DISTRICT COURT.

Grey River Argus, Volume XII, Issue 1479, 1 May 1873, Page 2

DISTRICT COURT.

Wednesday, April 30. (Before His Honor Judge Harvey.) In Bankruptcy. Re Charles Broadbent. — This was an examination of witnesses in order to discover the ownership and possession of certain property supposed to belong to the estate. Mr Perkins appeared for the trustee (Mr H. Kenrick) and the petitioning creditors (Messrs Kerr, Arnott, and Co.), and Mr Guinness watched the proceedings on behalf of Mr Parkinson. The first witness called was Mr J. W. Parkinson, who, in answer to Mr Perkins, said — I am a stationer, and hold a bill of sale over the whole of the bankrupt's property, including stock and household furniture. I have had business transactions with him for several years. In August last, the particular business connected with this affair commencd. He then owed me a balance for rent of from L 9 to LlO. In August, a Mr Salomon, a jeweler, came to town, and pressed me to take a quantity of goods from him. Bankrupt then wished to get some goods, and asked the use of my name to a bill for them. The bills were drawn by Salomon, and accepted by me to the amount of L 263 03 l^d, and L 22 on my own account, which brought the bill up L 285. That bill has not been paid. It was due on the 21st December, but was renewed, and again came due on the 31st March. It is not yet paid. Bankrupt's name was not on the bill. He has paid me on account of the bill about LlO6 in goods and cash. I took possession of bankrupt's stock under the bill of sale on the Bth March, and entered into an arrangement with him that he would work for me at L 3 per week, and me to pay the rent of the shop to Mr Badger. The name over the shop was not altered, but I told bankrupt to inform his customers that the business was mine. No change was made in the business advertisement in the newspapers, and there was nothing to lead the public to believe that there had been any change in the business. I think it was on the 14th March 1 made an arrangement with Badger as to the payment of the shop-rent. I think it was made in writing, but have not got the agreement. About the 19th, Kerr, Arnott, and Co., put an execution in the shop, which was withdrawn next day on production of my bill of sale, and about the 20th bankrupt filed his declaration of insolvency. I took away the whole of the goods, and shut up the shop about the 2nd or 3rd of April. I did not know a vesting-order had then been applied for. I took an inventory of the goods (produced) and advertised them for sale. I did not take possession of anything in bankrupt's house. I sold the goods by tender to Mr R. C. Reid for L 155 on the Bth April. Three tenders were sent in from Messrs Reid, De Costa, and Levy. The Judge : It is rather a strange coincidence that the amount of the tender and the s«n paid you by bankrupt, exactly cover the cost of the goods. And the original bill had not been paid, Witness : I never noticed the soincidence before ; Reid's tender ( 'waß not my own ; it was a bonafide one. The Judge : Is Mr Reid a jeweler? Witness : No, he is a printer. I had a conversation on the matter with him, and said I did not wish to see the goods sacrificed, and asked him to put in a tender, which he consented to do. There was a tacit understanding between us that I could have back the goods whenever I paid him the money.

The Judge : In point of fact it was a sham sale. Witness : No, I told him the goods were worth about L2OO, and that I did not wish to see them sacrificed, as I had heard something outside, and thought I was bound to accept the highest tender. The Judge : Who bound you to that ; there is no such obligation. Witness : I have received from Mr Reid an acceptance for L 127, at three months ; I owe him more than "the balance. I discounted the ?icceptance on the 28th inst., and the money is to be sent to Mr Salomon to-day. That will be the first money he has received on account of the goods, which were obtained for an art-union, which was to come off first at Christmas and then at St. Patrick's time, but has not yet come off. The Judge : And is not likely to come off if you have sold the goods. Witness : I have received a large sum on account of these art-union tickets, and have placed the amount to bankrupt's credit. The Judge : It does not seem to be generally known that these art-unions are illegal. They get up a raffle and think it can be legalised by calling it an art-union. Examination, continued : I had nothiug whatever to do with the profits of the art union. Bankrupt promised to pay me all the money he could get before the 31st December ; he gave me LlO6, which should have been above L 260 by that time. The witness was here shown one of bankrupt's books, containing a list of the goods, and the manner in which some of them had been disposed of. The cash payments were initialed as having been received by the witness. The Judge : It appears that on one item, a brooch, you received the cost price, and also half of the profits. Examination continued : The agreement with Badger as to rent was verbal ; it was to pay him L 2 per week in advance. I produce the bill of sale ; it was given on the date it bears — the 20th Januar}'. I did not known until March that Kerr, Arnott, and Co. had got judgment against Broadbent. I only wanted to make myself safe. The Judge : How did you want to make yourself safe when you had a bill of sale over all the man was possessed of in the world ? Witness : I did not touch his household furniture. The J udge : But your bill of sale covered it. Witness : I had no conversation with bankrupt regarding Kerr, Arnott, and Co.'s debt until March. I knew he was indebted to them a little, but had no idea of the amount at the time of taking the bill of sale. I did not ask bankrupt how much it was. Charles Broadbent said : I am a watchmaker and jeweler. In August last Mr Parkinson came to me when Mr Salomon was in town, and asked if I would like some goods from him. I did not give him an answer until next day, when it was suggested, in the course of conversation, that an art-union should be got up with the goods. We then entered into an arrangement. He was to supply the goods, I was to get up the art-union, and we were to divide whatever profits could be made on the stock. I chose the goods irom "Ooiuiuvu, ». u^»<u». s -to LQOOO.S r^d. Parkinson got them, and handed them over to me. I don't know how they were paid for, but Parkinson told me he had given Salomon bills. I gave no bill whatever, and Parkinson did not ask me to join him in one. The goods got mixed up with my own stock, of which I had about L6O worth in the shop at the time. I have sold some of Salomon's goods in the ordinary course, but always gave an account to Parkinson. He took the cost price off the article sold and one-half the profits on the transaction. At the time I gave the bill of sale, Parkinson came to me and said that Kerr, Arnott and Co. would press me, and induced me to give it. I thought it was no harm, but I told him I owed so much to Kerr, Arnott and Co. He said, "Their business is all profit ; they must wait." The Judge : What business is that ? Mr Perkins : Printers. The Judge: Oh, newspaper proprietors. Witness : Previous to this I had promised to pay Kerr, Arnott, and Co., L 3 per week. When they put in their execution I had possession of the stock, and also when I filed my declaration of insolvency. After Parkinson was supposed to be renting the shop he put in some goods for sale, a list of which I produce. The arrangement regarding the payment of salary to me was made on the 14th March. He gave me credit for one week's wages. On the 1 8th April Parkinson came to me and asked me to come and see him at his shop. I went, and he said that he could get the goods back again, and if I went with him the art-union could go on. He also said he did not wish to be brought in as a partner, and asked why I had turned round on him, as he had never done me any harm. At present I have 45 or 46 watches belonging to different people in the shop. I know all the owners' names, and have given a list to the trustee. The Judge : I should be very sorry to think that if I sent my watch to a watchmaker for repairs that a trustee could sell it. (After the quotation of authorities the Judge ruled that these goods could not be touched.) F. J. Elmer, bailiff: I levied on the bankrupt's property on the 20th March, and took the list of goods produced. On the following day, I was ordered to withdraw by Kerr, Arnott, and Co., as they understood there was a bill of sale in existence. Harry Kenrick, Clerk of the District Court : The bankrupt's declaration was filed on the 21st March, and gazetted on the 22nd. The vesting order was made on the Ist April, when I went up to take possession, and found the goods had been removed. I took possession of the bankrupt's furniture. Mr Perkins now applied for an order of Court, authorising the sale of the whole of the property that was in the bankrupt's possession at the time of the filing of his declaration of insolvency. The Judge granted the order, rule absolute. The costs of the examination of witnesses to be allowed out of the estate, and the question of the petitioning creditors' costs to be considered at next bearing.