DISTRICT COURT.—TARANAKI.

Wanganui Herald, Volume V, Issue 1429, 26 March 1872, Page 2

DISTRICT COURT.—TARANAKI.

BEAansH & Dale's Bankhuptcy.

In giving his decision in this case the Judge, (H. Eyre Kenny, Esq.,) said : —Though there is a large mass of evidence before the Court, 'no complicated points of law are at issue, yet I feel some difficulty in disposing of it so that the decision of the Court may be a protection to the public, and yet not press too heavily oh the bankrupts themselves. I Cannot help thinking that however disastrous their conduct may have proved to others, the bankrupts are the victims of a system, and not individually dishonest or reckless men. The system to which I allude is the almost universal practice which per vails in the Colony, of men carrying on business of all sorts on borrowed money, with no capital in the proper sense of the word, and often | with no adequate knowledge of the conduct of the business itself, whatever it may be. In Messrs. Beamish and Dale we have a very good and complete instance of the practice which is growing such a crying evil. They commenced at old Patea in January, 1868, with about £200 t\ orth of property between them; out of that they built the store, and they filled it with goods, supplied to them on credit by Taylor and Watt to the amount of £500, with whom from that day forward they were never out of debt. Knowing nothing of accounts, and being entirely ignorant of mercantile affairs, they extended their business considerably by the erection and stocking of branch stores ; they entered into a contract with the Government for the rationing of the Colonial forces, so extensive that money passed through their hands at the rate, of about £10,000 per annum. Knowing nothing of baking, they now added a bakery, and knowing nothing of brewing, shortly afterwards addeda brewery to their multifarous occupations, and on the top of all this there came the road contracts. All this time, no proper books or accounts were kept, no cash book was ever opened, cheques were dishonoured by the Bank, and no wonder for we find the bank book itself left unposted for nearly six months together, and during this period promissory notes bearing the signature of the firm, were flying about on all sides, and as Mr Dale confesses, they could never tell how they stood, except on one or two occasions when they took stock. Disaster and ruin could be the only result of fucli mad folly as this. It is to be regretted that the law is so indefinite in these cases where no actual fraud or dishonesty is shown, but where it is proved that a course of reckless dealing has been carried on.

The present bankruptcy case falls within the 4th section of section 120 of the Bankruptcy Act, which states —" That having been to his knowledge or belief unable to meet his engagements with his creditors, ho without reasonable excuse failed to file or delayed the filing of o. declaration of insolvency," _ If the bankrupts had conducted their business properly they would have known their condition in January, 1871, and the large debts due to Gibson and other creditors would not have been incurred. Dale's personal conduct is good. He has given his evidence very straightforwardly, though subject to a most rigorous cross-examina-tion, and with the exception of the little discrepancy about the pledge transac • tion, he has not contradicted himself at all during his examination, therefore the Court will only suspend Mr Dale's discharge for three months. Mr Beamish's conduct on the other hand is not nearly so satisfactory. That very ugly dealing about the horse, and the consequent false statements filed by Ml- Beamish in the Court, bear a very bad appearance. Stupidity might be be the reason of his conduct, but nevertheless the Court must mark its sense of his carelessness, and their decision is that his discharge -must be suspended for six months.