BUILDER'S BANKRUPTCY.

Dominion, Volume 2, Issue 412, 22 January 1909, Page 7

BUILDER'S BANKRUPTCY.

COMPLICATED, PARTNERSHIP. A meeting of creditors in the bankrupt estate of Mortimer Sullivan, builder, - of. Miranmr, vns_held yesterday, the. Official Assignee (11*. A. Simpson) -'presiding. •'.Mr.' Wj-lic. appeared for bankrupt, Mr. Buddie for, Mrs. Adait, n partner in somo of bankrupt's transactions; mid Mr. Williams for some people from whom bankrupt held unfinished contracts. • Creditors present or represented verbally stated x their • claims as ■-follows-JV Dathio and _Co., 4659 13s. 3d.; ' Gammon and Co <£oi9 lGs. 9d.; C. and A. Odlin,' 16s. j Co., £39 165.;; Pukotapu Sawmilling Go., ,£BO6 Os.'lOd.j Wellington Timber £°:>V*l6O Js- Bd.i J. Henderson, 45 18s. 2d.; Shiel and Johnson, 4217; C. J. Shiel, .£99 55.; James Bourke, «C6O ; Thomas A.. Wells, ,£258; I?. 5 -!-<3. H. Warren, i>l2 Us. (id;; Evans.Bay Timber Co., «£46G 10s. 9d.; Isbister and Co:, .£l7 12s. 6t1.; I.E. Christie, ',£3o.'"'. ' , Ili6 statement of bankrupt showed that he deolnred on January 13. To unsecured creditors he pwid. j6ai34:l6s. -id., and to secured oreditors «£iool. His securities lie estimated to be'worth *C 6955, so that there would be a. surplus from, them of .£2051.■ His assets were: Stook-in-trade -'.(timberatKarori and Kelburne), •*300; book debts, <SIIS7; balance of securities, .£2051; total, J83538. .On this basis there would be an actual surplus Of 4103 Ss. Ud. ' According to written statements.: the principal unsecured creditors ■ and tho amount owing in' pounds were:—Gammon andi Co.. .£519; ft. A. Wakelin, .£29; B. A. Hansen ■' and Co,, .£3B; Wellington .Tirnbfer Co., 4161; ifoncrieff and Young, £22; J. Dathie and Co., Smith and Smith, Ltd., JB3; Shiel and. Johnson, J!l!)5; C. J. Shiel, ,£99; E. L' Cliristie, iSOjEVanV Bay. Timber C 0.,; ,£460; C. H.. Harris and Go., £2Z; J. W. Easson and 1 Co., J3210; T. A. We 115,,,£255; C. and A: Odlin, Ltd., ,£308; Bethune and Co., i2l; M.'"Eo*eU, J6250; fi. W. Mills and Co',, ltd., 436. There Woro Somo smaller amounts. : : The secured creditors,.were persons holding mortgages over Buildings • erected. With the following bankrupt's liability was half the. other share being held by bis sister, Mrs. Adair:—C. G. Johnson, i700;B. Stains, .£500; C.E. Robertson and H. E. Loighton, £M; E. H. and E. Jones, JBSOO;:-Barber-and Davits, A. E. Haywood, £500 and .£300; New Zealand Investment Mortgage and Deposit Co., Ltd., £600; United Building Society, '481)0; ; Ai A. K. .Bethune,' £700; Elizabeth .Walker, M 0; Skerrett :and Wyhe and New Zealand Investment, Mortgage, and Deposit-Co., Ltd., 4500 ahd.4200. In -the following, bankrupt. was responsible for the-whole:-Jas.- Bburke, Puketapu Saw- : . milling C0.,.d£816. -:■>•'-■ ■'■'.' :'. ,;-..•:■■: .•.:.- ■' .■•■-,■".' In his sworn statement, bankrupt said'that he''Started business' in Wellington in' April, 1905. .■-Hβ had in cash-the sum Of : ,£296,' an d; in cftnjunction with his sister, Mrsl'■ Adair,' , 'he purchassd property at - .Kilbirnie.-'-- On this land he erected two dwellings, which he mortgaged;. ; Other land was purchased .by bank-, rupt and his sister'in Duncan. Terrace and Talavera Eoad, and dwellings .were: erected, on ; the land,"inortmgea being, given-to secure the money for building. Mrs. Adair sold .properties .of her myn in Corunna Avenue, and used the cash received at the sale to pay off debts on- the buildings. She also .sold Apiti land and the estate at Pohahgina, applying the proceeds, for the-payment of creditors. ■ Land, at Karori was purchased in December,- 1907, a deposit,being paid out of Mrs. Adah's : money. In ihe' meantime, bankrupt had, on his own account, been . contracting: for the .ereotion: -of cottages, and -had sustained. an almost unbroken succession of losses. The total losfes. on these oontraets amounted :to. .4812..v< .Ho attributed his present position (1) to being. unable to dispose , of any. of the- dwellings erected, and thus having no'.cash-to meet the' demands of creditors; (2) to the losses on the oontraets mentioned.' '.. .. ■ ... ' . ■ Thji OfßciaPAssifneo said that he thought they imight as well strike' out -the .40955 : for securities.. They.'icould not sell, property, atpresent, and when it was encumbered with mortgages there would not be much'over. for.thedreditbrs:_'• He,had not had the. valued set-,on-the' securities confirmed yet, but he. -.wbnld : do so as soon/ as possible,-.and had no -doubt that they would-then find that, , instead of a surplus,' bankrupt/would be , jKffiOO to the bad. ■Hβ thought that the sister-was responsible for a share in'the: partnership, and': it.was for the oreditors to. say whether she.should .be called in;.as a-bankrupt;. Jf.they had the accounts investigated to find out /which were iiiourre'd by the partnership, and 'whiob.. by.-bankrupt independently, Mrs. Adair could,clear tlie matter, up by paying the partnership debts.' '' : ' .■"- '■ Mr. Odlin asked how much of the \£4904 was ifipurred; while,,the sister, was in the, partriprship.:v:--, : :>J \,-.~- -i- , - , ■:-v '■ ■..:'.<.'', ■;■ The OffioiaK Assignee:stated { that 'this couldnot?,bo. ascertjiined-.until , :the--acc6unts- were looked--into. '--.y.:.. ;.>;:■': -y-'i'. ■'.;';: ,■',-.>■ ■.■-.'.■ ;■■ '•.-, VMr.':Buddle stated:'that the partnership• was ',nbt.involved in''the'bankruptcy.- It was only the'insolvency of .Sullivan-nimseif;- : ' . , '■.-Mγ.'' Odlin said that he .'.thought that there ■should be a public examination of-bankrupt. He had led his'firm and the other creditors to' believe that he. was. perfectly, solvent except in the last six weeks, while' now ; his' statement showed-.tbat such was not. by any means , the case. . : -:' ~-.' ;: ' '•■ : . .-■.- ■■■ ' ... ■:■ . ■■.'.■: ■. ;

.-.Bankrupt said that.he had not [stated that he .'.was perfectly. solvent recently. .'.\. v .'- Mr.. Odlin asked bankrupt , why, he'took- a opntraot from Moxham and agreed to take :£i2i:oD, second -.■Mortgage,. when" he was ill -attjinsolvent position.' "'," '< :':,...; ' '."' Bankrupt stated' that' the' secopd mortoag'es were.good, and couldbo turned into cash for about M 75, though not the whole amount.H '■ Tho Assignee: Then they are not good mortgages,. ;'-.: ; : .... '■-~,■• .; ■-..- .-.•. ,; ~:>.:

' /A.qnestion was:asked as to.whether a second mortgage, given ■ ,to' thei Puketapu Sawmilling .Company, Ltd.. would hold'good. ■■ ■The-. Official, Assignee stated that if the mortgage, were oiven after the bankrupt had : stated ni3 intention of., .calling a meeting 'of his creditors, it', would 1 not hold good. • ':'■'■■ ■■.■■:'"- ■■;■ Various creditors .stated that, the matter of a. meeting: had been'mentioned to them, before the. dato .of giving the mortgage,: but bankrupt him6olf. denied this. .He:admitted, however that ho knew himself to.be in financial diffi' culties at the time, and letters were,produced ■sjipwing-tliat-he was being pressed by creditors. 1 ■ Mr. Simpson.said,,that,he thought that ;V public examination should- be hold, and also that an accountant should b« employed to investigate .the. partnership accounts. In the case of this mortgage, if an examination were made, it might be found that it'would" be upwould be more for the/other' ■epdjten., He.coul;l see nothing in'the property, burdened as it was: with first and second mortgages. .... . .. -■ ■ . \ ■•.... . : ~: I t was .resolved that,'Mr,, arbdliri be: appointed • supervisor to; act ..with., the offioial assignee in the realisation of. the estate '- ■ Ihe cjueshon. of completing -coutcaots. which had been entered into by bankrupt was tlon discussed and-it was reived, on.the motion fit .Mr: Odlm,: that the :lien-holder.r agree as- to the oourse.to.'.take with regard'to' completing the .oontracfe,,-any., surplus iremaining over after complohon to be. paid over to the- offioial assignee. .'.'. ■ .. ■ . • • : ■ The meeting then., adjournedi': ~'■■.-:/:'