A Peculiarly Hard Case.

Star (Christchurch), Issue 5880, 19 March 1887, Page 3

A Peculiarly Hard Case.

BANKBUPTCY BEVELATIONS. THE CONSEQUENCES OF AN ACT OF FELENDSHIP. [Bt Tklbqbafh.J * [Spboial to thb "Stae."] AUCKLAND, Maboh 19. A case of hardship was disclosed in the course of bankruptcy proceedings yester. day. Sam wel Neill, master of a vessel, out of employ, deposed that in July, 1884, he lent a friend named Michael Downey JB2SQ, to enable him to purchase a business. It was a friendly act, there being no stipulation as to interest or time of repayment, beyond that ihe money should be refunded as soon as possible. The money waß paid to a wholesale house in Auckland. To secure himself, witness, on the recom- ! mendation of a principal of the firm, became a partner. ,He never received money in the nature of profit from the business. In 1886 he was notified that Downey was not meeting his bills, and this resulted in the business being wound up, the estate being assigned to trustees for the benefit of the general creditors. The deed of assignment freed Downey from further liabilities, and witness signed it under the idea that he was on a similar footing; but he had since had hia eyes opened to the fact that he was largely liable for debts amounting to £8876 17s 2d. He had no private debts whatever. He was a Bingle man, with no household effects, and had simply filed to avoid being tent-bo gajoL