DISTRICT COURT, LAWRENCE.

Tuapeka Times, Volume VI, Issue 302, 8 November 1873, Page 3

DISTRICT COURT, LAWRENCE.

Bankruptcy Jurisdiction.

Wednesday, sth Novembeh. (Before His Honor Judge Gray.) This Court opened at 11 o'clock on Wednesday morning, The first- ease heard was that; t>f*Hugh M'Cann, gold miner, bankrupt, who was in attendance, and was legally represented by Mr. M'Coy. John Carse Arbucklo, Avho appeared as "trustee for the creditors, did not formally oppose the bankrupt's application for a certificate, but he (Mt. Arbuckle) drew His Honor's •'attention to the fact that the bankrupt had "sold seven head^of cattle and some pigs immediately before he filed his schedule of insolvency. His Honor, after sifting the particulars of the bankruptcy, came to the conclusion that •the bankrupt's acts wore acts of illiteracy rather than deeds of premeditated error, and therefore took a lenient view, but accompanied that view with sound, AA'holesome advice as to the danger of preferring any one creditor to 'cinofeher. Under tlie circumstances, *the certificate of discharge would be granted. Bankrupt estate of Duncan M'Kae, butcher. The bankrupt was called, but did not appear. Mr. M'Coy, who appeai*ed for him, said that he thought his client was laboring under .'Borne misapprehension as to the sitting of the Court. Mr. Mouat, who appeared for the creditor's 'trustee, said that he doubted that the bankrupt intended to appear at all, Hiß Honor gave the bankrupt the benefit of the doubt. The hearing in his case was 'adjourned to Friday (yesterday.) His Honor slated that a AA'arrant had been applied for, which showed that if the bankrupt neglected to appear, he would get into a trouble Avorse than that of bankruptcy. Edward Yernon, bankrupt. The bankrupt "■was present, and -was represented by Mr. Gooday. Mr. Mouat appeared for the creditor's trustee, and examined the bankrupt, "when the folloAving evidence was recorded :—: — :I incurred a debt of £40 to George Buchan about 4 year 3 ago, for timber supplied to the partnership estate of Anderson and Vernon, -at Tuapeka Mouth. That £40 constitutes the whole of that debt, and not merely my partehip liability. Shortly after its being incurred, Anderson became insolvent, and Buchan went through the Court afterwards. I gave Buchan acceptances for £90 also, which covered two .similar acceptances. I endorsed them ; but I do not knoAV whether I was the drawer •or acceptor. I do not understand these matters. Don't knew AThether Buchan retired the bill or Sot. <xot no notice of the £90 being dishonored. Buehan said to me that it ■was no use to presonfc the £90 bill, as I had no menus to pay it. The £40 debt to Buebim was for timber. Don't know where these bills tore now. Didn't know that John Francis Herbert was trustee in Buehan's estate. I h&i. taken over Anderson's share in the claim prior to the bankruptcy. Itwas conveyed to me by a bill of sale. I gave £200 for it. Eichards prepared the bill of sale about the 16th jSTovember, 1868. This purchase included a claim, a dam, it water race, a 6-rooiued tlireliinghouse, and Some .furniture, situate at Tuapeka Mouth. The bill of sale Avas declared valueless, because it was not registered in the Supreme Court. The debt of £20 to Murphy "and Ballastyre, wood cutters, took place 4 '.years ago. It was a liability of Anderson •and myself jointly. I know know nothing of ■my payment to Anderson's creditors. The The item ©f £22, a debt to John Bathgate, 'solicitor, Dunedin, i& owing to Mr. Bathgate ia his capacity of trustee in Anderson's estate. The claim was sold for a creditor named M'Jficoll, to whom I owed £75. The claim was valued «»t £200, and the last bid for it wap f 105. I did not act in collusion with M'N icolL Don't know what became of balance of money. !Ehe cause of my filing my schedule was pressure brought to bear on me by the Switzers Hospital Committee on" account of theiryclaim j'on me -for" medical attendance. lam not a married inan,^ One creditor named Duncan Matheson was also pressing me. I sold him a half -share in an acre claim, valued at £15. It was an absolute transfer, but no work has been siione on it. There was only One good claim ;on the Waikaia River. I had a share in the Anglo-Swiss claim, which I disposed off to 'George Duigan for £40. None of the claims I had were what is called good ground. The Court adjourned at 4 o'clock on "Wed-

.. THtrastoAT, 6th November. (Before Mb Honor Judge Gray.) Tfce Court resumed Bitting .at 10 o'clock. The examination of the bankrupt .was eon- -'.'.' %inued. — I was mate with Anderson when he wa» insolvent, but do not know the immediate mtaue of his insolvency. I believe he was ' : pressed by his creditors. I only knew his - dnttung affairs. I did not live with him. He 4iii.,iiot consult m? before he filed. He

wanted more money when tho bill of sale was made out. I considered my separation from Anderson a dissolution of partnership. Ho was indebted •to me at that timo, and he wanted further advances, and he gave me the bill of sale. I don't know what I stated in the Supreme Court k These arc facts lam stating nowi I was sworn in the Supreme Court. If I was inconsistent then, lam not inconsistent now. I don't remember any of the evidence I swore in fche Supreme Oourfc. I could not possibly have sworn that there was no consideratuHrfor the bill of sale ; but I may have sworn that no money had passed between us whatever. The debt between Anderson and me was for large balances of gold. Altogether, I consider I gave him about £200. I gave that acceptance. I received it. Anderson kept tho books. It was at Anderson's request that I gave the acceptance to Buchan. I had an indirect interest in the Anglo-Swiss claim with Duigan. My interest was a sub-partnership with Duigan. I was woi'king elsewhere ; and whatever I got I divided with Duigan, and what he got he divided with me. The Switzers Hospital managers threatened to sue me if I did not pay them by the 15th June. And I heard that Herbert & Co. were after me. Several weeks before Juno, I heard of their inquiries for me. I knew the costs were started against me in the Supreme Court, upwards of four years ago. I dissolved partnership with Duigan about the middle of March last. I made a free gift of the claim to Duigan subject to liabilities, to which he agreed orally before a witness. My share of the debts Avas £40 ; and getting rid of them by parting with .'the claim, I considered a good bargain for me. After this, Duigan employed me as a wages man at 10s. a day. Di ijan gave me the gold to pay the liabilities of the late partnership, which gold, I presume, came out of the Anglo S .viss claim. I did not give Duigan the Whitecomb claim. I paid Duncan Matheson £30 or £40. I paid in gold. I ■weighed oufc a payment in gold to Mackay Brothers of £20, and about £10 to the butcher, and £10 to some one else. I made these payments about April. After I left the Anglo-Swiss " they " struck gold. I came to Lawrence on the 17th June. At' the time of the dissolution, I was working at the Whitecomb. The immediate sale to Duigan was on account of his drunkenness. I may have told Duigan about Herbert & Co. looking after me.° I did not tell him nor any other of the party in the claim that I was going to file. Duigan's other partner was present when we dissolved partnership. There was nothing said about my getting my share in the AngloSwiss claim back. I swear positively to that. I continued to work at Whitecomb. Duigan, in March, abandoned the Whiteconibe share. I know a man named Norman Ross. When Duigan and mate struck gold, I Avent up to see them. I saw Duigan and Duncan at their hut at that time, and avc spoke. They were clearing the bottom, and had nearly washed up, I stayed there one clay, lending them a hand to bail water. The men consisted of Duigan and Duncan and a wages man, Avho represented M : Leod, who was a partner Avith Duigan. I Icuoav Norman Ross the Avages man referred to, who Avas, I think, present tho day I calle 1. I and Duigan cleaned the gold ; "and I assisted to divide the gold into four parts. Duigan took possession of two parcels, and Duncan took posasession of the other two. Diuga't gave me some of the gold then. But some time after I got gold from him to pay the liabilities already referred to. 138 ozs. I was told were got out of the first paddock. Some time after I was entrusted with some gold to sell by Duigan. I also got gold amouutmg to £10 in payment for a horse I sold to Duigan. Will swear positively that I never sold 100 ozs. of gold to the Bank of New Zealand at Switzers, nor to Mackay | Brothers at the Teviofc. I a?so sold a share m the Great Britain claim to John Duncan for £20, which he paid me in gold. Can't tell where Duncan got that gold from. The sale of the horse was about the same time as the sale of the share in the claim adjoining the Anglo-SAviss claim to Duncan Matheson. Have not paid Matheson any more since. Some of fche money for the horse and shave went to pay my expenses. Duigan stilly retains his interest in our claim near the Waikai bush. My interest in that claim is in the schedule, 'i knoAV David Orange, from whom I bought the Great Britain share for £15 or £20, which I afterwards sold to Duncan as before mentioned. I bonght from Orange, from one to two months before I sold. I know Mr. M'Lelland, the agent for the Bank of New Zealand at the Teviot. I never sold gold thero within the last twelve months. About June, I sold about 11 ozs. at the Bank at Switzers. I gave part of the proceeds — £15— to counsel to take this case. The suit in the Anglo-Swiss claim was over before I heard of it. I came into Lawrence and got a letter and telegram inf orroing me that my old mates were summoned in the Anglo-Swiss case. The telegram came from Cameron, a blacksmith. I don't know why they telegraphed to me. I understood that the result of the i\nglo-Swiss case at the Teviot aws adverse to Duigan and party, who instructed me, as agent, to appeal on their bohalf ; and I instructed counsel on their behalf, for Avhich I found money which I got from Duigan — namely, £15. The telegrams were destroyed. I have telegraphed once or tAvice to Cameron telling Duigan and party that I had, on their behalf, appealed. Mr. Mouat, at this stage of the case, asked • for an adjournment to enable him to procm*e additional documentary evidence. Mr. Gooday objected to an adjournment. He chai'acterised this case as gross persecution, arising out of his client's unfortunate connection with Anderso i. Examination of witness continued — I did not sell a share to Duigan for £250 in the Anglo-SAviss claim, £100 being in cash, and the balance to be paid out of proceeds of the claim. I did not sell any share on any similar terms. I heard about three or four months ago from Duigan that he had sold a share to Duncan Ross on terms similar to those stated. It was a share in the Anglo-Swiss claim. I received within £10 for wages. I told Duigan that I would have to make some ai'i'angeinent with my creditors, and he being in several claims Avith me, said, "If you do, I'll give you £30 for your share in these mining intere*s." Ho told me I could tell that to my creditors. He said, "I could place the money with Mackay Brothers, and if you succeed in making the arrangement, you can work it out afterwards in wages." I saw my creditors, ■who refused to accept of Duigau's offer. I filed my declaration of insolvency immediately after my arrival in Lawrence. Duigan had placed £30 in Mackay's hands, Teviot, and on the refusal of the creditors he withdrew it. He also placed in their hands £10 towards my expenses, which he allowed me to -withdraAv, which I did. I bought oneliorse on the occasion of my visit to LaAvrence for John Duncan. [ I paid' £5 10s. for the horse. Part of the purchase money came out of the £10 left by Duigan for my expenses. I bought trappings for the horse for five guineas* I got a loan of £5 from Mackay. Don^t know that Mackay Brothers charged the £5 to my account. The horae did not suit, and I sold it, and it was a week or two before 'I got my money back. The share I sold to Norman Ross Avas not the identical share I held. I sold my interest for £40 to Duigan before gold was struck. The sale to Norman Ross was a f ourth share for £250 made by Duigan after gold was struok. Duigan owes me nothing, and I have no expectation that he will pay me any portion of £150 which is still unpaid. The £150 may /have been spoken of between Duigan and me. Mr. Mouat contended tiiat all'the liabilities in the bankrupt's schedule — tAvo only excepted . — had no right to be in the schedule at all. His Honor said that he was of opinion that the arrangement of the schedule probably, ad.mifcted of an explanation consistent with fair dealing. " .- s^i ' ' (

Mr. Ctooday, in tho course of a detailed explanation, said that the whole of his client's debts, amounting to £456 155. 2d., were incurred under the old partnership of Vernon and Anderson. During four years the only debt personally inem'red by his client amounted t& £17 55., expenses incurred in the Switzers hospital. Mr. Mouat asked for an adjournment, the grounds of which were recorded in detail by his Honor. Mr. Gooday opposed the application for an adjournment, which, if granted, would be the second adjournment. He censured the hearing of a case referred to in this case at the Teviot, and he entered into numerous details to show that the chai'ge of conduct the reverse of straightforward should be transferred from his client's shoulders on to the trustee's, who had most unnecessarily protracted these proceedings simply from a desire to persecute his client, whose aiiswers in examination, were clearly given, and according to the best of his ability. Mr. Gooday added that both himself and the bankrupt had frequently called on the trustee, who had stated to himself that he was not going to oppose. The further hearing of this case was adjourued to Friday, at eleven o'clock.

Fn.iA.DAY, 7th November. [We have intentionally omitted sundry repetitions in the evidence and in the arguments of counsel.] At 4.30 p.m., the further hearing of the bankrupt's evidence was resumed. On Friday forenoon (31st ult.), I remember a conversation I \had "with Mr. Edward Herbert. I informed him of my place of residence, and I asked him if he wanted me. He postponed hiß reply, and when, by his request, I called on him again, he then told 'me that he did not want me any more. I saw hini,. also a great number of times between the" filing my declaim tion and last Friday. I saw him on many occasions, and repeated my offer of information, coupled with intimation as to where- 1 resided — (at Tuapeka Mouth) — and he said that if he wanted me, he would communicate with me. I told the trustee that I remained at Tuapeka Mouth (instead of staying at Teviot) in order that I might be in reach of the^ trustees, and to do away with the necessity* of travelling backwards and forwards. I have frequently seen Mr. Herbert in Lawrence. The trustee served me with what I Relieve to be a copy of the decree in the suit of Bathgate v. Vernon after I filed my declaration. He gave me that copy in William's hotel, and that was the first time I was served with a copy of that decree. Mr. M'Kinlay said he would take 10s. in the pound ; and he added, if I did not give that, he would expenA £200 or £300 on me. I told him I could not make any offer, only what I was authorised, and that was an offer of £30 lodged by Duigan with Maokay Bros., at the Teviofc. [Tho foregoing evidence was given in answer to questions put to the bankrupt by Mr. Gooday,on the questiou of adjournment only.] Mr. G-ooday, the bankrupt's counsel, was sworn, and stated that he had infornie.l Mr. E Award Herbert, the trustee, that when he wanted to see the bankrupt, he (Mr. Gooday) would see that his request should be complied with. Mr. Gooday adde J that the impression created by conversations he had with Mr. Herbert was that he had no intention, at that time, of opposing the granting of tho bankrupt's certificate of discharge. At this stage of the case, His Honor very minutely entered into an analysis of tho evidence, and he considered the request for an adjournment of the ease to the next sitting of Tuapeka District Court a very reasonable application. His Honor drew conclusions very unfavorable to the bankrupt. His Honor considered that the bankrupt had secreted property, in the endeavor to recover which the chief creditor had been forced to expend a large amount of .legal ammunition. Such a state of things was desc.v'ng of being rooted out of the country, in justice to the public. His Honor made an order for the adjourned examination of tho bankrupt at the next sitting of the Tuapeka District Court. The Court then adjourned to 11 o'clock this day.