EXAMINATION IN BANKRUPTCY.

Temuka Leader, Issue 1564, 12 March 1887, Page 3

EXAMINATION IN BANKRUPTCY.

The pnblio examination of Mr T. Farrell, before the Deputy Assignee, W. 0. Beswiok, Esq., took place in the R.M. Courthouse, Geraldine, on Thursday last. Mr Wood, of Messrs fiamersley and Wood, appeared for the debtor, and Mr Hay appeared on behalf of the Crown Brewery Company, and alio for Mr Bass and the creditors. Mr Williams attended on behalf of the Phoenix Brewery, Timaru. T. Farrell, sworn, stated : I commenced bniinesa in the Crown Hotel, Geraldine, about 2J years ago. I paid £l6O for the lease and goodwill of the house, and about £6OO for the stock and furniture. For the first twelve months 1 seemed to get along very well ; afterwards through heavy losses and bad times, trade falling off, a heavy rent and insurances, and alio the cost of license increasing and the putting on of an iron roof to the hotel at a cost of £SO, for which I was never allowed, besides other losses, I got into difficulties. I found every day that I was losing money, I was summoned by Mr R, R. Taylor, of Timaru, a few days before I filed (on last Tuesday week), and judgment was obtained. The amount was £IOO. As soon as I got the summons! called a meeting of my creditors. It was held on Wednesday, March 2nd. At the meeting there were several creditors. Mr Pearpoind was Chairman. There was a cheque of some £95 remaining from the sale of the stables and stock and furniture. One of the creditors wanted to see the cheque, and asked me to produce it. I produced it. It was crossed, payable to the credit of Thomas Farrell’s account, Bank of New Zealand. They were discussing the cheque as to whether it was in Mr Raymond’s or Mr Mundell’s handwriting. Mr O. B. Sherratt, Clerk of the Geraldine Court, asked to see the cheque too, and I understand be came there as proxy of Messrs Godner and P.okering, of Christchurch. H« put the cheque in his pocket, and produced a warrant, and said he was authorised to seize the cheque oa Mr R. R. Taylor’s behalf, os he had obtained a judgment for £lO5, Mr Sherratt retained the cheque, Through the action of Mr Sherratt I thought it advisable to file in order to protect my creditors, so that one creditor should not have the preference. To Mr Williams: I have been in the Crown Hotel 2£ years, X paid all the money when I went into the house. I have bought during that time horses, traps, and harness to the extent of about £l5O, for which I alio paid. I also made a trip to the Old Country, which cost me about £6O. I left here cn the 16th March, and arrived back at Port Chalmers on July 17th. £34 was the passage money there and back. Since I have been in the house I purchased a section of land for £95, and sold in December last my part of it for £4O. I was pressed for money by my brother at the time for wages. I had never paid him anything except the bare necessaries that be wanted. X paid him over the £4O cheque. At the time I was paying him B 0» per week «nd finding him. Whenever he wanted a few pounds I gave it to him, but I could not produce the account. My brother was in my employ 2\ years. About ayear and a-half ago Mrs Farrell bought four town sections for £IOO. This was her oWn money. I did not give it to her. I gave the bill of sale m November .last to Mr Louisson, of Christchurch, for £250. I have paid £22 off of that. The stock and furniture were taken over at valuation. The remit of the valuation was £397. I entered into an agreement with M 1 Johnstone for the sale of the lease, stock, and farnitpre, which amounted to £397*. The bill of sale was satisfied out of the £397. At the time of the sale my indebtedness to the Crown Brewery Company was £355 13s 2d. The £397 went to pay Mr Taylor’s valuation fees, Mr White’s fees, and to satisfy the bill of sale. To Mr Hay: Mr Taylor got the judgment on th* Ist Match, and the meeting was held on'the gadr Mr Sherratt attended the meeting on the 2nd March, and stated that he represented Messrs Godner and Pipkermg, of Christchurch, and the Geraldine Town Board. The object of the private meeting was to consider what was to b 0 done with the proceeds of the cheque and book debts. No resolution w-» passed that the cheque should be kept for the benefit of the creditors, but one was proposed, find was under discussion, that the cheque should he held for the general body of creditors. Jhp cheque not being present, J sent my brother John for it. 1c was handed to the Chairman of the meeting, Mr Pearpoint.Vfdo gave

it to Mr Ooltman. It was handed round for iho private inspection ot the creditor*, as it was dpaoially crossed. When it came round to Mr Sherratt he seized it under a warrant of distress. That was .he firs', intimation I had that a warrant was issued. I do not not know what has become of the chrqua sinoi). The bill of sale was given in Novem be? last. At the time the valuation wa* made in February there was only £lO worth of stock-in-trade of beer and spirits in tho home, which wa* there in November, when the bill of sale was given. Mr Louisson had supplied me since the bill of sale with about £127 5s worth of beer. I paid him the whale of the beer account due up to tho time that I received the bill of sale, The stock-in-trade wa* not included in the bill of sale, only the atables, furniture, and effect*. . .

To Mr Pearpoint: I have never had any traniactioni with Mr Mullins, nor held any receipt from him, never having paid him any money. At the time of tho valuation there were four hogshead* in tho rwllar, In the account (produced) from the Crown Brewery on Januiry 19th there are four hogsheads charged, and on February Inr five hogsheads. To Mr Sherratt: You stated to mo distinctly that you were representing the u.ifiafohuroh firm, as also the Town Board, Mr Sherratt denied thi*. He also denied that when he was at the meeting he stated he was there to represent Messrs Godner and Pickering. Mr Ooltman said that as the balanoe from the bill of sale had been paid to Messrs T -y----1 >r and White under protest they should be called upon to refund, Mr Hay called Mr 0. B. Sherratt, who, in reply to question* said : I am Clerk to the ti.M. Court, Geraldine, and act as bailiff. On the evening of the Ist March I received e. warrant to levy the sum of £lO5 4s on ibe poods of Mr Farrell. A private meeting of the creditors was called for the following day, which I attended. Mr Pearpoint was elected Chairman. I banded in a written authority from Messrs Godner and Pickerii.g, of Ohristohuroh, to report to them what was done at the meeting. I also attended on behalf of the Town Board. It was proposed and under discussion that the book debts and all available assets be held by trustees for the benefit, of the general body of creditors. The cheque from Mr Mundell for £OS was referred to as aa asset, and Mr John Farrell was sent to bring it. It wa* handed to the Chairman, and passed round to most of those present. While lying on the table, I suppose for the benefit of the creditors, I produced the warrant of distress and soiled it. I paid it into the Bank of New Zealand at Geraldine on the 3rd to the credit of Thomas Farrell. My instructions were to pay it in to Farrell’s account. To Mr Wood ; I went to the meeting because I bad heard it rumored that there wae to be a meeting of Farrell’s creditors. To Mr Hay : I received Godner and Pickering’s notice to attend the meeting from Mr Pearpoint. I don’t know them myself, I understood that I received thi* notice to give me a seat at the meeting; I should have been there independently to wath the proceed is gs on behalf of the Town Board As far as I know, Mr Mundell was tho only person at the meeting who wa* aware I had a warrant.

Mr Pearpoint stated the reason why he had given the letter from Messrs Q-odner and Pickering to Mr Sherrafct, which was considered satisfactory. Mr Hay pointed out that the cheque had been so marked that it could only get into (he hands of Mr Taylor. According to the marking it could only be paid into Mr Farrell’s account, and, as there was a bill of sale lying at the Bank, it would, of course, be paid to meet that bill. He considered it probable that Mr Taylor could be called upon to give' up the proceeds of the cheque. It was finally moved by Mr Pearpoint, seconded by MrOoltman, and carried unanimously—“ That the Deputy Assignee be requested to take an opinion as to the position of the estate as regards the action of Mr B, B. Taylor and Mr 0. Louisson, and if favorable that action be at once taken, and Mr Hay be solicitor to the estate.” The meeting was then adjourned till the 24th init.