A TRUSTEE CENSURED

Globe, Volume XXIV, Issue 2664, 20 October 1882, Page 3

A TRUSTEE CENSURED

[pasas SJIEOOIATIQH TBEBQUiK.] AUCKLAND, October 19.

A curious case came before Judge Gillies in Bankruptcy, namely, an application for the discharge of John Htioky, bankrupt, late master of tha Howe street Industrial Home. Mr Cooper appeared for some of the creditors, and drew attention to the manner in which the estate had been realised. He explained that tho debtor had held three sections of land in the Mount Eden district, and had paid a deposit of £4O and erected a house, and on taking over the estate tha trustee gave the land back to the vendor, even without any consideration, besides forfeiting the deposit. The value of the land had increased largely since the debtor made the agreement to purchase, and he was therefore enabled to profit considerably by cancelling the agreement. His Honor —I must say I am extremely surprised at tha manner in which the trustee has acted in realising this estate. The attention of the Court has bees, I think, rightly called to the matter, and I am further surprised that the trustee should have included within his report matters which are very improper to bo included iu it, withwhioh tho Court has nothing whatever to do. Tho report says that a committee of the Baptist Church was appointed to go into these matters, and a most offensive letter was sent to the Bov. Mr Spurgeon. Those statements, bo far os tho proceedings in this Court aro concerned, are outside the matter altogether, and if they have any reference at all to this enquiry are a scandal and impertinent. The trustee had no right to surrender the property. It appears that immediately it was given back one of the allotments was sold for £ll2. Tho other two were cf equal value, and there might have been £IOO loft for the creditors to divide, but now there is nothing, and tho house itself fetched a mere bagatelle, even less than tho estimated sum, I consider the conduct of the trustee in this ease extremely reprehensible. There are other oases in which I believe estates have been sacrificed by private arrangement with particular creditor*. It appears to me that the estate in this case has been grossly sacrificed. The bankrupt does not seam in any way to blame. He appears to have aoted fairly, and put his estate into bankruptcy when ho knew he could not moot his engagements. As the creditors have been unanimous in recommending his discharge, and as ha seems in no way to blame, I think be is entitled to his discharge.