DISTRICT COURT.

Grey River Argus, Volume XI, Issue 952, 15 August 1871, Page 2

DISTRICT COURT.

♦ Monday, August 14. (Before His Honor Judge Ward.) IN BANKRUPTCY. In re Henry Eckhoip.— Mr Guinness applied for a final order of discharge. Mr Perkins opposed on behalf of Robert Russell, a creditor. — In examination by Mr Perkins, the bankrupt stated that he was a miner, working at Half -Ounce. The claim consisted of nine shareholders, and he held one. They got gold in February last, and he parted with his share in March to Sergeant for L 4, which he considered the full value. Sergeant told him that he had Bold it to Mr Fraser for L 25. At the time he sold it, the claim. was paying from L2Us6d to L2 l2s 6d per week, but he could not tell what the receipts averaged since that time. It might have averaged L 4 or L 5 per week, but he could not say positively. He worked as wages man for Sergeant at L 3 per week, and he now worked for Frastsr at L 4. He had the management of the claim, and paid the dividends to the shareholders, among whom were Fraser, to whom he had given two sums of Lll 10s and LI 3 7s 6d, after deducting L 4 per week wages. The Bale to Sergeant was a hmia fide one for L 4, and no money was handed back. He was certain he did not give Sergeant the 14 back. Remembered a case being tried in the Ahaura Court, on the 11th May, in which he was interested. He did not swear at that«tiwe that he was a shareholder in the claim. There was no agreement between either Fraser or Sergeant that he (bankrupt) was to have the share returned to him.— Alexander Fraser said he was a shareholder in Eckhold's claim, having bought a share from Sergeant for L 25. There was no agreement between bankrupt and witness that the share should be handed back to bankrupt after the proceedings in bankruptcy. Mr Sergeant informed him by letter that he had bought the share on witness's behalf. He could not find the letter, but it might be at home. The L 25 had not been paid by him for the share yet, as he had never been asked for it. He believed that he was the bona.Jide \ holder of the share, as he held possession of the certificate of transfer and had taken out a miner's right at Cobden He had received dividends from the claim. Eckhold paid him Ll4 on Saturday, which sum he had since given back to Eckhold. -He did not understand that the money was to pay the costs of Eckhold's bankruptcy proceedings. Did not know why he gave the money back to Eckhold, but he believed that the share belonged to him (witness). Honestly speaking he did not pretend to hold the share. Would give it back to Sergeant at any time if he was not asked for the L 25. Eckhold told him he would work as a wages man for L 4 per week, to which witness agreed. There was no understanding that he was to pay Eckhold's claim for wages if the claim did not pay.— John Sergeant : Was a miner at HalfOunce, and knew Eckhold's claim. Eckhold asked him to buy his share. At the time he did so, he understood that Eckhold was troubled with creditors. He gave him L 4 for the share, but he had not got the transfer as he did not make it. He never took possession of the claim, but knew what it was as he had previously been a shareholder in it. He gave aLS note for the share in the course of the day, but got the money back the same evening, notwithstanding which he believed it was a bonafide sale. He sold it to Fraser when he heard that Eckhold was going through the Court. He sold it for L 25. When Eckhold sold the share to witness, he agreed to employ him at L 3 per week. — Bankrupt re-called : Fraser gave him back the Ll4 which he had paid him for dividends, and he had L2or L 3 left. He did not give the L 4 back to Sergeant personally, but went into his hut and left it on his bunk.— His Honor said that the whole case, as far as it had gone, was a most deliberate shuffle on the part of the bankrupt. In fact, it almost amounted to deliberate perjury. — Mr Perkins contended that sufficient grounds had been shown to justify the opposition, and to ask chat protection might be withdrawn. His Honor ; Most undoubtedly.- The whole proceeding was clear. It was an attempt on the part of the bankrupt to defeat his creditors, in order to secure the claim for himself. It was perfectly clear that the whole affair was a sham. The trustee, Mr Kenrick, examined the bankrupt as to the dividends alleged to have been received by him, but not accounted for in his schedule, but failed to elicit any satisfactory reply. —His Honor, after commenting strongly on the bankrupt's conduct, suspended the order of discharge for two years without protection, and directed the share to be sold forthwith. Re Henry Jones.— Mr Guinness applied for a final order of discharge, and there being no opposition it was granted. ReJohnLanoton.^ — The bankrupt, who. was a miner at Half Ounce, applied ior his final discharge. Messrs Guinness and Newton opposed on behalf of Mr Cleye, while 'the bankrupt's application was supported by Mr Perkins. It appeared that the bankrupt was a shareholder in M'Loughlin and party's claim, and being pressed for payment by the trustees of Lonergan and Moutray's estates sold his share to M'Loughlin for L2O, in order i;o cover travelling and law expenses.— Mr Newton objected to mining shares being sold for such a purpose, and contended that the sale to M'Loughlin was not a boiiafidc one. — His Honor said that the bankrupt had acted very improperly in making away with his sole asset in order to go through the Court, and in, order to mark his disapprobation of suchi conduct he should suspend the certificate for one month, without protection. Re Simmons and Fauxkner.—Application was granted to the trustees in this case to register the deed of arrangement. Rii Daniel Murphy.— Mr Guinness applied for a complete execution of the deed. — Mr Newton, who appeared for the Bank of New Zealand, applied for costs, on the ground that the Bank were opposing creditors, and that the deed was informal. Ultimately Mr Newton withdrew his objection, on the understanding that the costs were to come out of the estate, and the application was granted; Re Simmons and Faulkner.— Mr Newton applied on behalf of John Simmons, brother of one of the bankrupts, as a creditor, for a share in the dividend of 6s in the pound, and also for one month's wages as a preferential claim. Mr Guinness, as counsel for the trustees, objected. Ultimately his Honor granted Mr Newton's application, with L 3 {3s costs. J t