CREDITORS MEET

Ashburton Guardian, Volume 48, Issue 155, 12 April 1928, Page 5

CREDITORS MEET

TWO BANKRUPT ESTATES. AN ASHBURTON BAKER. SEQUEL TO A JUDGMENT. Two meetings of creditors in bankrupt estates were held in the Ashburton Courthouse this morning, before the Official Assignee (Mr C, O. Pratt). The first case was that of James Tait, of Ashburton, baker. There was an attendance of 13 creditors. Mr R. Kennedy represented bankrupt. The statement of bankrupt's affairs showed that amounts owing unsecured creditors totalled £707 10s 2d, and to secured creditors £6B 14s Bd. Securities were estimated at £SOO. Stock in trade was estimated at £2OO, book debts £4O, cash in hand £55, furniture £IOO, property £IOO, surplus from securities £431 5s 4d. The total debts were £707 10s 2d, and the total assets £926 5s 4d, leaving an estimated surplus of £2lB 15s 2d. The unsecured creditors were:—Ashburton—J. Broker, £44 6s lOd; E. O. Bathurst, £23 Is 4d; Tyre, Repair and Sales Co., £4 8s; Ashburton Motors, £4 4s sd; E. Devlin £3 15s; J. RDixon, £BS 19s 9d; M Coffey, £64; Loach Brothers, £ls. Christchurch— Mt. Royal Co., £2B 8s sd; Nestles Milk Co., £l7 10s; Cook and Son £4B; Tait, Carlisle, Ltd.,' £ll Is 8d; Stanford and Jones, £ls 6s; Smith, £176; National Cash Register Co., £6B. Dunedin—Gregg and Co., £46 17s 9d- Strand Tea Rooms, £3 lis; Dickinson, Ltd., £4O. Tinwald—G. Sewell, £B. The only secured creditor was Barney and Frampton, Christchurch, £SOO, on a debt of £6B 14s Bd. . In his sworn statement bankrupt said he started business in Ashburton as a baker in Havelock Street, in June, 1922, and carried on till June, 19*'.He did well and came out of the business worth about £450. He purchased a section in South Street for £75 and built a bakehouse, the total cost being about £7OO. He purchased stock-in-trade for the Burnett Street business at £4O, and fitted up the premises with a gas stove, oven and urns. He did fairly well and thought he would have been able to carry on but for an unfortunate motor accident which occurred to him early in December last. Me was under medical -treatment for a month and as soon as he .recovered from the accident he was met with an action for damages for £l4O. Although he was merely, a passenger in the car the Court held him to be legally liable. With this judgment against him, and other creditors beginning to press their claims, he had to consider his position. He wished to pay all his creditors, and did his best to raise a mortgage on the South Street property but was unsuccessful. Successive distress warrants having been issued against him, he had no alternative but to file. He had no extravagant habits and did his best to carry on, which he believed he could have done had it not been for the motor accident for which he was legally held to be liable for a large sum of money for which he certainly was not morally liable. The petition in regard to the oven in the bakehouse was explained by Mr V. Dickinson (Dunedin).. who said it was installed under the hire purchase system and there was £49 still owing. It was agreed that creditors guarantee the unpaid amount so that the oven will remain on-the property as an In "reply to questions, bankrupt said that he owed a , few pounds when he went out of the Havelock Street shop with £450. There was an amount of £2B due to one of. his workmen for overtime he had worked. He had paid £207 to Thomas Bros, recently because they had threatened to sue him for the amount. He had also paid other creditors who had worried him for payment. • The Official Assignee said he did not think there would be a surplus when the estate was wound up, the creditors could look for little more than 12s in the £. , , Mr Dickinson said bankrupt had probably paid some creditors because had he not done so they would have cut off his supplies and he would, have beeu unable to carry on. The Official Assignee said the takings at the shop had averaged £43 a week. His weekly expenditure was about £2O, apart from wages and personal expenses. Mr Kennedy said bankrupt was making a genuine attempt to meet his creditors when the Court case went against him, and creditors, instead of assisting him, jumped on him and he had no alternative but to file. It was agreed to allow bankrupt to retain his furniture, which it was. stated, had been overvalued. It was decided that the estate be w-ound up by the Official Assignee to the best advantage by private tender.

"A HECTIC THREE WEEKS."

MONEY SPENT AT RACES. The second meeting was in the estate of Robert Gould, of Ashburton, labourer. The statement of bankrupt's affairs showed that there were no unsecured creditors. The Publio Trustee, as executor in the estate of the late Joseph Sprott, held security estimated at £5930 for a debt of £8132 7s 6d. The only assets were a motor-car valued at £2O, and cash in the bank £6' 4s 9d. There was a deficiency of '£2156 2s 9d. In his sworn statement bankrupt said that in 1913 he bought 849 acres at Chertsev from Joseph Sprott, paying £ll 2s *6d per acre. He Daid £I2OO deposit when he took possession, and two years afterward reduced the balance by a further £SOO. The balance then remaining was left on first mortgage for 7 years at 4£ per cent. He was able during that period to carry on comparatively well, though he was never clear of liability io stock firms. In 1920 his mortgage was renewed for 7 years at 5 per cent. From 1920 onward his farming operations suffered as a result of .the general slump ami on one occasion he was about £-100 in arrears with interest. He succeeded in paying this off but matters did not appreciably improve. In the 1926 fire at Chertsey the fences of 250 acres of his farm were destroyed In 192/ the mortgage fell due and < the Public Trusfee and the trustee in the estate of Joseph Sprott refused to renew for a further term, and also refused to

write off a portion of the amount due thereunder, which would have enabled, him to make some headway. Prior to this he held a clearing sale of his stock and implements because he knew he would be unable to raise the amount of the first mortgage, and he wished to see how he stood. Stock firms were paid out of the proceeds of the sale and he paid all his unsecured creditors. He then endeavoured to sell all the land, but there was no bid at auction and he was forced to abandon the property as the Public Trustee would make no concessions. Since he* left Chertsey he had been working at the mouth of the Ashburton River at a wage of £2 a week. He was a married man, but had no children. In reply to questions bankrupt said he drew £2OO from the bank and went to the races, but most of it "went west." This was in May. In the following month he drew £l5O and went to another race meeting, but his luck was out and he lost that, too. In the same month he drew £SO for "knocking about/' mostly in racing expenses. The Official Assignee: So you had a pretty hectic three weeks! £4OO gone in three weeks!

Bankrupt said he owed a fail amount of money at that time, but he thought he had a good chance of making up some of his lost fortunes. He sold some feed for £BO at a later period and went to the National Race Meeting with it. To several questions put to him as to what he received after the clearing sale, what races he went to, how much he owed the stock firm, and other piatters, bankrupt said he could not remember. The Official Assignee: You know you a\e on oath, and if you do not give true answers to the questions you will find yourself in trouble. You are not candid. Bankrupt said he was very worried at the time. The Officiail Assignee added that it was a serious matter and it would be' bad for bankrupt if it were found later that the answers were not correct. Bankrupt said he was sure he had no "nest egg" put away somewhere. The Official Assignee said the whole thing was most unsatisfactory. Bankrupt: I can't remember as well as J used to. The meeting was adjourned sine die, to allow the Official Assignee to investigate the statements made by bankrupt concerning his expenditure and visits to race meetings.