SUPREME COURT.

Evening Star, Volume VIII, Issue 2114, 14 February 1870, Page 2

SUPREME COURT.

IN BANKRUPTCY. (Before Mr Justice Ward.) PETITIONS FOR ADJUDICATION. George Clark was adjudicated a bankrupt, and the meeting of creditors fixed for tire 22nd instant. Daniel M'Cluskey was adjudicated a bankrupt, on a creditor’s petition, and the meeting of creditors fixed for the 22ud instant. David Henry Miller was also adjudicated a bankrupt, and the first meeting of creditors fixed for the Ist prox. COMPLETE EXECUTION OF DEED. Mr Barton, instructed by Mr Seivwright, applied for a declaration of a complete execution of a deed of arrangement between the bankrupt aud his creditors. Order granted. FINAL EXAMINATIONS. In the following cases the 21st inst. was appointed for the bankrupts’ last examinations :—Francis Johnson, J. B. Williams, Henry Thomas Greou. The final examination was appointed for tho 14th prox., and the matter of Philip Flynn was ordered to stand over. VESTING ORDER. On tho application of Mr Stewart, an order vesting tire estate of William Mitchell in tho provisional trustee was granted. FINAL DISCHARGES. Re Thomas Hastie.—There being no opposition, the usual order was granted.

HeR. C. Farqdharson.-—The usual order was granted, conditionally on the bankrupt furnishing the trustee with material to frame a report. Re Alex. Miller and Hannah Hall. — The bankrupt Hall was examined as to certain property alleged to belong to her daughter. She stated the property was purchased with monies earned by her daughter, and with a sum of money which had been lent by her late husband to a friend, and which, oh being repaid, he ordered to be given to this child. A final order was granted in both instances. Ke George "Harper. —This was an opposed case. Mr Barton appeared for the bankrupt; Mr Cook, Mr Smith, and Mr Macassey, opposed. The bankrupt was examined by Mr Cook as follows ;—I carried on business in Oaniaru as a merchant. I carried on business alone previous to entering into partnership with Black. I began on 30th September, 1868, on my own account, and continued so for twelve months. My capital at that time consisted of three sections of land in Oamaru ; the stock previously belonging to Messrs Dalgetty. Rattray and Co., valued at about L6OOO. The stock was all taken on credit. I gave a mortgage of LISOO to secure the purchase of the store, which 1 had agreed to take over for LIOOO. I gave no security, except the transfer of the insurance policies of stock, over the stock. I gave acceptances at six and twelve months for the whole LGOOO. I had no money capital. The business was not prosperous during the twelve months I conducted it. During that period I received between L3OOO and L4OUO of new stock. My losses amounted to over L 250 0; of this amount L2OOO were losses in grain speculations. I also made about LI3OO bad debts—persons failing, &c. My personal expenses amounted to about L 240. In September last I negociated a partnership with Mr Black, who was then manager for Messrs Cargill and Co. The negociation was brought about by Mr M'Lean. On the formation of the partnership LI3OO of stock was taken over from Messrs Cargills and M'Lean. Acceptances were given for the amount; the first w r as for L9OO, the second for L4OO ; and neither was met. Black brought in no money capital. At that time I had over L 5500 worth of stock ; and the store remained mortgaged. My account at the Bank of New Zealand was overdrawn to the extent of L 5,000. Debts were due to me to the amount of L 2,000. I made no statements as to my position to Black ; but I told him of my indebtedness to Dalgety, Rattray, and Co. to the extent of L 3,000. I promised to take stock in September, which was done. Goods were sent out in the name of the firm of Harper, Black, and Co, on the Ist September. Terms of partnership were not to be arranged until stock was taken. When it was taken, difficulties came in the way, and prevented tlieir being completed. The L 5,000 bill drawn by myself on Black was to cover the overdraft, and was given at the suggestion of the Bank, who were then pressing. Black, for giving the acceptance, was to become the nominal owner of the stock. It was given on the 6th September, this being the only way of arranging with the Bank. The bill was discounted and placed to my credit. After that things went on harmoniously. At the Bank manager’s request, the stock list was made up and shown to him on September 25. On October 5, a sale note •was given, and was deposited in the Bank by Black. The whole of the goods mentioned there were dealt with in the ordinary way of business until the stoppage. I never communicated the transaction to Dalgety, Rattray and Co., or other creditors. During this time, Dalgety, Rattray and Co. were pressing for a settlement. In October a bank account was opened in the name of the firm, by depositing bills for goods sold, which were discounted. The stoppage took place on December 11. About the middle of October, the Bank Inspector came up, and expressed dissatisfaction with the account, and expressed himself that he thought there would be no difficulty in our getting through the season. On his next visit, an arrangement was entered into by which the original bill was cancelled, and a new bill for LSOOO, at 30 days given, it falling due on the same day as the original one. It was drawn by me, accepted by Black, and endorsed by Harper, Black and Co. The stock was transferred in the books on September 30, to Harper, Black and Co. The Bank made a sale of cornsacks to the amount of L 135. That was the only sum that went specifically to the Bank. On December 11, L74S 0s Sd cash collection was paid in. It was represented by three cheques. We did not close until the following Monday, the 13th. On the former clay a bill for LSOO, due to Messrs Dalgety, Rattray, fell due ; it was not paid. The L74S was paid in by Black, We suspended payment, because the Bank stopped our credit on the Saturday ; when the Bank Manager refused to honour the bills that fell due that day. Wc bad notice the bills would be dishonoured before the money w r as paid in. I was not aware until the Monday that it was paid ; it must-have been paid in after Bank hours on Saturday. On Monday, Black telegraphed to Dalgety, Rattray and Go. and Cargills and 51‘Loan, intimating that the firm was in difficulties ; in the afternoon they replied advising us to close, and we did so. ' It was my bona file intention to transfer the stock to the firm. On September 12 I executed a bill of sale of the business premises to Mr Burke ; it recited that I was indebted to Mr Burke’s firm to L 2204 odd. The mortgage was to secure bills for c >als and cornsacks sold. Some of the goods were sold, but 300 tons of coal, valued at LSUO, remain in the store. On September 4 wo got an accommodation bill for LIOOO from Messrs Burke and Co. I did not inform Black or the Bank that 1 had given the bill of sale to Burke. In December we were indebted to Mr Finch between L3OO and L4OO. On December 11 I handed to Air Finch a number of clocks which represented the amount of LI 19. The goods were originally Finch’s, and bad been in my possession three months. With the proceeds of the warrant he retired a second bill of LB3. 1 was also indebted to Messrs Aitken in the sum of LSGO. I sold him goods to the amount of upwards of L 750 the week before we stopped, in the hope of getting bills ; but finding ourselves so largely indebted to him, I did not take bills from him, but sot one account against the other. After a cross-examination of nearly two hours and a half duration, during which disclosures of a rather remarkable character were made, Mr Cook gave notice of his intention to move that the bankrupt’s order of discharge be suspended on the following grounds : —lst, that he had fab silled his books with a view to misleading I his creditors; 2nd, that he had given an

undue preference to certain creditors ; 3rd, that knowing himself to be insolvent, he had postponed filing a declaration of insolvency , 4thly, that he had obtained the forbearance of Messrs Dalgety, Rattray, and Co., through false and fraudulent representation, and lastly that he had obtained goods without reasonable means of paying for them. _ His Honor reserved judgment for a month, in order that the bankrupt Black might be examined.