DISTRICT COURT.

Taranaki Daily News, Volume XXXXII, Issue 202, 19 October 1900, Page 2

DISTRICT COURT.

Thubsday, October 18, Before His Honour District Judge Kettle. BANKRUPTCY.

Tke Court resumed the public examination of W. D. Scott.

Witness produced a list of items of items of cash received and paid after Ist December, 1899, and the date of bankruptcy. Examined by Mr. Welsh: The accounts do not balance. I have none of the money in hand. The books show the difference, All the receipts were trust money.

His Honour: All trust moneys undei the Act, and for which you are liable to a penalty of £IOO, for not accounting for. I To Mr. Welsh: These are receipts from sales for customers. On the other side is money paid out to people to whom I was owing trust money. O'Connor bought stock to the amount of £8 lis. He paid £5 lis in cash, the balance being debited to him in the ledger. The other items making up his account were only shown in the day book. Some of the payments were made by cheque and some in cash. If I had time I could tick off the items. [The list was then gone through and the items ticked off by witness]. The receipt side i& entered from the day book. The items do not show in the ledger and were not all paid into the Bank, Had no reason for not entering the items in the ledger. Followed usual custom. The list produced showed other liabilities than trust liabilities, paid by me either by cheque or cash. These items were paid oat of the general fund. Took the items from the day book. They were not all entered in the ledger. Foacor five entries were not entered in either the cash book or ledger. They were: Oanui Dairy Company, £527; Humphries, £3O; J. Elwin, £32 13s 4d; Palmer, £4; Opunake Wharf Uompany, £lO 13s sd. I think a)l the rest appear in the day book and ledger, I oannot remember if I paid the Oanui Dairy Company by cheque or cash. I cannot tell from my bank book if I paid by cheque or cash. I paid the money in more than one payment; at least two payments were made. I got the money from money I collected. I cannot say I pud it out of my own monies. In keeping No. 2 iccount I went back to the old order if thiogs, and mixed everything up in one general fund. I got the list of receipts out of my day book. They are entered in the ledger and credited to customers. My books could not bt balanced. I can give no reason for not passing all my cash through my Bank ; neither had I when keeping the old account;, banked all my receipts. Tht list marked E is a lirt of promissory notes, the makers of which have already | paid me the amount of tho notes, and i have paid again or are still liable. 11 got the particulars from a list I had I given the Deputy Official Assignee.' Chat list I got from the Bank. In the I case of Birchall, I debited him with £2B 17s 3d for stock bought, and! credited him with the promissory nott tar that amount. I treated the others the same way; all these accounts ari shown in the ledger.

To His Honour: Birchall afterwards piid me tho amount of bis bill, I did iot take it to the bank and pay hit. □ill. Cannot say why I did not do so. ( admit I should have done so.

Mr. Roy submitted that it depended if the bill was duo. Iu theory the bill should have been taken up but in practice it was never done. What was doao was the hill was charged to the client's account or the banker sont for a cheque for it.

His Honour said tho moment anyone received Jrnonoy for any particular bill it should bo piid over to l'idesm the bill, or held in a trust account fci that purpose till the bill matured.

Examination continued: All the butts of my cheque books were handed over to the D.O.A, The D.O.A. said he had no butts of a later date than 1898. To His Honour: I handed the butts to the D.O.A.'s agent.

His Honour said the D.O.A. should instruct his agents to prepare a schedule of all articles and documents received, rod have it signed by both bankrupt and the person taking the things over. To Mr. Welsh: I thought I was the iwner of the Opunake saieyards and the auction mart and the goodwill of the business, I had enquiries for the purchase of my business, but no offers. Mr, Harry Good made enquiries, and I told him I wanted £2OOO for the whole aflair. I heard nothing further from bim. I considered the business was worth £2OOO. This was in 1899. I spoke to Lambie in November. Prior Co this I cannot think of anyone else who made enquiries. I made my arrangements with Tindall prior to his arranging with Knowles for the saleyards. There was an agreement. Tindall wrote it. He has it. I have no copy. I told Lambie and Middleton of Tindall's offer to retain my services. They were both agreeable. I should have mentioned that prior to trying to get clear and' to raise the 7s 6d in the £ I made a deed of assignment to Tindall. I did not call my creditors together. There was a deed between Tindall and myself. The arrangement was for 2 years, There was no arrangement either direct or indirect that I was to have any interest in tho bui-intsf, either present or future. Tindall takes an active interest in the bußiucßS. Ho attends all sales, and is in the offic where ho keeps the books. After I had sold my services to him for £2OO a year, I went to work for him. I could not stop Tindall getting the yards from Knowles, Tindall told me if he did not gut the yards he would build yards himself. Cannot say if it wis before ■r tfter our airangement. I knew he vas going to Knowles. I was not pvofenu when hn got tho yards I knew all that was going or, but I did not ill Middeiton about it. I did not oivo MiddSoion out iu tho cold pur- !« ! ly. I did net think I could do any- J 'l-ir;;. Kuow'es vv.-.r-•windling tno. 1 •!<* 8' i!l on friendly tc-iTi'; wiv'i l.i ji m I fuli: helplft > 1( * fc'i? 'intta?. 1 iiiui 1 :st #ll hope of setting tin yards from Knowles. 1 [ t&d taken r,o steps to compel Knowlrp band tho yards over to trie. I did isk Knowles. to assist; fee with the raising the 7s M in the .£. I iot' married in March. Hava not gatr'i'ed j for some years, f\nd never gambled!

heavily, Cannot gay how much I spent a weak in drink. I wm always free | with my customers. Ido not consider the money I spent in drink had anything to do with my failure. 1 attribute my bankruptcy to loses and bad debts. I did not keep a bad debts account in my ledger, and eannok make a list of them. I first discovered I was insolvent in November, bat did not file because I had hopes of miking some arrangement. I paid some of my creditors in full because they precsed me. I did not discus the question of filing with Tindall, Middleton, Knowles, the Bank manager, or my solicitor. The payments made in exhibit " S." are payments to old creditors made since December. They are for old debts. I have handed over all papers, excepting a file of letters and invoices, to the D.O.A. My life is not insured. I have no money or any expectations. I cannot explain the item of £3OO, and cannot remember how it arose. On 26th February drew cheque for £9 19s, probably for expenses. Kept no banking acoount between 26th February, I'JOO, and date of bankruptcy. Last entry in! day-book is 18th February, 1900. Tindall and 00. opened business on Ist January, 1900. Mr. Roy said he bad no questions to ask.

To Mr. Welsh: Constable Oooper, Opunake, paid in a cheque out of my account in June, 1398, for £l3 Ids 6d. It was money lent. He was short. I got part of it back. He owes me now now £lßl6a 9d. I sued him on note, Denied issuing a lot of summonses and litying Court fees. Had been asked by olienta to , pay rates for therii. Told Cooper I had the money and to come and get it bnt he did not do so, Cooper asked for a cheque one morning, as his auditors were coming. Paid him £lO Is 8d in respect of rates for various persons who were sued.

To His Honour: Oould not make up an account of my personal or business expenses.

The bankrupt amended a portion of his evidence as to his arrangement with Che bank. He said he had a limit of overdraft of £3OO which he often exceeded. He also bad am arrangement for discount up to £2OOO, and this was was frequently exceeded. I'he further public examination was adjourned to the next sitting of the Court.