IN BANKRUPTCY.

Daily Telegraph (Napier), Issue 4295, 4 May 1885, Page 3

IN BANKRUPTCY.

The adjourned meeting of creditors in the estate of James Lyon, shcepfarmer, Keruru, Avas held in the Judge's room this afternoon, Mr Garner occupied tho chair. Mr McLean appeared for the Assignee. Only five creditors were present. The Assignee said a fresh statemout of assets and liabilities Avould bo filed Avhich had yet to bo done. Mr Dewcs advised j that Mr Kinross could legally claim the 500 sheep mentioned in the agreement. The agreement amounted in effect to a lien on certain slice}) to secure a sum of £100, which was advanced in the shape of a P.N. The document was, in his opinion, an informal one, and did not appear to have been registered under the Chattel Securities Act. Tho sheep themselves were left in the order and disposition of the bankrupt, and assuming that Mr Lyon eventually sold the sheep to Mr Kinross as stated in the letter of 24th April, he did not think such a sale legal, as against the Assignee seeing possession Avas never taken by the purchasers. A letter was received from the supervisors requesting the Assignee to get the bankrupt to file accounts of his trading for the last eight years. The debtor on oath made the following statement. At tho time of his father's death he expected to get money from his (father's) estate. During his father's life ho had received from him £2,600 as advances, for Avhich his father held receipts, though one sum of £1,500 it Avas understood Avas not to be repaid, as it Avas a gift which should have borne interest during his father's life timo. A receipt Avas given by him (Lyons) agreeing to pay the interest. By tho terms of his i father's will he was only left £1500, and a share in the residuary estate Avhich might bo Avorth £GOO. On his father's death he received a demand for £1000. Instead of being left £5000 or £6000 he was left Avith £1500 only, and that was the gift he had received during his father's lifetime, the executors treating the gift as a loan. He had not been exactly advised that the executors Avere right, but his father's solicitor, Mr Brandon, told him they Avero. He had expected to havo received from his father's estate £5000 or £0000. If the Assignee looked into the matter he might find that there Avas something to be got out of the estate. He went into partnership Avith Mr Hoadley in 1878, into which he put £1500 capital, the partnership lasted four years. He could not state the exact amount he received frem the firm ; during the four years he drew about £3,000 from the firm. He was indebted to Mr Hoadley at present, having been paid out all he Avas entitled to by the firm. The P.N. for £000 held by Messrs Hoadley Avas due to his having overdrawn his account Avith the film. He had also overdrawn from the thin on avool. He Avas also indebted for stores. It Avas on account of the current account of the Keruru station, the original debt Avas £800, of Avhich he had paid off £000. Part of the indebtedness was also for Taupo station. In addition to the £3000 he drew from Messrs Hoadley and Co. during the partnership, he got £2500 Avhen he sold out, it was the only time he was doing Avell, and he was a fool to sell out. The consideration for the promissory notes to Mr Donnelly Avas for, cash advanced. The notes Avere- often renewed. The one for £055 was the balance of an account. He had had cash advances from Mr Donnelly extending over five or six years. Tho note of £610 l~2s to Messrs Kinross and Co. Avas given in arranging avool. Some mouths before Mr Kinross Avas willing to advance on his avool, he got cash for the promissory note on an engagement to give a wool lien later on, Avhich he did. He had had no land at Hastings nor had he disposed of any, he had never owned any land of his own at Hastings. Had purchased land but not, mi his own name for Mrs Walker, Marackakaho, at Mr Tanner's sale, lie afterwards had v lease of the same land.

In answer to Mr Allan McLead ho said there Avould be quito 500 sheep over after Mr Duff's number Avas satisfied.

To Mr Kinross.—He A\-as entitled to return to Mr Duff SOOO sheep as that number was included in the lease. He had shorn 7000 and he docked 2200 lambs. He had recently mustered the iloek, and there wero some 0300 sheep on the run.

To Mr. Allan McLean.—Ho Avas entitled to return tho sheep of certain ages. The sheep claimed by Mr. Kinross had no different brands to those owned by Mr. Duff.

The Assignee said Mr Cotterell had seen him on behalf of Mrs Stewart who claimed the right to the lease of the run. Unless the creditors passed a motion to give Mr Kinross the sheep, he would have to oppose it.

Mr Kinross said as the rent Avas half a year behind hand, nothing more need be said of the sheep, as the landlord would have a preferential claim. It was agreed that the debtor should be allowed personal effects to the value of £50. It was also agreed that the bankrupt should be allowed £3 a week till his services Avere dispensed AA'ith by the Assignee. The meeting then terminated.

f.'For continuation of neves see fourth pa?ej