SUPREME COURT.

Evening Star, Volume VII, Issue 1953, 9 August 1869, Page 2

SUPREME COURT.

IN BANKRUPTCY. (Before His Honor Mr Justice Ward.) APPOINTMENT OF TRUSTEE. Re George Fairweather. —On the motion of Mr Smith, the appointment of Mr Robert Frederick as trustee was confirmed, and the 23rd inst. w is appointed for the bankrupt’s ffnal examination. He James Uxmnett.—This bankrupt’s final examination was adjourned to the 23rd inst. COMPLETE EXECUTION OF A DEED. Re Edward Withers.—The deed of arrangement made between the bankrupt and his creditors was declared to have been completely executed. OPPOSED CASE. Re Robert Maokie.— This was an application for final examination and discharge. Mr Harris appeared for the bankrupt, and Mr Macassey opposed. The bankrupt was examined by Mr Macassey a-' follows : He was a farmer ; and had carried on that business du. iug the last two years at Round Hill, near Oamaru. Previously he had kept a farm at Tokoma’riro. He went to the boundhill farm on the Ist of February, 1807 ; and was in partnership with a man named Haynes. When he went on to the farm he had L 1,200 cash, and subsequently brought in another L3OO. Haynes had only LSOO. He had been misled with reference to him. He had to pay back the 1.500, and an additional LIOO to get rid of him. The partnership was dissolved about six mouths after it commenced. The Round Hill farm was leased from Messrs Caloutt and Menlove for fourteen years, at a rental of L 1,200 per annura. The ivnt was reduced some two or three months before they stopped him (bankrupt); it was then reduced to L9OO. The farm consisted of 4,000 acres. Win n possession was taken there were about 1,300 sheep and two head of cattle on the farm ; but subsequently 1500 more sheep w-re purchased by ' alcutc and Menlove; and t' ey were put on the farm. He carried on business for tvvo years ; at the end of which time Orient: and Menlove took posse; sion under a bill of sale As far as he was aware, no agreement was made before they took possession ; but afterwards, an arrangement was entered into, by which they took everything, and expressed themselves satisfied. When they t"ok possession, the value of the property was increased to a very great extent. There were then about 4000 sheep ou the farm. There were 3150 when the sheep were mustered in the yard ; and there must have been GOO more running about. Every shilling that was received during the time ha was in business was paid away ou account of the farm ; Driver, Maclean, and Co. received a good deal of it. He could not show where the money he received was got, or how it went exactly. He did not keep books His bank book would show what monies were paid away, aid he kept a wages book. He hai not the book with him The most of the money he received was hy bills. He had sold the second year’s grain crop for L 1,200 or L 1,300. Out of that, 350 acres’ harvest ng had to be paid. The first harvest realised somewhere about L9OO ; and he thought Calculi- and Mi nlove were paid 1/400 for it. Haynes managed those maiters during the partnership The proceeds of the sale of the first sale went to purchase necessary implements, and in wag s ; and the greater portion of it, LGOO, was spent in buying horses, Calcutt and Mcniovo advanced L 1,500, which went to pay wages and

purchase stock ; and L3OO was invested in the purchase of grass seed, which was laid down on the farm. A sum of LI3OO was borrowed from Driver, Maclean and Co., part of which went to pay Haynes, and some to pay wages, &c. When Calcutt and Menlovo took possession, they got LI,OOO, which hud been laid out on the farm, 1,100 additional sheep and this year’s clip of wool. Twelve months ago he told them that he was unable to carry on ; and he told them that he would so'Uier that they sold him out then, than give a bill of sale. The rent was too high, and Calcutt and Monlove knew things even better than he did. He was not competent to keep books He p rid the first half year’s rent. The remainder of the rent was included in the bill of sale. He had no chance to pay it, for he liab not the money. He admitted being indebted to Calcutt and Menlove in the sum of about L 5,000; L 1,300 was for money actually advanced, and about 1.1,650 for rent. If they had allowed him to carry on a year longer, ho fe t he might recover himself. They would not allow him to do so, unless he could get some one other than themselves to advance the money to pay off their claim, within LI,OOO, wh'ch they agreed to strike off their account, and forgive him. He could have got it done if they had given up the grain, but they refused to do so. If they had given up their security on the grain, he could have got an advance of L 4,000. He offered Mr Calcutt L 2.000 cash, and L?, 000 in three months by bills. He declined to do so, and ho (bankrupt) refused to have anything further to do with the farm. The remainder of the L 5.000 represented the money advanced by Driver, Maclean and Co. It was some LI,BOO, besides L7OO they advanced to enable him to pay Haynes, The remainder was for stock and advances to pay wages. They held a bill of sale over the property as security, and it was subsequently transferred to Calcutt and Meul ive. In March last he sold six head of catt e to one Janies Trewci k, a farm servant, in lieu of wages. He did not know that the cattle were included in the bill of sale. Assuming that he had paid all the debts during the time he had been on the farm, he did not think that they would amount to L'J,OOO. He thought they would amount to about L7,0G0. By Mr Harris : He had been in Otago 14 years. He bad been living at Tokomairiro for 12 years, and had made a little money there. Previous to going to Osmaru, he sold the property he possessed in Tokomairiro. He had known Haynes for about 12 years, Through the inducements held out by Ca cutt and Meniove, he was led to go into partnership with Haynes. They were to share and share alike. They represented that a fortune was to be made out of the place, and pressed him to take it. Haynes was their manager, and he had been led to believe that he had money. He found that he had none, and beside - was running into debt, and he bad to dissolve the partnership. When he took possession there were 1,300 sheep on the farm for which he paid 15s per head ; four or five horses for which he paid from L 35 to LGS. . The LGS horse was a “ dead one,” it died a week after it was ptirchosed. He also purchased L9OO worth of rubbish, which he never saw until a month after they went on the farm. The matter had been left to Haynes, who pretended to know everything about it. He attributed his insolvency to depreciation in tbe value of stock. When he gave up possession 3,250 sheep were sold at 4s per head ; four cart horses at L 37 each ; and two hacks for LIS. He also left sixteen head of cattle besides calves When he took possession only 300 acres were ploughed ; now 500 acres at least were under cultivation. All the money he had was spent on the farm and Calcott and Meniove got the benetit of it. He had executed an agreement handing over everything to them at a valuation, with which they had expressed themselves satisfied, and agreed to consider as a discharge. By Mr Macassey : I transferred my interest in a mortgage for LSOO to my wife, about tivemonthsafter hewent to Round Hill. They had been married 12 years. L3OO of the money belonged to his wife. Mr Macassey submitted, that the banknipt in making the settlement on his wife, had acted improperly, if not raudulently. He submitted that his discharge should not ho granted, because he had not kept proper books of account. Mr Harris remarked that he had never beforee been engaged in a case where a bankrupt was more entitled to commiseration than he merited punishment than in the present instance. He contended that the circumstances did not justify the suspension of the order of discharge. The Judge observed that he could not say that the bankrupt had acted fraudulently, in making the settlement on his wife. _ From first to last, however, he had acted with almost inconceivable folly in not ascertaining tbe proper value of the things on the station; that he was unable to keep books himself was no excuse ; he should have had them kept for him. The order of discharge was suspended for a month. The Court then adjourned.