PUBLIC EXAMINATION. BANKRUPTCY OF ROBERT. STEVENSON. SENTENCE OF FOUR MONTHS' IMPRISONMENT.

Te Aroha News, Volume VI, Issue 334, 16 January 1889, Page 5

PUBLIC EXAMINATION. BANKRUPTCY OF ROBERT. STEVENSON. SENTENCE OF FOUR MONTHS' IMPRISONMENT.

Auckland, Jan. 14 At a sitting of the Supreme Court in Banco hold to-day, before His Honor Mr Justice billies, on the motion of Mr Cave, for the Official Assignee, Robert Steveuson, a bankrupt, was brought up for public examination. The bankrupt having been sworn, deposed to his sworn statement being correct, he altering a couple of minor items. Mr Hermann Brown, a creditor who had proved on the estate, then examined him. JVJr Brown : Have you not told me repeatedly that you had to pay interest and not i out? Bankrupt: No, I always referred to rent. The question was again repeated more emphatically arid answered in the same way. The bankrupt did not hear Mrs Stevenson tell Mr Brown in tho shop one evening that everything save a few things like butter belonged to Mr Brown, and ask him to be lenient with her husband. Examined by Mr O'Meagher : I started business in Newton Road in 1865. I made no alteration in my business until two years ago, when it became very small. I believe thut I could have pulled through but for the pressure exerted by one oi my creditors, who pressed for a &mall amount. I filed on the 30th of August, 1888, by the advice of my creditors, to protect them. I have received no complaint from Mr Cooke, the collector for the estate, or from the Official Assignee in refeienco to the books. I kept a rough day book and the day book and ledger were kept posted up in one. Thero has been a falling away in my business since 1886. I never used the word interest to Mr Brown. My wife had to pay the interest, but Mr Brown may have mistaken me to mean that the interest was to be paid out of this. By Mr Cave : 1 kept a memo of my receipts but this I destroyed when I banked. There is? no account in the books showing daily receipts. By His Honor: About July, 1886, I made an a&signinenb ot all 1 possessed to my creditors. Icommenced bubinessagain without capital. At that time my wile may have * had a tew pounds of her own. I only gave ' her rent as an allowance out of the receipts. The £200 she obtained , to pay ofl' an advance on some propei ty was principally obtained from some £5 or £10. ,She also raised it 1 the book debts bt the assignment which she purchased for a very small sum ' k from the rent of the cottages. From December, 1887, I kept no bank-book, and was. without a ca^h-book. I may have told Mr Brown that I bought the book debts from the assigned estate I never told Mr Brown that these book debts realised almost nothing. Mr Cave then asked the Court to exercise summary jurisdiction under section 71 of the Bankruptcy Act. His Honor said he could not do that without evidence. Mr Cave said what he wanted was to go on with this evidence and called John Lawson, Official Assignee, who swore, "The only books kept by the bank iuui> were two so-called ledgeis containing a record of credit sales only. There is no cash-book or account oi sales. It was impossible fiom these to make up an account ot the business ot th'j bankrupt. The bankiupt at his first examination 2>iomi.«ect to render an account but had not done so. There weie 24 creditors in the estate repi eventing £932 10s 7d, and Brown, Barrett, and Co. were the piincipal creditois to the amount of £493. I received a bank book from the bankrupt but it had not been used since September 1887. There was no other record of the cash i eceived by the bankrupt. I was requested to briuo these matters befoie the court by a meeting of the creditors. hy Mr O'Meaghei ; These books were rendered up within a week or ten clays ot the examination by the bankrupt. At the private examination 1 had not seen the-e books, and L knew that he could not give me a statement of account's. Mr Hermann Brown, of mm ot Blown, Barrett and Co. , then gave evidence, and was examined by Mi Cave, Mr o'Mea.ghev, and by His Honor. —Mr Cave said he would leave the case theie. ab he could not put in the bankrupt's sworn statement, and he would ask hhe Court to exercise the summary jurisdiction under sub-section 4 of section 71 of the Bankruptcy Act. Mr O'Meagher addressed the Court at considerable length and queried whether thore was sufficient evidence to show a guilty intent. There was no doubt that the bankrupt had failed to keep the required books, and under sub-section 4, His Honor could sentence him to any term of imprisonment not exceeding twelve months, with oi without hard labour. His Honor said he had always been loth to exercise summary imisdiction under this act, but the present case was so clear that he would not be doing his duty but setting the spirit of the Act enthely at defiance if he did not exercise his jurisdiction. The accused had been in business for twenty-four year.-., and had made an assignment to his creditors just before so he could not plead ignoiance iv the matter. He would sentence the bankrupt to four months' impritonment in Mount Eden Gaol with hard labour. | Mr O'Meagher made an application under tho First Offenders' Probation Act on behalf of Mr Stephen&on. His Honor said that tho spirit of this act was only intended to have icferonce to oftbnees committed on the spur of a sudden impulse, and could not be brought to bear in such a' case at the present.