BANKRUPTCY.

Auckland Star, Volume XXVI, Issue 5, 7 January 1895, Page 3

BANKRUPTCY.

O.v Saburday Jabez Fitness made a sworn statement before the Official Assignee. He stated that in conjunction with hia brother Joseph he started business ab Tokatoka as general sborekeepera in July, 1885. Ab tbab time they owned 200 acres of land, on which was erected a ten-roomed dwellinghouse of tbe total value of about £875, subjecb to a mortgage of £200 at 10 per cenb. They also had aboub £150 worth of gum on bhe English markeb, cabbie on bhe land worbh £100, and stock in brade about £100. In all bankrupt considered bhey had neb assets worbb £1,075. They sold off a quantity of timber from the land'to the value of £125, cattle to the value of £I\o, £235 representing tbe cash capital at thatime they commenced business. Nobwittsbanding bad debts they prospered for, sayjfour years. About 1889 they decided to 'extend their business and bought a kauri bush on royalty at 7|d per 100 feeb, andpaid albogether about £1,560 exbending over a period of five years. Two or bhree yeaw afterwards they bought-488 acre's partly timbered from bbc Governmenb ab i cosb of £600 or £700. They borrowed this money ab 10 per cenb. wibhoub security. The kauri bush was 100 miles away from bidal water, and they had bo spend £400 in gebbing the creek cleared for floatage of timber. They entered into an agreement wibh Mr F. W. Matthews, mill-^wner, previous to taking over the bush;* whereby ib was arranged thab he should pay bhe firm 4s 3d per 100fb super., less ty per cenb. cash on delivery ab his mill. | Tbis conbracb had resulted in a loss to them. Since the falling in gum values tho firm consider they had made a loss of at least £300, and through default of bush contractors bhey had losb ab leasb £1,500 more. Bankrupb considered tbe firm had been- in monetary difficulties ever since they vent into bhe timber business in 1889. In May, 1892, bankrupb mberviewed bheir principal credibors and fully explained mattejj. They were satisfied wibh bhe explanations, and agreed bo give time. The firm did nob make headway under the new conditions, and in May, 1894, ib became necessary bo call bhe credibors together. On tbat occasion it was decided to carry on the business under the supervision of Messrs A. H. Nathan and M. A. Clark for six months, which expired on the 6th December last. On the 18bh December a meeting of creditors was held, and on this occasion bankrupb placed himself and his partner in the hands of the meeting and expressed willingness to either submit an. offer, without guaranteeing assign, or go inbo bankruptcy. Ib was finally agreed to adopb bb,e labter course. The unsecured liability! of bhe firm amounts 'to £2,975 0s 10d,} secured £805 4s '. 7d (securities £2,394 W 8d). Assets: Timber, gum, fungus, {cattle, horses, working planb and stole stock, £1,654 15s Id; book debts estimated good for £837 4a lid; interest Sin Mander's timber, contraob £117 12s'8d; and surplus from securities in bands of secured creditors, £1,589 Ob Id. Tobal, £4^198 12s 9d. Surplus, £1,223 lis lid. The valuations, of assets wero made by personi appointed by the supervisors! The sbore stock ie insured for £400. The only assatbankrupt stated he had in addition is houaehold furniture worth under £25. I