MR F. W. RICHMOND ' S BANKRUPTCY.

FIRST MET2TTN(! OP CRTCMTOHS.

A meeting of creditors in the estate of Francis William Richmond, solicitor, of New Plymouth, was h-!d on Monday afternoon. The !)pp«itv-Offic-ial Assignee (Mr J. S. S. Me.Uey) presided, and among those .present were Messrs J. C. George, R. Cnsk, N. Ewing (Messrs Smart liro^.}, J. Avery, F. P. Corkill, 'Newton King. .T.

0. Kclsey, Me Arthur (Bash and Door

factory), A*rnold (Me?srs Okay, Son and Arnold), Grayson (Messrs Grayson and Cock), Sole (Messrs tto-e Bro-

thers), W. Humphries, Harding, Halcombe and nprrv.

The D.O.A. stated that the bank-

ruptcy petition was filed on July 31. The unsecured creditors \ were owed £'7703 4s '. 9d and secured creditors C 920 os. The estimated value of the securities was £1300, leaving a credit, of £3SO. In addition there is in the estate the value of a lease £1000, 350 hrtatl of cattle valued £000 and two pianos vahiod at £50, total £1050. The unsecured liabilities amounted to £7703 4s 9d, and the total assets to £2015, leaving a deficiency of £508S 4s , 9d. (Details have already been published in the Herald.)

Mr Govetfc appeared on behalf of the bankrupt ; Mr W. Kerr for the D.0.A.; Mr J. 15. Wilson for Mr H. D. Gillios, of' Auckland ; Mr C. H. West on, for Mr F. C. Griffiths-; Mr W. 1.. r'lOherbert for several creditors, and Air R. C. Hughes for Mr Darling and oihers.

Mr Govett, on behalf of tho bankrupt, said ho was, not going to disguise the, position, which was brought about by speculation, in which there were two other partners. A J:\tc manager of the Bank of Australasia had sold bankrupt, for £2000, a lease of 2000 acres at Uruti, there being a compulsory purchasing clause. The other guide he had followed was Edgar Watt. Tho next spec after Uruti was Marahau, which tho syndicate had agreed to purchase at £GO.000, on which a good deal hid boon -spent, and was now worth nothing to them. Thn Uruti lease had n« jreat valiie. and though taken , .over _ a,t £2000, was I put' down at XI OOO, but its value was problematical.

Tn answer to Mr George, Mr Covett ■said he had no knowledge that bankrupt was first led iuto N ppceuUilion, by the purchase of the Uruti properly and that hn then became further involved by following the advice of Kdgar Watt.

Tn answer to Mi- Koltpy,' bankrupt said there was a debt by Wait of CHOO outside of advances on account of -Marah.au .purchase.

Mr Corkill asked if Watt and Lennon: were not jointly liable- !<>v the debt of £1500 to Darling, ami also wa"s not Mr Darling a paitnor?

j Bankrupt repliVd that Mr Darling first introduced the purchase of Mara-! hau lo Watt, who had too in any creditors, and so it was arranged that lie" (bankrupt) 'should purchase with Mr ]>nnon, Mr Darling standing in for a share of the profits. Jn October last Mr Darling wished, to- withdraw, and took an agreement from the nominal purchasers lo pay him' out of the profits the sum of £1500, afterwards increased to £1800. These agreements were 'in the possession of Mr Hughes. When asked to read the agreements Mr Hughes refnsjed to do so unless with the consent of Mr .DarVmg-. The D.0.A., stated that Mr Darling had not proved so far. Mr Richmond was then examimed. He stated that upon her marriage Mrs Richmond had property- to the value of £1000, and this was given as security to the Bank to secure a guarantee for an advance of £1000 to bankrupt, for the purpose of buying the book flebis of Mr , C. F.. Richmond/ and also- £700 worth of assets in his late father's estate.

Tn answer to tho D.O.A. bankrupt stated : "I was first mixed up with Mclnlosh in the purchase of th-o Taranalu llotnl. ft was jAawd in my hands for sale, and the highest oflVr I could gnt was JtJGOO from Mr Paul; when Me In tosh agreed to purchase at £2100. Ho paid £300 down, undertook to spend £700 in repairs, and gave a mortgage for £1800. Mc:Tntoffh about this time said, "Now that wo have been such old friends, both in jVlanaia and elsewhere, we will work the hotel and 'other things i together." The Tariki Hotel was t ha next purchase, bought in my name, and I found what little money was roqjuired out of my overdraft. I was first indebted to tho Bank in October, or November, 189H, soon after Mclntosh's arrival, for purposes as already stated. Tariki gave? a profit of £300, and I gave Mel n tosh credit for hit? share. -Ho was already indebted to me. The next spec, was oil, in which we lost. Then condensed milk, in which we had separate interests. At the time of purchase of Uruti, Itfclntcah owed me from £2000 to £3000. I took over Uruti last

» December. It was not at his wi.s or suggestion. Watt told m he could not work with Mcln tosh, but could with me. He suggest ed writing to Mcinlosh, ami in repb McFntosh said he did not wish"- t< » force it on me. He came up lapi Christmas with a transfer ready, ani 1 took it over, thinking Watt woul( sell at £4 10s. The £2000 or £300( owino was accumulation of partner ship accounts owing-. To Mr George : McTntosh gave mi the Uruti lease to satisty partaiershir transactions. A'o cash passed altlv ough the consideratiion was shown as £2000. To tho D.O.A. : The price was a low ono J thought. T knew he wanted £.t: per acre, and I heai'd Mr Riddle say at was worth £5. To Mr Kerr : T don't think Watt \vas v acting for McTntosh *in the sale. Tn answer to Mr George, bankrupt said the indebtedness oi over £2000 was accumulation of partnership Interests. From. ISO 7to 1902, tho first six years after the purchase of the Taranaki, the -net t profit was £120 pt»r annum, the lioxt three years, £240. Thrco years ago tx h»aso was sold to Kelly for £2000. Of that I had no share, 'but. Mclntosh paid off the mortgage, £1100, and also did some repairs. From 3902 to date, the rental has Loon £«>l2, outgoings about £B>9^ j leaving a profit of £230 p.a. I got ; £300 profit on Tariki, half of which, was mine, and the other T, credited to Molntosh. Half the equity in the Tarauald was bought by McTntosh at £1500, the consideration being Urrnti. I have no interest in the Taranaki now. .Mclntosh would never give me a partnership agreement. The title of tho Taranaki was not in my name, nor that of tho partnership. Tho purchase of Uruti was in full satisfaction of. the partncrslup. In December last year tho suggestion was made. Mr Georgo stated the property was taken over at £2350 but was really worth about £1000. .Mr Corkill stated that the Taranaki was worth more- than £5000, nearer £7000. ' \ j The D.O.A. stated that the frontage to the Taranaki was 100 feet, 24 foot of .which- were <>rnda«- offer to the Borough at £<J5 per foot, .License and building excluded. Tn answer to Mr George, bankrupt stated the value of the property pled- ( prod to the Bank was about £800, al- j though.it had cost £1050. i Mr Hughes, representing Mrs Rich- 1 mond and Mrs Bramley, stated both were induced to sign the guarantee for the purpose .previously stated, and that both understood that they would never ho called on to ( pay. The matter had been allowed to \run on till now. Thn Bank had claimed for £1300, but only £1000 and* a "half year's interest would be paid by the guarantors. Bankrupt continued : At the end T . felt I could not got. money out of a j stone, and. unless I took Uruti thci'c would be nothing. ■ In answer to the D.O.A. as to why he had not taken tho other share in the 'Taranalri, bankrupt icplied, "I took Uruti as T thought it more readily saleable." ' ' To Mr. Kerr : There -was nothing to show J was a partner. T never went with McTntosh to discuss partnership affairs. I trusted him at that time. I did not keep a diary. T wrote suggesting ihat Uruti was in i'.sll sutitsfaction of all claims. He agreed if I. took cattle, paid all arrears of rent, and that there 'was no commission to agents. Tn answer to Mr Corkill : DWs debt was cost of survey of Marahau. Mr Lennon was jointly liable. Watt would have borne a share -out of his profits. McGregor, Corry, Baddoley and For,long, Barnicoat, and Lewi* Bros, were all in the same cardgory. McKenna's was for a promissory noto give* by Lennon.' Watt was aiso liable for . his share.. Clayton Green's was for a deposit on purchase of Maraban. ''Turnbull's was commission on the Taurangji property in which tho same three were interested. Tin: profit was £1500 loss tho commission of £85 owing to Turnbuil. This wont towards the deposit of £2000 on Marahau. Jenlrinson £50, 11. Okoy £50, Jesso Hill £108, J. Avcry £100, Roy and Wilson £32, Kclsey £100, these were a line of bills given to release Watt from Court proceedings, as I believed Watt's liberty was absolutely (necessary to work the thing. Mr GoIvott stated" that these were shown to 'let tho creditors see what tl-p likely dividend would, bo, as tho other partner's shares might bo regarded as valueless. The promissory notes were Watt •XIOOO, Lennon £325, and another (in hands of Bank of Australasia) £105. In answer to Mr Kelsey, debtor said : I have kept Watt's family going, and have also helped others. To Mr Jesse Hills : I understood from Mr Steadman that he was faIvourable to refunding the Marahau 'rtapasit of £2000, os was also Mrs iPharazyn, J:«t Mr Izard, the co-trus-tee, waß not, •

h To Mr Fitzherbert :Mr Corry, of c Wanganui, advised that tho title to - Marahau was a goad one. There may - jj v be portions dependent upon deficient y titles, and so might get .the deposit r> back on those grounds. t To Mr J. E. Wilson : 1 bought tho d steel pipes from Borthwiok's for £10, :l and also paid"wages, etc. The profit ) was to be divided with Watt. So far - none have been sold. , I accepted an order from M.r, "Gillies for Watt's! c share. This was theVonly order. The ) pipes may be worth £1 per chain, . 300 chains. Watt gave the pipes as s a deposit of .£450 on purchase of a tmriblo-down property in Wellington. r' To Mr Kelsey : I purchased the catj tlo from Mclntosh, 200 young- cattle . and SO steers. I got an advance . from Mr King- of £500, also money from Mr Bramley. Considered the cattle would go- to pay- these- debts, but gave no bill of sale or bailment. i Mr Kelsey then •'stated that he did not feel inclined to profit by the purchase of these cattle, and moved the following: "That this meeting of creditors, having fvad explained to it tho transaction "in cattle now depastured at Uruti, and supplied . by Messrs' King and Bramley, which have always been looked upon-by the debtor and by themselves as ' their un- , doubted property, hereby resolves ' that it considers that morally and'in equity such cattle should revert to the pci-dos named, and hereby instructs (he D.O.A. to disclaim any I ownership in. such cattle, and give ( re-dtlivcry to Messrs King and BramJey, provided any- claim, for rent is first satisfied." I Mr Kerr stated that this could, not Ijg accepted, being quite against the i Bankruptcy Act. This refusal was noted in the minutes. _ <j i To Mr George debtor said.: I bought the herd from Mclntosh. I then sold * $0 head through King, buying 116 in another line. Before the sale Mr lying discounted my bill for £500, and upoii sale of tho SO head and purchase of ,116, I gave a promissory note for a larger amount. I said cattle could not be sold, other than 'In payment of Mr King's debt. Tho cattle originally belonged to Mclntosh and Harding, Mr King 1 'fmiiing £500 to pay Harding, and I gave Harding a promissory note for £78, being balance over £500. Bramley found tho balance of nearly £500, i.e., McTn- , tosh's share. This was in 'January last. I consider that 1 '"bought l the cattfe, and the cattle wero'mine, but that 1 was bound to soft through Mr 'King. To Mr Kerr : I paid .a' first deposit of £300 on Marahau, in all £2000. Two small sales were made, and also a large one. iMrs Pharazyn has had nothing ,to pay except the law costs.. Reid offered us the Mcre^ More property, worth £14,000 in exchange for our interest in Marahau' ! provided we made a further cash I payment of £9000 odd * on account of purchase money. Mr Corkill moved, and Mr Georgo seconded, "That the D.O.A. be requested to instruct his solicitor to thoroughly investigate tho dealing with Mr Darling, and to advise whether that gentleman is a partner in the Marahau speculation." Mr George then stated that in ormeeting- of creditors consider the relatioiiß between the bankrupt and Mr A. J. McTntosh require tho fullest investigation, and that tho D.O.A. bo instructed to make them-, retain in ocounsel if necessary." Mr George stated that no creditor in the room would think bankrupt had wilfully defrauded his creditors, and so he would move thoi following resolution : "That, having heard the. expl«uation of the bankrupt, this meotJiTg- expresses its regret that he has allowed himself to become .the dupe of cleverer men 'than himself, and that his law books and fumitiiro bo retained by him to the value not exceeding £50." 'Mr Georgo then stated,that in order to close the "washing up," those debtors who had nothing should' bo compelled to file at oiico. Tho meeting was then adjourned.