DISTRICT COURT.

Westport Times, Volume IV, Issue 670, 11 June 1870, Page 2

DISTRICT COURT.

SITTINGS IN BANKRUPTCY. Thtjesday, Jun 9. (Before Mr Justice Clarke.) IN EE J. H. KINO. Mr Home appeared on behalf of the insolvent, and applied for order of discharge. No creditors had proved, and thert> was no opposition. Order granted. IN EE EOBEET DT/TTON.

Mr Pitt appeared for the insolvent, and applied for order if discharge. The Provisional Trustee read a statement showing liabilities £533 17s 6d, assets £l4O. None of the assets had been realised. No creditors bad proved on the estate, and there was no opposition to the application. In reply to Tiis Honor Mr Pitt stated that the debts had been contracted several years back, when the insolvent had carried on business as a contractor. The latter was now a seaman before the mast, and had no means of satisfying his creditors. Order granted. IN EE CESAEE NOSEI.

On the application of Mr Pitt, this matter was adjourned till the next sitting of the Court. IN EE QEOEGE LIMBEICK. Mr Pitt, in this case, applied for an adjournment till the next sittings of the Court. Application granted. IN EE THOMAS CATO. Mr Pitt applied on behalf of insolvent for a final discharge. The liabilities were £240175, assets £62. No claims had been proved, and there was no opposition. Order granted. IN EE HENEY HAEEIS. Insolvent applied for his final discharge. The Provisional Trnstee reported liabilities £l4O 9s 4d, assets £9O, none of which had been realised. There were no opposing creditors, and no claims had been proved. Order granted. IN EE JAMES SIMPSON.

Mr Pitt appeared for the insolvent and applied for order of discharge. Mr Home, instructed by the supervisors, Messrs .Field and Bull, opposed the application. Mr Harris, Provisional Trustee, read a statement showing liabilities .£1579 ss, assets, £1037. The claims proved amounted to £1626 16s 9d. The estate would realise about five shillings in tbe pound. The iusolvent's books were not satisfactory, showing »»» .xponoo <i»obursements, or creditors' accounts. He could not recommend the insolvent to receive his discharge without examination.

All witnesses were ordered to leave the Court.

James Simpson, sworn: I filed rny declaration of insolvency January sth, 1870, and 1 was adjudicated a bankrupt Junuary 24tb. On January 3rd, "I paid Bull and Bond £69 for the building erected on the site of the one that was burnt. I did not know how I stood when that payment was made, but I was aware that I was in pecuniary difficulties. The fire had occurred too recently for me to ascertain definitely my position. I leased the ground from Mr Tasker, but I am unaware of a covenant in the lease by which it lapses in the event of my being insolvent. Mr Tyler drew up the lease by instruction of Mr Tasker; the document was read to me, but I never had it in my possession ; and I positively affirm that when I rebuilt I had no idea that Tasker could claim the property. I never communicated with Tasker, but he was here in February or March, and he then claimed the property, at the same time stating that, if I should desire to continue the lease, I might do so, but none other should have it. Mr Lightband was desirous that Tasker should cancel the lease. I then first became aware that Tasker could cancel it. On January 4th, I paid Eowlands, as agent for Tasker, £24 rent that fell due in December, 1869. On the same date I paid Struthers £7 10s 3d, and R. O. Reid £7. The item, £364, is for wages brought up to my insolvency from a date six months prior; four men were employed. The sum of £l3O represents my household expenses for 26 weeks at £5 per week. Theaccountbooks showing expenditure were destroyed at the fire, and in preparing the account I had nothing to guide me but memory. I thought I could meet my engagements up to the time of my filing, and that act was in consequence of Mr Lightband's pressure. A bill of his matured in December, 1869, which I dishonored. He was in "Westport when I filed, and he refused to give time. I was hopeful I should be able to pull through if I got time, and it was in order to protect mjßelf, and gain time to arrange with Mr Lightband, that I filed. I did not then purpose going through with my insolvency. But for the fire Mr Lightband's bill would not have been dishonored. I never renewed a bill. I have not carried on business opposite Tasker's property since I filed. The business is carried on by Evan. ITe and t e two brothers Hicks were in my employ. I have ordered goods for Ryan as 1 am better known than him. A package of leather was shipped from the Grey to my order for Ryan, and payments have been made by me for it on Ryan's account. I have paid the workmen wages on Ryan's account. Ryan is my brother-in-law. The

house and ground where I live belongs to my wife. I conveyed it to her by deed, drawn up by Mr Pitt in December, 1869. It was won at a raffle, and cost me £l. The consideration is fixed at £4O to meet the requirements of the Stamp Act. The books produced are, I consider, sufficient for the correct keeping of accounts, and are sufficiently intelligible. I balanced my accounts regularly before the fire, and could always satisfactorily ascertain my position. By Mr Harris: I entered into partnership with Roberts about February, 1868. I put a few goods and some little money in the business. Roberts had been indebted to me many years. t left Australia on representations made by him, and when I arrived here I found matters wore a very different aspect. Roberts left for England a few weeks after we joined as partners. The firm was then involved, Lightband being due £553 and M'lntosh £IOO. I had improved my position materially by January, 1869. There was a deed of partnership executed. I have not got it here, but I can produce it. Mr Harris requested his Honor to have the deed produced. In the meantime other witnesses could be examined.

Insolvent was instructed to produce the deed.

Daniel Ryan, sworn: I know insolvent, he is my brother-in-law. I was in his employ before the fire. Simpson occupied the premises I am now in before his insolvency. I have seen a notice " Removed opposite" on Tasker's premises. I don't know who put it there. Hicks wrote it in my place. I commenced business on my own account in January, after Simpson was insolvent. I started with my own money. I got none from Simpson except what he has taken in my shop. I have not bought a pin's worth of goods from Simpson since the fire. None of the goods were taken out of Simpson's place and put in my shop ; there are some old rusty weights, and a few lasts belonging to Simpson. There are no boots, nor leather nor other material. That I positively swear to. Simpson has written for goods for me, and they have been sent to him, and I have paid Simpson money on account for the goods. Simpson is better known than I am, and knows where to send for goods ; he has had more experience. I know nothing about Simpson's private accounts. The only books I meddled with are those produced, and I only made occasional entries, in Simpson's absence, of money received or goods sold by me. I was not his foreman, but simply a journeyman. I gave out work to the other hands occasionally. The business is entirely mine, and Simpson has not the slightest interest in it. I don't know what he lives on, it may be the atmosphere, but it is scarcely likely. He manages my business mostly for me, but I have paid him nothing, and we have made no agreement. I know the house in which his family live ; it contains four rooms, and furniture equal to the average of West Coast fixings. By Mr Harris : I am a creditor to the extent of £124 10s for money advanced and wages. He paid me £7O I lent him. He had the use of the money about three months, and paid me before I went to Dunedin in March, 1869. I went because I was ill. My claim for wages is for 21 weeks. Simpson previous to that generally paid me in cash weekly. He sometimes let it run two or three weeks. I slept at Tasker's premises after Simpson had been placed in charge by you. The goods I have are chiefly made up. The brothers Hicks worked for my brother-in-law at one time, and are now working for me. By his Honor ■ I took away to Dunedin about £270, and remained there from March till August. I was ill, and an inmate of the Hospital the greater portion of the time, and earned no money there. I returned to Westport and worked for my brother-in-law for 21 weeks, but did not get paid my wages. I brought about £IBO back with me, and that is the money I have started business with. Simp"son's goods were removed from the fire into the Kyeburn Hotel and into another shop; none came into the place I now rent from Whyte and Pirie, and which I have occupied since I started business.

James Simpson recalled : I produce deed of partnership, dated February 12, 1868. The partnership is not dissolved. The Kyeburn Hotel was sold by me on Saturday last, it belongs to Roberts. I have not received the money, it was detained by Mr Harris. By Mr Pitt: I hold power of attorney from Roberts, under which I sold the Kyeburn Hotel, and which I now produce. I have held the section under a business license since 1868, which I also produce. The reason that the license was made out in my name was that Mr Downe, Warden's Clerk, said that was the only way I could hold it.

The evidence of Kodert Hicks and Thomas Hicks corroborated the previous testimony. Mr Home contended that sufficient had been shown to deprive the bankrupt of his certificate. In Dee., 1869. a bill had been dishonored, and, whatever the bankrupt's belief as to his position might have been prior to that, he could not but then have been aware of his-inability to meet his engagements. He delayed to file, however, and, in the meanwhile, diminished the sum, that would have been otherwise divided amongst the creditors generally, by preferential payments to creditors. The £67 was paid to Bull

and Bond the day previous to his filing, and, according to his own statement other items were paid after he had filed. In addition to the above reasons the unsatisfactory manner in which the books had been kept, were of themselves sufficient to deprive him of his discharge. Then there was the reckless building of premises on the strength of a lease which he must have known had lapsed by his insolvency; then there was the side arrangement with Tasker that he was to have the lease renewed, and the payment of rent to Rowlands immediately before filing. He trusted his Honor would see fit to make an example in the present case, and at least suspend the granting of the certificate

Mr Pitt failed to see that anything had been shown to induce his Honor to refuse the order of discharge. Fraud had been suggested all round, but they had failed to prove it, and, in order to believe that there had been fraud, his Honor would have to believe that there had been most corrupt and diabolical perjury. The evidence of the insolvent, of Ryan and the brothers Hicks had not shown that, but entirely the reverse, and the conduct of the insolvent would certainly not convey an impression of fraud. He had certainly paid away sums shortly before the filing a declaration of insolvency, but the circumstances under which that was done, showed most clearly it was not premeditated. He was perfectly solvent previous to the fire, no bills had been dishonored then, and but for that catastrophe the December acceptance would have been duly retired. Even after the fire the insolvent had still hoped to pull through, he expected to arrange for time and pay everything in full. All went to show that. He paid the small liabilities, and without loss of time built new premises ; and that brought them to another point that had been strongly suggested, namely,that the insolventhad rebuilt, well-knowing that the lease had become invalid by his insolvency. He thought that that view was too absurd for the Court to attach the slightest importance to it. It was in the last degree improbable that he should have knowingly placed himself so completely at the mercy of Mr Tasker. "What possible advantage could he have anticipated from doing so ? There could be no doubt, and daily experience brought it out, that the insolvent had become a party to the lease without being cognisant of the covenant referred to. Neither had there been any delay in filing. As soon as he found Mr Lightband refused all terms, then he filed, and it was done before Mr Lightband left Westport. He would contend also that no time had been lost between the fire and the declaration of insolvency. It was before the Court that he had lost most considerably by the disaster, but it was impossible to tell immediately in the confusion to what extent he had suffered. It was very certain that the bankrupt had used every diligence in protecting the property. Some had been taken to the Kyeburn Hotel, another portion had been placed in the shop of Mr Schulhoff. And the whole result was that, in spite of the firm having been in difficulties in 1868, when bankrupt first joined Roberts, in spite of building and re-building and loss of stock and endless expense consequent upon the fire, in spite of the expense attending the liquidation of the estate in bankruptcy, there were still £4OO in the hands of the Trustee which would give 5s in the pound. He thoueht the creditors, under the manifold disadvantageous circumstances were, and ought to consider themselves, very lucky. Something had been attempted to be made out of the sale of the Kyeburn Hotel for £3l. It had been most clearly proved that the property actually belonged to Roberts, and that the bankrupt sold only as his attorney. The very fact of the last business license to protect the property having been taken out, as all the others were, in the bankrupt's name, with no addition as to being attorney of Mr Roberts, an addition which might so easily have been made, and if fraud had been intended doubtless would have been made, was, to his mind proof sufficient, if any had been wanted, of the bankrupt's integrity. And they finally came to the point that in the worst taste had been urged against the bankrupt, the nonproduction of accounts. If he had intended to act in any other than the most straightforward manner possible, would he have produced any books at all ? Under all the circumstances he prayed his Honor would think fit to grant an immediate discharge. His Honor said there was only one point for him to consider, and that was the payment of creditors on the eve of bankruptcy. It had been stated that the filing of the declaration was only done to gain time, with no intention to carry the matter through, and he must say, if that had been the intention, it was most reprehensible thus to trifle with the Court. He must say, however, that the insolvent appeared to give his evideuce very straightforwardly and did not appear to have acted in any way fraudulently; the discharge would therefore be gran ted. Mr Pitt applied for costs which were allowed.

Peidat, June 10. in be owen o'neied. Mr Pitt applied, on behalf of the insolvent, for an order of discharge. Mr Harris, Trustee, objected, on the ground that no statement of accounts had been rendered by the insolvent. Two books were produced by him from

which leaves had been torn, and it was impossible to arrive at anything definite in connection with the estate. Mr Pitt asked to adjourn the matter to furnish further accounts. Mr Harris suggested that insolvent's protection should be withdrawn. It was finally agreed that satisfactory accounts were to he lodged with the Trustee within one month, or protection would be withdrawn. IN BE CHAHLES MABTIN FOX. Insolvent appeared for final order of discharge. Mr Harris reported that insolvent had been adjudicated a bankrupt on his own petition on May 11th. The ■liabilities were £260 9s 6d and assets £251, of which the sum of £39 4s 9d had been realised. He should wish the bankrupt to be examined. C. M. Fox, sworn .lama boot and shoemaker, resident at Westport. No creditors have been pressing me. I have never been Bued, but I anticipated it. Statement produced is for six months previous to my declaration of insolvency. On December Ist I had stock £SO. The £IOO I borrowed from Gibson, of the Miners' Best Hotel, at different times. I value my own and my boy's services at £7 per week. A journeyman is put down at £2O per month. My rental is £6 per month. My household expenses for six months represent the balance of £l2O. I had something less than £2O when I filed. No one had any goods of mine. None were removed from the shop shortly Previous to my filing. I had an Art Tnion of jewellery, the articles were chiefly my own, but I got a few from other parties. The Art Union money was chiefly swallowed up in expenses, it amounted to £sl 15s. It is not mentioned in the statement. I did not think it necessary. The statement was made partly from my books, partly from memory. The accounts in the ledger are taken from the smaller [account book. ! Mr Harris could not see that there had been any cause for the insolvent to apply to that Court. In any case he should ask for the insolvent to be sent back, to furnish particulars respecting the £IOO alleged, to have been borrowed from Gibson, and an account of what had become of the iproceeds of the Art Union. He should jalso require a proper account of his debtors, so that he could see who and jwhere they were. The application was set down for hearing at the next sitting of the Court. I The Court then adjourned sine die.