BANKRUPTCY BUSINESS.

Auckland Star, Volume XX, Issue 15, 18 January 1889, Page 4

BANKRUPTCY BUSINESS.

MEETING OF MR J. BUCHANAN'S

CREDITORS.

The aujourned meeting of the creditors in tho bankrupt estate of John Buchanan was held this afternoon. There were present the debtor and his solicitor, Mr Campbell, Messrs Matthews (-T. C. Firth), J. l J hilson (Colonial Sugar Refinino- Company), Morton (H. B. Morton and Co.), L. D. Nathan, J. Hall (T, H. Hall and Co.), Johnston, A. C. Carr (B. Tonka and Co.), Gilfillan (J. 13. Giltillan and Co.), J. B. McFailane, Andrews (Bank of New Zealand.) At the meeting held last week it had been decided to accept an ofler at the rate of 17a 6d as regards the stock, or have the stock sold by public auction. Mr Campbell said that Mr Buchanan\vvas prepared "to make this offer with' a slight remission. Tho stock amounted to £13,500, and the book debts to £5,500, making a total of £19,000, The rate of 17s 6d in the £ would mean £11,812 for the stock and £4,815 for the book debts. ! The total of rhis would be £16,627 and Mr Buchanan was prepared to deal with this on tho bases *of £16,000, that is dropping; the £627,' and he would give £3,000 cash and seven bills at J, 2, 3, 4, 5, 6, #nd 7 months for £1,000 and one bill at months for £1,367. Mr Morton said it would be disgraceful to accept such an offer. Mr Andrews was not prepared to accept anything less than 20s in the £ for the book debts.

The opinion was clearly expressed by the meeting that the book debts were not to be thought of in the matter. Mr Campbell said the book debts were not a condition, they were not indispensable to the offer. Mr Andrews showed that thd offer really was 16s 10d in the £. Mr Carr: Could Mr Buchanan offer the Bank rate of interest in addition ? Mr Buchanan : Not one halfpenny more, sir. Mr Buchanan answered several questions in regard to the stock that he had in, the quality, and the amount of various items. Mr Pbilson proposed "That tho offer of Mr Buchanan bo accepted." Mr Andrews said ho would agree to the motion, provided the bank would approve of it. Finally after a little discussion the motion was amended to this form, " That the ofier bo accepted subject; to the approval of the guarantors by tho creditors. This was carried.

Albert Hexry Tkubsuaw.— The following sworn statement was made. before the Official Assignee, this morning, Y'f A. 11. Trubshaiv, bankrupt:—l started business

as a storekeeper on my own account in Remuera. Road about threo years ago with a clear capital oi £1,000 in cash. I bought two allotments in Remuera Road for £166 and built a store and dwelling - house combined on it, at a cost of £300. About the same time I bought another allotment in Green Lane for £120. All this outlay was paid in cash. My first order, about £200 worth, was partly paid in cash, with the understanding that I paid my bills thereafter monthly. This arrangement was continued for about 12 months. I then asked for threo months' credit, because I had to give longer credit myself. This was conceded ; indeed, I had all along the option of taking three months 1 credit. With some slight difficulty on one or t'.vo occasions, I paid my way promptly on the terms agreed, up to the timo of the tire on the 2nd September last, when my premises, the whole of the stock, and part of my furniture was destroyed. The buildings (which T had mortgaged two years previously for £100, and again about 12 months later for £150, and again about six months before the lire for £50), were insured for £275, and the atock-in-trado for £1,200. The mortgagees got the £275. My book? were burnt, so that I was not in a position to prove the value of bhe stock, and therefore by the advice of my principal creditors I accepted £300 offered by the_ insurance company, and this money is nowin thehands of Messrs Jackson and Russell, my solicitors, for the benefit of my creditors. In October, 1887, I made over the two allotments on Remucra Road to my mother as a gift. -I considered I was solvent at that time. The Greenlane allotment was not utilised until June last, when I borrowed £180 from the Auckland Building Society, with which 1 put up a cottage. My mother went to live in the cottage in August last. She wa3 the first tenant. She had it rent free in consideration of my lodging with her. In October or November last, after the fire, I found it impossible to keep up the Building Society payments, and consequently sold the equity of redemption to my mother for £5. My creditors wore not aware of this transaction, nor did I think it necessary to tell them, because they had agreed to accept a composition of 12s in the £ just before I sold the cottage. I had one horse, two carts, and one set of harness after the lire. These were sold at Hunter and Nolan's auction on December 10th, 1888, for £29 4s 6d, which was used partly for a grazing account in arrear, and partly for my own maintenance. The forge was built on the Remuera allotment after I made the property over to my mother ; it was built at her cost. The tools, value £13 10s, were ordered in my name, and shortly after the fire I sold them to J. Wilkinson for £10. I only saved two of my books from the fire, one the store credit sales ledger, from which I have compiled a list ot book debts, and a similar book for the forge. My liabilities are all unsecured, and amount to £6319s 10d. The assets consist of the £300 insurance money and £100 worth of book debts estimated to be good for £50. I have no other assets whatever. Ido not know why the creditors forced bankruptcy upon me, as I was quite prepared to carry out the agreement to pay 12s in the £, if they gave me time to get in the book debts.