DISTRICT COURT.

Wairarapa Daily Times, Volume IX, Issue 2557, 25 March 1887, Page 2

DISTRICT COURT.

fc MASTERTON-THUBSDAY.'" j Before Hia Honor Judge Daw, ' 1 BANKRUPTCY. I After we went to press yesterday, j the following additional evidence was i given in the case of the. Official Assignee v Murray, Roberts '& Go. tp. show cause why defendants should not hand over the amount 0f'i.845, being the value .of 1880. sheep,' for the benefit of the creditors' in the estate of Hugh McMaster, bankrupt. Mr Bunny for plaintiff,, ,and .Sir' Gully for defendant.. '■.:<•. ■'■- : |,; Hugh McMaster, continued-?-He had 1500 sheep- last year, whichlwerS •valued in March, and at the .request of defendants were subsequentlyre-valued. and branded. The mortgage given was. for 2731 sheep. Mr Guild paid ; a visit of inspection of the 'stock'on behalf of'defendants, , The whole, of sheep contained in the mortgage were sold in the early part of 1885. ' Since then he had been buying < and selling through Messrs Lowes & lorn>.as a stock dealer. * '■. iy i ;■,.•■.;,.' . Mr' R. Stansfield proved that; the amount realised in the estate w:as,;pniy . about £BO, ..and the counsel, having addressed 'the Oourt,i; His Honijr reserved judgment; intimating that he, ; might have to take further evidence in '' Wellington. - '

Official Assignee v (Jastendyke and sum of £277 8s 'sd,'balance; aljeged to be due-to the banictupt 'estate of Sarah Ann McLen■na'ii, liotelkeeperi' of Featliers'ttfn., , ;^Mrvjßminy;^for, plaintiff, :; Mr ' S territi; for . /';...; ; claim arose through defendants f pu|c]iasin ! g.;;; ; tlie Victoria Hotel, 'f#tkersllotir''from Mrs McLennan about a month previous to her declaration; of insolvency, and deducting the' amount claimed, which was owing to .'■^e-'otjecfcVwfiß ; - to'make the defendants .preferential creators.,. : ; ~v , /.'*.: ~.,„. ■''-WaM-Bboli; of Eeatherstonr stated? that he was acting as agent.for Mrs McLennan. When he communicated with defendanttin November last about tho Victoria Hotel, Featherston, he was not aware of the financial position of Mrs McLennan. ...The. defendant purchasedihe hotel on; behalf Mr Buokeridge) ■.. through I .The amount of £4BO was paid over in December last,-and Mrs McLennan filed her sohedule in January following, Mrs MoLennan received the sum of £206 from the purchase money, £BO being, fortheJurmture in the,' hotels s '■}-','/'i- f■■'■ :■. ; .}\: ■■■■'■ '• Cross-examined by Mr Skerritt: I first overturesi to defendants for the sale of the hotel in May last. It. 1 was purely a business affair, and froia the defendant's action" in the matter it was, conducted openly and business like. '' was c&mpejle'd' to 1 sell being, made againßt4he'hbteli ; - ; rwrbte tothe-de-fendants, urging them to complete the purchase, peeing that the license would be cancelled.. ! .A.:hard>bargain was driven on both side's, resulting''in the sum of £4BO being paid. When the agreement of purchase was drawn up, I prepared a statement of Mrs McLennan's position, showing that her assets' were £205 over her liabilities. She said to Mr Pocko in my presence "I oain pay; Bos in the £, and am not like other people have to go through the Bankruptcy Court." All the deductions were made with Mrs ; MeLennaii's consent. She said she would haye.about : '£loo.':overandab ; ove:after payin'g all her debts. 'This was in ac-' cordance with the statement I drew up for her and sent to defendants. , By Mr Bunny :On ; November 28rd, the defendant pressed Mrs McLennan for the payment of a promissory note that was overdue for the amount of £B3 Mrs McLennan filed at the beginning of January. When the statement of accounts was made out for filing there was about £BS more owing than I was aware of. Defendants were not anxious to purchase the hotel. An arrangment was made with Messrs J. and W. Young for an account in July last. Mrs McLennan filed through her inability to meet her engagements, there were no particular, creditors pressing. - Mary Aim McLennan stated that

she soldthe Victoria' Hotel to defendants, and received the sura'of L4BO Was not pressed by them for payment of any account.; When .the hotel was

sold witness wag not' aware that she owed so much. Her husband's debts were more than she was aware of, : and seeing the positiorTof ■ affairs offered her creditors all she had, which amounted to. about oVin. the £,, -The defendants were not aware' of her position until after the sale had been completed. ; ; ■••.•■ : ; •, ;.-. Cross-exammed by Mr Skerritt.: Thedefendants- Were fully satisfied with my position. I received L2o6' from, the purohase money, and the amounts that were deducted for defendants and Mr Parsons was done with, my consent. I •paid creditors to the amount of LB4, includingL26rent. J'requiredthings for myself and'.children, and I got

ihetn with the balance, and, had also

to pay for our support. ■• The things in ' Hooper's account were obtained

before and after I filed. I did not offer Hooper 5s in the £, but paid Mm in full. I did:not pay the defendants with the idea of making them preferential "creditors. ,

By Mr Bunny:. The defendants were not aware that I was pressed' to sell the hotel through financial difficulties. Iwas so far behind with my

husband's debts that I hardly knew what I did owe. Mr Bock managed my books, and looked to the accounts as they come due. By Mr Skerritt: I received the takings of the hotel for three months, and kept the house and paid the servants out of the amount. I did not take enough to pay. rent, brewer, or the wine merchant.

E, S. Stansfield, Deputy Assignee, proved the bankruptcy of. Mrs McLennan, and produced a statement showing that there was a deficiency of £lo6lis sd;in the estate, andoutside' the book debts there were no other available assets. The amount able on the" books was about 117. 'lt the amount now claimed from defendants was added to the assets it would pay. about 10a in the r.Msxy Ann. McLennan,: recalled,stated that L4510s 9d of the amount on the schedule w&9 for her late husband's debt. When he died, the leasehold interest in'the hotel was all lie left. .The''hotel hail been refurnished and re-stocked since. There was not enough to pay all debts when her husband died. ,;■ ...■•

,: vMiSkemit submitted several points for his honor's deoisison, and quoted authorities in. support of. them, 1 but His Honor tiiat ho was'not ; prepared to rule without due 'consideration., Mr.Skerrit Ma proceeded iwith'the defence and called "Edouard Pooke,:of .Oaatendyke :and .Fdeke, Merchants,: Wellington, who stated that-tlie Victoria Hotel was first put in his fiiins"hands for 'sale in May last. : They ..'tried.'by' advertising,, jo dispose of it';tand 'had 'several offers, but Mrs McLennan was not inolined to part with it, Mrs' McLennan's cpnsenUhat the., firms debt werepaidarid'also Mr Parson's account. Wa§ aware MrsjlfcLennan was dealing with, no Other to .but the defendant's/ " •"■; The cross examination of the witness elicited nothing new in the evidence.' ; Thomas Parsons'; .brewer, ofMasterton, in addition/to ooirobtfrative ovidence stated the 'circumstances' ! under which he was paid the L9O out of the 'sale :by the defendant! 1 , ;■'';-] t "". Mr Skerrit submitted that there was

nothingpn the evidence to prove tiiat his olientij ;had beenynade 'preferential creditors, 'fi&contended that at the time of the-purobase Mrs MoLennan had more tlian'snouglTto pay all her creditors 20sin;the h, including about ;Lsoi the debts.of He) late .husband, which she couldnot : ;b'£heJdliablefor. Mr,surmv ; having replied, His Honor reserved judgment. The case of the Official Assignee v Mary Budden wasadjbumed, owingto the creditor? having accepted a com*, position in the-estate. ■ »•■■••» ■■ -■' •■ ffi.'''ffiemCoS ,, T)BEair'or :; Mr Hutchen, lodged a notice of motion for a. new, triaj.in thej«iy,c,as9 T. J, Jfom.es. T'Edvrard''J.-'Hughesi'and made an application for His' Honor to stay execution pending the trial.; flis Honor, entertained • the' application conditionally, oh*'defendant producing security for the verdict given, to the satisfaction of the ( Clerk of; the Court, within II days, the new trial to come off at thiv, next sitting of the Court, on June 22nd. : " '