KUMARA INSOLVENCIES.

Kumara Times, Issue 488, 20 April 1878, Page 2

KUMARA INSOLVENCIES.

The following Kumara business, aa reported by the Grey River Argus, waa transacted in the Insolvency Court, Grey mouth, on Wednesday last, before ; his Honor Judge Weston : j Re Thos. H. Barker, of Kumara,,, i miner—Mr Guinness for bankrupt j Mr Perkins for Keech and Molloy, and j Brown and Holder, creditors. The bankrupt, it appeared, filed at Reefton * five years ago, and proceeded to Wellington, where with £l2 as his capital v he took a contract of £3OO. He ih- : curred a liability of £2OO through the : dishonesty, »r was said, of his. con- ■ tractor; he was also indebted .to two j partners in £IOO. With £l3O .that he j got from the Bank of Australasia he | started at Kumara to build a house and : shop. With the proceeds of .goods he bought on credit, he completed arid [ furnished it at a cost of £2OO. He j paid out of the takings £6O to the bank, j and under the security held by the bank fchey sold off everything for £80", leaving the body of creditors, to their 1 fate. The debts amounted to £G3O. Mr Cornfoot was the purchaser of the entire.estate. The bankrupt, engaged in collecting the debts, was renting the house and furniture at 7s 6d per weeljt.. Mr Perkins advocated a suspension,of '•"* the certificate, and maintained the chase by Mr Cornfoot was for andwithC funds of the bankrupt. His Honor : It is a very bad casein- '■ deed. The bankrupt, - T de.btedness at Wellington, "borrows commences a shop and before it ■ is finished ami furnished -at a £2OO he mortgages it. He then pursues the credit system until it w m avail - him no longer, and then the bank for a balance ~f £BO wipes off everything, and the creditors go Co the waft' Whilst ■ the creditors are to blame for thejr fofly "" and recklessness, the debtor' is highly

•culpable/ It is a case worthy of exposure. Regarding, however, Ife young family, 1 will mitigate the -penalty, and •order suspension for 18 calendar months. He Lewis Moses, of Kumara; debtor. Mr Warner, for Haigh, Bramwell, and "Co., of Dunediri;Mr Guinness, fov "W. Moses, opposed. The -debtor had made an assignment and nlecttt in the District Court under the Act''of .1876! 'The deed had not been completely executed within the time limited by the Act. It was contended that the execution of the deed was an act of bankruptcy, and Mr Warner moved the *Court for an order. Mr Guinness" took several objections to the petition, =ahd maintained that the petitioner 'toad acquiesced in the deed, and was therefore precluded from - -petitioning. His Honor referred counsel to section 29 and enquired whether acquiesenee •could avail the banktupt when the •deed was tiled in pursuance of the Act =and when the Legislature gave the bankrupt and creditors a certain time to negotiate with each other. Mr 'Guinness concluded that it con Id, His Honor reserved judgment until the following day at 10 o'clock. The Court rose at 6 o'clock.