BANKRUPTCY.

Auckland Star, Volume XXXVIII, Issue 255, 25 October 1907, Page 3

BANKRUPTCY.

MEETING OF CREDITORS.

The first meeting of creditors in the estate of Edward Rogers Atkin, coachbuilder, was held at the Official Assignee's office yesterday afternoon, Mr. E. Gerard presiding. Mr. A. Hanna represented the bankrupt, and Mr. F. Earl appeared for Mr. T. McLaughlan, a creditor. The bankrupt's sworn statement was to the effect that he had been in business for 26 years. The business was formed into a company under the title of the Cousins and Atkin Carriage Factory, Limited, and he became a director and factory manager of the company. About nine months ago his health became so indifferent that he was compelled to obtain leave of absence, and for the past four months he had been living on his wife's farm at Pukekohe. In connection with his position in the Cousins and Atkin Company bankrupt became a director of E. H. Bennett, Limited, and a director of the Taupiri South Coal Company, Limited. All his liabilities were incurred by endorsing bills and giving guarantees as a director of these companies, and he never received one pennyworth of benefit other than the business which accrued to the Cousins and Atkin Company. He had set out his liabilities as fully as possible, but in some respects was quite unable to estimate the amount of claim that might be made upon him. For instance, with several others he had signed a guarantee to the Bank of Australasia and also a guarantee to Colbeck and Friedlander, and these two guarantees were so intermixed that it was almost impossible to arrive at his liability until certain securities held by the bank in question had been fully realised and the proceeds properly allocated. Irrespective of his liabilities under these heads bankrupt estimated that he owed £953 to various creditors, which sum was unsecured, and £2850 to various other creditors which was secured. The value of the securities held he estimated at £2666, showing a deficiency of £184, bringing his total liabilities up to £1167. His assets consisted of (1) £2666 worth of debentures in the Cousins and Atkin Company (of which £2000 worth was lodged with the Bank of New Zealand as cover for the account of the Cousins and Atkin Company, which he guaranteed, the remaining £666 worth of debentures being held by his solicitor as security for a bill endorsed by bankrupt amounting to £850 odd); (2) 1C65 ordinary shares in the Cousins and Atkin Company, upon which he placed no value; (3) 25 preference shares in the Cousins and Atkin Company, which he valued at £25; (4) 250 ordinary shares in the Taupiri South Coal Company, upon which he placed no value; (5) 25 shares in the Hot Lakes Transport Company, upon which he placed no value; (6) one-third of the sum of £711 13/, due by W. H. Young, of Rotorua, which he valued at about £ 120. Bankrupt had no assets whatever outside Of these, the property upon which he was living belonging to his wife, having been purchased by her with her own money. He owed no private debts. In the schedule of assets and liabilities the former were shown at £145, leaving a deficiency of £1022. The bankrupt, who was examined at length, stated that E. H. Bennett and Co. borrowed £500 from Mr McLaughlan. The loan was made by Bennett and Co through Mr Cuthbertson. A loan of £2000 was to be raised from Colbeck and Friedlander, the £500 being an interim loan, which was to be refunded when the larger loan was available. That loan was absorbed by other liabilities, and Mr McLaughlan got nothing. He (thc bankrupt) endorsed a post-dated cheque for £500, payable to McLaughlin a month later. This was also endorsed by Messrs Bennett and Nairn, co-directors. Before he endorsed this cheque, as a guarantee for the company, he endorsed a promissory note in favour of Mr Russell. Before that he endorsed a bill for £500 to Mr Hanna as guarantor for the company. The bill for £850 to Mr Hanna was given about twelve months ago. When he borrowed the £500 from McLaughlan all his debentures were pledged, and he had no other property besides the debentures and shares. However, he had expected that when the Elliott-street property of Cousins and Atkin was sold he would have been able to clear the debentures, and thus leave himself a free agent to meet other liabilities. To Mr Earl: He endorsed the £500 cheque to Mr McLaughlan because he was aware that £2000 was being raised, and that Mr McLaughlan would be paid off immediately. There were some accommodation bills about which he knew nothing. Colbeck and > Friedlander received £1000 for something of which he knew nothing about, and he thought the bank took the other £1000. Mr Russell: No, not a penny of it. Mr Hanna said therp were thirty or forty bills outstanding. Bankrupt had not endorsed them all, but he had no record of the number or the kind of bills mo did endorse for Bennett and Co. The bankrupt: I trusted to people's honour. The Assignee: That is not business. Bankrupt: I know it now to my sorrow. I would not go through it again for the world. Mr Earl: Is it not a fact that this money was • borrowed by Bennett and Co. for paying wages, and carrying them over the holidays. Bankrupt: That may have been so. Continuing, he said that at the time of Mr McLaughlan's loan his debentures in Cousins and Atkins were pledged, but he expected them to be free in time to meet the endorsement for £500. The assignee remarked on the fact that the Elliott-street property was disposed of for £12.000, or £5000 less than the value that had been set upon it. Mr Hanna said tbe property had been sold cheaply. If it were put up at the present ume it would realise £17,000. Mr Russell: I suppose all the other guarantors are liable. The Assignee: Why did you come on him? Mr McLaughlan: I considered he had the £500.. and more than that, and I want my money. Mr Hanna: At the time of the sale Mr Atkin was in reality a free agent, but had he pulled out it would have inconvenienced Cousins and Atkin. In answer to another question, bankrupt stated that the property held in his wife's name came to her through her family. The meeting was then adjourned.