed "A. A. Hasel." Sanderson told me Howons' order was not charged to the account of Hasel and Co., and asked mo to givo him another. I couldn't sco through it at tho time, but eventually gavo him tho duplicate under protest, at thesamctime writing tho word " duplicato " across tho butt, for my own sut.Ufartion. I don't know why it was not written on tho duplicate itself. I could never clearly understand why 1 had to givo two orders for ono lot. of fat. I did not think about doing wrong to my partner. I was not willing to rob him. I did not explain to my partner at tho timo about the ordor, but afterwards. I don't recollect what Hansen said when ho Bhowed mo tho invoices for tho tallow that was shipped Home. I refused to givo Sanderson any statement of tho ovidenco I would give, as they had doalt dishonestly with Haneen. I saw Mr Forstor's account when 1 Bigned tho partnership deed m his oflico, and T gave an order for the amount signed " Hasel and Co." Hansen thought tho charges (£l3 10a) excessive, but Mr Forster said four documents had been mado out. I don't know who took poßSOßsion of the account. I will not swear that I put it on our file. I don't know who put those pencil marks on tho account. I did not explain tho items m tho account to Hansen. My drawings out of tho first amount of £100 paid into the partnership account m tho bunk by Sando and Sandorson did not exceed 30a ft week. I could not say how much of tho £100 I drew altogether. I don't recollect saying to Crosbio, when I met him and Sanderson on tho Breakwater on the morning tho caeo was brought on, " I think Hanson is making a fool of himself. I think ho has got fair valuo for his money, and has very little to complain of." I won't swear that I did not say so. After tho work was knocked off I told Sando and Sanderson that Hnnson had removed £100 worth of goods from tho soap worko, from which I had derivod no boncfit whatevor. I told thorn that I could have made tho soap works pay if Sando had had nothing to do with thorn, but I don't roinombor saying that I could havo mado them pay if Jlunsen had had nothing to do with them. 1 was ignorant of tho contents of the bill of sale. Sando gavo me, without being uskod, my bill for £105, and tho bill of sale. To Mr Perry : I think Hanson took about £100 worth of goods, very littls of whioh bMt

was paid for by the firm of Hasel and Co. I know Annetts has been advancing money to | Hansen. I have not had a squaring up with Hansen. Margaret Hansen, daughter of plaintiff, said : I had a conversation with Sando on a Sunday evening about the end of Fobruary or beginning of March, whoa ho asked me to conic into his otlico on tho following day (Monday). He said he thought father had misunderstood him, and that he wanted to explain something. I went tho next day with my father. Sando said father must have misunderstood him, and he also said that father had said that tho lioubo was mortgaged. I asked him if the house was mortgaged, and he said " No." I then asked him what security father had by the deeds, and he said "Mr Uansen is only working partner m the soap works." To Mr White: That was the only conversation I had with Sando. I don't remember being m Sando's offico with my father m January. 1 don't remember going to Sando's office with my father when the terms of the business wore explained. I waa only iti the i'iom on the Monday about a quarter of an hour ; not more I think. I cannot remember anything more being said. I was m Sando's office some six months before about getting my life insured. I don't remember any conversation m which it was said that £150 would be all that father would want to start the business, and that Hajel had no money, but was a good working man, or that Sando would place £100 to the credit of Hasel and Co. m the Bank. I know that there was more said at the interview with Sando but I don't know what it was. Arthur Steadman, recalled, said : The cheque for £7 4s dated 23rd January is m tho handwriting of Sando and is signed " Hasel and Co. per S. & S." The one dated 24th January, for a similar amount, is m Sanderson's handwriting, and is signed the same. It was paid m to the credit of Sando and Sanderson on the 26th January by Sanderson. Both cheques were debited to Hasel and Co. I don't know whother ono is a refund of the other. Hansen saw me at tho Bank m March about some dishonored cheques. I believe some of the cheques were dishonored after the 20th of March. Hansen eaid his credit had been ruined on account of the dishonored cheques. I don't think he then spoke to me about a mortgage. He spoke about it afterwards, however, when ho asked me to explain his position. I showed him the account m the ledger and told him what I could about it. I believe I showed him the deed the next time he came iv. I spoke to Sanderson several time 3 about Hansen coming m about the deed. I had no written authority to show tho deed to Hanson, but Sanderson was aware of my intention aud did not object. When I showed the mortgage to Hanson and explained it he seemed to be dissatisfied with the whole affair. He spoke gonerally of being swindled but I don't know whether it was m connection with the dishonored cheques or the mortgage. I sent Hansen to Sanderson and whon they returned I handed Sanderson the mortgage. He said, " £250, isn't it? " I replied, " .No, it is £275," and ho then said there must have been some mistake. Hun"en eaid, " Didn't I tell you so !" or words to that effect. To Mr Perry : Hansen was very excited on all occasions, and on tho last ran excitedly out of the room. £275 wbb advanced by tho Bank against the mortgage. Mr Perry said he had no further evidence at present to call, but might, however, have to call some as to character — or want of character as Mr White put it— after the defendant's case was closed. Mr White said, m answer to a question by His Honor, he thought the evidence as to character his learned friend wished to call impugned tho character of Sando. A3 one of Ins witnesses — not as to character — (Mr Batliam) wanted to go away by tho first train m the morning he would ask that his evidence be taken before tho Court adjourned. This was done. James B. Bathain, District Land Registrar, Christchurch, was called, and identified the mortgage given by Uausen to Sando and Sanderson. The Court then, at 4.45 p.m., adjourned till 10.30 this morning.