DISTRICT COURT

Grey River Argus, Volume XIII, Issue 1567, 13 August 1873, Page 2

DISTRICT COURT

Tuesday, August 12. (Before his Honor Judge Harvey.) In Bankruptcy. Re Charles Broadbent.— -This was an adjourned application for the proof of Mr Parkinson's debt on the estate, and for the productiottrojc his books. An order was made at last sitting of the Court that should Mr Salomon arrive in town his evidence should be taken. He did arrive, and on the 3lst July his evidence was taken by Mr Kenrick, the Trustee in Bankruptcy. It was read over by the Trustee as follows :— -Nathan Salomon : I am a jeweler, residing in Dunedin. I was in Greymouth and sold some jewelry to Mr Parkinson about the latter end of August, 1872. I recollect C. Broadbent (the bankrupt) speaking to me about jewelry, and saying, "you won't give me credit, but I have a friend, Mr Parkinson, who will be security, for me." Bankrupt said that Parkinson would give me his acceptance, and that he (Broadbent) would pick out the goods. Parkinson afterwards came to me and said he knew Broadbent ; that he was a tenant or friend of his, and that he wanted to give him a start. Parkinson said he knew nothing of this business/ but if I would give the goods, he (Parkinson) would give his acceptance. Parkinson Wd he did not wane to make a pctafr out of the transaction. Parkinson said that Broadbent would pick out goods to the value of Ll5O or L2OO, but Broadbent chose goods to the value nf about L 260. I remarked they were choosing goods to a larger amount than they had named. Parkinson said my bill is good for the amount. Bankrupt said to Parkinson you are all safe, or words to that effect. Parkinson told me previous to the goods being chosen that he was to get a bill of sale from Broadbent. I remember Broadbent remarking to Parkinson, "You are secured." Parkinson told me he was going to give a good tnrn to Broadbent. I advised him to take a bill of sale over the goods. Parkinson said if Broadbent would not pay he could always get the goods back, and put them in the shop, as he was to get a bill of sale over them. Nothing was said about an art union. Parkinson told me that Broadbent was to hand over to him the proceeds of any goods sold. Broadbent spoke to me about the goods first. When I gave the amount of the invoice for the goods to Parkinson in Broadbent's presence, I believe something was said about a bill of sale, but I cannot remember what. I have done business with Broadbent and King; and have had some small transactions with Broadbent previous to

this affair. Parkinson bought of me a few things at the same time these goods were sold to him for Broadbent, but I cannot recollect the amount. Parkinson and Broadbent were present when 1 made up the amount of the invoice, and told it to them. I delivered the invoice at the same time as the goods in Parkinson's shop. I don't think Broadbent was present then. Something might have been said about an art union, but I cannot recollect anything being said in my presence. I first heard of the art union on board the steamer. The purser told me he had a ticket. ■ I understood that 1 was selling to Parkinson, and that Broadbent was to pick out the goods. I think Parkinson selected the few small things (before referred to) himself. Parkinson told roe that Broadbent could select to the value of Ll5O, and that he would pay for them. Broadbent was selecting the goods when Parkinson; came in, to the best of my belief. Parkinson gave me a bill at four months for the goods selected ; it has been renewed. I gave Parkinson- credit for L 75 about six or seven weeks ago. I was in Auckland when I received the advices from Dunedin. I have received nothing else from Mr Parkinson ; he has still to pay the balance of the old bill. The invoice was made out, but I added up the amount on the second night, and told it to Parkinson, in Broadbent's presence. I delivered the same invoice with the goods. The Judge directed the attention of Mr Guinness (who appeared for Mr Parkinson) to the illegality of the whole transaction. It was quite clear to his mind on the evidence of both Parkinson and Broadbent that the goods had been purchased in order to be disposed of by means of an art union. Mr Guinness contended that the evidence showed that

the goods were sold by Mr Parkinson to Broadbent, but the Judge said he distinctly remembered the evidence that the goods were purchased for the purpose of getting up an art union, and it was never disputed until that moment that the gooda were so obtained. After Mr Parkinson had been re-examined, and an argument had taken place between the ■ counsel and the Judge, the latter said that he was perfectly satisfied as to the facts. If Mr Guinness wished to argue the point of the illegality of the whole transaction he could take time," and be heard on Thursday morning. On the facts he was satisfied, and on that there was no oppeal, but if his law was wrong he would only.be too glad to be set right. The case was adjourned for argument until Thursday morning. Final orders of discharge were granted in the following cases : — John Webber, John Davidson, and George Clausen. Re John M'Lean. — This debtor's final application for discharge was opposed by Mr Guinness, on behalf of Mr A. White, but as it was pointed out that sufficient notice had not been given by the Gazette, the application was adjourned until Thursday, the 28th inst. Re James Johnston. — An application for complete execution of a deed of arrangement with creditors. There was no opposition, and the application waa granted. • Re Henry and William Sohlichting. — Application for final order of discharge. Mr Perkins appeared to oppose on behalf of Messrs Lange and Thoneman, but as he could not proceed in consequence of the absence of Wm. Schlichting from the Colony, he applied for an adjournment. Mr Guinness applied for the discharge of the other bankrupt; but this was refused, and the case adjourned until the 28fch instant. Re James Hayes.- -The bankrupt in this case did not appear, although he had been duly subpoeaned. A warrant was ordered to issue for his arrest. Re Wm. Chesterman.— Mr Newt<n appeared for the trustee to examine witnesses as to the transfer of certain property supposed to belong to this estate, The bankrupt having left the colony there was no appearance. Gerald Perotti called, said : I knew the bankrupt; for about 10 or 11 years, and have had busi-

ness transactions with. him. The first s transaction was that I purchased the fell- t mongery premises for him on the South ( Spit, at Blake Town. He repaid me the 1 money. Three or four months ago the firm of Kilgour and Perotti bought some shares from him. I think it was on the 22nd of May. They were 750 shares in the Ajax, and 125 in the Energetic, and paid him L] 70 for the lot, by a promissory note at one month, payable to Chesterman cr bearer; no place being named for payment. There were two note 3of Ll2O and LSO signed by me in the name of the firm. They are not paid; they have never been presented or they would have been paid. I expect them to be presented. There was no understanding at the time that they were not to be presented. I consider LIOO was full value for the Energetic shares at the time, or even L7O. I cannot tell whether the LI 00 or the L7O was given for the Energetic or the Ajax shares. Chester man was not at the time indebted to our firm, and T was not acquainted with his pecuniary position. Was not aware that on the day of transfer or a day or two previously the Bank of New South Wales had presented to Mm a promissory note, payable on demand, for LSOO, of which he was one of the joint makers, for judgment. He made the offer of sale, but assigned no reason for getting rid of the shares. Had no conversation as to his private affairs, or as to his future intentions or movements. Our firm purchased five acres of land near Sawyer's Creek some time ago, formerly the property of Mr Harrison ; Chesterman had no interest in that purchase. We carry on business as 3aw-mill proprietors ; Chesterman had no interest whatever in that. . We were negotiating the purchase of the shares for four or five days ; I think not for three weeks, but' it may have been more than five days. During that time Chesterman never mentioned to me the state of his indebtedness. He spoke to me, either before or after the purchase and sale of the shares, about giving a joint promissory note to the Bank for some claim, and I advised him not to give it. We bought the shares. as private individuals, not as sharebrokers. Have not seen the promissory notes since they were given to Chesterman, and have no knowledge of where they are. They would have fallen due on the 25th June.- Have had no communication with Chesterman since the day of the sale. I saw him afterwards, but had no particular conversation with him ; be never told me he was going to leave town. There was no reason for not miking the promisory-notes payable at some place, as usual, except that it was Chesterman's request. I have heard in town that he has left town, but he did not tell me he was going ; have not heard from him since ; Ido not know myself that he has gone ; don't know where he is, or anything else about him, I had no knowledge when the purchase was made that the Bank had instructed a writ to issue against him on the promisory-note ; or that at the time he was negotiating the sale of the shares to us he was also negotiating with the Bank of New South Wales as to settlement of their claim for LSOO against him, or any other claim. I know Mr F. B. Waters. I did not know that on 22nd May Waters drew out of the Bank of New Zealand L 125, being Chesterman's balance. I know that he held shares in the All Nations claim, and believe he had some in the Inglewood, but don't know whether he has parted with them ; he had also a third of- a twentieth in Anderson's claim, Big River. We have no ledger account with Chesterman ; his name is riot in our books in any way to my knowledge, except in the bill -book produced. Neither I nor the firm lost any interest in the Inglewood claim, or jointly with Chesterman in any claim. Referring to our banking account, sometimes we

paid calls for him, and sometimes he paid calls for us ; we usually settled up at once, and no entry appeared in the books. It was incorrect if Chesterraan told any person in town that he was indebted to us when the sale was made. Mr Newton applied for an order for the production of the firm's ledger and cashbook. The Judge ordered the books to be produced, and told witness that if these promissory notes were presented for payment it would be his duty to dishonor them, so far that he should first consult the Trustee in Bankruptcy, otherwise he might be called upon to pay them twice. Witness: Will you give me that in writing, your Honor ? The Judge : No, I am going out of my way to give you the advice I have done. You can produce the ledger ; but the index only will be looked, at to see that there was no ledger account with Chesterman. Joseph Kilgour was called, and gave similar evidence to the last witness. He denied positively that Chesterman ever had any interest, directly or indirectly, in the firm of Kilgour and Perotti, or in his (witness's) private business. Frederick B. Waters said : I am an hotelkeeper, and knew Chesterman. 1 had no conversation with him aa to the sale of certain shares to Messrs Kilgour and Perotti. I recollect getting a chequa for LI 25 cashed for Chesterman at the Bank of New Zealand. I remember going to the Bank of New Zealand with a cheque for L 125, drew the money, and gave it to William Chesterman. He gave me the cheque in my parlor ; he remained there till I broxight back the money. The Judge : Why did he not go himself. Witness : I have not the slightest idea, your Honor ; he was writing at the time. lam sure I got notes for- the cheque, He simply said, "Will you go and get this cheque cashed," and I did so, and handed him the money. I had no conversation with him as to his future movements, and have not the slightest idea when he left town. I remember enquiries being made for him, and replies made that he was out shooting. I believed then that he was out shooting. I have no property of any description belonging to Chesterman, or books or papers, a- d never had any business transactions of any kind in my life of the most trivial character with him, and know nothing of two promissory notes made between him and Kilgour and Perotti. Morris Levy : I knew William Chesterman, but don't know that he had' any business transactions with Kilgour and Perotti except one, in which I signed, as director, the transfer of a number of shares in the Energetic and Ajax Companies from Chesterman to Kilgour and Perotti. Chesterman asked me to discount Kilgour and Perotti*3 bills ; but I never discount bills. I know nothing of these bills, or where they are now. I know nothing of any property belonging to Chesterraan, or anything further about him, Mr Perotti produced the books of the firm for examination, and Mr Newton

said that after examination he was satisfied there was no ledger account between Chesterman and Kilgour and Perotti. There was no order made, and the Court was adjourned until this (Wednesday) morning, at 10 o'clock.