BANKRUPT'S ESTATE.

Evening Post, Volume LXXVI, Issue 143, 16 December 1908, Page 8

BANKRUPT'S ESTATE.

A COMPOSITION. APPLICATION BEFORE THE COURT. An interesting application concerning the affairs of J. J. Patterson, of Dannevirke, a solicitor, who carried on business as a sawmiller as well, under the style of Wylio and Co. and Koru Mills Company, was made in Banco to-day, before Mr. Justice Cooper. Mr. Patterson's affairs, it was explained, became very involved, and ho was adjudged .bankrupt in August last. His liabilities were shown at £10,710, and subsequently amended to about £19,000, of which £6100 was owing to secured creditors. His assets were stated at £12,375. The creditors met, when bankrupt offered a composition of j 12s 6d in the pound. This was accepted by a largo majority, and was recommended by the Deputy Ofutis.l (Assignee. Application was made to tha District Court for its approval to the composition, and was opposed by some of tha creditors, and the application was rendered abortive owing to technical objections. Fresh meetinga were called, and the creditors again passed a resolution approving of the scheme, although tho Deputy Official Assignee nowopposedit, owing to some further information which- 1 he had obtained upon .cxaininafeion of tha bankrupt and his wife. The bankrupt applied to "tho District Court to approve the composition, and the procesdingD v;«jre removed into the Supreme Court/afirl now came before Mr. Justice Coopsr at Wellington. The Deputy Offici?l Assignee opposed tho application upon the ground that it was not in the general interest of the creditors, and that the bankrupt had committed offencos under the Bankruptcy Act for which the Court would bo justified in ycfnsinc his discharge. Mr. H. H. Ostler appeared in suj)port of the application, Mr. P. R. M'Lstvn, of Napier, foT I>o Deputy Official • Assignee, Mr. Freeman Potts, of Danr.avirke. for tho objecting creditors, reprinting debts totalling £077, and Mr. Young for creditors representing £5500 in favour of the composition. \ BANKRUPT'S EVIDENCE. ' BanSrupt "gave" evidence on oath, stating that the books in connection with thb lioru Mills were kept "by an employee. He had 'h.ever refused to givu the Deputy Official - Assignee any information cr books. For practically two years he- had not done. any business as a solicitor. Witness never kept the books in % connection with Wylie and Co. He had not illegally transferred, any property cither to .Mrs. Patterson or to his Bon. In answer to Mr. Young, witness stated that he invested some money in Koru Mills, and eventually had to take them over. He was not a sawmiller, and had to employ a manager. His partner went away and left the business to him. He had carried it on as best he could. He had invested money in Wylio and Company, and upon the death of Mr. Wylie had to take the business over. The books in connection with that business were kept by a clerk. The estate would pay about 5s in ths £ if the composition was not approved apart from any_ claim on Mrs. Patterson. If the composition were approved Mrs. Patterson would endorse the promissory notes in connection with it, but if it were not approved she would not give up any part of the property. Witness told Mr. Freeman Potts that he believed he could pay the whole of his debts if he got time. At present he had hopes of paying them. Mr. Freenman Potts : Why did you not offer your creditors 20s in the pound ? Witness : I told them I would give 12s 6d in the pound and offer 7s 6d as soon as I could. Didn't they ask you to satisfy them that you would give the --balance, and you said that you could not satisfy them more than that ? — I could not either. We have offered you a lot of time have we not ?—lt? — It is not only you. I am acting on behalf of the objectors? — If I have the estate in my hands I can pay 20s in the pound — if I can turn round about a bit. Mr. Ostler : You don't profess to be an expert book-keeper ? Witness : No ; I just put it on one side when I get it and on the other side when I pay out. Witness, continuing, said that Mr. Potts had made a proposal to him that if he (witness) would pay the creditors whom he (Mr. Freeman Potts) represented, the extra 7s 6d in the pound, he would not raise any objection to the composition Mr. Potts denied this, and was about to make an explanation when his Honour interfered by saying that he^ could not have an altercation. (Left Sitting.) An item that arouses some comment in the Victorian State Auditor-General's report is the vote to Treasurer Bent for "accidental and unforeseen expenditure," sa-ys the Sydney Bulletin. Year by year tha vote has swelled until it 'has reached the rotund figure of £6536 ; and year by year more items, which arc not "unforeseen," but clearly premeditated, are . being shoved into it. As the AuditorGeneral points out, such items ought to Jw included ' in the Treasurer's miscellaneous votes ; but the cheerful Bent doesn't worry. He has piled up "accidental and unforeseen" •xpenditure from £2106 in 1903-4 to the above-mentioned amount for 1907-8, and at that rate of progiess tSiero is no knowing where the Treasurer may get to. The details of the latest vote make a fair amount of noise. No less than £1895 'has bsen appropriated for Parliamentary tours with tno usual luxurious etceterasi Free railway passes — other than those issued vo State Ms. P.— 4iave absorbed £854. In addition, £622 is set down as the cost oi the recent Premiers' Conference. But t'h.e funniest items of all in the list reads : "Expenses in connection with Parliamentary 'welcome homo' to Thomas Bent, £56." Bent had to represent Parliament as perishing from gratitude for his safe return from his sudden trip to England, and so, as usual, he made the country stand the racquet for the liquor that was swilled in his honour. But people mustn't make a fuss about a thing like that. Bent never does. He say it's "paltry." Everything Bent says is paltry. Messrs. T. Kennedy Macdonald, Ltd., insert particulars in our auction columns of a sale of 800 sheets of galvanised iron, wire-netting, etc. (slightly damaged), under instructions from Messrs. Lysaght, Ltd., at their store, Ballance-sheet (next old Drill Shed) to-morrow, at 1 11 o'clock sharp. At 2 o'clock the firm will sell at No. 62, Murphy-street (under distraint tor rent), household furniture, Fletcher gas stove, etc. The firm also insert particulars of a sale of wire mattress manufacturingplant in their rooms on Friday at 2 o'clock, and a sale of 20 oil paintings by Mr. W. G. Baker, in their rooms on Monday nef£ at 2 o'clock. Messrs. J. H. Bethune and Co. announce in our auction columns that on Wednesday, 2?th January, 1909, at their rooms at 2.30 p.m., they are submitting a residential property in Shannon-street. The land has an area of 23 porches, and on it stands the dweftinghouse known as "Glen Ayr," No. 31, Shannon-street. The house, wibicb. has only been erected about eight months, contains nino looms. Full particulars and card to view may be had on application to the auctioneers.