SUPREME COURT.

Evening Star, Volume VIII, Issue 2518, 13 March 1871, Page 2

SUPREME COURT.

IN BANKRUPTCY

This Day,

(Before Mr Justice Chapman.)

Re F. P. Mansfield—Mr Macagsey, on be,half of the Provisional Trustee, examined witnesses.

J. T. Chaplin stated that the bankrupt was formerly in his employ as manager. About six months ago he purchased witness's coaching business for L 13,0()(), which was payable in bills ranging over 18 months. About L 3.000 of the money was paid. Took rc-possession of the plant on February 14. When Mr Smith, witness’s book-keeper, was put into the office, I took possession of the proceeds. Telegraphed the fact to the country agencies the same or next day, and had his name repainted on the coaches the same night he took re-posscssion. Mansfield did not take over all the property ; he merely took over 11 comic ted with the coaching. Witness was now carrying the mails for the sureties, Messrs Wain and Walter. The General Government would

not consent to an assignment from Mansfield, so the sureties had either to carry the mails themselves or g.t some one to do so. The Government only paid once in three months. Nothing had been paid since January 1. About LSOO would be due for the March quarter. Witness bad never said t!iat Mansfield had spent between L'JOI) and LI, 100 on the plant; he saw nothing but a little paint expended on it. He took possession b -eause the bill due on.-, February 4 was dishonored. Had not helped Mansfield since December, when he helped him to meet the bill then due, receiving for his (witness) acceptance an order to receive the moneys due on account of conveyance of the mails and escort.

Frank Porter Mansfield, the bankrupt, said he became purchaser ef Mr Chaplin’s plant in September last. Between that time and the date of his declaration of insolvency, February 17, he had paid about L 3,700. When he took possession, he examined the stock, and found that a good many horses were unfit for the roads ; these he sold, some at as low as 30s, and purchased in their place good, sound, and valuable horses. So far as the live stock was concerned, Mr Chaplin was very little better off when he took possession again. Mr Chaplin did not take possession on Feb. 14tb. On the afternoon of Feb. 17 Mr Taggart came to witness, and told him his name was being painted off the coaches. He went up to the yards, and seeing that it was being done, asked by whose authority, when he was informed that it was by Mr Chaplin’s. Did not see Mr Chaplin. The first he heard of Mr Chaplin taking possession was his adveitiseimnb in the papers on fhe 18th. Mr Chaplin promised him assistance on the 15th, Kith, and 17th, to meet the acceptance upon which the Bank of New Zealand sued him; but finding that he did not do so, witness filed on the afternoon of the 17th. Mr Warren, of the bank, r quested him to reduce his overdraft; whereupon he mentioned that money was scarce, and asked if he would be satisfied with Mr Chaplin’s acceptance for L2OO, Mr Warren asked witness what security he would give Mr Chaplin. He replied an order on the April escort and mail nvney. When witness asked Mr Chaplain to give him the bill he demurred to it; witness did not want to file. Commenced business ifcli a money capital of 1/250, had scrip on the Weatiierstones Water Race Company, which cost him LI7OO, and were worth about L3OO. They were in the possession of Mr Beal, as security for a claim by the bank. He had besides, property in Moray Place, mortgaged to a building society for about L4OO. The property was worth L 450. Received L 197 of the money on February 14. L 133 went to pay monies belonging to Hugh Fraser’s estate, which witness had received ; the rest in payment of small claims. Received between L‘2oo and L3OO, the same day from Mr Smith, the clerk. Paid Taggart, who had been abusing witness, L 10 0; LSO to Devine, for money lent, and LI 13 to Carmichael for cheques issued. Witness found that the only way to carry on the business was to have a secret service, which he kept up. Whenever a man belonging t. this service was “spotted,” ho was discharged. This service cost neat L7OO. By its means witnesscs’s profits went up to L 270 0; before its establishment, Mr Chaplin lost money. The Ist of May was appointed for the last examination of William Wilson, Alfred Miller, and Mich, A. Collins.

The bankruptcy of Win, Tyson Was annulled. A deed of arrangement between Ed. N. Legge and his creditors was declared to be completely executed. Re A, Mee—Mr Harris obtained an order for the examination of certain witnesses on May 1. Mr Smith, on behalf of Messrs Bright Bros., creditors, applied to have James Walls, declared bankrupt. Mr Stewart opposed the application on the grounds that there was no evidence that a demand had been made by Bright Bros,, that the demand must be made by the creditors themselves and not by an agent, and that the particulars of demand were insufficient, His Honor was inclined to think (hat the description in the affidavit of Mr Walcott’s powers was hardly sufficient, and on that ground alone he dismissed the application without costs.