DISTRICT COURT, REEETON.

Inangahua Times, Volume IV, Issue 18, 21 May 1877, Page 2

DISTRICT COURT, REEETON.

Wednesdat, May 16, 1577. (Before His Honor Judse Weslon.) In Me Sib Julius Yogel Compact (in Liquidation). Mr Staito moved that the name of James Clinton be removed from the list of contributories of the above Company. Ho said that the matter had been referred to at Holutika by his Honor, and had been adjourned to Rcefton with leave to Clinton to renew his application. Ife (Mr Stake) was now prepared to call Kelly, the person to whom Clinton had transferred tho shares. Me Button appeared for (he Liquidator, to oppose tho application. Mr Staito said, before opening ho would remind tho Court that there were one or two circumstances which had influenced bi3 Honor in withholding judgment on tho former hearing. One of these was a n impression created by tho Liquidator t!iat Kelly was a myth. He would now disprove ih'xa by calling Kelty to give evidence. r J lie following evidonfe was then called .— James Clinton— l am a farmer residing at Ilampden, and was formerly the holder of 500 shares in the Sir Julius Yogel Company. On tho lOih May last, I transferred tho whole of my interest to Peter ' Kelly. Tho consideration stated was £5. Mr P., Kelly, hotelkeeper, told mo that Kellly, the witness to be called, would take the shares. It was. in con« sequence of what Mr P. Kelly told me that I met Kelly, I was leaving the district, and was therefore anxious to get rid of all my interests. I sold all my interests that I could. No consideration passed the sum stated was nominal. The transfer was signed in Mr Davies' office. I psked the clerk to witness tho transfer, and was under the impression that he didI witnessed Kelly's signature, and Kelly witnessed mine. There was no arrange* ment that I was to get the shares back. | The sale was an out and out one. Knew nothing of Kelly's circumstances. Cross-examined — Kelly was- a stranger to me. I had no acquaintance with him. He was an aeqaintance of Mr Kelly, the hotelkeeper. I gave Kelly nothing for taking the shares. I did not know him before the transfer. I met him the day before he took the shares. I did not get any of the money named in the transfer. Peler Kelly— l am a miner Kving at the Upper Buller. I have come down to give evidence in this matter. The transfer produced bears my signature.- I took the i shares. I never met Clinton until tho day 1 before I took the shares. I was stopping ; at Kelly's, and I heard, that Clinton bad bought a farm, and that he was clearing i out all his interests. He gaye me the shares positively, and was not to retain any interest in them* The transfer was drawn out in Mr Davies' office. The clerk was there. Clinton asked the clerk to witness the signatures, ho said he would, but he did not. Tho transfer was left in the office. The shares were registered in my name. I was to pay calls .upon them if I could. I was a total stranger in the district, aud knew nothing of the claim. I fcnew nothing of the position of the company, as to its liabilities. Clinton gave no other reason for parting with the shares than that he was leaving tho dis« trict. I expected to get work in the mines. I have been in work most of the timo. I am now earning 303 per week and my tucker. lam not in a position to pay the calls now, I was in a position at one time. I have been working at Hampden for about eight months, When I first came to iveefton, I had £1. I may have owed the hotelkeeper some of that amount for my board. When i left Mr Kelly's I paid him part. Igot some wcrk ia town. It was three weeks after I took thj transfer that I left Keofton. I earned £3 iv Eeefton. I left Bcefton about £3 in debt, and have loc yet paid tho amount. Mr Kelly Las.

sot asked me for it. I saw Mr Clinton at Hampden in March last, and in November last, It was just before Christ- | mas that I heard from Clinton that the company was being wound up. I was not aware up to that timo that the company was being wound up. -By the Court — I took the shares because I thought there was a chnnee of my getting something by them. If I had sold the shares an<J made a profit, the pro* fL would hare been my own. I did not know that the compnny was in debt. I understood that all the calls were paid. I don't think Mr .Clintoa or Mr Kelly knew anything about my financial position. Patrick Kelly— l am an hotelkeeper in Reefton. I know Mr Clinton. I was aware- that he held shares in a great many claims in the field. Ue sold out his shares in the Golden Fleece, and intended to settle down on a farm atHampden. I advised him lo sell all his interests, as it would no suit Lim to be coming up and down looking after shares. Ro sold a share in the Wclcomo Company at Boatmans. Kelly told me tbat be had bought Clinton's Julius^Vo^el shares. I have known Kelly for the last eight or nine years. He was always mining, and paid his way so far as I know. Ho paid me something on account. I told him not to leave himself short when be was leaving. He has always paid me. Cross-examined—l could not say how long he was with me. He may have been three or four weeks at my place. 1 had nothing to do with the Palo. I did not know that Kelly had bought the shares until Clinton told me. I had nothing to do with the transaction. Do not know that I remember that Kelly contemplated to purchase the shares. I took no part in it. I was not an agent for either one party or the other. I did not find Kelly for Mr Clinton. I did not introduce Kelly to Clinton in order that Kelly might buy the shares. I cannot recollect whether Kelly was present at any interview between Clinton and myself. I cannot say whether Clinton knew Eelly before he came to Eeefion. I cannot recelloct every conversation that took place in relation to the matter. Do not know the date of tho transaction. In lie NOBTfI sfAB company (in liquidation.) His Honor inquired of the liquidator, Mr Davies, what prospeck there was of of closing the affairs of the company. Mr Davies said ho had a little more than sufficient money in hand lo pay all the debts and expenses in the estate. He had spoken to one or two of the creditors, and they were desirous that the estate should be kept open for a littlo time louder, in order that son?e contributories considered good might be proceeded against. Ho had also been informed by tho solicitor in I tho estate, that he could not apply for a fiual order ?o long as there wore good conlribuiories to come in. Ho (bought he wcj'd be in a position at the nexl sitting of tlio Court to ask for an order ol dissolution. I His Honor, concurred in the course proposed to be taken, and suggested thai no good contvibutorics should be allowed to escape. Mr Staite endorsed the remarks of th< liquidator. Some of the contribution were being paid by instalments, bat bj the nest sitting of the Court, he hoped to be able to ask for a final order ii the estate. In Be GOlDltf TEEAStfRE GOLD MINISG Company (in liquidation.) , Mr Button, on behalf of the Nationa Bank, moved for directions to the liquida tor. He claimed inietest on the Bank': claim, an overdraft. The manager statin; in his affidayit that such an account carried interest on the custom of bankers The learned counsel maintained that tb< authorities warranted it, and where then ' was a surplus after discharging the principal, to allow it would be equitable. Mr Pitt, ou behalf of the liquidator admitted the force of the remarks, bul i expressed an opinion that compound in* terest could only be allowed upon a dis< , tinet agreement or one gathered from the acts of the parties. His Honor— ln my opinion, to accounts which carry interest, such can be calculated to the date of the winding up order added to the sum and proved for. Should : there be a balance after discharging Che proved debts, interest upon such accounts as carried it originally, can be calculated to the date of payment, and bo demanded from the liquidator. Having laid down the principle, the liquidator can take such action as he may bo advised. I cannot make an order in the matter at this juncture., I am glad the question has been ventilated.

Fbiday, Mat 18. In JZethe Ebema Cattsis Goldminino Company (in Liquidation.) Mr Batten moved, on behalf of the Liquidator, for an order approving of tlio plan of distribution of the assets of the Company. In doing so he referred to the expedition exercised by the Liquidator, Mr M'Loan. That circumstance was the more striking when it was remembered that the Ere ma Causis had been so recently placed ia liquidation, aad proved the fallacy of tho objection raised to \m appointment on the ground of his, Air .M'Lean's, individual liability as a contributory. His Honor— l have your assurmneo, **JE JJuUoBj that the claim* mcjiionod. ia

! thn ?flh.?d-j!e do noK exceed the amount of tho formal proofs, Mr Button fjavo bis assurance. His Honor— Lot thn order go as prayed. In Re Lono Drive Goldwhiuo Company (in Liqnidatioo). Mr Button, on behalf of the Liquidator, mo?ed, under section 10S of tho winding op provisions of tho Mining Companies Act, for an order similar to that asked is the former case. His Honor—l see that the original debt upon which this Company was wound up was £101 Gs Bd. Mr Button— The petitioning creditor proved an amount of £123 % Gd, but that ■ sum included an item for costs. . His Honor— The circumstances relating to the closing of these too companies call for little comment, The figures speak for themselves, and should be dwelt upon bj both creditors and shareholders of Com* panics. la the case of the Long Drir* Company £140 2s 2 1 of costs have been incurred in discharging a single debt of £101 15s 2J. la tho case of the other Company the original debts were £376 8» 3d, to recover which £123 5s has been, expended. The accounts, after investigation by mo personally, were pronounced reasonable. It is lamentable to witness such a waste of money. la reference to Mr Button's remarks in respect to the liquidation, he (his Honor) could only say that in the matter of the Eremt Causis Mr M'Lean's action and conduct had dis« proved the slight imputation east upon him at the outset by some of the creditors. Order granted as prayed for. In Be Goldbx Treasure GotD Mrenro Company (in Liquidation). j Mr Button applied for an order to enable the Liquidator in this estate to pay the National Bank, tho principal creditor, ( an ad interim dividend of 9s in the £. That course, he said, would lessen the claim of , the chief creditor, tho National Bank, for interest. , His Honor— A dividend of 10$ in the £ from the estate has been paid ? i Mr Button— Yes. ■» His Honor — Can the Bank now claiminterest—the original proof contained no such item ? Under the . Act, the Liquidator iv tho first instance prepares a state* , raenfc of the Company's liabilities, augUhat i" statement is available for inspection by the contribufcories, so thai any exception » could bo taken by them to claims prd* ) ferrcd. If tboa the Court were now to [ award interest bebiird the backs of the COO* [ tributaries would it not be committing an [ injustice to them. Mr But'oa admitted the force of his Honor's remarks, but the con tributarieshad the rin'ui to search and fiad whether i a supplementary application had been t made. [ l His Hoaor— Then would it not be better for you to carefully look ap the point aner" ' make a specific application. The Court could tl>.ca co&sMer It. f Mr EuUoti consented to this coarse,? and it was fiualjy decided that the order , for a further dividend of 93 ia the & * should be paid.