DISTRICT COURT, LAWRENCE.

Tuapeka Times, Volume XVIII, Issue 1167, 1 August 1885, Page 3

DISTRICT COURT, LAWRENCE.

(Before His Honor Judge Ward.)

A. sitting of tho above Court was held in the Courthouje, Lawrence, on Thursday, when the examination of the following bankrupts took place : —

George Mum ay, hofcolkecper, Clyde.— The Official Assignee conducted tho examination. The bankrupt, on oath, said that ho owed unsecured creditors £787 9s. He had been in business about two years. He owed abou* £150 when he went into business, but had some property, which waa mortgaged. His takings would average from £12 to £15 per week. He attributed his loss to lending money. He filed because he had bills over- , due and coming due, and had no money to pay them. He owed Theyers and Beck, brewers, £223, and they wanted the money. He gave them some spirits which he had purchased in May last, but had not paid for, towards payment of their account. He thought if he satisfied Theyers and Beck he could meet bills coming due out of the business. To His Honor : He had not perused the Bankruptcy Act.— His Honor remarked that according to section 163 of the Bankruptcy Act, 1883, the bankrupt rendered himself liable to two years' imprisonment for disposing of, otherwise than in the ordinary way of trade, any property which he had obtained on credit and had not paid for. — The Official Assignee said that he had no instructions to take criminal proceedings against the debtor. — Examination closed.— The debtor asked tbat the bankruptcy be closed. — Order granted. Philip Cahill.— Mr Crooke appeared for the debtor j Mr Finlayson for a number of unsecured creditors; and Mr Mouat for Messrs Arbuckle, Robertson and Co.— Before proceeding with the case, Mr Ashcroft (Official Assignee) said that he had appointed a Deputy-Assignee, but that some of the creditors objected to him administering the estate. —His Honor said that the objection should have been raised prior to the appointment being made. Tho Deputy-Assignee would conduct tho examination. — In answer to Mr Finlayson, the debtor said tbat ho had given a bill of salo and mortgage of stock to Mr James Robertson over horses, cattle and ' implements for £250. Debtor received no money, the consideration being an old debt due by debtor's father. At tho time tbe bill of salo was given, Robertson owed debtor's father about £40 for ploughing. Debtor gave Robertson a lien on his crop for £50 two years ago. Debtor received £20, and Robertson got tho whole of the crop. Debtor and his father entered into an agreement with Robertson. The agreement (produced) showed the debtor to be liable for £405. Mr Robertson took possession of the stock and implements and sold them. There were two horses and a chaffcutter -which were not in the bill of sale. Debtor did not know how much he owed Arbuckle, Robertson and Co. at tho time of his bankruptcy j he gave them a mortgage a few weeks ago over some fowls and cooking utensils for £13. The interest charged was 15 per cent.— £o His Honor : Tbe bill of sale was given bo that other creditors could not take the thiugß. — To Mr Finlayson : Messrs Herbert and Co. had a judgment against him, which was not paid when the bill of sale for £13 was given. —To Mr Mouat : He was signing hills every time he came to Lawrence. — His Honor : But not paying them. — To Mr Mouat: Debtor was present when the account was made up in the Colonial Bank. He gave the bill of sale to cover the bills of exchange. He never had an account with Mr Robertson ; it was his father. He did not live with his father, but stayed with him occasionally. Hia father had nothing to do with the farm or horses ; they belonged to debtor. — Mr Finlayson said that Mr Robertson's claim we •. contracted by the debtor's father. —His Honor remarked that the debtor had a perfect right to make himself liable foi his father's debts if he choso to do so. — To tho Deputy-Assignee : The amount £104 against tho estate by M. Cahill is correct. M. Cahill is my brother ; he has been working for mo for three-and-a-half years, at the rate of £30 per year ; ho did not get more than £2 in cash all the time he was with me. Mary Cahill is my sister j sho was in my employ for about three years at £40. She received about £10 in cash. — Mr Finlaysim said tha% in appearing for the principal creditors in the estate, he was instructed to state that the creditors did not wish Mr Arbuckle to administer the cstato, as he was a cred : tor; and as the creditors were not satisfied with Mr Robertsoa's pasilion, Mr Arbuckle would also be wanted to give evidence, and it would bo putting him in a very peculiar position wero he to act both as witness and judge. According to section 35 of the "Bankruptcy Act, 1883," no person was capable of acting as assignee for any bankrupt estate if he were a creditor therein. — Mr Ashcroft (Official Assignee) said tbat Mr Arbuckle was appointed Deputy-Official Assignee of the bankruptcy estates in this district at a fixed rate, taking the good and the bad estates; and as there was a lot of reel- tap cism about appointing a. fresli deputy to administer the estate, he purposed to allow Mr Arbuckle to retain office under his (Mr Ashcroft's) control and advice. — His Honor said that, according to the Act, a creditor could' not act, and therefore it would be better for Mr Arbuckle to resign. — The Official Assignee reminded His Honor tbat he decided a similar case at Omaru, when he recommended that a creditor was the best person to administer a bankrupt estate. — His Honor said that this section of the Act had not then been referred to. — Mr Finlayson mentioned that as the District Court only sat every six months, he desired to examine witnesses in this case. The Court had power under section 198 of the "Bankruptcy Act, 1883."— His Honor remarked that tho Court had powor, but ho did not feel disposed to examine witnesses ; that could be done at the meeting of creditors. If it were found necessary, ho could hold a sitting of tho Court about the 25th August. — TJho Official Assignee said that he thought be would administer the estate himself when objection was taken to Mr Arbuckle acting. A person had been recommended to him to act, but was in a similar position to Mr Arbuckle, being a creditor in the estate. — Mr J. Thompson said he was s creditor in the estate, and was asked by the creditors to accept the appointment to administer the estate, but declined to do so. — Mr Arbucklo romarked that ho had no deßire to administer the estate, and would, therefore, resign. — The Official Assignee usked His Honor if .ho

were to accept it as his ruling that no creditor was to act as Deputy-Assignee. — His Honor replied that it would be better not to do so. — Examination closed.

John Scott. — Mr Finlayson appeared for the bankrupt.— The Deputy-Assignee stated that no proofs of debt had been sent in.— Examination passed. The Bank of New Zealand applied to have John Michael adjudicated a bankrupt. — Mr Crooke appeared on behalf of the Bank, and Mr Finlayson for the debtor. — Adjudication granted. Re Peter M'Owen Wilson (deceased.)— On the motion of Mr Finlayson, a probato was grantsd. i?e James Smith (deceased.) — On the motion of Mr Finlayson, a probate was granted.