DISTRICT COURT.

Grey River Argus, Volume IX, Issue 736, 6 October 1870, Page 2

DISTRICT COURT.

Tuesday, October 4. [Bofore His Honor Judge Ward.] IX BANKRUPTCY". John Lucas. — Mr Newton applied for a final order of discharge. There wa3 no opposition, and as the trustee reported everything satisfactory, the order was granted. Hugo W. ScnuBA.UT.--Mr Guinness applied for a final order of discharge. The Judge said 'here appeared to ba a very large deficiency in this e3tate. There were Ll2B 15s Cd due to unsecured creditors, the whole available assets amounted to L 2, and other debts L 25. The bankrupt explained that he was in business at the Greenstone, and he had handed over all the property that belonged to him to Mr Higgina, of Hokitika. Final order was granted. Samuel Horn, miner, lately residing at Brunnerton. — There was no opposition. The bankrupt stated the causes of his insolvency were deaths and illness in his family, accidents to himself, and looses in mining speculations. Final order Maria Lavania Mewir, dressmaker, late of Napoleon Hill.— The bankrupt was examined as to her share of a cottage and furniture at Napoleon Hill, now held possession of by aMr Hopkins. She said that she had not parted with her interest in the cottage, and a rule nisi was granted for the trustee to sell the property. Final order granted. John Armstrong. — Application for final discharge. Trustee reported that so far everything was satisfactory. Final discharge granted. Thomas Minton. — The trustee reported that the only asset in the estate was a fiddle, which the bankrupt claimed as necessary to the support of his family. There was no opposition, and a final discharge granted. Christian A. Farwig. — Final order of discharge granted. William Smith. — Mr Newton applied for an order for the complete execution of a deed of composition. Granted. Fkank Voilich. — Mr Guinness made application to take the proceedings out of the Bankruptcy Court, and substitute an arrangement with creditors in accordance with with a resolution of a meeting of creditors. The following report was made by the trustee :— Liabilities, as per statement, L 277 7s j assets, L 55. The trustee reports that he has reason to believe that the assets in this estate are much larger than are set down in the statement. The bankrupt, in his examination, admits to having omitted from his schedule a ferryboat, right to the ferry, and a free license for au hotel occupied by him ; also a shed, 400 feet of timber aud 3000 shingles, and a preemptive right to five acres of ground, on which he has cut down the bush, and cleared two acres ready for the piough, at a cost of L4O. The trustee has great doubts, or rather has strong reason to believe, that the hotel occupied by the bankrupt, and five horses, ■which were in his possession three weeks prior to his insolvency, still belong to the estate ; but the trustee has not taken the necessary steps to prove this, in consequence of the action taken by the bankrupt, who is now tryiug to remove the proceedings from bankruptcy to arrangement. At the written request of the bankrupt, I called a special meeting of creditors for the 30th September last, to consider a proposition to remove the proceedings from bankruptcy to arrangement. (Clause 246, Act 1567.) At that meeting, creditors representing proved debt 3 to the amount of 1/239 7s were present, and unanimously accepted a proposition made on behalf of the bankrupt, to pay 10s in the pouni on all debts. They also consented to the withdrawal of the proceedings from bankruptcy, on a deed, embodying the above proposition, being duly executed and filed. The trustee has thought it his duty to report fully to the Court on all matters connected with this estate, even though the action taken by the creditors has, to a certain extent, taken the matter out of his hands. Three creditors have proved for sums amounting to L 239 7s. The Judge said before making the order he mu3t know whether the statements contained in the trustee's report were made known to the creditors at their meeting, otherwise the deed now produced might have bean obtained under false pretence?. In any other case he would make the order at once, but after the statements of the trustee he thought the creditors ought to have another opportunity of considering the matter. —Mr Guinness said he felt confident that Mr Montgomery, who was the largest creditor, knew of it at the meeting. — The Judge put Mr Kenrick, the trustee, in the witness-box. He said the omissions he had referred to were not mentioned at the meeting of creditors, but he believed some of them were known to those present. But he did not think they were aware of the land or the timber and shingles in the bush. — The Judge said he could not, under the circumstances, grant the order asked. The deed at present, was not worth the paper it was written on. He refused the application, and, afterwards granted an application made by the trustee, for an order for the examination of the bankrupt on the following day. Thomas Braid, lately storekeeper in Paddy's Gnlly : The bankrupt attributed his insolvency to the falling off in business, owing to the rush turning out a failure. He said his store cost L9B, and was sold for Ll2 10s. Mr Perkins applied for a final order of discharge, which was granted. Michael Ryan : The trustee's report was satisfactory in this case ; there was no opposition, aud none of the creditors had proved. A. final order of discharge was granted. John Charles Warrick, butcher, Ahaura. — Mr Guinness appeared for the bankrupt, and asked for his final order of discharge. Mr Perkins appeared to oppose on behalf of Mr Kenrick, the trustee. The trustee's report was as follows : — Liabilities as per statement LI 18 Ss ; assets, L2O. The trustee reports that the assets as shown by the bankrupt, consisting eutirely of book debts, are worthless, but the trustee has strong reason to believe that a house sold to ona Read, for L 45, in August, 1869, is still the property of tho baukrupt. The bankrupt was in possession of the house up to the date of his insolvency, and, by his own statement, paying no rent for it to Read. The bankrupt's books show an entry under Mr. Read's account of L 45 as cash pall for this house iv August, 1870, three days before the insolvency. The trustee would particularly call the attention of the Court to this account of Mr Read's, as it appears in bankrupt's books, the account appearing to the trustee to have been recently tampered with. He examined the bankrupt on the

subjeat, win confessed that on the day prior to his filing the declaration of insolvency Mr Real had gone through the accounts with him, had inserted the L 45 credit for the house, and hid aUo altered one item of cash paid by bankrupt to Read from L 7 to Ll7. Bankrnpb can give no satisfactory reason for thu3 allowing Mr Read to tamper with his accounts. It certainly could not have been from ignorance, for the books are kept by bankrupt himself, and all other entries have been correctly male. The account is somewhat confused, but it would appear by the bankrupt's account that Ml- Read was indebted tothe estate, but tho alterations and ci asures in the book bring Mr Read in a creditor for the sum of Ll2 ss. Bankrupt on examination has admitted that he disposed of a horse the day before filing his declaration for the sum of LlO, to satisfy the claim of a creditor, who dots not appear to have taken any proceedings to compel the payment ; it was therefore a voluntary payment, a>ade at the time the bankrupt was on his road to Greymouth to file his declaration. Bankrupt, who admits having L2O in cash in his possession on the day that he signed and swore to the correctness of his statement of accounts, no mention of thi3 L2O was made in the statement, and this amount was altogether independant of a further sum of Lls paid by him to his solicitor on the same date. The bankrupt, when examined, also admitted that he had solely his slaughter yards to Mr Read the morning before filing his declaration (August 2nd), and that Mr Read had paid him cash for the same, although Mr Read had at the same time just balanced accounts with him and brought him in LA2 5a in debt. The trustee does not think it probable that Mr Read would have paid J this money had the bankrupt really been in his debt. The trustee is endeavoring to serve Mr Read with a subpoena to appear at the examination, but finds it difficult to do so, as Mr Read's business, that of a cattle-dealer, keeps him moving about the country a great deal. No creditors have yet prove! The bankrupt, examined by Mr Perkins, said: I was in partnership at the Ahaura with Mr Murison. We dissolved in August last, and the arbitrators awarded Murison L9O, and all the books and property were taken possession of by Murison. I was sued for the L9O after I had filed my declaration of insolvency. I sold a house to a Mr Read, a cattle-dealer, in August twelvemonths, but I remained in it and carried on business there. He paid me L 45 for the house in August, 1869. I paid him no rent ; I was allowed to stay in the house. We bought cattle from Read ; I cannot say positively as to the number. I have not again sold this house to Mr Read. No writing on the subject passed between us lately ; but there was a written agreement signed in 1869, and drawn up by Mr Davi3. I had asquaringup with Mr Read, anl the .following day [ came to town to file my declaration. The entries in the book produced are in Read's handwriting, and were made the morning we squared up, on the Ist August last. One of the figures was altered from L 7 to Ll7, becaus9 l paid him. LlO in cash. The item, "house L 45," entered that morning, I explain. When he bought the house he gave me a cheque for L 45, and I did not cash it for several months. When he was coming to town he asked me for it, and I gave it back ; and when we squared np in August, 1870, he gave me credit for the amount in the book. Ido not recollect telling Mr Kenrick at the preliminary examination that I had no reason for allowing Read to alter the figures from L 7 to Ll7 on the Ist August, and that all I had paid him was L 7. I told him that Read altertd the figures. — James Mnrison : I was a partner with Warrick. The arbitration between us was made in July. I was awarded L9O, and a few days after Warrick filed his schedule. He was then living in the shop he had been in for 18 months, and which was supposed to belong to him. The business was carried on in another shop in the Ahaura belonging to me. The place where Warrick lived was worth about LIOO. He always used to allude to the house as his own. During the eight months we were partners only three head of cattle were bought from Read. By Mr Guinness : I got possession of all the partnership stock, books, and debts. J. G. Warwick, recalled and examined by the Judge ; I lived in a certain house in the Ahaura up to the 4th Angus 1 ;, 1869. I then sold it to Mr Read, under a written agreement, which was drawn up by Mr Davies, mining agent, at xhe Ahaura. Davis, Read and myself alone were present at Pinkerton's Hotel when the agreement was drawn up. I am not sure whether Davis signed the agreement. Since that time there has been no other agreement signed between us respecting the house. James M'Naught witnessed an agreement between Read and I regarding the sale of a slaughter-yard on Monday, the Ist August. I tiled my declaration on the 4th August. On the Ist August I sold a stockyard to Mr Read for L 4, as I watited some money. I allowed him to make the alterations in my .bioks. I disposed of a horse for LlO tha day before I filed to a person to whom I was due L 6 ; I got L 4 in cash from him. The day I filed and swore to this being a true statement of my affairs 1 had L 25 in my pucket. The Judge : You had nearly enough in your pocket to pay all your creditors 5s in the pound. Bankrupt : That was spending money, your Honor. The Judge : Spending money ! yon ought to pay your debts. You have sworn to a deliberate falsehood in your declaration, and for omitting from your schedule an amount of your property, are liable to three years' penal servitude. Besides the L 25, you pad LI S the same day to your solicitor, in all L 3 5; your debts only amounted to Lllß, and you had enough cash to pay all your creditors a fair dividend, but rather than do that you prefer to go through the Court. If you imagine you will get protection after such conduct as that you are very much mistaken. You can stand down. Harry Kenrick : lam Clerk of the District Court and trustee in this estate. The bankrupt told me that he could give no reason why he allowed Read to alter the fignres in his books, but he did it on the Ist August, throe days before he filed. He also said he had L 35 in cash before lie came down country ; that he gave Llo to Mr Guinness, and had L2O in his pockot when he signed his declaration. Bankrupt recalled by Mr Guinness : T paid yon tho Lls out of tho L 24 or L 25 I had in my possession. The Judge: That only, shows that you told a falsehood before. Mr Perkins addressed the Court, asking that the bankrupt's certilicate should be suspended for a long period. The Judge : This is one of the worst

cases that has come before me on the West Coast. You have been guilty of giving a, fraudulent preference to one creditor by selling him a horse when you were on your way down to file your schedule ; you made away with a slaughter-yard three days before filing ; and you allowed Read to tamper with your books, obviously for the purpose of giving validity to an alleged sale of a house in 1869. You also retained a considerable amount of cash, and made no mention of it in your schedule ; and your statements on oath before me to-day have been repeatedly and obviously false. There is no doubt in my mind that you went into Court, and resorted to all these disreputable practices, for the purpose of resisting payment of an award made by atbitrators in favor of your late partner. Your certificate will be suspended for eighteen months. John Ross, lately hotel-keeper in Nelson Creek : This was an adjourned case from last Court day. Mr Perkins appeared for the bankrupt, and asked for his final discharge; and Mr Guinness appeared to oppose on behalf of Messrs Glenn Brothers. The bankrupt was examined, and admitted that he had collected a few small debts in the estate, and used them for the support of his family ; but he wa3 willing to repay the amount to the trustee. The final order was suspended for one month. Mordent M. Richards, mill-wright, Greymouth : Mr Guinness opposed on behalf of Messrs Cleve and Lihinan, but as nothing was elicited upon examination, the order of discharge was granted. John Tucker : This wa3 an order for examination in order to elicit information respecting a sum of money said to have been paid by one Joseph Graham. John Tucker said : I filed my declaration on June 4th, and obtained my discharge on July 27th. Between those dates I did not receive any mouey from Joseph Graham either directly or indirectly. I received nothing from him since March last except LI a few weeks ago. That was a loan. The Court then adjourned unbil Wednesday.