COMMITTAL OF JOHN WELLS THE BANKRUPT.

Wanganui Herald, Volume V, Issue 1678, 3 February 1873, Page 2

COMMITTAL OF JOHN WELLS THE BANKRUPT.

This case A\^as finally disposed of on the 24th ultimo at New Plymouth befor His Honor Judge Kenny. The following report of His Honor's judgment is from the Herald :—

His Honor, in delivering judgment, said I had anticipated that the judgment in this case would rival the evidence in its ponderous volume. I apprehended.that it Avould ultimately become my duty to analyse and discuss, in detail, all the various transactions of which we have neard so much and that the delivery of the judgement would occupy the best part of the day. But it became p'ainfidly evident to me as this examination proceeded, and day after day Avent by, that the bankrupt was becoming hopelessly involved in the network of his own dishonesty and duplicity; and though I did not expect so sudden a termination, I foresaw that I would be able to dispose of the matter with comparative brevity. There can be no doubt whatever that the bankrupt has behaved most dishonestly, and that his dealings with his creditors since the month of March last have been tainted with the basest fraud . —[His Honor then went on to mention the different matters to which he alluded, including the timber transaction with Margrie, the assignment to the .wife the bill of sale to Margie, the deed of arrangement, the account books, the dishonored bill, and the general extraA'agance and recklessness of the bankrupt's conduct which are particularised in our abridgment of the evidence. He remarked on the manifest reluctance, natural under the circumstances, with which the father in laAv of the bankrupt (Margrie) had delivered his testimony, but at: the same time, gave him credit for his candour and truthfulness; and then proceeded].—But there are aggravations of the bankrupt's guilt. The manner in which he gave his evidence to the Court Avas thoroughly unsatisfactory. In the course of more than fourteen years experience in Courts of Justice, I never heard a witness more shamelessly and evidently untruthful. And all the artifices by which a reluctant witness seeks to baffle the discovery of truth and exhaust the patience of the counsel and the Court were had recourse to by this man. Looking at the circumstances of the case, he can haA-e no hesitation in saying that the bankrupt has not, at his examination, fully and truly discovered the state and disposition of his affairs. Then there is the statement under the 112 th section Avhich the bankrupt has had the impudence to brinointo this Court, a pattern of the grossest perfidy, crammed as it is from the bee-inning to the end Avhh erroi'3, misstatements, and omissions, which no sane man can believe to be result of accident or of anything else 'I but design. Nor can I pass over, without remark, the ungrateful conduct of this unlucky man to Messrs Stavert and Co ; in this country it is notpossible or desirable to apply with rigid exactness the rule of commercial morality which in England requires that every man commencing shall be in possession of adequate capital. It is often a great benefit to,a small community when young men of good business aptitudes are started in it in trade by an established mercantile firm : and if that firm makes no imprudent advances, and the young, men themselves act with honor and caution, and .keep their books in a proper methodical manner, no great harm can arise even if should unforeseen adverse circumstances be unfortunate, whilst the benefit to the inhabitants of a place like Patea, of the competition of these small traders, is unquestionable. But the position ot these young men is one of trust, and if they abuse the confidence reposed in them by persisting in business Avhen they see then- affairs becoming involved, or otherwise, they must be made an example of, for the protection of merchants in similar cases. In the present instance it is clear from the evidence, and the tone of the letters that have been read, that Messrs. Stavert and Co., acted with liberality and consideration towards the bankrupts," notwithstanding- the circumstance that they had lost money by him on the occasion of his former bankruptcy in IS7O. Nevertheless, the bankrupt i-oucocted an improbable story concerning his relations Avith them and (it is to be presumed for the sake of appearances), even went the length of commencing an action against them on the pretended agreement about Barch's bill, lhe Court is convinced that the bankrupt has been guilty of several of the misdemeanours under " The Bankruptcy Act, 1867 ," that he, without reasonable excuse, delayed to file his declaration of insolvency, and that being a trader and that diiriim-. intent to conceal the state of his affairs, he omitted to keep proper book's and accounts.

The Court must mark its sense of his misconduct by suspending the order of discharge for the full period of three years. The Court is also satisfied that the bankrupt • has been guilty of a misdemeanour imder the 2nd sub section of section 302 of the "Bankruptcy Act, 1800," and it commits hnn for trial on that char_e. It likewise appears to the satisfaction of the Court that there are grounds for fha^^f institution of a prosecution for the misdSt^F meanotirs mentioned in the 4th and sub- T I sections of section 303 of the Act of 1867, 1 and in sub-sections 4, 6, and 7 of section I 302 of the same statute ; and the trustee is / ordered to lay the papers before the Crown | solicitor of the province of Taranaki. I Finally, the bankrupt John Wells is com- | mitted to take his' tidal for wilful and I corrupt perjury- committed during his / examination. The trustee and Mr _lai£*i-ie I are required to enter into their own recoo-- ' nizances to prosecute and give evidence in I these matters. Before the Court rises, I ■ feel bound to say that the Colony is much indebted to Mr Stavert for the thorough manner in which he has caused this case to be investigated, and the trouble he has taken regarding it. I fear that the loss of valuable time he has sustained must prove a serious inconvenience. It is proper for me to add that Mr Hughes and Mr Perham have discharged a delicate and difficult duty Avith zeal and discrimination ; all that they could with propriety do for the assisstance of the bankrupt they have effected; but it was of course impossible, for.them' to persist in asking the Court to adopt a statement as to the existence of certain fact's which they had learnt to be unfounded.

Mr. Pitt asked, the Court for certificates under section 2, of section 307. The Court said Mr Pitt could take them; form to be settled iv chambers. : -; .-.