DISTRICT COURT.

Taranaki Daily News, Volume XXIII, Issue 114, 30 May 1901, Page 2

DISTRICT COURT.

IN BANKKUPTOf. Wednesday, 28' h May. - Before Hi» ■ • Honor District Judge Kettle. CONTINUATION OF W. D. SCOTT'S PDBLTC EXAMINATION. The continuation of the public examination of ■ William Douglas Scott, auc'ioneer and commission agent, bankrupYof O'punake, was taken. Mr. Kerr (Stsiidish and Kerr) appeared for the Official Assignee, Mr. Roy for the bankrupt, and Mi*. Welsh (Hawera) for Means Lambjp, Rogers and Middleton, creditors in tha estate. In reply to Mr, Kerr, bankrupt aaid there was no entry in his b->oks of the sale of a bo' s i to Humphries, nor -of a lot of similar transactions. The books onumera'ed in the list produced were the only ones kept by him. He could not make out a correct statement of hit) affairs f.;r the three years immediately preceding the bankruptcy. He was thea eximined os to transactions wjth trust sale moneys, his repl.es being similar to those at the previous examination. He admitted that the amounts >hown in cxlrbit G., totalling £478, ha.l been diverted to the gencr .1 account and tha people had never been p.iid. Ha would swear he and Knowles were not acting in collusion as to the saleyards proparty, Afte' Knowlos had refused to hand the yards over to bankrupt he may have told Tindle he would have lo trtat with Know'es, and ho kaew he was hopelessly biankrupt. His Honor: Why did you not consult a solicitor when you found Knowles waß going tack on you, and that you would 1 > t e £SOO or £6OO worth of property, which really belonged to your creditors? I had bo evidence and thought I could do Lathing. The leasa of the* yards to Tiadle was exccut»d tlirae months' before bankiupt filed Ho refused to sign a deed of astignmi-nt because there was no provision for carrying on the Imein. S3, and he would have lost his .utmtion with Tindh'. He owed Kuowks Toothing, when the latter refused to hand over the sc ctions, but £6O and expenses of ttaosfer of the land. B -likrupt did not ask his guarantors at the to iti'erf ra. Did not file at that time because he hoped to ba able 'o make a comp jsit'pn with h ! s creditors. Bankrupt bilieved he Lad no intere t in his father's tstate now, as he nnders.ood his mothor had altered the will. Mr. Can' ing did not make bankiupt an offer for the business within a year of the bankruptcy. Ha hid never advertised his business for f,ale. F* om 1899 up to the date of bankiuptcy Tindle paid bankrupt £1 a week r°nt for use of the mart. To His Honour: Bankrupt did not enter the money in his books, and did not know what he did with it. Had only a varhal agreement with Tindle as to use of the mart and cilices. T.ndle put up a sign, "Tindle and Co and covered over h : s (bankrupt's) name. The list t>f dishonoured cheques produced] received from the Bank of

Now Zealand was, he ljelieveJ, correct. ! A.n item £IOO 14s was money lent by Mr. Paul on 6'h February, 1899, to ass : st bankrupt, He was married in March, 1899. He "-detailed the bid deb's nude in his business, and said he hid taken no s'eps to press Morrow for paym-nt. He let things drift, He paid 8, 9 and 10 per cont.fur accommodation. He had gambled at cards at Middleton's and Knowles's Hotels, but < bought he come out square, though lig was eomntivriFS unfit;ed for business. Ho was liberal in " shouting " for customers, as it was to some ex'ent necessary in doing business. To Mr. Welsli : Humphries did not tlimite-i l.im with a criminal prosceulion in wiMi trknlimren ti-nnc.

actio". He did say he would take action, bub not criminal proceedings. He held Humphries' bill for some months, and lie did Eot pay Martin -eeause the latter did not come for the money. Humphries cime several timed fur his men ay and did not get it, because he (bankiupt) did not fcave it. Iho money all went into the general fund, and on some days people could get paid and on others there was co funds t > draw upon. He had always piid O'Connor for any stock sold oa his account. A sum of JJSOO which he had to refund to the Oaonui Dairy Company was accounted for by his getting moaey from friends and collecting small accounts. The balance of £275 of this, tho ilems of which he could not account for at ] :,st exa.Timstion, he could r:ot account for now. lie bad not been asked to make ony ef'oits to ti'sci the particulars. The Assisn&e

| !si;ed him for s'aternents which bank I ruptwrotoand said bo&Mildr.ot provide. J Mr, 25. Maxwell lis.d never had to pay I an acfount twice ovur. In Humphries'! ledger ri'counis the amount of .£3O did not appear. Mr. Maxwell had »' v ' l ' P ,v:d any portion of the bills for £72 and .£66 given by him. llis Honor asked the Official Assignee why Le had not got any of this ftoney in ? Mr. Davios : 1 hava collected some, | which Mr. Maxwell paid on account, and he promised to pay the balance.

His Honour: He did not disputel liability. But the money should have boon collected long before th's.- The' bankruptcy took place Nearly twelve] months ago. It seams to me 'the] machinery of the Bankruptcy Court in New Plymouth requires oiling to facilitate its working. Bankrupt, to His Honour: He could not make anything out of his books, as they were in such a state of muddle.

His Honour: That seems plain. There srcms to be nothing new being brought out in the examination to-day. The on'y thing apparent is that everyone seems to have been asleep bince last examination. The matters should have been wound up before this. Bankrupt: It was after I signed the deed of assignment that Knowles refuted to hand over the saleyaid?. The reason I went 'o Knowles at my own instance in the matter was that if I could have got the £4OO from Tindle when I handed him the freetold and also c.'uld have co!ltct« d some of the moneys owing to me, I could have paid a dividend.

His Honour: Why did you practically allow Knowlrs to rob your creditors c f the yards ? Was it not so that you could socure the appointment at £2OO a yew?—No; I could have the appointment in any ciae, as Tindle would have built elcewhere.

Bankrupt was then subjected to a searching cross-examination by Mr. Welsh as to what he had done with several sums ef money received (and referred to in preceding evidence), and as to bis sobriety at the time'he banded the business over to Tindle. He stated he was sober all the. time.

To Mr. Welnh : Arend Seekamp gave bankrupt a bill for £475, which Mr. Middleton discounted, Mr. Knowlts endorsing the bill. There was another bill given by Sekamp for X 120,' which was a'so discounted. There whs enough to pick up the £475 bill. The proceeds of a eal-j held by him for Seekamp were placed to the latter* credit. There was a current account between thorn which \va« sonict me= overdrawn, and sometimes was the other way. Mr Welsh: Thtn Sa.kamp never got bis money. Mr. Welsh: Is Seekamp's account in your ledger a correct one ? —No ; i. should show a credit of £483, i..stead of a debit of £9, as it does at present. Seekamp had filed, since for £6OO. Swaysland owed whatever money was down in the books against him. Jas. Millar's account had been sqaarad, he having given a bill of sale to Carroll fir £l5O, which was paid off. I had none of this mom y. Had not'paid an\ moneys twice. On Novemhf r 16th t gave a cheque for £36 to Mr. Brewer on account of a gambling debt owing by Carioll and myself. The cheque was dishonoured, and Brewer Lad never been paid. Carroll had since psid me the share wh'ch he owed. I read t(-e letter from Mr. Knowing to Mr. Tindle. The matter of the civeit is mentioned, and the bankruptcy. The matter wes not discussed in th-) letter. His Honour: This letter should be produced.

Bankrupt (to Mr. We'sh): I ge' £2OO a year from Tindle and Company, and am not putting aMde anything for my creditors. In D cember, 1900, I transferred a life insurance pjlicy for £3OO to my mother.

To His Honour: I admit at that timo I saw bankruptcy tvas inevitable, unless I cou'd effect a c<m[>romse. Afr.tr further quigti.ns by His Honour as to the tiansictiins with Knowles, Mr. Roy applied that tbe examination be closed.

Mr. Keir submitted 'hit the examination should not be closed, but adjourned sine die, owing to the unsatisfactory mannur in which the bankrupt had managed his affairs. Mr. Roy pointed out that the roat.t«r had now. been going on for fifteen months, during which the Assignee had neglected to investigate tbe affairs of the bankiupt, who had assisted as far as possible to give information. His Honour said he agreed with Mr., Roy, but could net see his way to graut that the exatnina' i«n should bo closed.

Mr. Roy: No good can come of an adjournment. His Honour said he could no 1 ; make an ordtr If the bankrupt had kept, his books properly, there would not have been any trouble. He mutt be able to see bis way to say that the affairs of the bankrupt had been sufficient lv examined. There had no doubt been a great deal of delay and neglect on the part of the Assignee and creditors. He would adjourn the case until the next sitting of the Court. Mr. Kerr asked the Oourtif it could make an order to commit the bankrupt for trial.

Qis Honour said he had absolutely refused to do al'eady, and the Supreme Court Judges had dooe the simr, until the Government laid down p:oper rules and lobulations. He advised Mr. Kerr and Mr. Wtlsh to the cas 1 *, which was a most invo'veJ oik. The delays were unfor! unite, but were perhaps due in part to Ihe ioexpa'ionce of the Assignee, who was now to the busint ss.