FRAUD IN BANKRUPTCY.

Globe, Volume XXIII, Issue 2161, 28 January 1881, Page 3

FRAUD IN BANKRUPTCY.

TRUSTEES IN CRABTREE’S ESTATE v GRACE CRAB I BEE.

Grace Orobtrea, after several remands, was brought up this morning, before G. L. Lae ond R. Westonra, Eeqrs., charged with being a party to the conveyance o£ a section of land with the intention of defrauding the creditors of William Crabtree, her husband, a bankrupt. Mr Oowlishaw appeared for tho prosecutors, the trustees in the bankrupt estate; Mr Holmes for the accused. Mr Holmes obtained permission for the accused to stand down from the prisoner s dock. He stated that tho information was laid under an Act dated the 13fch o£ Elizabeth. So far as he could find there had_ been but a single prosecution before under it. It was very doubtful whether the case of his client could bo brought under its operation, and in the meantime ho objected to her being treated as a felon. Tho case has obtained some notoriety on account of tho parties in it having boon brought before the Courts in various ways by tho creditors, without any substantial result. Tho husband of the accused was originally associated with her in this particular charge and was duly brought up with her in this Court about a month ago, when a remand was applied for. Mr Cowlishaw, who appeared for the prosecution, asked for substantial bail to bo taken, which was opposed. Mr Oowlishaw soid ho had reason to believe that tho Crabtrees, husband and wife, intended to abecond. Prisoner, by their counsel and themsilves, strongly roj.udiat.ed having any such intention. Tho Bench believed them, and declining to immediately exact bail, granted a jremand from the Friday till Mondoy Mr Oowlishaw on that day to substantiate his assertion. In tho interval, prosecutors, upon information received, ohtained a warrant late one night and proceeded to tho arrest of tho remanded accused. The husband, however, got clear away in a ship which sailed to London. The wife wus

arrested, brought up nest morning, and, as .previously staled, has been remanded from

time to time until this day. The affaires Crabtree comprise many remarkable episodes, some of them bordering on the romantic. They include the adventures in New Zealand of father, wife, and son, and have been more or less fully reported as they have turned up. The facts of the present case as alleged by the prosecution are shortly as follows. About the middle of the year 1879, Crabtree the elder, finding himself in difficulties, convoyed certain property to his wife, Grace, who, in her turn, conveyed it to other parties. When the bankruptcy took place the creditors considered that the double transaction had been fraudulent, and when the legal proceedings instituted by them brought the matter before the Supremo Court, Williaci and Grace Grabtree admitted that the assumption was correct. The proceedings rested ot that, the sequence of the decision then given being that defendants should do whatever was necessary to restore the property for the benefit of the creditors. Since then, however, they have refused or neglected to fulfil their obligation, and the present action has been taken to compel them to do so, and to punish them for their laches. The Act under which they were brought up, provides for the offence a maximum penolty of six_ months’ imprisonment, but, os Mr Holmes said, it has seldom or ever been taken advantage of. The proceedings of to-day gave no result. After hearing for three hours lengthy arguments from counsel on points of law raised by Mr Holmes, the Bench said that, seeing the case was involved in intricacies, which they as mere Justices of the Peace could not pretend to understand, they should remit it for the consideration of a stipendiary Magistrate. Case adjourned till February 4tb, to be heard by Mr Whitefoord, E.M. The bail for the appearance of the accused was accepted, herself in £IOO and two sureties in £SO each.