DISTRICT COURT.

Thames Star, Volume VI, Issue 1767, 1 September 1874, Page 2

DISTRICT COURT.

THIS DAY. (Before His Honer Judge Beckham.) IN BANKRUPTCY. BE SAMUEL TODNG. This was an application for final hearing and discharge. Messrs. Macdonald and Brassey appeared on behalf of the applicant; Messrs. Tyler and Kissling on behalf of the opposing creditors, Messrs. Ryan Bell &Co. - The report of the trustee in bankruptcy was read. Mr. Macdonald, in referring to the application 'which had been made at last Court day on behalf of the opposition for the remoyal of the trustee, said it had been withdrawn, and he (Mr. Macdonald) would not in consequence, have made any allusion to it, bufc that a charge had been made against Mr. Macffarlane —the which had found its way into the public press— that he had devastated the. estate ; that he had incurred legal expenses to the impoverishment of the estate. As it happened, however, those legal proceedings had ended in the augmentation of the bankrupt's assets. Such, a statement might be calculated to injure Mr. Macffarlane. Mr. Tyler agreed with most of what hia learned friend had said; but the word devastation had been used simply in a technical sense, and was not meant to insinuate that the trustee had been guilty of defrauding the creditors. Samuel Young, sworn, deposed—That the statement produced was the final statement of his affairs; which, to the best of his belief was a true one. By 'Mr. Tyler — Prior to his bankruptcy he had been engaged in business in the Court House Hotel, entering on the; business in March, 1873. He had purchased the stock from Messrs. Ryan, Bell and Co., incurring a liability of £285. He gave bills for that amount; * and to secure payment of that he gave the bill of sale mentioned in the trustee's report. The bills given at that time had not been met. At that time he had a business in Auckland, and sold that business a few months after for £260 in cash. He paid Ryan Bell and Co. £110, in whose hands the disposal of the whole business had been. HepaidMr. iSeccombe about £1106r£115. ! That £260 cleared off the liability in- : curred for the Waverly Hotel within a few pounds. At the time he entered the Court House Hotel he owed the £285, and the few pounds balance en account of the Waverly Hotel. His prospects of paying this amount were that he would be able to make the business pay, and pay Eyan, Bell &Co. from the profits. The bills had been made payable at 3 and 4 months after date, neither of which had he been able to meet at maturity, as the business had not approached his expectations. His liabilities during that time (from March '73 to January '74) had increased by £315 12s. On July 2nd, 1874, he had still further increased his liabilities to £589 3s 7cL He had after-• 1 wards found that the house was not valued according to its.worth. Ho had induced Eyan Bell & Co., to take off ten or fifteen pounds of the amount in consequence. He was very much dissatisfied, and asked them to take the house off his hands—after he had signed the agreement —but was put off. During the six months he had received £380 7s, for goods sold from his house. Witness had kept no books except the bank book, aid a book in which, were entered drinks had on credit. That was all he had received. He had paid his lawyer, but had borrowed part of the money to do so; and part he took in the house. He had not informed the trustee of this transaction. He did not account for the item... not being mentioned in the statment, because the money was taken after the 2nd of July, the day: of filing; He had an account with Eyan Bell & Co. for rent and goods besides the purchase accounts. The cause of his insolvency was depression in business. On the 30fch of June he had telegraphed to Ryan Bell & Co. for goods; but he had at that time no intention of'filing his schedule. He had also sent a cheque for £25 for the license. He had no idea at that time that Mr. Bell was coming to the Thames to take possession. On the Monday—the 29th—Mr". Bell with the bailiff came into the house, and witness then told Mr. 801 l that he had no stuff in the house, when he received for answer that the goods would be sent. Was under the impression that he had telegraphed previous to the 30th June — two days before he filed his schedule. (The telegrams, dated 30th June and 2nd. July were shewn to witness.) Witness then explained the second telegram, by stating that he had asked Mr. Sell to permit him to take certain private property away. Mr. Bell refused, and then said- he would take possession of the house, and that he, (Mr. Young) might file his schedule so long as he kept the name pf the .firm out of the matter; also that he should receive thp goods. (The witness was examined at much further length, amongst other things counsel's questions were put with a view of., ascertaining whether the bankrupt had not entered, directly or indirectly, into arrangements for taking over anotherHotel.) , . . • .. • .

Mr. Macdonakl examined the witness. # As to whether tlic bankrupt should pass his final examination, Mr. Tyler would ask llic Court whether the bankrupt had given a satisfactory statement of bis affairs during the time lie had been in business. He kept no bodies, but had trusted to his memory for all accounts. He (Mr. Tyler) did not think the bankrupt had given, them sufficient information of his affairs to justify the Court in granting his discharge. Mr. Macdonald said it appeared not to be whether the bankrupt wai in a position to pass, but whether <ifc was of any use 1o examine him further. Mr. Tyler withdrew'opposition to the point, and Mr. Macdonald applied for the discbarge of the bankrupt. : His Honor said he had intended to postpone the consideration of the bankrupt's discharge until next Court day, in order that lie might see the bank book. When' a man entered into business, it became his duty to keep book's, in order that he mi^ht be able to show to his creditors the position in which he stood from time to time. In that case the ■creditors were enabled to ascertain, dpfe ■'■■ by day, what the bankrupt had b^a about, when_ there could not be any reasonable objection raised to .the application, or to his not filing before^ inasmuch as, possessing such knowledge, tie creditors should compel the bankrupt to do so. But in the present case he apprehended that the proceedings were rather irregular, as it was not clear to him that the bankrupt could even pass his final examination until somethiug further had been elicited as to his accounts. It was explained that the reason for disposing of.the first point was to shorten the case, as delay would prove expensive to both parties. ; Mr. Tyler addressed the Court to show cause why the bank rspt \ should not receive his discharge and/referred to the discrepancy between the statements of the bankrupt. In the witness box he had sworn that the house stock as he received it, was not of the value estimated, and in the document before the Court he, estimated the stock at the same values as when he first commenced business. Oneof these statements must be false. Another ground for suspending the discharge, which he (Mr. Tyler) would take, was the delay which thebankrupthadevinced in filing his schepule, knowing all the time that his liabilities were rapidly in« creasing. It was not an honest mode of dealing, and that alone should be a powerful reason why the Court should suspend the order of discharge, a3 a warning to him and others carrying on business in a loose manner. He remarked that Ryan, Bell & Co.—though the largest creditors —had riot been treated so fairly us others. The trustee said he ought to have explained that he had not seen the bank book before, as the bankrupt had neglected to show it to him. He (Mr. Macffarlane) found the bank book to correspond with the statement with the exception of the six items,, which the bankrupt explained were small private items. Mr. Macdonald replied, and submitted that Messrs Eyan, Bell'& Co. had allowed the bankrupt to increase in debt, for their own benefit, as the former occupant had left the firm much in debt, with the house on their hands. As to what his learned friend had said about books, they found that bankrupt had a book; and supposing he had kept none, there was no attempt made to hide his pecuniary position. The true position of Mr. Young was the servant of Eyan, Bell & Co., with whom he went through the mere formality of receiving the goods and disposing of. them until the house could be palmed off upon some one else. In fact, the bankrupt had been simply a catspaw for, the firm of Eyan, Bell & Co., but the affair had not turned out as satisfactorily as,they had anticipated. Inreferringtotheletter fromthe firm to Mr. Young with regard to getting the license, Mr. Macdonald said it simply asked Mr. Young to borrow from some one £10 to pay for their license; and after which that firm came to the Court with a flourish of trumpets, ai the innocent victims of the man who had in" reality been their tool. They were the only creditors. Ho considered that Mr. Young had been fqrjced into his present position by circumstancas over which he had no control; and being in that position Eyan Bell & Co. offerred themselves as an impediment to Ins discharge, in which, it was to be hoped they would prove im? successful. His Honor said thero was great reason to condemn the practice of not keeping books, as there was "room to suspect,that" it was done in order to hide their, affairs from their creditors. He would not say it was so in thisj case; but still itr must be admitted that . there • was room for suspicion. He considered thai the present opportunity should not bo allowed to pass without his commenting on the necesssity of people keeping- a strict and true' account of their business. The bankrupt had not done this, and under the circumstances, he thought ho would not be performing his duty unless he withheld the orderThe order was suspended for three / months. *■ . BE JACOB JUNO. This was an application for final hearing and discharge. Mr. Dodd appeared for bankrupt. The trustee's report was read, and showed that his liabilities up to June 22nd were £493 125.; assets, £313. Theae were no opposing creditors and bankrupt received ma discharge.