DISTRICT COURT.

Wanganui Herald, Volume XXXIX, Issue 11562, 19 May 1905, Page 7

DISTRICT COURT.

■ 3 • (Before His^ Honor District Judge Haselden.)

FRIDAY, MAY 19, 1905.

PUBLIC EXAMINATIONS.

In re George Alben Reid. — Public examination resumed.

Bankrupt, continuing his evidence, stated that at the time of his bankruptcy he owed Ellis Bros. £3 8s 9d; for goods sold privately for them. Had not accounted for. them at time of bankruptcy, but had accounted for half of. them since by working for Ellis Bros. Just before he filed there was a ■ warrant for his committal under a judgment summons at the suit of a creditor named Humphr-ay. Had borrowed a saddle from the latter, and had returned' it, but Humphrey said he had not received it. Was owing Mrs Carter "\£9 2s 6d at the same time for goods sold on her account. The last sale of th-ese goods was about a month before he filed, the first sale at the end of last November. Had not rendered any account. Was not aware she had threatened criminal proceedings, but knew sho had placed the matter in the hands of a solicitor. After hearing the latter's letter (produced) read, thought he must have been aware of a threat of criminal proceedings. Knew there was a warrant out for his arrest at Humphrey's instance, being on the judgment summons referred to. The amount was paid off by himself. Got the money from Mr Samuel Gibbons about a week before the day when he executed a chattels security. Did not execute more than one bill of sale. Mr Gibbons paid the amount by cheque, which he handed over to Constable Black, who acted as bailiff. Bill of sale produced was the one he gave. Got no further money from Mr Gibbons besides £7 Bs' 6d. Another bill of sale produced was for .£27, but knew absolutely nothing of any other amount besides the £7 8s 6d. Told Mr Miles, solicitor, he was thinking of filing. The latter told him later the same day he would get ,£9 '2s 6d for Mrs Carter's claim from Mr Gibbons, together with the amount of filing fee, and Fulerton-Smith and Miles' account for costs previously incurred. Bankrupt got no cash himself. Was not aware of any claim against him by Fullerton-Smith and Miles. Had no property outside what was assigned by the bill of sale. Filed two days after signing it. At that time owed .£152 10S 4d, besides what was secured by the bill of sale. His assets outside of this were nil. Was carrying on? the auctioneering business from July, 1904, till 2nd February, 1905. Books produced were kept by him. Two were invoice " books, with - duplicate pages for carbon copies. Also kept ledger (produced) for book transactions only, and also a journal, in which anything brought in for sale was put down. Figures set opposite the entries in this were reserve prices. Had no means of showing what profit or loss he was making. Had no entries to show trade ex-, penses. Kept no separate account to show money received on account of customers. Knew, nothing about a trust account. Did not take any steps to ascertain his duties and responsibilities before he went into business. . By His Honor. — Did not pay all the money h© received into the bank. Cross-examination continued. — The entry of amount paid for his license fee was dated 22nd August. Gave a p.n. to the bank for the amount, which was backed by two Marton residents. It was a three months' bill, and he got the money on May 19, paying for the' license the same day. Be" : tweon £7 and .£lO worth of the furniture in the bill of sale produced was got by him after ho began business. Some of it was not paid for, probably about £9 worth. Was married and had one child. Had not gambled for some considerable time. Occasionally betted on races. Accounted for his bankruptcy by the business not paying, and not knowing his position, as he kept no books to 6how it. Had no expectation of receiving any money outside his earnings, except possibly under the will of an aunt in Sydney. Could not at present make any offer to his creditors. By His Honor. — Had no idea of the gross amount of sales he had effected while in business. Thought it would be about ,£IOOO, on which he got 5 per cent oil some lines and 10 per cent on others. His rent was 15s in one place and 17s 6d in another. Used to employ a storeman on Saturday afternoons only. His advertising would be from 12s to 15s a week. Had no other trade expenses. Had bought a cottage about twelve months ago, paying it off at the rate of 15a a week, principal and interest. Had given it up. Whan he went in to the house had furniture worth about .£l2. His present furniture wa3 worth from .£25 to .£3O.

By Mr Treadwell.— When he started business he had £4 and owed .£SO. The latter amount included what he had borrowed to pay for his license. Carried on a land and commission agency besides auctioneering. His expenses equalled his takings. His creditors had all been paid except Ford and Ellis Bros. Had settled partly with Ellis Bros., and had paid £2 to Ford, owing him still £6. No advice was tendered to .him as to the effect of signing the bill of sale. He was told the document was ready, and signed it in good faith. All the furniture and everything he had were included in the bill of sale.

Further cress-examined. — Was not aware that Ford claimed his account was a trußt debt. By Mr Treadwell. — Was not aware it was his duty to render statements within fourteen days after sale. Sometimes rendered them, and sometimes waited for clients to come in.

In re Joseph Richard .Paul.— Mr Gordon appeared for the bankrupt, the Crown Prosecutor conducting the examination. Bankrupt stated he was a brewer, and was adjudged a bankrupt on 6th April last. Had been in business on his own account for about nine years. Started in Feilding about nine years ago, .where he was in business on his own account for four years, then two years as brewer and manager. Had about .£4O when he loft Feilding, and owed .£lO on a private debt to his brother-in-law. Then went to Nelson, where he was something under two years. Had nothing when he left there, and owed about .£3OO. Came to Waiiganui, and started brewing on his own account. Took a leasehold property from the Public Trustee, up 'the River Bank. (Lease produced). The rent was .£3O a- year, and ho took it for four years from 15th August last. It was provided that he might remove certain buildings, fittings, and plant that he had put up at the end of the term. Had put buildings and other improvements on this leasehold, consisting of raising one building an extra 20ft, and building a bottling store. Spent over .£2OO on these. Could not say what' the material would fetch if removed. /Did not inform the builders what ho owed in. Nelson. Had not paid the firms from whom he got the building material. Gave a bill of sale (produced) on 3rd November, 1904, to Mr Nixon to secure .£SO. It was given over practically all the working plant. Had included the plant in the value of the ' business as a going concern. The .£SO was

still unpaid. The articles included in the bill of aale had not all been paid for; did- not vthink any of them had' been paid "for:.- Thought if sold separately and aot r as a going concern would fetch more than ,£SO. Had tried to sell the brewery as a going concern. Had likely buyers, but could not pToceed because he was made a bankrupt: At the beginning of the.yoar arranged with his 'creditors at a meeting that he should try to sell, but his creditors made him a bankrupt before the time for receiving tenders had expired. Had disclosed all his liabilities to the Official Assignee. Did not think Mrs Harley's name was included in the list of his Nelson creditors. The Official Assignee told him a claim had been received for .£IOO from Mrs Harley, and bankrupt said ho would dispute it. The claim was for rent, rates, and taxes. Did not say to the Official Assignee he was managing for Mrs Har'ey, and was not her tenant. Admitted signing the leas-o (produced). Considered the lease was broken when he did not pay the rent. He was on the place on sufferance only, and was to go any time the owner liked. Could -not tell from memory what was his turnover in Wanganui. Sixteen hogsheads was all he brewed during the time he vras there; the books showed what he had 3old. Thought he had sold about three-quarters of it at 2s (3d per gallon. The profit would be, about 25 per cent, or say ,£1 a hogshead. Supplied most of what he sold in small amounts. Had no hotel trade. Did not make many bad debts. Bought beer from two Dunedin firms, about six hogsheads, making a profit of about £1 a hogshead. Had not paid for it. Had paid hie current expenses and wages. Had contracted debts to the amount of .£3OO in Wanganui. Had about d£2s on his books. The Collector of Customs had not complained that there was a great loakage in tho amount brewed. He had inspected the stock twice, and signed the books as correct. Bankrupt had not been drinking his owb beer to excess. Had no means outside his assets. When he, was sued from Nelson, he assigned^ the whole of his property to his wife to protect the Wanganui creditors, as they had put the building up for him. Kept no bank account. His books consisted of a ledger, day-book, cash-book, expenses book, and balancing book. Could ascertain; his position from his books, and did so every month. Found he owed more money that he was worth every month. Knew all along he could Hot pay lies creditors then, but expected to pay them in future. The bailiffs were put in his house for rent about three months ago, and he had been sued by creditors for debts. Did not file himself because he thought he could make a success of the business. Could have turned out nine hogsheads a week all the year round if he had had enough capital to work with. Calculated on having a gross profit of about ,£450 a year, out of which about iJ3OO would be taken up with working and other expenses. Had had promises from the hotels and some of the clubs. Had his creditors given him more time, he expected to have been, able to get more capital into the business from his brother-in-law and Mr Nixon. They would not have got shares ; he would have paid interest on it. Of the stock included in the bill of sale, the beer was sold, and part of the malt. ~By Mr Gordon. — His wife had about ,£3O when he came to Wanganui, which went part into the- brewery and part to tho house. Russell" and Bignell were his largest creditors; they did all the building. They" had" not asked him' about his position. They asked. for a p.n. about two months after the "building was completed. His other Wanganui creditors had not asked him about his position. The property was taken over in August, 1904, but was not ready to start brewing till just before Christmas, the delay beiag caused chiefly by the Borough Council keeping him waiting eight weeks for a drain after he had put his application in to them. Called a meeting of creditors in January, and explained his position to them. It waa arranged that ho was to go on with the business. He called another meeting about two months after, the creditors in the meantime offering no opposition. The result of the meeting was that he agreed to sell the business, and the next etop was that a petition was filed to make him a bankrupt. The assignment to Mrs Paul was given up by her for the benefit of the creditors.

Re-examined. — A Nelson creditor had obtained judgment against him prior to the first meeting of creditors. The assignment to Mrs Paul was made on 3rd December, 1904, and it was stated at tho first meeting that it would be given up for the benefit of the creditors.