MR. J. M'COMBS AND HIS CREDITORS

Dominion, Volume 11, Issue 162, 28 March 1918, Page 6

MR. J. M'COMBS AND HIS CREDITORS

ANOTHER ADJOURNMENT PARLIAMENTARY PRIVILEGES WAIVED. By Telegraph.—Press Association. Christchuroh, March 21 In the Supreme Court to-day, before Mr. Justice Stringer, tho hearing of the creditors' petition of Kinciud's, Ltd., Gsorge Bowron, and G. J. Smith calling upon James M'Co.-nbs, M.1 , ., to show cause why he should not be adjudged bankrupt was taken. Mr. M'Conibs appeared in person, and Mr. Wright appeared for the creditors. Mr. Wright called Georgo Bowion, one of the creditors, who eaid that hi a firm obtained judgment in April last for £54 4s. for interest on unpaid purchase money. A distress warrant was issued, but was returned ns ineffective. He abandoned his securities as far as the debt was concerned. The debt was still unpaid. Thomas Kincaid was also called, but did not appear. M'Combs, _ however, admitted that tho debt to Kincaid was still unpaid. This closed the case for I the petitioners. I Mr. M'Combs; addressing His HonI our, said ho is as in Auckland on MqnI day last, and the Postal authorities knew exactly where to find him. Ho had come as quickly as possible. Ho was not aware that a distress warrant had been issued, neither J3owrons nor thoir solicitors nor the Court officials having informed him of the fiict. "I suppose yo;i know that jedgroent was obtained against you?" said the J U( Jge. . . . "Judgment by confession," interjected Mr. Wright. Mr. M'Combs admitted this. "Well, you know these ordinary processes," commented His Honour. Mr; M'Combs said he had wagnied that a reputable firm like Bowron Bros. ! would notify their creditors as a natter of courtesy, if not of right. The debt for interest was in conneeiioii with some sections purchased through the late T. E. Taylcr from George licwion and G. J. Smith. In order to justify proceedings legally Mr. Bowroii had to swear that as the land was iot worth more than the balance ot the pnrcipal due in respect of the land, lie gave up the security. The Court would see, however, that Mr. Bowron and Mr. Kii: I';, .sviil Hold the security. Hit Honour remarked that the Act corniced uiom to abandon their securitv Mr M'Comb's persisted that thoso I taking proceedings in the present case ~-ero sraured creditors Smith and Bowron. not long ago had refused an offer of twice the amount of money ho owed them for sections atyiuung which were smaller in area and less valuable His Honour said that lie couM not go into these matters. Air M'Combs said he v.-.shed to combat the statement that the land was not worth more than the balance of the ! P T P wS;: That i f ,ot what we ■'say. We merely say that wo abandon i^rfittrnorieSie? II matterirrelevant. Judgment had been delivered and execution obtained. lie could not go into-the manner m which the debt was incurred. The creditors I had a right to adjudicate the debtor a I bankrupt unless certain things were done which had not been done. tte 'presented a bankruptcy petition had amount owing. >■■ Mr M'Combs said that the creditors could'have proceeded othermM. • ■ "That is their business,' 'said His. ! H l"? U M'Combs said lie had heard of a; ! case in which a creditor proved that ■ there was ample security, and bankruptcy proceedings were stopped. | W Honour sakl that as long as j creditor abandoned the security this, case of one Eggm'S at TVcllington, it j was s hown that the creditor cond not be proceeding to protect his own interest but was taking procrcduigs for : on ulterior motive, the Court would, be justified in .dismissing tho apphea- ;

: tiO Hi S Honour said that iJl'Combs was quite ripht. If Wild 1 ministered according xo law thamou.a fi wish to invoke the P™ fion o I Parliamentary privileges, j° « WT Therr^fnrSSf ion for unduly to^%to*X°*%Rowron. in Auckland, and with a Inrtv ndndini! Sir Joseph Word, hud Kn'o, VLinch to meet the hosSn ships. There, were persona £trnpl^ntlmAunWand.par,er S .a n d Z had been advertised to de >ver a lecture He oven met, Mr. Wrient m rcardinc a pis patent. His Honour said that he was not concerned with these facts. Eventually, His Honour S^nted an iifrivis^fc&sint %SfX case was called on again {his afternoon it was stated by counsel ■for the creditors that arrangements Ivul been come to that the case bo adlDe<l to April 8, the principal condition beimr that M'Combs agreed to vr? re nnv Parliamentary privileges he mißht 'have that would prejudice the petitioning creditors. Mr, Justice Strincer said this seemed quite a rea--3 proposal. The case was acranged. ,