estates. In 1867, however, an Ordinance was passed, being 15 of 1867, which recites that Whereas circumstances occasionally arise which render it inexpedient that the Registrar of the Supreme Court should be the Official Assignee as provided by section 6 of the Bankruptcy Ordinance, 1864,il shall bolawful for the Governor whenever he shall deem it expedient to nominate and appoint some person other than the Registrar of the Supreme Court to be the Official Assignea of the estate and efforts of such bankrupt." That Ordinance was passed on the 5th December, 1967. Mr. Alexander was then the Registrar of the Supreme Court and as such would ordinarily have been the Official Assignee. Mr. Haffam was Deputy Registrar.
Prisoner-Clerk of the Court.
The Attorney-General-Mr. Huffam was Clerk of the Court, and had been for some time in the public service and was very much respected. He was Acting Deputy Registrar at the time, as am informed, and it was considered he would be a fit and proper person to take charge of insolvent estates, more especially of this estate of Lyall, Still, and Co. He was accordingly appointed and in the Government Gazette of the 28th Decem. ber, 1867, shortly after the Ordinance passed. there is a Government notification appointing him Official Assignee. There was also a special appointment with regard to this bankruptcy of Lyall, Still and Co., dated 29th December, 1867. ! At the time of the notification that came out in the Gazeffe there were several persons who had been adjudicated bankrupt beside Messrs. Lyall, Still and Co., and the prisoner, as I am instructed, took charge of all of those estates. With regard to the estate of Messrs. Lyall. Still and Co., I shall put in the file of proceedings in the bank. ruptey, showing this condition on which the bankruptcy was declared, the act of bankruptcy, : and all the procordings in the case. These are all under the seal of the court, and by oue of the sections of the Bankruptcy Ordinance are made · evidence without further proof. It would ap- pour that in the estate of Lyall, Still and Co., à petition was filed originally by two of the partners in the firm. For some reason or other, however, that appears not to have been considered sufficient and a dood was executed for the benefit of the creditors, and upon that Messrs. Jardine, Matheson & Co, filed a petition, the act being clearly an act of bankruptcy, and the fil. ing of the petition being also probably an act of bankruptcy, and upon that the adjudication was made. The accounts kept by the prisoner will show the amounts received by him for the varions estates in bankruptcy and the ba lances that are at present outstanding. These, of course, would come under the first conut. With regard to the other counts, which charge him as Official Assignes of Messrs. Lyall, Still, and Co., there can be no doubt this estate required a considerable amount of time for the management and collection of the assetş. The debts were exceptionally large, the amount being over $4,000,000, and the assets were some. where near $150,000, and the real and personal estate of the bankrupts is put down as amounting to $9,000,988.93, and they were creditors to the estate of a certain amount. There is no doubt it was a very unusual bankruptcy, a very difficult one to manage, requiring some tact, and would necessarily require some time in winding up. The prisoner was appointed the Official Assignee on the 27th December, 1867, and he appears to have proceeded actively in the first instance, judging from the accounts, in getting in the assets of the estate and settling the claims against it. Up to May, 1868, he received the amounts and paid into the Treasury $31,000 odd, but the whole of that amount was subsequently drawn out of the Treasury with the exception of $1,157.57, which is there now. After the money was drawn out of the Treasury it appears to have been placed in the banks. A sum of $17,000 was paid on fixed deposit into the Oriental Bank, a sum of $25,000 into the Hong- kong and Shanghai Bauk, and a further sam of $12,000 was also placed in the 'ongkong and Shanghai Bank. These sums have long since been withdrawn and there is no money that we know of at prosent lodgod anywhere. They were with- drawn within six months after their being paid in, and what has been done with them since we really don't know. Naturally for some little time the prisoner, who seems to have had the sole management of the estate, was employed in getting in the accounts and making payments, and it was impossible for some time to say what the balance would be that he could distribute among the creditors. The accounts made out by the prisoner himself showed there
were a good many lawsuits. in England as well as here, and for some time of conrse the creditors could not hope to get any money. How- ever, after waiting for some time, the creditors began to get a little anxious and they made repre- sentations to the prisoner that they consideret it was about time a dividend should be declared. No dividend was, however, declared, and some few months ago, about the commencement of this year, I believe the creditors began to press. The accounts for the latter end of the term show the following condition On the 24th October, 1871, Mr. Huffam placed on fixed de- posit in the Hongkong and Shanghai Bauk $25,000. On the 6th March, 1872, he had in hand in addition $6,960. On that date, the 6th March, 1872. in order to make a payment to Messrs. Sharp and Toller in respect to a claim amount. ing to $4,017.15, he withdrew $5,000, with 855,07 interest. On the 26th April, 1872, Mr. Huffam had in hand, according to his own accounts, not deposited, $1,209.88. On the same day he withdrew the balance of the fixed deposit, which with the interest was $20,400. After that he received 85,442, making altogether $35.956,11, and since the 26thpril, 1872, he has made a payment of $2.897.56, leaving a balance of over $33,599. These figures are important with regard to the fourth count of the information. That being the state of things at that time, as now appears, and the creditors beginning to press Mr. Huffam, he made certain excuses to thera for the postponement of settling the claims. In May last year the prisoner obtained leave of absence, and was about to proceed to England on three or four months' leave. Mr. Sharp, who represented some of the creditors, saw him downstairs previously to his going away. He had then, I believe, a carpot bag with him. Mr. Sharp expostulated with him, and told him he ought to have settled up this matter before he went away, and Mr. Huffam told him it was necessary he should make certain inquries and put in advertisements. Mr. Sharp expressed his extreme dissatisfaction at his going away without a settlemont, and told him that if his clients put any pressure upon him he would have to bring the matter before the Supreme Court. The prisoner said there was no cause for anxiety, and he could easily give security if it would be to Mr. Sharp's satisfaction. Mr. Sharp left him, expressing his surprise that bo should go away without settling up. On the following day, after Mr. Huftam had left. Mr. Sharp received from Mr. Sangster an envelope containing $5,000. That money was kept until Mr. Huttam returned. He then applied to Mr. Sharp for it, and it was handed back to hia on account of Lyall, Still and Co.'s estate, deducting a certain.auiount for costs, and that transaction has reference to the last count in the information. At that time the prisoner had declared his readiness to call a meeting of the creditors and to declare a dividend, and subsequently a notice was pat in the papors calling a meeting of the creditors in order that a dividend might be declared. The meeting was subsequently ad- journed for a few days. The prisoner then pro- duced the accounts of the transactious with regard to Lyall, Still & Co.'s estate, which will be produced before you, in his own handwriting, and they showed a balance of $46,849.79, that was. this sum of 338,599, which I have already brought to your attention, together with five amounts of $2,000 which he credited for interest and some further sums received, the balance amounting altogother to $46,849.79. A dividend was declared of 8.57 per cent, and a list was made out in Mr. Haffam's handwriting giving the names of the creditors, their claims in dollars, and the amount of dividend to which they were entitled. Mr. Huffam at the same time promised that the cheques should be made out immediately and given to the parties entitled to them. This meeting took place on the 3rd July this year. The account, of course, was read over hurriedly,! if it was read over at all, but copies were promised to be given to the solicitors for the various par. ties concorned. After that several inquiries were madeas to when the dividends were to be paid and the prisoner was pressed, as I am instructed. repeatedly for a settlement. Several excusos were made, that he had not time to copy the accounts, and so forth, and it was put off until it was found that exchange was going down rapidly, and the parties representing creditors at home ware anxious to get the dividend at once. The prisoner then appointed a day, about the 9th or 10th August, and promised that on that day he would give the cheques and copies of accounts the different parties con- cerned. On that day he did not attend ai
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