A "SECRET" AGREEMENT.

Dominion, Volume 5, Issue 1394, 21 March 1912, Page 2

A "SECRET" AGREEMENT.

4 BOOTMAKERS' BANKRUPTCY. niS 'CREDITORS NOT SATISFIED. A meeting of creditors in the bankrupt 'stale of l'eter Thomson, until lately .nidiug as Peter Thomson mid Son, bootmakers, Wellington, was held yesterday, tho Official Assignee (Mr. A. Simpson) presiding.

Mr. P. K. retherick appealed for Mr. J. W. Hoare, one of the creditors. Bankrupt put in the following staleraont:—"Wo started in August with capital .£IBO, and we did not eell anything tor nearly a month. Wo gave our stock to A. Morey, and he did very well for two months, and then his trade fell oil—ho could not give credit and he had to give up the shop. We also had taken another shop at Berhampore for repairing. It did very well at first, and then the takings fell away to nothing, During this time we hail an offer to make up some work for tho wholesale, but we had no money this was in October. I got .£IOO irom W. J. Hoare to advanco mv business, and make up work ior him. We seemed io do all right till things got so bad that wo eouid not make or sell enough to pay wages, so .1 closed up the shop at Berhampore and tried Mastorton, with the same result. I put our failure down to not selling enough goods to pay our expenses."

Bankrupt also put in a statement, showing as assets, stock-in-trade at Wellington and Musierton, .C 80; liftings, .£ls; patterns, .£2B; total, .£123; and his liabilities at .£321 15s. 10d., leaving a deficiency of .6201 15s. lOd.

'J'ho unsecured creditors are: Messrs. W. H. Nash, Wellington 15s. id.); Geo. Dqughtv and Co., Wellington (JCSO lis. llil.); Bowron Bros., Chnstclvurch (JESO 19s. 8d.); Bayloy and Sons. Duncdin (.£34 os. 9d) ; Hirst and Co., Kaiwarra (JC33); Ullathorne, Hartridge, and Co., Wellington (,£2G 7s. Id.); W. Belcher, Wellington (.fc!3 13s. Sd.); K. and A. Nash, Wellington (.£5 25.); Empire Box Co., Wellington, {£■} as. 2d. The URicial Assignee struck out the item of iSO t'nr stock-in-trade, making the deficiency ,£2Bl 15s. 10(1., on the ground that tho stock-in-trade had been taken possession of by J. W. Home and Co. Subsequently the assignee remarked that it would be difficult to value anything on the fittings, as the shops containing them had been given up to the landlords.

UNREGISTERED AGREEMENT. Some discussion took place between the assignee anil Mr. I'etherick, in regard to an unregistered agreement, under which the hitter's cliciil had taken possession of Mr. Thomson's stock prior to the bankruptcy. The assignee remarked that ho did not think thp agreement could stand. In his opinion creditors shnild contest it. Mr. Pethorick indicated that his client was prepared to defend tho agreement, and the seizure based thereon. Sir. Nash said that his firm had been unaware of the existence of the agreement with Mr. Bonro. He thoueht that Mr. Thomson should be censured. Tho assignee: It is not a question of censure. It is n question of defrauding the creditors. In eximination, bankrupt slated that ho had kept no record of stock sent to Mastorton for a shop of which his wife was in charge. The assignee said that he saw nothing for it but to put the bankrupt up for prosecution for not keeping proper boots. To Mr. Simpson, bankrupt stated that he had never been bankrupt before. His wife bad keen in Christchurch where she had carried on a boot business. To a creditor: Neither himself nor his wifo had any property in Christc'hurch. They had' not had any since they wero burnt out thero four or five years previously.: - Tho assigneo snid that it was quite evident that Mr. Hoare had been getting his money, and that the other creditors had not. Mr. Pctherick said that Mr. Hoare had cnisulted him before miking nu advanct of ""jCIOO-'to"'"Thomson.' In doing-so ;Mr. ! Hoare had been intent on doing Thomsou a good . turn, "and increasing his own business! The assignee: It was secret all through. The document was not registered. • I Mr. Pctherick: Maybo so, sir, but if we choose not to register that does not make tho document illegal. Tho assignee snid .that, if creditors would guarantee his expenses, to a small extent, ho would bo pleased to get a legal opinion on the agreement. On the motion of Mr. George, Mr. Nash seconding, it was agreed that tho creditors should indemnify the Official Assignee against the costs of obtaining a legal opinion on tlio agreement, and in acting, at his discretion, in the interests of the creditors. Mr. Nash asked bankrupt what Mr. Hoare's idea was in advancing him the money. There had been a secret arrangement. Bankrupt replied that the secret reason was to help him. ' Mr. Pctherick said that there was nothing secret about the agreement, and there had been no intention of being secrot in keeping tho agreement back from registration. After sonio further discussion, it was agreed to adjourn the meeting until Tuesday morning next, the assignee undertaking, in tho meantime, to get a legal opinion on the agreement between Hoare and Co, and tho bankrupt.