and I know nothing about ormation was received after we had nesting to declare the debtor s
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His Lordship From whom did you get the information
I think I got it from the Bank or from Mr. Seth. It did not come from Mr. Watts
Mr. Grist-Have you perused the statement of affairs I have.
→ You will find this particular item in list C The debtor would not give us information about it I think you will find on the file a letter addressed by him to Mr. Seth in which he states that it is no business of the estate to inquire into that and it lies between himself And the Bank
Did you not know that this iron was consigued to Mr. Wall
and in the usual way he was drawn, ona through the Bank against the documents ? I tell you I did not know anything about the contract when we applied to the Court in bankruptcy. At the time of the last meeting I knew when the debtor left the colony we could not get any information from him and I went to the Bank myself and got par- ticulars.
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Do ou mean to say that you had not seen & press copy of the Bank's account in respect this transaction through the auctioneers ? had not.
Do you not know it was in Mr. Seth's hands a month before the debtor left the colony P- No, in fact the Bank told me they had not sent in any statement, and I saw them after the debtor had left the colony.
Did you not see any auctioneer's account in respect of that ---I saw no auctioneer's account in respect of the sale.
This iron was sold by auction previous to Mr. Watts's departure from the colony and I got the particulars and sent them to Mr. Seth a long time before the debtor left the colony. Can you tell us in any particular way how the absence of Mr. Watts from the colony, caused any injustice to any creditor P-I should say his action before he left the colony caused an injustice to the creditors.
And yo
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you do not consider that his absence caused any injustice ?-Unless we could apply to the Court to compel him give as the information we wished, he may as well be out of the colony all the time. So that in that respect I do not suppose his absence is an injustice.
His Lordship-If he was in the colony and he refused to give information why did you not apply to the Court?—I reported it to Mr. Seth and I suppose he did not care to take extreme
measures.
Why did he refuse ?-On one or two occasions he refused on the ground that he had no time, that he had his own business to attend to.
Mr. Grist. What information, other than that you have already specified in respect of the compradore's account, did you ask Mr. Watts for I have asked him many times if there are other claims against the estate and he said no. In particular he mentioned the Chartered
Bank.
You know that the statement of affairs filed is a statement that is sworn to by the debtor ?——— Yes
Could you not rely upon his information to the effect that there was nothing else without bothering about it ?-Not without the com- pradore's statement.
Then that is the only item you particularly wanted the compradore's statement P-It is.
That is the only way in which you consider that any benefit could have been got ? No.
What other P-The debtor had a house of furniture. We asked him if he would allow us have the auction on the premises, as we thought th
the goods would fetch a better value than if they were brought over to Hongkong. He lives in Kowloon, and he refused to allow us to have the auction there.
"Did you ask him personally ?--I did.
CHINA OVERLAND TRADE REPORT.
What did the furniture bring? $800. 1 | complicated matter which is really outstand think we estimated getting $2,500; I will not at the present time. be sure of the figures.
What reason did he give for refusing ?---He gave no reason whatever. He never gave a reason for what he did.
Mr. Grist This house at Kowloon is leased to Miss Fairall ?—It is.
And Miss Fairall was occupying some por tion of it P-I doubt it.
his sister-in-law, I think, is the I believe so. He had three to four pots and he refused to let us of them even in his garden. eventually only $3.
Jants
Was that loss PIt was tion of the value of them as esti- debtor:an
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His Lordship Is the colony P
prad
Mr. Grist He is here. Hi arises on one particular item, of iron which was consigned to M sale. Mr. Watts sold it to Chin usual with compradores, as your Lord they guarantee that all these Chinese. will be duly fulfilled. Now the Chine particular instance, have refused to
You do not know whether she was or not ?— I do not know. I do not think she was.
This furniture was brought over to Hong-livery of the iron on the gr kong and sold here ?—I believe so.
On what ground do you base your opinion that it would have fetched a better price in Kowloon ?-On the ground that furniture looks better without being removed and it gets broken if it is brought over here. It was not placed in a good auction room. I personally made a report about this. I thought that under the ofroumstances, as a scheme of arrangement had been proposed, it was the debtor's duty to assist us by bvery means in his power, instead of which we had to find out various things ourselves and could not depend upon him for assistance, and when we required his attendance he very rarely came.
His Lordship-Were your brother|Committee men acting with you in this matter ?—Ios.
Did you remonstrate with the debtor about his conduct ?-I did many times.
What did he say ?—He was quite indifferent as to what we said or thought.
His Lordship (to the Official Receiver)-Has the estate been realised P
The Oficial Receiver-Nothing more can be got as far as I am aware, my Lord, unless the debtor is able to give me further informa- tion. I understand he is about to leave the colony and there is some doubt about his return.
His Lordship (to witness)—If the whole estate has been realised, where does the question of undue delay come in It has been realised since the notice was given, I suppose.
Practically, then, the arrangement has been carried out P-It has been carried out as far as
the Committee are concerned. What we object to is that it was carried out without any assist ance on the part of the debtor. We placed our services voluntarily in the hands of the Court and we consider it was his duty to assist us.
was not according to sample. I myself wont into the matter and got some evidence. We had the evidence of Mr. Lammert and one or two gentlemen in the iron trade and some said the iron was according to the sample and some said it was not, and it has taken some little time to come to the conclusion whether it is or it is not. It is, of course, for the Committee of Inspection to decide whether they would like proceed against these Chinese people in order to make them take the iron or whether the iron is to be sold by the Bank, because, as your Lordship, knows, it was consigned through the Bank and my client was drawn on through the Bank, the documents being deposited with the Bank. Before he can get delivery of that iron in Hongkong he has to pay the Bank, and he cannot do that because the Chinese do not come forward and take up their contract. The Bank have sold some por- tion of the iron and the account was forwarded to Mr. Seth. I do not know personally what is to become of the iron. My client is here and he is prepared to answer any question. He did not go away until 16th August, whereas the scheme was signed on the 16th or 17th July. There was one month, within which time everything could have been wound up. It is not contended that the debtor has not given up all his property. He has given up everything he has, and as he has nothing to live upon he must seek his living, and for that pur pose he went to Wuchowfu and he has only just been able to return. He received this notice and he came down, and I submit he has done
nothing that he should not have done. There is a filed statement sworn to and he could give
no further information.
His Lordship-I am afraid he thought that when the scheme was signed he was done with the whole thing. His duty is to assist all he
can.
between the parties. Mr. Cottam is not here Mr. Grist-There may be some friction to-day, and there is no reason why he should
not be.
The Official Receiver-He has gone- Shanghai.
His Lordship-I am not expressing any ground of your application to anual this opinion now on the debtor's conduct, but the scheme is that it would cause injustice or undue delay. That does not follow the wording of the section. The wording is "that the composition or scheme cannot in consequence of legal dif- ficulties or for any sufficient cause proceed with- out injustice or undue delay," &c. Your word-in two capacities, being attorney for one of the Mr. Grist-As regards Mr. Price, he appears ing simply says it cannot proceed without in- creditors and a partner in another firm of ore. justice or undue delay. Apparently the thing ditors. It has been shown distinctly by Mr. that was operating was the conduct of the debtor. Price that the matter is wound up.
Witness--I consider we cannot get on with- out the compradore's account.
His Lordship-The position is this. If the estate has been got in the scheme of arrange- ment is, so to speak, exhausted.
Witness-We consider we could have realised the estate better if we had had more assistance
from the debtor.
The Official Receiver-The claim against the compradore is still outstanding and I have been
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asked to return the certificates. I am not in a position to return them until I bave consulted the debtor. The debtor alleged that the com- pradore owed him a considerable sum of money, and he was anxious that it should be paid. Now I understand there is no claim. With regard to this section, my Lord, may I point out that it says or for any sufficient reason.'
His Lordship Quite so; I am only pointing out that the application ought to state a reason. Mr. Grist-I submit, my Lord, that the evidence of Mr. Price goes to show that there is no occasion for the bankruptcy to proceed further. He says he has already wound up the estate and therefore this notice amounts to a nullity. He asks for the debtor to be adjudicated a bankrupt on the ground that the scheme cannot proceed. It is not necessary for it to proceed. As your Lordship sees, there is only one item which he seriously wants to push in any way and that is the item of the compra- dore's account. I may say that is a somewhat
His Lordship Not quite; there is still this matter of the iron contract.
Mr. Grist Except the iron contract. That is a thing out of which no good can come unless drop it and let the compradore take back the suits are instituted. The best thing to do is to security. It has been shown that there can be bankrupt. There is no reason why the scheme no possible object in adjudicating Mr. Watts a should not proceed, and there is no evidence at all before your Lordship why it should not. There is only one item to be dealt with, and there is no reason why it should not be dealt with just as well by a Committee of Inspection as by the Official Trustee. I have asked Mr. Price how that item can benefit the estate and he does not know. It is im- body by adjudication at the present time. If possible that there can be any benefit to any
the Committee are sorry for having tioned this scheme of arrangement ↑ they have made their own bed and the must lie upon it. The matter was most fully dis cussed and they knew perfectly well they were doing. In fact I may actually mentioned that the scheme w tically amount to discharging him i were perfectly willing that it should ask your Lordship to dismiss this I submit it has been put for slightest ground on their been brought forward on no ground whatso01
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