DISTRICT COURT.

Nelson Evening Mail, Volume XV, Issue 93, 19 April 1880, Page 2

DISTRICT COURT .

[Before His Honor Judge Broad.]

Re Geo. Armstrong, a bankrupt.

Mr Moore appeared for the debtor •whose application for his discbarge was adjourned from last week in order that Messrs Naylor and Armstrong might be examiued, and accordingly His Honor expressed a wish that Mr Naylor might be called at once, and thereupon George Naylor deposed that Mr Armstrong made the bargain - with him for the purchase of the horse-power referred to be first heard of Mr Matthews in the matter when Mr Armstrong mentioned him as the endorser of a bill for part of payment. Armstrong said before that he was negotiating for another but he was going to manage the business. He made out the account in Armstrong's name, and at the request of Mr Armstrong I made the receipt •■' Received from Mr Matthews." By Mr Moore : lie could no' 6 • possibly swear whether Armstrong or Matthews paid him the £50, they -went to him together. and he was uot sure f ro-ai whose hand ho took it. George Armstrong deposed ihsit he remembered the purchase of the horse-power ; he negotiated the whole transaction. He was instructed by Mr Matthews to see Naylor as to what wanted for the goods. He had previously told Matthews that . he thought there was a good living: to be made. Matthews paid £50 in cas!i to Mr Naylor for the things. Matthews also pave him, witness, £30 to meet the Bill. He entered these amounts iv his cash book as received from Mr Matthews, iind he did so because he should have a memo of it. He hoped to be able to buy them some day. His Honor remarked that it seemed very strange that he should have recorded the receipt and payment of this money in his cash book, when it never passed through his hands. Witness said he got Mr Syines to open the books for him, and on telling him about it he entered it in the book. His Honor : Then the ensh book is not in any sense reliable. 1 find that your liabilities arc £315 and your available assess uuder £30. You have been in business a comparatively short time, and I should like to have some account given for your present condition. Witness: It is principally through losses in the fruit trade. I bought a number of gardens and I may mention one where I gave £45 and only get £10 of fruit out of it. Bad weather set in and there was a bad season. George Matthews deposed that ho paid for the horse-power, be gave Armstrong the money to tell out to Naylor. His iutention was to buy the horse-power himself. He, lent Armstrong money to buy wood. Mr Moore contended that'lhe question as to the ownership of the horse-powor was one between the Trustee and Mr Matthews and dil not affect the debtor's application. His Honor in giving his decision referred to the property comprising the horse-power, &c. flud said he would express no opinion as to the right to property. He said further that he was not prepared to say that the bankrupt had not complied with the Act by giving up all property required by the Act. His books were evidently in a most unsatisfactory state, and ho was not satisfied that he had conducted his business in a proper manner. The order of discharge wouid b£ granted but the same was not to take effect for three months. His Honor then made an order for costs the usual way. Be Henry Adams, a debtor. Mr Atkinson appeared for the trustee, and Mr Bunny for the debtor. Mr Atkinson said he proposed to examine the bankrupt, but he said Mr Sharp, who appeared as the attorney for Mr Shephard, a creditor, would first question Mr Adams. Henry Adams, having been sworn, in answer to Mr Sharp stated : I formerly held a power of attorney for Mr Shephard, acting- on his instrvctions, and as his attorney. I invested a sum of £500 for him. That was some time ago, I cri't remember the date. In.my schedule of assets' filed there is a sum of £875 as Batchelor's mortgage and interest. The £500 lent for Mr Shephard is included in that sum. His is a second mortgage, and that property is subject to a pi-ior mortgage to Mr Pell. In Mr Shephard's proof there is a sum of £300 mortgage from Primmer ; that mortgage is not now in existence. He has paid what was due from him. The mortgage was never registered. The mortgage was over some land at Richmond. There in a sum of £G7 12s for custody fees for CroAvn grants. It has never been paid. The sum of £115 17s for fencing to Mr Teschernaker was never paid. That £184 11b shown in the account has not been paid. By Mr Atkinson : The principal money of Mr Batchelor's mortgage was £700 — £500 of . that was appropriated to Mr Shep^ard, and the other £200 to Mr Ray. "In my list of creditors I put down Mrs Freestone, of Yarmouth, for £250. I never told her that that was included in Batchelor's mortgage, but I believe that I told her that I was going to appropriate Batchelor's mortgage to 'it as security. I expected to have paid off some of Shephard's or Ray's but I did not. The sum of £250 is the amount of principal, there is something owing for interest but not very much. I don't think there was when I made out the list. I got notico from the Trustee to hand overtny books to him and I handed over an account-book; but there is another but where it is I don't know. Of late years I kept the ordinary office account books, which have been banded over to Mr Scaife, and I kept another small one. I don't know how many office books there were, I did not keep, an office cash book. There was no book to enter cash in beyond the ledger and the diaries. I generally entered nioDeys received either in the ledger or diary. I think they all appeared, but I may have received money without entering it. You asked whether Mrs Robertson's money appeared in the office books and I told you no. I believe it appeared in a book. Some may appear in the book you now hold. Mr Atkinson said the book which was a cash, book, commenced in 1866 and ended in 1872, and it ended in the middle of the book. Mr Adams : I believe I continued in another book ; I had no particular reason I think. The book, subsequent to this, I kept at home at my old bouse, but I can't find & since I left there. The dates in that book ..would be from 1872 till the present. At the last examination I said I did; pot know wh,ere I Mutt bools wos» I Mmj Btt§pt{on called to

it then, and I saw it after. I did not hand it over to Mr Scaife. I tried to preserve it, and it appears that that very fact has led to its loss. I have made every inquiry ; traced the purchasers of the tables and inquired of them. At the time of the meeting in March, I was asked about the book, and I did not know where it was. I found it in the office. I was not asked to hand it over to Mr Scaife till the last few days. I handed the books over to Mr Scaife, but my clerk handed him some. I thought I should produco this book myself. This was the only cash book in the office. I intended to hand it over to Mr Scaife. In my list of creditors I put down G. Jarrom as a creditor for £460. It was not all lent me in one sum. I put down the amount as near as I could. The amounts would appear in the cash book. Mr Atkinson : Do you adhere to the gtatement that you made before that it was money lent to you ? Witness : Ifc was paid at different times. His Honor : Was it lent you. Witness : I believe on one occasion he lent me between £200 and £300 of it. The document produced is in my handwriting, a receipt dated 29th August, 1878, for £680 " deposited with rre to be invested for him." No money passed afe that time it was part of our transactions. He wanted an acknowledgement- of the money due to him, and he said well you. had better invest it as soon as you can,, That amount included the loan. Mr Atkinson : From that time forward was not the character of yaar holding the money changed. Witness : I don't think so., I was to invest it as soon aa I could spare the money. Mrs Lloyd of Takaka is dowa aa £156. She gave it me and there was no agreement except that she was to get interest. I don't remember that she was to get security. I.suppose she came as my client. She gave me the money to do what I thought proper with and pay her interest. She did know it was on my personal security. She did know as far as I remember. I don't remember whether I gave a promissory note. I sometimes got money on those terms, I most likely gave an acknowledgement. It was £150 aud £6 was interest. I think it was £150. It was not £400. I put down J Mrs E. A. Robertson for £2,200. That was ' money I received for her. t held a power of attorney from her. I don't remember when I received the money. I had more than cue power of attorney from Mrs Robertaon. I don't know wheu I got the last oue. It was subsequent to 20th December, 1877. The letter produced is to Mr Porter, Mrs Robertson's brcther. £2000 of the money was on a mortgage to Mr GifforJ, oj a property in the Wairau kuown as Spring Field. That mortgage was paid off, and I received the money. I don't remember the date of the reconveyance. I daresay the certified copy is correct ; it is dated May, 1878. I don't remember how the money was paid. ■ I think I received some from Edwards &Co. Most likely the sum of £14-0 7s Gd, part of the sum of £2000, was paid to me on the 6th May, 1878, by Edwards & Co. I think I received some from Gifford himself, the balance I expect. I ceased to have any dealings with Springfield then. The letter produced, dated Ist'August, 1573, is in my hand-writing : — Nelson August 1, 1878. Dear Sir, —l have not }'et been able to get a settlement of the Springfiald mortgage, bat as I have £500 in hand belonging to the purchaser. I may as well send it without writing for the remninder as Mrs Robertson may possibly be requiring some money. I therefore enclose draft for that amount less the exchange. I had £1500 which I had agreed to advance,in hind some time, but list it was so uncertain when be could get a little and he objected to p&y double interest that I could not let it remain idle any longer, bo invested it. I hope, however, to get it settled shortly. I sent an abstract of title to the Picton.lard to the Government, but they have neither sent me the conveyance nor the money at present.. They are short of money so I suppose put off payment as long as they can. Believe me yours 9iuceroly>, Henry Adams. J. A. Porter, Esq. I cannot explain that. I believe I had got the money before that letter was written. I cannot explain what I meant about remitting £500 without waiting for the remainder. I also say I hope to get it shortly. I cannot ex2)lain that either. The letter produced (to Mr Porter, dated 7th January) is in my hand-writing : — Nelson, 9th Jar jary, 1879. (Received 23rd do.) (Copy sent to England, 24/1/79.) Dear Sir. —l received Mrs Robertson's letter which you lorwarded, and wrote to the mortgagee of Springfield requesting to have the mortgage paid, and received a reply that he had been very ill for some time and quite unable to attend to business, bxit that as soon as he was well enough he would attend to it. He complains, and with perhaps some grounds, that we gave him no notice to pay off the mortgage, and when we had got the money we could not give him a little, by which ho was put to considerable expense. I shall write to him again and tell him that the money must be paid, and if it is not I shall give him a fresh notice and compel payment. After writing to the Government many times and threatening -io bring an action against them for the Robertsons' money, I have at last got the draft of a conveyance for perusal, so that I hope very shortly to get the money, which I will remit to you as soon as I get it. I have an offer for some of the Kaituna land, but I don't think it is quite enough, and it is only half cash. I think very likely we shall come to terras. There is no sale nt present for the" Mapaerc Bay property. Things have been- unusually dull here for some time, but I think th^rc is an improved tendency now, largo quantities of copper having lately been discovered, and if that is worked it must be of great benefit to this place. Yours sincerely, (Signed) Henry Adxiis. Mr Adams : It strikes me that that letter must have been written in January, 1878. There is a note on the copy sent to England, 24/1/79, but I don't know whether it is in Mr Porter's writing. On comparing the writing with another letter the witness said the note might be in Mr Porter's writing. Mr Atkinson : In your letter of let August, 1878, you say you have sent abstract of title to the Picton land to the Government, but that they are short of money. Now in this you say, after writing to the Government several times and threatening action. Now which, do you think -was written first ? Witness : I can't say from reading those letters. The case was adjourned sine die.