DISTRICT COURT.

Grey River Argus, Volume XIII, Issue 1582, 30 August 1873, Page 2

DISTRICT COURT.

Frid^ August 29. (Before His tnor Judge Harvey.) c In Ba-'ikuptcy. ■* T . BE HENRY AND Wi^UM SOHLICHTING. , This was an adjo^ed application by Mr Guinness for theischarge of Henry Schlichting, of the ?m of Schlichting; Bros. His brother at partner, William, did not appear, andii absence from the Colony was not accou,ed for. Mr Perkins appeart for Messrs Lange and Thoneman, the btosing creditors, to oppose the bankrupt'iischarge. Hemy >3chlichtin<; examined : My brother William has sne to Melbourne about six weeks ago. He said he went for the purpose of getrig a deed of composition signed by fe creditors. The deed was not drawn p hero ;' he said it would be better to at it done in Melbourne. He said hewould be back in time. My brother dl all the business, aud kept the books, t know that shortly before the bankruptc my brother sold a quantity of goods t Hunter and Nancarrow, but I don'lknow he sold them fhetn for less than cost. I have heard that my brother htsgot married since he went to Melboure. I signed the bill of sale because my bother told me if I did not the bills of Salmon, then falling due, would be dishonoßd. We gave the bill of sale for LIOO, ad a back debt of LIOO, ten days before bankruptcy. My brother got the money^ bit I cannot say what he did with it. My mother sold two cases of cigars to Mr Vhite— he received one half of them, anc the other case was. in- . eluded in the bil of sale. I remember seeing a cheque of White's for LlO7. After the seizure mder the bill of sale, White applied fo: his cigars, but I could not give them up White gave the money to clear the cigaratthe Customs, but they^ were not cleared.The telegram produced was sent to. Mr Slomon on the 7th April. It reads — "We vill send the money tomorrow, and alsceome to Dunedin by the Rangitoto for aore jewellery." The money was not sent. I know nothing about money beiig drawn out of the bank : since the bankriptcy. I never drew any I cheques. Helmi. carried on a watchmaking business in our shop, and I understood that when ie left he took watches amounting to DO for a debt owing to him. ] did net see him take them. Lately I wished to take a shop from Mr ' Taylor to go intq^ business, but I did not i tell him I had. L2O(, or any other sum of ' money. Re-examined : I had never been in business before ; mj previous occupation yras that of a miier. I knew nothing about the books or the banking account.' My brother took th» full management of the business, and I only used to sell articles by retail. 1 made no purchases of stock from travellers, as some of them advised me that it was tetter to let one of the partners do the business. Mr Perkins then applied on the evidence that the bankrupt's certificate should be suspended tor the full term allowed by the Act. Mr Guinness having replied, His Honor, in giving his decision, stated his disbelief of bankrupt's statement respecting his ignoranca of the contents of the bill of sale. He further believed that he knew that his brother was going away and did not intend to come back, nor was he satisfied that he was ignorant where the missing jewellery was. His certificate would be suspended for three years, and protection would be withdrawn for that period. His Honor .would make no order with regard to his brother, whose proceedings in Bankruptcy would lapse, and who would not be entitled to apply to the Court. EE JOHN M'IEAN. Mr Newton applied for the discharge of the bankrupt, whom Mr Guinness appeared to examine. His Honor remarked that, by the Trustee's report, the bankrupt did not appear to have any liabilities, and it. was not apparent what he had come to Court for. He appeared to have made a .deed of assignment. ' Counsel explained that all that had been done in the case had been done at Reef ton, and it would probably come out in course of (examination. Examined ty Mr Guinness : I was formerly carrying on the business of hotelkeeper at Reefton. I valued the hotel at LSOO, an office at Ll2O, another office at LBO, the section at L4O, and the stock in the bar at L3O. About Christmas last they cost mo that amount — L77O— and more. On the, 15th November, I gave a mortgage for Ll5O over the whole to Mr Woolley, surveyor. I received L 12 0; L3O was for interest. I was not owing anything to Mr Woolley, nor he to me. Creditors were not pressing, but- were in want of money when I got the amount from Woolley. John M'Lean got L3O of it, Graham L3O, and different people about the house got tens. I have put down as a debt due by A. White L3B. I had a debt case with him at Reefton. I was not non-suited. The Magistrate recommended it for arbitration, and ultimately, on that ground, he dismissed the case. On a point raised by Mr Staite, he was non-suited. White advised. me not to come to the Ahaura, and he snapped a judgment behind my back. I did not apply for a re-hearing, for, before I knew, the bailiffs were in at Reefton. I made an assignment to my creditor^ on the 18th or 19th of February, when White put the bailiffs in under his judgment. Woolley add Cameron were the trustees. White refused to sign the deed, and I was advised to file a declaration of insolvency. I was merely to file till his Honor arrived in Reefton, White refusing to have anything to do with the 'assignment until the case between us was heard .in Court. AH the local creditors s, i ?ned except White. The property was afterward? gojid by auction by Woolley under his mortgage. The deed of assignment was not gazetted. I had no notice of jtfte sale, but am aware through others jbhat Mr Woolley s<j>ld and realised only about L2QQ. His Honor said he had occasion frequently to remark about mortgagees selling under their mortgage, while the unfortunate mortgagor never had any notice whatever. i Mr Guinness: The extraordinary part of it is that lie made a sale as mortgagee while appointed trustee. His Honor : It is an extraordinary transaction altogether. . Mr Newton : There was sufficient to satisfy, not only one, but both mortgagees, and this mortgage was not due for some time. The sale was made when White's judgment was got, and prevented other creditors from being paid. ;

His Honor : lam satisfied, from my own knowledge, that the- property was value for a great deal more than L2OO. Examination continued: Mr Gessinge, chemist, bought the property : for Mr Fraser, Ahaura, but Mr Woolley has it now. The creditors valued the property . when I assigned, and there wa3 over 20s in the pound, taking things as bad as they could be. The assets were over LSOO. 'That was the reason the creditors appointed two of themselves, and because. I was leaving Reefton. The property was bringing in a rent; of :L4 13s a week. When Woolley took the property, I paid rent at the rate of L 3 ■ per week to him. He took the hotel, and guaranteed L 2 a week to them. The telegraph office was rented for LI 13s a week, and a cottage at' LI, afterwards 15s. I understand the public did not bid, as they did not comprehend the nature of the. sal& M'Lean and Sutherland went to stop the sale, and to make arrangements to pay off the amount, but they could not find, anyone to tell them what was 6wing ; " His Honor: I cannot think that this sale will stand. Bankrupt : . It was understood to be Woolley's purchase all the time. Fraser was never thereat all," so far as I could hear. White did not press me, afterwards. He was the first to tell me' that I was sold in Reefton. The creditors said it was a swindle, and that they iand I had been done out of the ; property. .. I touched nothing after handing tlxe property over to the trustees. .... la. a conversation! between the Bench, the Provisional Trustee, and r cqunsel, there was* a. statement that Woolley hail taken possession of all the property ; that there had been some refusal by the telegraphist at Reefton to sign some cheque, about which the Colonial Treasurer hadbeen communicated with/; and that. there wa3 another asset, L 24 395, which was - recoverable. ' l; > ■ "-'• ■'■> His Honor:' All these' things ought to be inquired into. : At present they appear very unsatisfactory. It is , altogether !a complicated case, yet it does not appear : to me that the bankrupt' is to blame. (To ; Mr Guinness.): It might, have. been an • act of bankruptcy, making his property over to Woolley, and it might not haye" ■ been. He states that* the greater part of his indebtedness arose, afterwards. . Ther.e i is a great difference between this case and ' the' last, and I think the bankrupt hds' been hardly treated by the mortgagee. I Mr Guinness considered the bankrupt" i had been to blame, and had by hia neglect : virtually allowed the estate , to be plundered. ■■,: ■': "■: ; ■-: . i i His Honor: The case is thus:— the t bankrupt being pressed by your client, ; made a deed of assignment. He put all , - his property in this hands of his creditors, E and what more he could have done, I'djt> I not know. Subsequently he files a clei claration of bankruptcy, but the mortgagee i sells the property two or three months E before the mortgage is due, and he certainly sold it at two-thirds less than its - value. i j Mr Guinness pressed for the order of, i discharge being postponed, on the' ground that the bankrupt should have prosecuted his declaration of insolvency by going , through the Court. For all they were to b know, Wooliey might have been a man of j straw, and, during this interval, have I disappeared, leaving his creditors or ihfc I Trustee without a remedy. More infor r , mation might be required, and he thereb fore asked fora postponement of the j order. 3 His Honor : Your application would be i reasonable enough 1 , provided there had • been any means whatever of further 5 probing this matter. ; When there is I equity jurisdiction given to the District ) Court, the matter might be inquired into at a trifling cost, and that will be. The Bill will be law in a few days, but when it I will come into operation; Ido not know—; perhaps in January next; I should not feel justified in withholding the bankrupt's 5 certificate up till that time. If there had I been any proper means of bringing the j ca se before the . Court, it would have beexj k different, but there is no mechanism for I doing so. „.' i i Mr Guinness said what was complained [ of was that the bankrupt should make an Ij assignment, and wash his hands of his Ij estate. If the trustees were not doing their duty he should have gone on with . his bankruptcy proceedings. !

His Honor repeated his remarks, and an order of discharge was granted. j The Provisional Trustee pointed out that Ll6 had been, charged for keeping possession of the property at Ll ; per dayj the man in possession being the man who was at the time paying' rent at the rate of L 2 a week. ' _ ! Hiß Honor said he had noticed the item, and should certainly disallow the amount. ! RE JAMES HAYES. \ This, was an application by Mr Perking for the examination of three witnesses, ;Mr Perkins appeared for the petitioning; ere* ditors. The following witnesses were called : — ;■■...; : T. M'TCee : lam a carrier between Greymouth and Reefton, and know Jas.iHayes, late of Ahaura. I- used to carry for him at Tolora Flat, directed to the Half-Ounce store. All the goods I carried for him went through my books. I remember', on the 28th Jnne, carrying four bales '■ of goods for him from Reefton to Tdtara Flat and Ahaura ; one was left at. the Flat and three delivered at the Ahaura store. It might have been John Hayes, Ryan, or- Jaa. Hayes, who received the goods. I did not take the goods away again. Jas. Hayes paid the freight of the goods, to Half-Ounce. I don't remember delivering any goods at any other place on the road for Hayes, except' a small parcel. I know of no other goods carried except included in the receipts produced. _He never paid me cash ; it all went through the books. I paid Lll for Hayes to Ryan on- the 23rd July for clothing. I must have owed him more because I charged him with L 4 }3s 6d for cartage, 'and the LH squared the account, j have no. waybill; a|l my books are in jfyeeftqn, except a smajl memo-book, In it J find that after the 12th July there is a: memo—" Hayes two cases from Ahaura, 65." I don't remember carying the cases^ or if the item <( 6s " was the price paid for freight. Do not remember being paid this 6s.

Patrick Ryan : I was storekeeper for James Hayes, and was at the Ahaura store up to the 20th July. I left the Reefton store about the 10th June, and went the next day to the Ahaura store; I see in M'Kee's account an entry of three bales of goods on the 28th June, but they did not come to the Ahaura to <my knowledge. M^Kee did not deli ver V them to me, and I know, nothing about them. On

June 21st, I received some goods from M'Kee, but none from him on the 28th. I swear the three bales never came to the store to my knowledge.; • I previously stated that I collected Ll7" in Sjnall amounts and gave it to Mrs Hayes ; that is correct, but I cannot remember the items. One of the items was LI I paid by M'Kee. I seem the Reef ton day-book-the entry of a quantity. of. goods, dated 14th i February, 1871, is Yin Meenan's handwriting ; the name was originally ; -Biefiard'" r Ee'e'vesj'iand ;; 'wBB :^^fered : 4n 2 Tn3r presence by^Jatrfes : ; IJayes *° *" 3 ow f 1 name, just previous to his leaving, between , the :20th and 26th July; J873. itjdpnjt know where the goods went tb/,vbdt .Hayes .told. ..me, they went to.Reeves's tb auction. Tiiereisan entry in. the Reeftoh day-bo6k, : ';dat^d:23rd u May, r -'1873, of fc quantity of goods^ l amounting' to L 44,' which were sent to ; Reeves's for auction. The date is falser; they were sent about' the 20th .July.,! made, the entry .by James Bayes's : instructions^ : The goods were packed in bags, and taken away atrnight, by r .a man named Os]borne. ,1 cannbt account for the two leaves which appear to have been 'cut out> of the Ahaura day-' book, or what' the entries on the leaves were. [His Honor; examined the daybook, and found that 1 the whole' of the dates ran on i; continuously, although the two leaves were'gohe, but the entries had? been made backward from the end of the; blobk, and were memos of the daily takings ; at the store, j ( j . Tr M'Kee re-called .• I s remember ''the' entry of 6s for carriage of a caae. I can-' not-rememberiwheniltleft it,^but accord-' ing to my books it .was sent from Reeftoh .to Ahaura;. i It.wpuld bel cwt, #3 jGjs is the 'price of ' carriage." I recollect ' nothing more about these,. two cases. I swear I delivered three" bales 1 at Ahaura. "I /have a list of the goods I bought from. James 1 Hayes" and thick 1 tihe'y amounted 'to more thanLls. Ryan made out the bill. 'I paid him a' balance of lill'. I have book's here, bat my way bills are in Reefton. j John .Mitchell : lam a carrier.^ I have" carriedgoods for Hayes -since~22nd~May from Reeftpn to Totara Flat.- I carried a, case on 20th July. It' was a cash transaction. I have no entry of .it. =; I left it at Marshall's. I was paid Lt for it. < The :reason ;of the extra charge.! was- that I wanted to detain it. I, have not been jpaid.ityet.. '•.. Mr Marshall hasreceived it. There were no otljer goods then. I havo .carried- nothing else : since, then for, Hayes. There was no .address on^thecase, but I understood it was for^ the. store at Half-Ounce.' I never left any 1 goods either at M'lnerney's or Craig's. 1 • I never took anything like a -box" or, parcel with this trunk/ to best of my knowledge. : John Hayes :; I ami ta^ storekeeper sat Hal f-Onnce. , , Went uitp ; the , employ of my brother, on the 3rd October, 1870.. f I left his employ, dn^ either :the 2isth br^2Bth Marchj 1873, whenileftf orMelbourneand returned, fromthere. about :.iOfch; r;May. . .< I then went up to Ahaura and was 'asked by my brother to remain , there.; ; jlsaid I would not as I did not, like the place. I remained a short: time there and left him on lOth'Junei ■■■! was not' j bn'wag'ei. ill l went ifd ! Half-Ounce' and cpmmenced ;business on my own; account idiriy brother's old store.. I claim that property as minei When I went tliere my brother was owing me L3oo cashleut^.'and : tw6 and a half years' wages. : The. L2oowaslenton Ad; disou's Flat in 1868. I made that money public-housekeeping on Addispn's TFlat. I sold out for Ll7O. Therproperty : there was never my brother's. I bnlyi, received L 100; out of my images' when I went to Melbourne. I remember his. making an arrangement; with. his dison's. I assisted to put" the gold pn my brother's horse before he, was robbedi There were over 356 ounces of gold. It was purchased in about four weeks. My brother also had some cheques... There was a man called Pat -Connor came into the store. Mr. Browne asked tme about the block 3 .: I never' entered the* 'dates or names of selleis in, the blocks'. James Hayes told ..mc . nothing^ except that he was stuck up. ;, ; I told Neville wlien'-I waa' going, t0 ... Melbourne that it .would be better ,f or . ,my , .brother if he never had anything to do with it. I- purchased goods from my, brother. I have no invoices -of .goods. .My ..solicitor -has them! ' I did not always get invoices. I was living at, Half-Ounce , between 20th and 26th" July. ' I recpllefct receiving a! case from Marshall about that date. I recollect sending a registered letter frond Ahaura to. Hokitika oh my, return from 1 Melbourne. I don't wish to alter 1 \thej statement I .made .about only receiving LIOQ." I owe Hayes's estate a balance. I showed a balance to Thompson.. It was not credit;' I cann'6t f tell how much I amj due. -I decline to say-if I have paid any money to , James -. Hayes . at any time for goods purohased by him. | „ , Mr. Guinness, applied , for the expenses of the I ; witiaess,; / J,ohn', ! Hayes^ . ' ■wHo /was allowed, the sum of 'LS-itia""''"' '

auowea me sum or Lio ills. „ y , | , :, ■ In this estate - Mr ,■ Guinness made an application to annul . tlie" order o£ ad judi-j cation. niade by the petitioning' creditors, 1 Messrs Thompson; Smith, andßarkleyV on the, following grounds.:— ''lst. That this Co iir't . had no power to : maie^ the said order of adjudication, as the petitioning creditors' debt did not exist at the time of filing the petition for adjudication ; and 2nd: Tlia't'the 3aid order of adjudication did not allow the said -bankrupt seven days at the least to ''show cause' against the said order being made absolute."; ' .

■In this !l applicationj Mr Perkins /appeared for the petitioning creditors and the Trustees, and Mr Guiuness: appeared for W. Thorogood, a creditor, aud also for the. bankrupt. A ..long legal discussion ensued, and many authorities were quoted' oh; both .sides', which .resulted in thje Judge granting; an adjournment until this (Saturday) morning, in order to allo.w:Mr Guinness time :<>to Tfiie >•, the 'necessary affidavits in proof of Thorogpod's debt. The Court site 'again this mprniug at ten o'clock; ' ' ; ' " ' 1.J.1

I Th.c Town Clprk qf Hokitika. h.as. been in-. gtructed to draft, a J|ill to enable, the Council to strike a firegrate.. 1 . ' ' ' i . A ploughing-match— tie first on that "part' of the Coast— was to be Held yesterday on : Mr Pascoe's farm at Longford. The body of Mrs Christopher Cordin, of Greenstone, who died in child-birth, has been exhumed, and an inquest is to be held by Dr MaunselL The Exchange Hotel, Hokitika, has been sold to Mr O'flafa, Ross, for L 430. *

At Boss and its neighborhood ' tne late gale did considerable damage to . fluming, fencing, and roofing. -, '!, ' ; ■ ! A disgusted. Danburian wants to knowy if a woman < was designed to* be the equal of' man, 1 why it is ahecah^t whistle;; if -v un