ALLEGED BREACH OF THE BANKRUPTCY ACT.

Wairarapa Daily Times, Volume XVI, Issue 4965, 2 March 1895, Page 2

ALLEGED BREACH OF THE BANKRUPTCY ACT.

The further hearing of the charge against F. J. Donovan, was continued in tbe Masterton S.M. Court * yesterday afternoon, after we went to press. Jl Mr Pownall said his reasoirfor asking Mr Wood about the sheep transactions, was to remove if possible, any doubts as to supposed fraudulent intentions on tho part of his client,

[ On the Court resuming, the Clerk ' re-called, submitted the depositions of the bankrupt, taken before the District Judge in December last, the same having been in the possession of the Deputy Official Assignee. Mr Bunny said the. statements

taken in the depositions were useful in placing before the Court the true , position of accused bankrupt at the time, and previous to his bankruptcy. This concluded tho case for the

prosecution. Mr Pownall said he considered tho present action was one which ought to be dealt with summarily, It was clearly a case which His Worship could dispose of, if his learned ' friend offered no objection. Mr Bunny informed the Cfftrt that no objection would be held out against such procedure. . Mr Pownall stated thfVhis client was perfectly willing tiff the case be settled by the S.M. Court, and he would therefoie enter a formal pica of Not Guilty. There was nothing to shew that his client had any thought of'fraud at the time of contracting the debts owing, though his client had undoubtedly j acted in a somewhat unusual manI nor in regard to the buying and selling of stock. His client, at the time, had reasonable prospects of meeting his liabilities, which ho • would call him to prove, Frederick J. Donovan, the accused, stated that on tbe 7th August last, he gave Mr Wood a promissory note for £55, at that time being indebted about £4OO. The W.F.C.A., in August last, entered into negotiations to loan witness £IBO on his oat , crops, subject to the landlord of witness giving his signature. This, his landlord would not consent to, though he had previously promised to do so. Amongst other debts at that time, one of £7O was owing to his brother, which was to belaid off when convenient. NegotHons were, at this time, entered info for > borrowing £1,300 to pay off the first mortgage of £I,OOO, and leave a balance of £3OO. Witness had applied at the request of Armstrong, and it was understood if ho had arranged the loan, he was to have £l5O on tho security of his lease. , Had a reasonable expectation at this time that he would be able to liquidate all his liabilities. By Mr Bunny: Did not recollect the date of signing the document at the W.F.C.A. Was not aware that the transaction would fall through until the landlord refused his consent. His brother had lent him ' money without security. John Joseph Donovan, settler of Kopuaranga, brother to accused, gave evidence that he took up a bill for his brother. He had no intontion of asking for repayment orpressing his brother for the £7O.

This closed tho case for the defence. Mr Bunny addressed the Coajifc at some length, after which His Jforship said the question he had W decide was whether or not, at the time of contracting his debt on August 7th, accused had reasonable expectations that he would be able to pay this and his other debts. On a general view of tkecircumstances.tho position seemed to be that on August 7th accused owed a debt of £7O to his brother, which might be kept out of the reckoning of his liabilities, as it was understood it would not bo pressed. Accused also swore that ho was negotiating for a loan of £IBO onhis cropsfromtko W.F.C.A., and further had expectations in a round-about way of obtaining £l5O on a loan being raised on the property. From the evidence of accused, coupled with his brother's statement, it appeared that with these expectations, tho assets and liabilities about balanced, and lie could not say that accused's conduct came within sub-sec-tion 2 of section 137 of the Bankruptcy Act, and although bound to say that the dealings with Mr Wood were rash, that was a questioijjjio had not then to deal witkflJiQ agreed with Mr Pownall, that it was notacasoto lightly decido against the accused, and therefore, considering the evidence, he should dismiss the charge, It was agreed that the two furthcr charges against Donovan, bo heard on Friday, March loth.