DISTRICT COURT.

Globe, Volume XXII, Issue 2053, 22 September 1880, Page 3

DISTRICT COURT.

Tuesday, September 21. [Before His Honor Judge Ward.] TRUSTEE OP HENRY QUALMER VJ. M'HAEG AND OTHERS. Mr Joynt appeared for the plaintiff; Mr Harper for the defendants. This was an action to recover the sum of £2OO, being the value of property claimed by creditors in the bankrupt estate of Mr Henry Qualmer. Mr Joynt explained that the bankrupt had, previous to his insolvency, assigned certain properties to his wife, McHarg, one of the defendants, being the trustee under tho deed of assignment. The bankruptcy of Qualmer was admitted. Mr Joynt then called— Frederick Trent, who, being sworn, deposed that he was a merchant, and had been appointed trustee in the bankrupt estate of Henry Qualmer. He had made application for the property of the bankrupt —household furniture, cattle, &c., and they had not been given to him. All creditors had proved. The assets were not sufficient to pay the creditors. (Copy of evidence of Qualmer, taken before the trustee, was put in.) A few unimportant things were given up by the bankrupt’s wife, but no furniture. The articles were a sot of dish covers and some knives and forks, which realised about £6.

Cross-examined—Mr Qualmer was carrying on business as grocer at Bingsland before and up to tho time of his bankruptcy. Had made application for other things—pictures and books, and a drawing-room suite; also a horse and one or two cows. The bankrupt’s wife informed me tbat the goods and chattels had been made over to her by her husband. Julius Arnold deposed that ho served the notice produced upon Mr M'Harg, the notice being to deliver up certain goods mentioned in the schedule.

Henry Qualmer was then called—He deposed : I am the bankrupt. I was for some time carrying on business at Bingsland. I am not doing anything now. I have no business. I settled the land and buildings on my wife, as well as the furniture and effects. I commenced business on the 12th July, 1879. I had not commenced business when I made over the furniture to my wife. I had no idea of going into business. 1 had applied for a hotel license, but was refused. I do not remember whether I applied after April. I built the house intending it for a hotel. I had some dealings with wholesale merchants in Christchurch. In March, 1879, I had an account with Montgomery—it was for hardware to he sold in the business. [Witness subsequently contradicted himself, and said that the account was for timber.] The account later on, with Milsom and 00. was for cordials to ho sold in the shop. The last payment on account of the hotel at Hioearton was made in December, 1878. Cross-examined—l came to the colony about three years ago. I was idle for some time. I then kept the Plough Inn at Piccarton. I had capital to the amount of £SOO. When I sold out I had about £l4O0 —that was in March, 1878. I left the hotel before I got the last payment on account of the hotel. I had not commenced to build at Bingsland before I left the hotel. The house was to cost £565, but the extras cost about £3OO additional. England Bros built the house and Mr Free built the outbuildings. I paid contractors for the house by cheque. The stable cost £IOO. I purchased the _ timber from Montgomery and Co., and paid that firm by cheque on the Bank of Australssia. I took possession of the house in June, 1879. When I made the settlement on my wife the furniture was at New Brighton. It had all been paid for, as also were the other goods settled on my wife. At that time I owed no money, and had a credit balance at the Bank on the 29th March of £746 8s 9d. In June, 1879, I had a credit balance of about £4. I mortgaged property on account of which I received £3OO. I started business in Bingsland. All the creditors who returned were in respect of my business there. I owed no old debts except a few pounds in connection with the hotel. I was not brought up to the business, and should not have entered it but for being refused a license. I built the house at Bingsland for a hotel. In crosß-oxr.mining the witness, Mr Joynt referred to the evidence given by him before the trustee as to his intention to enter into business. The Witness —It never entered my head to go into the grocery business till I was refused a license for the house. The bakehouse and oven erected were on my wife’s land. I consider that to bo in connection with the business. The £lO to Jones, the painter, was not connected with the business. I incurred the debts to Mason, Strothers and 00. and Pavitt a few months before my bankruptcy. None of the furniture was returned in the schedule on my bankruptcy. I do not know why the furniture bought from King and 00. (£64 worth) was not put in the schedule. The buggy mentioned in the schedule to the deed

of settlement I sold because it did not suit my business. I did not consult anyone. MoHarg, as trustee for my wife, gave me permission to dispose of the cart. I had three spring carta in connection with the business. I never “ stowed away ” anything in my life. After the bankruptcy I endeavored to sell the drawing-room suite. I had McHarg’s permission to do so. (A letter from the trustee according permission to dispose of the trust property was put in evidence ) The money was to be devoted to supporting the family. Wo had no money to live on at the lime. W. S. King was examined as to goods supplied to the bankrupt by his firm. Andrew Mander, salesman to Mr White, proved what goods Mr Qualmer had obtained from their establishment between June, 1879, and February, 1880. Mr Price (of .Mason, Strulhers and Oo .) gave evidence as to goods supplied to Qualmer.

Edmund Oorser, of New Brighton, stated that Mr Qualmer had offered him the suite of drawing-room furniture, saying that it was stowed away,, and was of no use to him. The agreement was that he should taka half payment in produce, and half in money after the bankruptcy. Qualmer brought the goods to New Brighton late at night. The money had since been paid into Court pending the settlement of this case.

This concluded the case for the plaintiff. Mr Harper, for the defence, said they were in a position to prove the absolute legality of the settlement made by Qualmer on his wife, he being at the time perfectly solvent. He then proceeded to call evidence. Mr Webster, clerk in the Bank of Australasia, was called to prove the state of Qualmer’s account with the Bank between 1879 and 1880. Mr Shand stated that he received an order from Mr Qualmer, but declined to deliver the goods in consequence of a settlement made by Qualmer in favor of hie wife. Mr Slater proved the deed of settlement which he had prepared anl duly filed under the Bills of Sale Act. He received instructions from Mr Qualmer. Counsel having addressed the Court, His Honor gave judgment for the plaintiff for £175 and costs. Tho Court then adjourned.