H.—2o

1889. NEW ZEALAND.

CORRESPONDENCE BETWEEN THE GOVERNMENT AND MR. DISTRICT JUDGE WARD.

Return to an Order of the House of Representatives dated 17th July, 1889. Ordered, " That copies of all correspondence between the Government and Mr. District Judge Ward relative to the case of Christie, a bankrupt, be laid before this House."—(Mr. R. H. J. Reeves.)

No. 1. Petition to His Excellency the Govbenob of New Zealand. The humble petition of us, the undersigned inhabitants, traders, and others, carrying on business or resident in Oamaru or the vicinity thereof, humbly showeth : — 1. One William Christie, of Oamaru, auctioneer, a bankrupt, was, at an examination held in the District Court of Timaru and Oamaru, being a local Court of Bankruptcy, holden at Oamaru on the Bth day of April, 1889, charged by the Colonial Investment and Agency Company of Now Zealand (Limited), under section 171 of " The Bankruptcy Act, 1883," that he, the said William Christie, had, with intent to defraud the said company, made or caused to be made delivery or transfer of the property of him, the said William Christie, between November, 1887, and May, 1888. 2. The said Court adjudged the said William Christie to be guilty of the said offence—that is to say, that he, the said William Christie, the bankrupt, did, on the 23rd day of May, 1888, with intent to defraud one of his creditors—to wit, the said Colonial Investment and Agency Company of New Zealand (Limited) —cause a promissory note, his property, for £234 17s. 1d.., made by the Southland Flour-mill Grain and Agency Company (Limited), to be delivered to the Messrs. Mackerras and Hazlett, of Dunedin, merchants—and adjudged the said William Christie to be imprisoned in the Oamaru Gaol for a term of four months, with hard labour. 3. We, the petitioners, after a careful perusal of the evidence taken at the said examination, and from our intimate knowledge of the said William Christie and his dealings, are satisfied that the said William Christie had no intent to defraud the said company, but acted, whether mistakenly or not, under a bond fide, and honest belief that he was justified in the course of action he adopted, and was within his legal rights. 4. The evidence taken at the said examination, which extended over four days, was very voluminous, but the substance of it, in so far as it related to the charge upon which the said order was made, was as follows : — 5. In August, 1884, the said William Christie commenced to do business with the said company, the nature of which was that the said company discounted bills of exchange and promissory notes accepted or made by the constituents of the said William Christie, and indorsed by him to the said company. 6. The said William Christie took in his own name securities over land, stock, grain, and wool, to secure payment of the said bills and other advances, and at the time of the discounting of these bills forwarded particulars to the company of these securities, which were in general held by his solicitors to the order of the company. 7. Owing to a sudden and extensive fall in the price of stock and in the yield of grain within twelve months after the commencement of this business, the securities became unrealisable, and the said William Christie was instructed by the manager of the company to carry them on as best he could, applying to the company for as little direct assistance as possible. 8. This was done by the said William Christie from August, 1884, until May, 1888, and the company's manager was aware, as he admitted on the said examination, that the said William Christie was managing the said securities as one business, keeping no trust account, but paying the whole of the proceeds of the securities when realised from time to time into his general account, and using the same for the general purposes of the said securities. 9. It was proved that, independently of his transactions with the said company, the said William Christie was doing a largo business, showing during the above period a gross profit of £16,000, while that derived from the company's business only amounted to about £2,000. 10. That out of his own business the said William Christie paid towards the nursing and carrying on of these securities a sum of between £6,000 and £7,000 over and above all advances made by the company or moneys realised out of the securities by him. I—H. 20.