A BANKRUPT'S POSITION.

Taranaki Daily News, Volume LV, Issue 222, 7 February 1913, Page 2

A BANKRUPT'S POSITION.

ALLEGED FALSE PREFERENCE. Allegation., of fraud and false jirutcnecs were preferred, against James Augustine Tutliill (a bankrupt) in the -Magistrate's Court yesterady morning, before Air. A. Crooke, S.AI. There were four counts in connection with the first charge, which was that within three months before the commencement of his bankruptcy Tutliill, with the intent to defraud his other creditors, gave undue preference to one of his creditors (his wife) by payment of four sums of money, namely, £2O, £IOS, £4B, and £4l ss. Air. 0. 11. Weston appeared for the Deputy Official Assignee (Air. J. S. S. Medley), while Air. A. it. Johnstone appeared for the accused, who elected to go before a jury in preference to beingdealt with summarily.

The charges relating to alleged fraudulent preference were taken first.

The first witness called was Air. J. S. S. .Medley, Deputy Ollicial Assignee for the northern district, who said that Tutliill was adjudicated a bankrupt on September 30, 1912. Witness produced bankrupt's statement and other documentary exhibits. He produced two balance-sheets—one from the bankrupt's three days' statement, the other showing how the' estate had been realised up to the present lime. Abraham Gokhvaier, trading under the name of Goldwaler Bros., as a wine and i spiirt merchant, of New Plymouth, said | the accused started dealing with him in 1909, and continued doing so until he stopped liis credit. Tuthill's total indebtedness to witness, including loan account, was then about £3OO. The last debit in his ledger against.the accused was on July 17, 1912. Accused telephoned to him for some "goods one day. but he told him he would not supply him with any more. Tutliill then said that lie would have to get goods somewhere else and pay him out of the proceeds jof them. On August 3 witness wrote to the accused asking for payment of duties and a reduction of his account. As a result of the. letter Tutliill and a friend named Cook called on witness, explaining j that trade was quiet, and that Tuthill would do the best lie could tor him. A promissory note for fIOO given to him by Tuthili was dishonored on September 7' last. After he stopped the accused's credit Tuthill never asked for any further supplies. Cook interviewed witness on Tuthill's behalf, and witness was proceeding to describe what transpired, when Mr. Johnstone raised an objection, whiclr. the Magistrate upheld. Early in September witness attended a , private meeting of Tuthill's creditors, ) at which the bankrupt's solicitors hand- ' ed him a statement which he now proI duced. A second statement produced I showed the following payments having j been made bv bankrupt to his wife: i August 13, £108; August 20, £2O, and I £1 10s; August 28, £4l ss; and SepJ tember 3. £48.. At this meeting a resol lution was carried that bankrupt be re--1 quired to file. Airs. Tutliill was not at I the meeting and was not represented, filer name was not down on the list of ! creditors. The accused refused to file, ) and Hawkins and Smith and witness I' made application to have him adjudicated bankrupt. James Smith, partner in the firm of ! Hawkins and Smith, wine and spirit merI chants, New Plymouth, said that he ! did very little business with Tuthill bei fore August, 1912. On August 2 a five ] case line of whisky, valued at. £l4 4s fid. was ordered by the accused . Four eases were delivered the same day and j -one ease was delivered on August 17. j On August 7 witness was approached by j Tuthill to forward him tw r o gallons of j brandy, but as they had not such a Ismail quantity the accused took an octave, containing 17.0 gallons. On August 17 a case of English stout, valued at ! £2 10s, was supplied at accused's order, j The total amount of the account was

! £4O lis 9d, less returns £2 18s, leaving a balance of .£37 13s Bd, Somewhere about September 2 lie mot Tuthill and asked him for the amount of the dutv , paid on the octave of brandy. The ac- | rased then said that lie could not pay I the amount there and then, but o»,v'e witness a post-dated cheque. "The cheque was presented- on September «). but was dishonored. H was presented again the next day. with the same result. The cheque had never been paid. •James Hawkins, partner in the firm of Hawkins and Smith, said that he saw Tuthill at his hotel about the dishonored cheque, asking him if he would make arrangements for its payment. Tuthill replied that he could not do so, and that he intended to call a meeting of hi<crcditors.

Arthur IT. Glasgow, manager of the Union JSank of Australia, Xew Plymouth, and John Terry, deputy registrar of tlie Supreme Court at Xew Plymouth.' gave formal evidence.

This closed the ease. The accused, who pleaded not guilty, was committed to the Supreme Court at Xew Plymouth for trial.

A FURTHER CHARGE. j Tn the other case, Tuthill was charged I with contracting a debt of about £2O I ISs 2d with Messrs Hawkins and Smith | without any reasonable or probable expectation of being able to pay the same, | as well as his other debts. Mr. C. H. Weston appeared for the Deputy Official Assignee and Mr. A. H. Johnstone for the accused, who again elected to be tried by jury. A t s the. facts were the same Ss in the foregoing" case, it was' agreed between the parties to shorten proceedings by simply putting in copies of the witnesses' depositions in the preceding case. The accused, who pleaded not guilty, was committed to the Supreme Court at Xew Plymouth for trial. Hail was «l lowed in his own recognisance of - p ' n '"