BANKRUPTCY.

Taranaki Daily News, Volume XXXXV, Issue 154, 3 July 1903, Page 4

BANKRUPTCY.

BS. W. M. WOODHBAD'S ESTATE. At the SM. Court on Thnrsday, an •lamination of two witnesses wss held by Hr Stanford, S.M., in the above ■Utter. Mr Kerr appeared for the DO.A., Hr Medhy. Mr Andenoti (of Messrs llalone, MoVe gh and Anderson) ap-1 peered for Mrs Woodhead, and Mr Bpence, of Stratford, appeared for the Bawmiilers' Ais-ciition. Mr Medley wasabopres«nt. Henry Williamson, ca'led by Mr Kerr, said that about Fabiuary, 1901, he entered into pirtnerthip nith bankrupt (Wcodhead) in respect to a sawmilling plant at Pembroke-w> id, Strat- - ford, and certain timber rights were acquired over about 2500 acres in the neighbourhood. The mill acd phnt east about £9OO. The rights wereac- ? aired at the rate of 4J and 6J per 00 feet of timber. The rights wire acquired from Messrs Hellier, Boger Brothers, A. and W. Beid, Aid ridge, Boddie, Fekins, Quin, Ralfe, Watkins, and Keily. These rights were acquired between January and May, 1901, for a term of eight years The deeds are in Mr Shailer Weaton's BoasMiion. The mill is erected on leasehold property-four years with right of renewal. Binkrapt had a half interest with witness in the concern, bat the arrangement was that the property should be run in witness 1 name. Witnrss believed the bank account was first opened in his own name, but later was altered to Henry Williamson and Company. Bankrupt and witness had the right to operate on the account. The change in name of firm was doe to Mr S. Weston joining as a partner about May, 1901. The shares were then arranged at one third each, ' aaeh having to furnish £3OO. As far •a witness knew, Bankrupt supplied his •hereof cash. There was a memorandum < drawn up showing their respective interests in the concern. Bankrupt kept the books, for which he was paid £SO per year. Witness' sahry was £ls per month for managing the mill. There was dose on £IOO owing to him. Thought bankrupt bad been paid his wages in fnll. The firm subsequently 'purchased a half share in the S'.ratford Bash and Door Factory, Derby Bros. baying the other half from Burgess and Sons. This was in 1902. The amount of purchase moaey was £I4OO, £SOO of which was paid in cash, and the res' was arranged on bills 12, 18 and 24 sebathe. The first bill due in May last bad not been met, as the firm had not the money to meet it. The firm's was guaranteed up to £2300 by Mr T. S. Weston, but it was up to the limit. This account applied only to the Bash and Door Co. Cheques were signed by one of the Derby Bros, j or witness. The firm also purchased two £-ecre sections in Stratford for! £IOO each. They ware purchased in | witness's name. In regard to property at Koru, witness said he and bankrupt had inspected Merediths' mill and plant about Xmu, 1901. After the inspection they interviewed Mr Weston, and itwaa arranged that they (the three) should buy the Koru property for £650. The property was taken in witness's name. Witnssß had lights over about 3000 acres at Koru. Two, from Kratz and Looney, were paid for outright, whilst the others were held by means of royalties. To secure those rights witness obtained money from the Bank of New Zealand, which was •till owing. Had carried on operations at Koru since the purchase. Witness kept the Kara accounts. Had no books of account in Court, as he did not know which were required. At this point a discussion arose ss to the *on-prodoction of books, Mr Kerr inferring that it was an attempt to bnrke inquiry. Mr Anderson said if the books wanted had been specified they would have been produced. . Witness (continuing) said the partnership was dissolved on Ist November, 1902. [Copy of deed put in, in which Mr' Weston was paid £IOO, took a mortgage over certain properties, and was undemnified from any claims •rising under the partnership.] Witness and Woodhead took over the liabilities and assets as affecting the Pembroke-road and Sash and Door Co. The Koru partnership, for which there was no deed, was dissolved about the same time. Witness wanted bankrupt to pat in £SOO, but he could not do so. He said, however, he was getting money from Home, and when he got it he would pat it into the business Witness told him that until the cash was forthcoming be could not regard. Mm. as a partner. Up to Ist November,! however, witness regarded bankrupt as a partner, and admitted Mr Weston had a mortgaga over bankrupt's third share in the Koru property. Witness's reason for stating that bankrupt had no share in the Kora property was that he had not pud what he had •greed to. Binkrupt had himself admitted he had no share in it until he

paid the money. Mary Woodhead, wife of the bank- "' rapt, deposed as follows: -I lived in bbt hush-inn"* house at Stratfoid ;do not n>me-u»?r the date of his going to Wellington. We had furniture in the

boose, the old belonged to my husband and (he new to me. I bought it in , Auckland with my own money. I had •boat £IOO (receipts were put in) when I left the house. I only took my personal effects. I only sold the things that I had bought; only three room* in the new house were furnished, and I got almost exactly what I gave for the furniture, between £BO and £9O. My husband never talked about business to me; did not know my husband received £3400 during the four years prior to his bankruptcy, and have no idea what he did with his money; he never gave me any to put away for

him and never made me a present of my money. Cannot Bay what he did with it and never knew he had it till now. My money was what I hid saved and I gave it to my husband to keep and got it from him when we were going to Auckland. When lo gave me the money he did not say it was half of what he had got from Mr Weston, New Plymouth, Did not know he got £2OO from Mr Weston about that time; used to keep my money in a money box and when it was full get my husband to take care of it. I had been accumulating it for yearj. Had no suspicion taat anything was wrong till he was arrested. He had been in bid health for a long time; he had a very bad illness in Wellington about nine years ago and Dr. Grace told him he should nob be in' business; I am in business, some friends bare assisted me; I have paid nothing myself yet. To Mr Spence: I believe my husband was bankrupt in Wellington. The auditors gave him his furniture, that in Stratford was the same excepting a dinner waggon and a few small things. Sometimes my husband gave me the house allowance weekly, other times he would give me a £5 note. He nevjr gave me cheques. I do not keep a bank account. I have a Savings Bank account-, the greatest credit was £ls. Do not know why I did not put the money I used for furniture into my Savings Bantc account, I had no reason excepting that you have to give notice in Stratford bsfore you can draw it. I w»a keeping it to buy furniture. Do not remember Mr Woodhead giving me a cheque for £24 53 5d or one for £5 15a 9d. I paid my husband's insurance policy and fire insurance out of my own money. I never hid any suspicion of anything being wrong when I bought the furniture or it would never . have been bought. I chose the furniture by myself. I gave no instruction to have til 3 receipts in my name; my husbani was with me when I paid for it. Did not know my husband had insured it in bis namf, nor did I know it was insured. The house was insured. Did not know my husband had given a bill-of-sale over the furniture. The payment I made for my husband's life insurance policy was about £lO, in two sums, one a quarterly the other a yearly payment. Do not know anything about it or the amount of the policy; it is in one of the banks. The policy is in my name. I will give the D.O.A. a list of the psrsons I sold the furniture to; I sold it come time before my husband was made a bankiup*. I will swear nothing was removed from my house after I knew my husband was mid a a bankrupt excepting the bed removed by Mr Kimbell. I was going to sell everything as it stood to Dr. Barns until I knew it was not j mine to sell. My friends all came round me on the 19 th and bought my things, as I meant to go away. The words " Mrs Woodhead, Hinemoa House, Auckland," on one of the accounts is in my hind writing. Cannot say when I wrote my name on it; have no recollection of having written my name there. To Mr Anderson: Cannot give any explanation. That is the addrtss where I was staying in Auckland.

The witness wss under examination for an hour and a-half, and at one time was so overcome that the examination had to be suspended fcr a time. Henry Williamson, recalled, continued : As far as I know Wcodhead was a partner in the Koru mill on certain conditions which were not fulfilled, but do not know the law. Do not regard Weston as a partner now, We dissolved partnership in November. The only money we put in we got frcm the Bank. Paid Weston to go cut. The value of the mills, is as follows : Pembroke Road mill, £2500; Sash and Actor, £1800; Koru, £3OOO. [Witness then gave evidence as to liabilities.] The whole cause of the secrecy between Woodhead and I was because he was barred by the Sawmillers' Association from going into any other business. That was the reason his name was not disclosed. We were to put in £3OO eacb. Do not know if Woodhead put his share in, and never esquired. Weston was in the same position. Never had the bank pass-book in my hand. Was present when i Woodhead made a statement to the Sawmillers' Association. He proposed to transfer his interest in the sawmills to the Association. He put in Koru and a value on it. I objected and denied he had an interest. I said if he had had an interest it was assigned to Weston and that he had no direct i uterest in the Sash and Door only through me. [Witness then gave details of security neld by the bank and of his liabilities.] I would not like to say the whole of the books are a lie, but the greater part of them are. I told the Association that Woodhead was not in Koru. Weston gave ms as a reason for going out that he was going to Wellington. The case was here adjourned sine die, and the Court rose at 5.30 p.m.