SUPREME COURT, WESTLAND DISTRICT.

West Coast Times, Issue 624, 24 September 1867, Page 2

SUPREME COURT, WESTLAND DISTRICT.

i » SITTINGS IN BANKRUPTCY. Monday, September- 23rd, 1867. (Before Mr Justice Eichmond.) Tho Court opened this morning at 11 o'clock. Mr J. E. Graham, Inspector of Bankruptcy, was present. Finas Headings, be john arkeli. On the motion of Mr South, who appeared for petitioner, the final order was granted. BE JAME3 QILCHBIST. A similar order was granted on tho motion of Mr South. BE WILLIAM DUEN3. Mr Rees for petitioner. Insolvent examined by Mr Armstrong I said a share in a mining claim, and gave the money to you. Mr Armstrong— Yes, but ho worked the claim afterwards. Insolvent — I worked under the purchaser. I asked Anistrong about tho price. Mr Rees Btatod— that Burns and Armstrong wore in partnership in the claim and a store. Burns had regularly paid over to Armstrong half the proceeds of tho share of

the claim and had paid him the whole of : the money the claim was sold for j but Armstrong had never accounted to Burna for tlie proceeds of the store. . _ Mr Armstrong stated in reply to his Honoi that he had not brought the accounts oi tue storekeepiug- . „ His Honor said he did not think from the insolvent's answer that he had designedly defrauded Mr Armstrong. „,,..* Mr Rees, in reply to his Honor, said that a meeting of creditors had been called, but they had not attended. I His Honor said that being the ca3e, under the Act of 1866, he could not grant insolvent 3 final release for six months, and the effect of that would be to suspend his protection ior that period. Mrßee3said that the meeting was not called for the purpose of consenting to immediate release. • His Honor— Then I will grant an order giving power to convene a meeting of creditors for that purpose. Mr Eees said that an argument had taken place before Mr ' Justice Gresson, in which most of the counsel present took part, and his Honor decided that although final releasa would not be granted still protection would continue. Mr Harvey had chiefly argued the case, and perhaps his Honor would not object to hear him again on the matter. I His Honor-I think I have heard Mr Harvey, but still I shoidd be happy to hear him again. Mr Harvey contended that 'if protection were withdrawn it would in effect be nullifying the vesting orders made in pursuance of the Acts of 1865. His Honor remarked that if he continued iv protection in such cases he would in fact be nullifying the 6th section of the Act of 1866. In the present case he would, however, continue Burns' protection, and adjourn the case until the next sitting but one of the District Judge in insolvency cases. 'BE JOSEPH ANDEESOjS*. Mr Eees for petitioner. The Inspector of Bankruptcy said that in this case there were no assets, insolvent's property having been swept away by the river Teremakau. There was no opposition. Final order granted. BE WILLIAM HENRY IXORA3I. On the application of Mr Button a final order was granted. EE CHAELES NYULASEY,. Mr Button said that when this case last came before the Court, the sequestator, Mr Havdcastle, had under an erroneous impression stated that insolvent's goods had been sold under a bill of sale. Such was not the case. The good 3 were sold under an execution obtained by Messr3 Anderson and Mowat, who were also concurring creditors, but the execution wa3 put in ani the goods sold before the petition was presented. ' His Honor said that he did not think execution creditors ought to be concurring creditors in a petition which alleged that tho insolvent had a certain estate, but of which they were -prepared to strip him before he came into Court. Mr Button said that the real fact of the case was, that the insolvent had been sued in Invercargill, at the Resident Magistrate's Court, by Mr Ekerstein, when he had no opportunity of defending himself, and it was against that that Messrs Anderson and Mowat had acted. His Honor said that {probably the motive under which those gentlemen had acted was praiseworthy, bufc ho must condemn tlie meaua by which it had been carried out. If the execution had been carried out first, and then Messrs Anderson and Mowat had concurred in the petition, it would have been much preferable. Ho wa3 pleased to see that they appeared to justify themselves, for mo3t likely they did not know what would be the result of their action. Mr Mowat, who was in Court, said that he should like to be examined on oath. His Honor — Indeed, I cannot hear you. J| You have appeared by Counsel, and I cannot B see the utility of prolonging tlii3. I grant the insolvent's final order. EE ROBERT aEAHAM. On the motion of Mr Rees, the final order granted subject to the execution of a conveyance by insolvent. EE CHABLES PEEEMAK. Insolvent no.t appearing, his petition was dismissed. RE WILLIAM SLATER. Mr Button for petitioner. Tho Inspector of Bankruptcy said there were no assets. No opposition.* Final order granted. EE JOHN JACKSON. A similar case to the last. Fiual order granted on the application of Mr Button. RE OHBO. CHAS. ANDERSON. Another similar ease. Final order granted on the application of Mr South. RE ALFRED SINGER. Final order granted. Mr Eee3 for insolvent. EE JOHN CONES BHO"WN. Final order granted. Mr Rccs for insolvent. EE HENRY LINSTROM. Mr South for insolvent. Insolvent was examined by Mr Alfred Rawlings, a creditor — I bought the beef from you two months before I filed my petition. I do not recollect whether I went to Okai'ita tlie same day you asked me for the money. You asked me for the money at Okarita. I told that I had only mouey enough with me to pay my expenses. Jones] and M'GHashah held a bill of sale over my property, which they put in force when I was at Okarita.' By his Honor — I went down to Okarita to see if I could open business there, and do better. Mr Rawlings — Insolvent went to Okarita a week or ten days after he got the goods. It was supposed to be a cash transaction. His Honor said that ho thought there was hardly enough to show that insolvent had contracted a debt without reasonable expectation of payment. Mr Eawliug3 said that he was not aware there was a bill of sale. His Honor — There are means of knowing if the public would avail themselves of them. I still, however, think that a much greater publicity ought to be given to bills of.'sale. Ido not think I should do any good, either to the public or to tho creditor, by delaying relief, and I shall, thereforo, grant a final order of discharge. EE GEOEGE MEYNELL. Final order granted. Mr Rees for petitioner. BE GEOBGE COOPEB. ' Final order granted. Mr Rees for petitioner. RE PATRICK GILLIN. Final order granted. Mr South for insolvent. EE ALEXANDER MONTGOMERY. Mr Rees for insolvent. Mr Button for - Mr Angers, a creditor, said that he feared ho should not be able to go on with the opposition, as tho evidence upon which he relied was not forthcoming. Mr Rees, in reply to his Honor, said that a meeting of creditors had been called, but not for the puurpose of consenting to immediate relief. His Honor — Then take an order for calling a meeting of creditors in Christchurch, at tlie Inspector's oflico, and in tho meantime the further hearing of the case is adjourned. RE SAMtTEL SI'EAE WILSON. Tho Inspector said that ho found tho debts set down in tho schedule as assets did not exist. Mr Rees said that the Insolvent, who was very poor, was not in attendance, but was at Charleston. His Honor 6aid that ho had. previously stated that insolvent wrs to appear and give an ex-

planation of the unsatisfactory state of his schedule. The final order would therefore bo suspended for six months. BE BOBEBT THOMAS WILD. Final order granted. Mr Harvey for insolvent. BE GEOBGE MILBAXK. Final order granted. Mr Harvey for insolvent. BE GEOEGE H. COOPEB. Final order granted. Mr Button for insolvent. BE PATRICK HANNEY. Mr Harvey for insolvent. Mr Rees, for Mr Barret an opposing creditor. Mr Harvey said that the insolvent was not in attendance, but resided at Charleston, and produced a medical certificate that insolvent s wife was very illHis Honor adjourned the further hearing of the case. HE CHABLEB SYDNEY BEOWN. Final order granted on insolvent paying over to the Inspector the sum of LlO, value of furniture tbe insolvent had been allowed to retain. Mr Button for petitioner. BE ASTnOifY BUTIiEH. Final order granted. Mr Harvey for insolvent. BE WH'I'IAM KIXGWIUi. Final order granted. Mr Harvey for insolvent. [BE JOSEPH lOTJIS BTJTOHEB. Final order granted. Mr Bees for insolvent. BE DESIS PITZPATBICK. Final order granted. Mr Harvey for insolvent. BE SAMUEL GBEKXSJIITII STAPLETOX. Final order granted. Mr South for insolvent. BE DENIS H'INERNEY. Final order granted. Mr .South for insolvent. BE MATTHEW KTAX. Final order granted. Mr Bees for insolvent. BE J. HOGA>\ On tho application of the Inspector of bankruptcy the last hearing of this case was appointed for 23rd January next. BE GEOEGE SCOTT. Mr South said that the sequestrator, Mr Hardcastle, had realised, and wished to divide. Insolvent did not appeal*, but a creditor had taken up the matter and wished to proceed. His Honor granted an order appointing Mr Hardcastle trustee. BE J. A. THOMSOX. On the motion of Mr Button the first meeting was appointed to take place before District Judge. BE PATEICK POWER. On the motion of Mr Harvey, Mr Hardcastie was appointed trustee. BE JOHN _YBN_. Mr Button said that this was a case .n which final relief had been suspended by Mr Justice Gressou for six months, and at the expiration of that time insolvent wa3 directed to come up for his final order, that time had now expired. The Sequestrator, Mr Hardcastle, laid that although the schedule showed good asseti, the estate would realise nothing. Insolvent, on being examined by his Honor, said that a fbui*-roomed house which he owned had been pulled down and burned by diggci'3. Mr'_Hardcastle said that insolvent had never shown him his books, nor called on him. Insolvent said that he did not know where his debtors were. Mr Hardcastle had never asked him to call on him, and he (insolvenl) did not know that he was called upon to do so. Mr South said that this was the first petition filed on the West Coast ; it was filed in November, 1865. His Honor said he did not think sufficient had been shown to justify him in witholding the final order which would be granted. BE SPBOT AND CBAIG. Mr Harvey for insolvents. Mr Button appeared to oppose for several creditors, and read a statement made by Mr Craig at a meeting of creditors. The learned counsel also read extracts from the minutes of several meetings of creditora — one of which contained a resolution that Mr Mark Sprot have immediate relief. Notice had been given of opposition on the following grounds, viz. — 1. That the petitioners had contracted 1 debts fraudulently and by a breach of trust. 2. That they contracted debts without reasonable expectation of payment. 3. That they had fraudulently and by means of false pretences obtained the forbearance of certain creditors. 4. That they had kept their accounts negligently. He (Mr Button) might mention that the creditors were not anxious to oppose the discharge of Mr Mark Sprot because they considered that his had been sins of omission rather than that of commission. His Honor then read the evidence given by Mr Craig before tho Inspector of Bankruptcy. James Craig examined by Mr Button — The firm of Sprot and Craig commenced business on Ist December, 1866, and continued up to 22nd April, 1867. I had outstanding liabilities at the time I commenced. I had previously been in business in Auckland and Sydney. When I joined Sprot I had liabilities to the extent of LBOO or L9OO. I have those liabilities still. Our books show what were the profits of our firm during the time we were in business, viz., L 591 3s 6d. Mr Sprot drew nothing at all from the business. I have drawn according to the ledger L 1.023 up to March 26th, 1877. Mr Sprot paid into the business since its commencement L5lO. Out of that L 1,023 I paid L2OO on account of the firm. How much of the L 1,023 has not gono into your pocket ? The total amount Idrcw out is Llsßl 3s ; out of that I paid three bills on account of the firm, amounting to L 61 7; the rest of the money to make up L 660 8s was paid back into the firm. The amount that actually went into my pocket was L 924 The amount set down a3 what was sold for Messrs M'Landrcss and Co. wa3 L462— it ought to have been L 562. I sold the pumps to Bullock. I was to sell the engine and pumps for LSCO. I sent a telegram to M'Landrcss and Co. saying that I had an offer of LSOO for the engine and pump 3 (telegram produced). We were to sell them on commission, for cash. JL'ko pumps were sold for LIOO cash ; the engine was sold for bills, which were paid. The LIOO was paid at the end of March ; I paid it into tho Bank to our general account ; I also placed the bills in the Bank, they were for L4OO. I put the bills into the Bank for discount ; one of them was discounted some days afterwards. The bills do not appear to have been discounted, but to have been kept against an overdraft at the Union Bank. One of the bills was never discounted at all, but was kept against the overdraft. One of tho bills, I believe, was discounted. On referring to our Bank, book I find one of the bills was discounted on 4th April, for L2OO, the other was not discounted, the Bank kept it to cover Ilia overdraft. I paid the bills in to our account generally. On the 4th April our overdraft •<r was nil; there was L 176 to our credit after the bill discounted. Mr Binney's debt was contracted within three weeks of our insolvency. Mr Binney's bill was coming due when I paid that bill into the bank. I was not aware when I contracted that debt with Binney, that Mark Sprot was in difficulties. I was aware that. l was owing a very large sum of money myself. I purchased tho oats from Mr Binney, because I had an order for a small lot. I will swear that I did not ask Mr Binney to take a bill. I had an order for twenty-fivo bags of oats. I bought about 200 bags. I made a profits of Gd per bushel on some of those oats— l sold them for cash

and paid the money into the bank. At tho time I paid that money into the Bank, we were indebted to nearly all the persons iv the schedule. I sold half the oats to Cobb and Co for cash at tho time of sale I got no profit on them. I asked Mr Binney to invoice them to Cobb and Co, but he refused. Morison and Law's debt was contracted for goods sold for them at different times — extending over three months. The debt due to Edwards and and Co, was for a case of jam sold for them, aud so was the debt due to Spence Brothers; in fact all our debts are for goods sold on commission. "We employed two storemen and a clerk, whom I paid, and debited their salaries to profit and loss. Our heaviest los 3 was the depreciation in value of our store — we paid LBOO for it, and it only realised L3OO. By His Honor — I attribute our failure to depreciation in business, which fell off entirely after the first month or so. His Honor — There is no great amount of bad debts that I can see to account for your failure. Have you been called on for a statement of your expenditure for six months prior to your failure ? Insolvent — JSo* ! By Mr Button — We have made no positive losses. The principal portion of the L9OO I drew out of tic firm went to pay off my debts. I have still liabilities to the extent of LSOO. I have not filed my schedule on my private estate. I paid M*Landre3s and Co. LIOO, an old debt ; some Auckland liabilities to the amount of LGO. I have contracted private debts to the amount of L3O or LdO since the firm began. I owe Mr Sprot privately about L 25, that was before I joined the partnership ; my private bank book will show to whom I paid the greater portion of the L 92 11 drew out of the firm. His Honor said that the case would assume a very different aspect if it could be shown that insolvent's private expenditure was not extravagant-.' Mr Harvey said that had he been aware of this particular line of examination he would have had the private account made up. Mr Button said that lie intended to apply for accounts to be filed. By Mr Harvey — My partner (Mr Sprot) took no active part in the business. It was arranged that I was to attend to the business. I do • not think we had any overdraft at the time I bought Mr Binney's oats. His Honor — Has a balance sheet been made out in the ledger. Mr Hardcastle — _To. His Honor — Would the accounts balancs ? Mr Hardcastle— l do not think they would. His Honor — Well, I must confess I can't make out the losses. . Mr Harvey — I think I can help your Honor. I do not think the deficiency will be so very great. His Honor — There docs nofc appear to be more than L 350 we are in tho dark about. Mr Harvey — I think I shall be able to account for that. His Honor — I should not wonder if you were able to do that. _7ow, your next business is to palliate if you can tLo large overdrafts on the private account. Mr Button applied that the order of creditors granting Mr Craig his furniture be set aside, or at all events that the sequestrator take possession of it, so that it might not be wasted. Mr Harvey said that a vesting order had been granted, by which the property passed to the sequestrator. His Honor — Then it wants no order from me. The sequestrator is bound to take possession of the furniture. Mr Hardcastle said that ho had a list of the furniture made out, which furniture Mr Craig had retained possession of for him (Mr Hardcastle.) Messrs Binney and Hardcastle were appointed on the usual trusts. The meeting was adjourned to January 23fd, 186 S. BB 3IABK SPHOT. Order granted to convene a meeting of creditors, for tho purpose of considering whether petitioner should receive his immediate discharge. Mr Grahame was appointed trustee. Tho Court then rose.