KAROA RESIDENT MAGISTRATE'S COURT.

Akaroa Mail and Banks Peninsula Advertiser, Volume 3, Issue 247, 29 November 1878, Page 2

KAROA RESIDENT MAGISTRATE'S COURT.

Thursday, Nov. 28. Before Justin Aylmer, Esq., R.M.) drunk and incapable. A female inebriate was charged with this offence, and, having been locked up all night, was discharged with a caution. Civil Case, m'culloch v. scarbrough. This was an adjourned case from 22nd November, the claim being for £100 on a dishonored acceptance, beating the endorsement of the late George Scarbrough. Mr Nalder appeared for the plaintiff, and Mr Wynn Williams for the defendant. Donald M'Culloch, being sworn, said— I remember the 19th January, 1877. I drew the bill for £100, and at the request of Mr Scarbrough, I advanced the £100 to Annand, he (Mr Scarbrough) endorsing the bill. On the 22nd January, 1878, I was told that there was a love letter for me in the post-office ; this I found was a notice of dishonor of the bill in question. I took the letter to Mr Scarbrough, who said something about Scotchmen being no good. He enquired ifl had ieceived the interest, and I replied that 1 had. He said—as long as you get the interest you are all right; we have to look after the principal. The bill was endorsed by M-Kay also. I looked to Scarbrough for the money. I saw Annand subsequently, who was unable to pay me. I have never been paid yet. The names on the back of the bill are W. M'Kay and G. Scarbrough. I do not know, if Scarbrough could not pay the bill, that I should have applied to M'Kay.- I swear I asked Annand for the money, and it was owing to what Scarbrough said that I let my claim stand over. I do not know if I had any other conversation than that referred to with Scarbrough before his death. At that time I did not tell Mrs Scarbrough about the bill. In July, 1878, Annand paid me the interest, and I was agreeable to allow the term of payment to extend to two years. When I applied to Annand for the interest due, I did not ask him for the principal, as I looked to Mrs Scarbrough as my security, she being executrix under her husband's will. I allowed the bill to stand over, simply relying on on the representations of Scarbrough and the security of his endorsement. George Bruce, clerk in the Benk of New Zealand, swore that he had either posted j or delivered the notice of dishonor of the bill for £100 to M'Culloch. James Annand deposed—My name is on the bill as acceptor. M'Cullock advanced the £100 on condition of my giving hinrran acceptance for the amount and giving him the security of two approved endorsements. The signatures of myself Scarbrough and M'Culloch were written in the Bank, M-Kay I believe endorsud afterwards. On the 24th January, 1878, M'Culloch applied to me for the six months' interest, which I paid him. I also said I could not meet the bill, but could find the money within a month. He did not ask me for the money then, buc has since threatened to take legal proceedings against me. When I paid the interest Jast we spoke'about the payment of the bill, and he agreed to let it run for three months longer, on condition that I paid the interest to date. He did not tell nic he had made any arrangement with

Scarborough since the bill became due, and I Scarbrough never told me that he had made any arrangement with M'Culloch. He, however once asked me before his death how I was getting on in the matter of the bill. I could have found the money to have paid M'Culloch within a* month after the bill matured, and,up t6 July I could have paid the.bill had I been pressed. lam how a bankrupt, but could have found the money-then*!7~- Ad' "7 Mrs Scarbrough deposed— and executrix of the late Gdorgfe Scartirough, who died on the 31st*-.Mareh last. I never received notice from M'Culloch that he would hold me responsible, aud he never made any arrangement with me in reference to the bill bearing my late husband's endorsement.- I -never authorised Mr M'Gregor to offer any composition. Mr M'Gregor is not my agent. W. M'Kay, being sworn, said—l received no notice of the dishonor of the bill until August. I met M'Culloch, and he told me the bill was not paid. I have seen him several times since, but he did not mention the matter to me. I offered him £10 to let me off my liability. Mr Williams addressed the Bench on behalf of the defendant, contending that it was the duty of the plaintiff to give Scarb rough's representatives notice of the dishonor of the bill, and the only arrangement that appeared to exist was between the drawer and acceptor of the bill. The evidence of Annand proved that had he been pressed he could have met the bill a month after it became due, and he contended that a man had no right to walk about with an overdue bill in his pocket, on the strength of having the security of two endorsers. He quoted an authority to the effect that where right to sue had been suspended, the fact releases the endorsers of a bill of their liability. On an other point he ielt his client's case supported. Notice of dishonor where parties are living within short distances should be given the same day, whereas M'Culloch saw Scarbrough on the subject two days afterwards. There was moreover a grave doubt on his mind as to the reliability of M'Culloch's evidence. In the first place from the prevaricating manner in which it had been given, and secondly because Annand's evidence and his was so conflicting. Mr Nalder, ou behalf of the plaintiff, said that he considered the question was one of law. Witness had proved that time was given to the acceptor, and that the fact was known to Scarbrough. He would quote from lasher's Digest, that in the law relating to bills, '' Mere delay does not discharge the the endorsers of their liability.'' What had been done, was done at the suggestion of the late Mr Scarbrough. and ho would contend that the executrix was liable. The Court decided to reserve jungment. The Court then adjourned.