Mr Halse’s Creditors.

Patea Mail, 20 April 1882, Page 3

Mr Halse’s Creditors.

The financial affairs of the late Mr Halse were considered, but not fully enquired into, at the first meeting of creditors held in New Plymouth on Tuesday. Most of the time was taken up by the wrangles of opposing lawyers. After some recent experiences in Patea, the loss of time and of patience ju this way will be no surprise. Mr Standish, acting for some creditors, proposed that Mr Halso be made a bankrupt.

Mr Samuels, acting for Mr Halses family, treated the proposal in its literal sense, and expressed surprise that a learned solicitor should propose to make a bankrupt of a dead man. !

The first disclosure of Mr Halse’s mode of dealing with trust monfijs was made through an old resident of Taranaki, who, after living in some years, returned to New Plymouth on the occasion of his wife’s funeral. While there, and having moneys invested in mortgages through Mr Halse, the visitor looked at one property where he supposed £SOO of his had been invested by Mr Halse in mortgage. He saw the proprietor, and expressed himself so satisfied with the security and the prompt payment of interest, that he offered to reduce the interest by 2 per cent, per annum, and allow the mortgage to remain. The proprietor expressed surprise ; and then it appeared that this mortgage had been paid off about three years before. The visitor went to Mr Halse and demanded his money. We believe he also set another lawyer to work for restitution of trust moneys improperly converted. However, it : is reported that Mr Halse managed to pay the £SOO. It is also said that is the only case where he did pay on demand, for the scandal becoming talked about in the sleepy atmosphere of New Plymouth, there was soon a panic, and many clients rushed to Mr Halse’s office demanding the return of moneys or the deeds as evidence of proper investment. In another case, a well-known capitalist at Waitara placed £2,000 for investment in a certain mortgage. The lender; hearing the other story of deception, went to Mr Halse and demanded the deed of mortgage. Mr Halse said the deed had been sent to the registry office. Tho lender insisted on its being fetched back. Mr Halse did not think it had been there long enough to be duly registered. The lender doubted whether it had been sent there at all. Mr Halse became indignant, and sent for the deed. It was soon brought, and laid before the lender’s unbelieving eyes. That satisfied him, and Mr Halse then lectured him for being so unreasonable as to doubt a respectable lawyer’s word. A few days after that, Mr Halse was dead ; and on the identical deed being read carefully, it was found to be, not a first mortgage, : bub a second mortgage for about £2,000 on property that was already over-mortgaged. Tho second mortgage is therefore worthless. Mr Roy, the junior partner, was possessed of about £B,OOO when he

married Mr Halse’s daughter, anil entered a partnership which was sup posed <n be very desirable. It does not yet appear at what, date be became aware of Mr Halse’s insolvent condition.