BANKRUPTCY

Dominion, Volume 22, Issue 52, 24 November 1928, Page 6

BANKRUPTCY

A COMPLICATED ESTATE

UPPER HUTT ADVERTISING AGENT’S AFFAIRS

The first meeting of creditors in the estate of Leslie Johnson, advertising agent, of Upper Hutt, was held yesterday. The Official Assignee (Mr. S. Tansley) presided, and there was a large attendance of creditors. The papers showed a deficiency of £B2OO 12s. 3d. The principal secured creditor was Sir Kenneth Douglas, solicitor, the amount of the debt being given at £7667 18s. sd. The principal unsecured creditors were: —Wellington Cabinet Co., £350; James Maher, £374 16s. 4d.; C. H. Hain, £150; Field and Luckie, £100; T. Brennan, £400; P. L. Brady, £350; Southern Cross Building Society, £700; Henry Savage, £SIB ss. 9d.; Dominion Motors, £136 9s. Bd.; Elizabeth Berryman, £825; R. Johnson, £240; G. Dryden and Sons, £160; Stanley Mcßurney, £1000; A. E. Preston, £450; A. Dunn, £440. Bankrupt, in his sworn statement, explained that he arrived in New Zealand from Australia in July, 1924, and entered into an agreement with J. C. Touks to commence manufacturing leather mats and paints. He also held an option from Australia to purchase the New Zealand rights for a cure for mammitis in dairy herds. Bankrupt said he quarrelled with Tonks, and went to arbitration to determine the partnership. He alleged that Tonks had delayed the arbitration proceedings, and as a result he had received nothing. Bankrupt set out in detail events leading up to the purchase of an apartment house in Willis Street, a farm property at Mungaroa, a sheep farm at Waverley, and a further property at Wallaceyille. He also went into a scheme of advertising on the back of tramway concession tickets. Bankrupt detailed negotiations with the Wellington Flax Growers’ Corporation in connection with the Wallaceville property, and with Sir Kenneth Douglas. He said he attributed his bankruptcy to the actions of the liax company, his heavy loss on the Waverley property, heavy legal costs, and an action for slander against him. “This appears to be a very weak statement,” remarked the Official Assignee. “The bankrupt appears to blame <?£erybody but himself for his bankruptcy. It will take a lot of explaining.’’ For upwards of three hours, the bankrupt was put through a searching examination by the creditors. Mr. E. C. Wiren, who appeared for bankrupt, thought that the whole matter would rest on the exact relations between bankrupt and Sir Kenneth Douglas. These relations would have to be investigated by a committee of creditors. The bankrupt admitted that he had been adjudged a bankrupt in New South Wales in 1914. The Official Assignee: What were your liabilities on that occasion? Bankrupt: £40,000, but my assets were £30,000. Mr. W. Perry, who appeared for Mr. J. C. Tonks, refuted the suggestions which had been made by'bankrupt in reference to his client. Mr. Tonks had not delayed the arbitration proceedings, and the arbitrators had decided that Johnson should get nothing. “If there is one man who has cause to regret Johnson’s arrival from Australia it is my client,” declared Mr. Perry.

The bankrupt was examined at length by Mr. C. A. L. Treadwell (appearing for several creditors) as to his various ventures and his association with Sir Kenneth Douglas. After further discussion it was decided to adjourn the meeting until December 7 in order that Sir Kenneth Douglas and an accountant acting for him might be examined.