DISCHARGED.

Dominion, Volume 4, Issue 973, 14 November 1910, Page 6

DISCHARGED.

SCHAPIRO'S BANKRUPTCY ENDED

THAT BILL OF SALE

COMPLICATIONS UNRAVELLED.

At. a sitting of the Bankruptcy Court on Saturday morning, the Chief Justice (Sir.Kobert Stout) presiding, John Morris Schapiro's application for discharge was again beforo the Court.

Mr. T. M. Wilford appeared for, tho bankrupt, Mr. M. Myers for the Official Assignee, and Mr. A. Blair for Miss Eleanor Sanderson. The bankrupt himself was in Court.

Mr. Wilford said that Schapiro came before his Honour for his discharge ou Saptember 2G, when he was not represented by counsel. Decision was reserved until October 8, his, Honour telling Schapiro that ho. need not again appear. On October 8 the Official Assignee (Mi-. A. Simpson) informid his Honour in Court that a bill of sale had been given by Schapiro to Miss Sanderson and the security sold. Miss Sanderson was. not present, but her brother .was in Court and confirmed the statement. Mr. Levi, who was representing bankrupt, said he knew nothing about it.

His Honour said Mr. Wilford's statement was correct.

Mr. Wilford, proceeding, said that there would have been no trouble, so far as Schapiro. was concerned, if the newspapers had not come out.with American headings: "Missing Machinery—Schapiro, etc."

Mr. Simpson and Foreigners. The facts were (counsel continued) that, about eight years ago, long before the bankruptcy, Schapiro signed an instrument by way of security, this instrument being prepared by Miss Sanderson, or some one on her behalf. Counsel had a copy of it dated September, 1902. It purported to pledge as security Schapiro's stock-in-trade and machinery, but there was no schedule to it, and it was therefore a nullity under the Act, and it was not'registered at the expiry of five years. At the bankruptcy the Official Assignee refused, upon those grounds, to recognise it, so that it was clear that' the Official Assignee. knew all. about it. Schapiro at' no time sold any machinery, and it appeared that he never had any unless a mitre-box could be so called. Miss Sanderson saw the contents of his workshop, before she advanced tho money. The machinery which it had been alleged that Schapiro had done away with did not exist. His client (Schapiro) thought the real reason why the Official Assignee brought the matter up was that he objected .to foreigners. His Honour: We can't go into that. Mr. Wilford said the Official Assignee had stated in evidence that he never trusted a foreigner. If that did not indicate a mind of suspicion ; His Honour:' That'■ isJ'not the matter before the Court. -."-'■ Official Assignee's Action Explained. Mr. Myers said it was quite time that the Official Assignee knew of the existence of the instrument and declined to admit Miss Sanderson as a secured creditor, because the instrument was void, so far as he was concerned. 'His Honour:, Just so. It might bo good' between the.parties, but not good from .the.Official-Assignee's point of view. •Mr. Blair argued ..that-'the .instrument wasgood- as between the. parties.. His Honour said the charge. was that Schapiro had machinery at the time the instrument was signed arid had since made away with it. ' Could Mr. Blair prove that there -was any., machinery ? Why was there no schedule to the document?.'. . , ... , ,'. ... Mr." Blair said it was prepared by a layman. '•■'■'■'. "' : His Honour: If people prepare documents without knowing the law they are liable to suffer. ! The question of the stock-in-trade as portion of the security was' next mentioned.

. His Honour said it oonld not be suggested that a man /was to stop selling his stock because of a bill of sale. •It was .a floating security, and what there was at the time of the bankruptcy was taken possession of by the Official Assignee. His Honour ,also commented upon the prolonged neglect of the matter on the part of Miss Sanderson. The bill of sale was eight years old, and the bankruptcy commenced a good many months ago. , Eleven Times Before the Court. . Mr. Wilford said his client stated that he, had been before the Court eleven times, and the bankruptcy began eighteen months ago.

His Honour said that a person who had lent .£250 on a bill of sale, and left the colony, should leave someone to look after the matter.

Mr. Wilford then called evidence as to the "so-called maohinery." ..Lewis Goqdger, picture framer,'said he was working for Schapiro when the advance was made by Miss Sanderson, and practically all the time he was in business. ' There was no machinery, unless the mitre-box could be so-called. No tools or machinery were sold before the bankruptcy. Then the Official Assignee took them.

To Mr. Blair: Part of tho time witness was the only employee. At other times as many as five or six were employed. Scliapiro also employed cabinetmakers and upliolsterers. who worked on the premises. No'machinery was used in making the furniture. Herbert Smith said he had been a cabinetmaker in Schapiro's employ. There was absolutely no machinery there. Any machine work that was required was sent out. ' ' ■.■■••.■ The Petition 'to Parliament. •On Mr. Myers referring' to the comments on the Official Assignee's action in wanting the'bill of sale at the prenous hearing, his Honour said Mr. Simpson had done the right thing in bringing the matter up, so that anything that looked doubtful could be explained before the discharge was granted. . Mr. Myers also mentioned that since tho last hearing, and while the case was still subjudico, the bankrupt had thought fit to petition Parliament about this very matter. .. ~ , , , His Honour: Well, if the bankrupt thinks fit to do such things,' I can't help that. Discharge Granted. In conclusion, his Honour said that he had consulted the Judges who had had similar cases to deal .with, and seeing that the bankrupt had'been punished by imprisonment for not keeping proper books, and that the bankruptcy had been pendin" for nearlv two years, and also that the charge about the. bill of salo had not been sustained, he thought the discharge ought now to be granted. Schapiro. was. accordingly granted his discharge.