TARANAKI DISTRICT COURT.

Nelson Evening Mail, Volume VIII, Issue 30, 4 February 1873, Page 4

TARANAKI DISTRICT COURT.

[Before his Honor H. JS. Kenny, District Judge.]

Fbiday, January 24. Be John Wells, a bankrupt. — Mr. Standish and Mr. Pitt of Nelson appeared for the Trustee, and Mr. Hughes and Mr. Pernam for the bankrupt. This case, in which Messrs Stavert and Co., of NelsoD, were largely interested ■was, after lasting seven days, brought to an abrupt termination by the counsel for , the bankrupt stating that they had been grossly misled by their client, and that they had resolved to take no further part in it than merely to watch the case with the view of taking advantage of -any legal objections that might arise. His Honor having expressed his approval of the course they had adopted, Mr.« Pitt drew the attention of the Court ' to the 14th and 15th Vie, cap. 100, and requested the Court to commit the bankrupt to prison to await his trial for perjury. After some conversation, his Honor

delivered judgment as follows : — I had .anticipated tbat the judgment in this case •would rival the evidence in its ponderous volume. I apprehended that it would - ultimately become my duty to analyse and disduse, in detail, all the various transactions of which iwe, have heard so much, and that , tho, delivery of the judgment Would occupy the best part of a day. But

it became painfully evident to me, as the examination proceeded, and day after day went by, that the . . bankrupt^ .. ;was becoming helplessly involved in ;the network of Ins own dishonesty and duplicity ; and though I did not expect so sudden a termination, I foresaw that X would be able to dispose of the matter with comparative brevity. There can be no doubt whatever that the bankrupt has behaved most dishonestly, and that hia dealings with his creditors since the month of March last, have been tainted with the basest fraud. — [His Honor then | went on to mention the different matters j to which he alluded, including the timber transaction with Margrie, the assignment to the wife, the bill of sale to Margrie, the deed of arrangement, the account | books, the dishonored bill, and the general i extravagance and recklessness of the bankrupt's conducL He remarked on the manifest reluctance, natural under the circumstances, with which the fatfaer-in- | law of the bankrupt (Margrie) had delivered his testimony, but at the same | time, gave him credit for his candour and truthfulness; and then proceeded.] — But there are aggravations of the bankrupt's guilt. The manner in which he gave his evidence to the Court was thoroughly unsatisfactory. In the course of more than fourteen years' experience in Courts of Justice, I never heard a witness more shamelessly, and evidently untruthful. All the artifices by which a reluctant witness seeks to baffle the discovery of truth and exhaust the patience of the counsel and the Court were had recourse to by this man. Looking at the circumstances of the case, the Court can have no hesitation in saying that the bankrupt has not, at, his examination, fully and truly discovered the state and disposition of his affairs. Then there is the statement under the 112 th section which the bankrupt has had the impudence to bring into this court, a pattern of convenient perfidy, crammed as it is from the beginning to the end with errors, misstaiements, and omissions, which no sane man can believe to be the result of accident or of anything else but design. Nor can I pass over, without remark, the ungrateful conduct of this unlucky man to Messrs Stavert & Co. In this new country it is not possible or desirable to apply with rigid exactness the rule of commercial morality which in England requires that every man commencing a business shall be in the possession of an adequate capital. It is often a great benefit to a small community when young men of good business aptitudes are started in it in. trade by an established mercantile firm ; and if that firm makes no imprudent advances, and the young men themselves act with honor and caution, and keep their books in a proper methodical manner, no great harm can aiise even if they should from unforeseen adverse circumstances be unfortunate, whilst the benefit to the inhabitants of a place like Patea, of the competition of these small traders, is unquestionable. But the position of these young men is one of trust, and if they abuse the confidence reposed in them by persisting in business when they see their affairs becoming involved or otherwise, they must be made au example of, for the protection of merchants in similar cases. In the present instance it is clear from the evidence, and the tone of the letters that have been read, that Messrs Stavert & Co. acted with liberality and consideration towards the bankrupt, notwithstanding the circumstance that they had lost money by him on the occasion of his former bankruptcy in 1870. Nevertheless the bankrupt concocted an improbable story concerning his relations with them, and (it is to be presumed for the sake of appearances), even went the length of commencing an action against them on the pretended agreement about Birch's bill. The Court is convinced that the bankrupt has been guilty of several of the misdemeanors under " The Bankruptcy Act, 1867," that he without reasonable excuse, delayed to file his delaration of insolvency, and, that being a trader, and during his trading with intent to conceal the state of his affairs, he omitted to keep proper books and accounts. The Court must mark its sense of his misconduct by suspending the order of discharge for the full period of three years. The Court is also satisfied that the bankrupt has been guilty of a misdemeanor under the 2nd sub section of section 302 of the " Bankruptcy Act, 1867," and it commits him for trial on that charge. It likewise appears to the satisfaction of the Court that there are grounds for the institution of a prosecution for the misdemeanors mentioned in the 4th and sth sub-sections of section 303 of the Act of 1367, and iv sub-seotions 4, 6, and 7 of section 302 of the same statute; and the trustee is ordered to lay the papers before the Crown solicitor of the Province of Taranaki. Finally, the bankrupt. John Wells is committed to take.; his trial!' for. ..w.ilft^l:^Qd:^^bTrup]^P9rjJ9iri^l^ib--'---mitted ' during the examination. The trustee and Mr Margrie are required to enter into their own recognizances to pro-

secnte and give, evidence 'in these -(natters-. Before the Gburi rises; I feeT boffnd/to say that the colony is much indebted to Mr Stavert for the thorough manner in] which he has caused this case to be investigated, and? the trouble he has taken regarding it. I fear that, the loss of valuable time he has sustained must prove a serioua inconvenience. It is proper forme to add that Mr Hughes and Mr Perham liave > discharged a delicate and difficult duty with zeal and discrimination; all that they could with propriety do for , the, assistance ■ of the bankrupt they haye:,effected; btffrat was of course impossible for Ihem to .per-" sist iv asking the Court to adopt a, staite-" merit as to the existence of certain facts' which they bad learnt to be unfounded. Mr Pitt asked the Court for certificatesunder section 2 of section 307; The Court said Mr Pitt could, take themj the form, to be settled in chambers. The bankrupt was then committed for trial, and on bail being applied for, his Honor said tbat in a case of this .description he could not accept lower securities than »he bankrupt in £500, and two securities in £250 each. These w.evavnot forthcoming, and the prisoner was accordingly locked up.- ..."..