RE BLICK AND FRENCH'S BANKRUPTCY.

Evening Post, Volume LXX, Issue 79, 30 September 1905, Page 2

RE BLICK AND FRENCH'S BANKRUPTCY.

TO TITB EDITOR. Sir,— As your report of Mr. Blick's application for discharge excludes his cvi* dence, I trust you will allow me space to correct many indiscreel and misleading statements made by tho Official Assignee. I was not before the Court, and had no right to replj. From beginning to ond 1 never acted as agent for Messrs. Blick and French, but merely as their solicitor, and then only in a 'few transactions, various solicitors having acted in othev matters. The firm wore not only builders and contractors but also land aiid estate agents. In the beginning of January last, when they were comparative strangers, and 'I held over £100 to their credit, they pressed mo to buy four houses at Alicetown for £2000. They made their own bargain, prepared their own contract, flxebl their own price and terms, and tendered it for my acceptance', Which I gave after making- a. few formal alterations in the contract. The price given by mo wan £2000, being £400 in excess of "the Government valuation. Subsequent evidence showed that they ought to havo made a profit of £360 out of the transaction, and they naturally have, at all times, beon satisfied with the sale. They sold a similar adjoining house for £470 to another purchasor and received no. cash at aJI. • They assured me that they would havo a cash surplu.s of over £200, that nothing was owing beyond orders on the, unpaid piincipal moneys, and that Mr. Blick had funds of his own apart from this property. From information at my disposal 1 gather that the firm at this time ought to have had a surplus oT over £1000, and* that r£latives of Mr. Blick had "provided him £450. They staled they wanted land to continue their building operations, and they selected the best of my sections, allowed me only a moderate pric.e 'and took them over as payment for £480, and I paid them £200 in cash. *1 subsequently advanced them £500,' so that the transaction was more advantageous to ' them than a cash sale. I Tmew nothing of their dealings in other property until a few days before the adjudication. All these facts have been proved by uhcontradicted evidence, and • the Supreme Court had no hesitation iv reversing tha astounding judgment given by the.Magistrate and exonerating me from all tb« unfounded charges which had been levelled against me. You can, therefore, imagine my surprise at tho Official Assignee's implications, which are absolutely absurd and contrary to the facts ahd tho sworn testimony. . The Alicetown property was the only one purchased by me and not only was the price given excessive, but numerous articles such as mantelpieces, sinks, windows, etc., were removed from the pro* perty after my purchase. No attempt has been made to realise the assets, which showed a surplus of '£975 19s, but stupid litigation has been indulged in by,Som« of the creditors, such actions being] ii* the nature of intimidating proceedings for tho purpose ofl frightening, me^ to niaks payments, that I was neither legally- nor morally linblo for. Alt theso actions have been ignominious failures. To illustrate the absurdity of tho whole business, 1 might state that even if Blick and French had retained the Alicetown property, Briscoe and Co. would not havo been entitled to a lien thereon except perhaps for the last two or three items amounting to about £6. Personally it would have made very lit. tie difference to xn& whether these litigants were successful or not, as I couli have tacked the amount on to my securities and the loss would have fallen on the unsecured creditors in whose interests I was, in fact, fighting these claims. The bankruptcy and incidental litigation aro responsible for the loss. Had tha lien been sustained tho debt on which th» bankruptcy had been founded would hay© been paid in full. Blick and French were in consequence prevented from com* ing io a friendly settlement and'assigning their estate, and from finishing •tho houses in process of erection, which would not, have taken three ' weeks, and would haye i entitled them to £910 principal moneys and the proceeds of "a probable sale which would have realised a farther £300. This amount would havo been sufficient to satisfy their creditors. In order to remove any possible doubt as to my bona fides in this matter I made three offers, namely.; (1) To retransfer the Alicetown property and taka back my land at the original prices, (a) To accept part of the" land and fo credit my account with the full amount 2! t^ p . v , re !f fIS9 mone y- < 3 )-. To >«i<**» the Ofliwal Assignee and the estate from all my claims on part of my land beine' restored to me. None of these offers, however, were accepted. My advances to Blick and French were merely mada temporarily pending (he completion of thti buildings and the receipt of the prin. cipal moneys. As they were comparative strangers to me and some'W J 'thn money belonged to clients, to w"hora I was personally liable, I naturally, tqok security for the same, but the amount has been, considerably increased by the intimidation proceedincs above le'fcrred to, and now totals £1736 Is lid. Intimidation proceedings having failed, threats and other tactics are being adopted, but I shall havo no difficulty in repelling these attacks when the opportunity arises— l am, etc., W. Q. SOMERVILLE. King's Chambers, 16th September.