IN BANKRUPTCY.

Evening Post, Volume LXXVII, Issue 111, 12 May 1909, Page 7

IN BANKRUPTCY.

A SOLICITOR-SPECULATOR. MEETING OP W. G. SOMMER.YILLE'S CREDITORS. Creditors in the estate of W. G. Sommerville, solicitor, a bankrupt, met this morning, at the office of the Official Assignee. Mr. Fair was present as solicitor for the petitioning creditor, the Wellington Timber Company, on whose motion Sommerville was declared bankrupt. Other creditors were represented by the following solicitors : — Messrs. T. Young, Levvey, Anderson, McLean, Bolton, and Arnold. Mr. Levi appeared for debtor's mother, and other relations, who are secured creditors in the estate. Mr. Beere represented the bankrupt. About twenty creditors were present. The Official Assignee read from papers supplied by bankrupt. These showed unsecured debts totalling £3078 15s 4d, and secured debts totalling £21,586 17s 7d. Debtor estimated the securities against these debts to be worth £12,506 18s 6d more than the debts secured, and the surplus on tlie whole estate to be £11,834 13s 2d. "Which, I presume, is a mere paper statement," commented the Official Assignee. That official went on to say that the unsecured creditors totalled about 70. Already he had received from several mortgagees notice of intention to se£l properties held as securities. Enquiries made as to certain properties appearing in bankrupt's name drew from his solicitor the statement that Sommerville had parted with his interest in those properties, subject to existing mortgages. After further discussion, the Official Assignee said that each property would have to be closely scrutinised, as to transactions, hefore the estat-e could let it pass from its purview. The legal representative of one firm which holds a security, said to have been parted with by bankrupt, informed the meeting that the property -was still appearing in Sommerville's name, and that the solicitor's firm would hold to that appearance in respect of the property. In regard to a suit .against Alfred Benge, by bankrupt and a relative, it was decided by the meeting that the Official Assignee take legal advice as to the advisableness of the creditors proceeding with the case. BANKRUPT'S STATEMENT. William George Sommervilfe, sworn, deposed that the unstable state of the money market, and the great scarcity of funds, which prevented people from making purchases, or raising loans on mortgages, caused a general drop in the values of properties which prejudicially affected his interests. At the beginning of the year his assets, according to the then actual cash value, showed a surplus of over £15,000. A large part of his properties consisted of vacant land, and were not interest bearing, and were subject to mortgages entailing a considerable outlay. A considerable, portion of his assets was represented by second mortgages," exceeding £10,000, held by him from various persons. These were taken from time to time in settlement for sales as well as for 'cash advanced. Most of these mortgagors had made default not only in interest due to him, -but on interest due on prior mortgages. In consequence he had had to find large sums out of his own money to pay interest due by others, in order to preserve his securities and prevent the properties falling into the hands of prior mortgagees. He was called upon to pay on' his overdraft in the early part of last year. The state of the money market not only prevented him from selling properties and realising his securities, but also of causing his creditors to press for payment. He struggled to meet his engagements and to keep his estate from being sacrificed, but towards the end of last year he had to ask his creditors for time. An accountant who was employed to investigate his affairs recommended that the estate be kep^fc out of bankruptcy, but some of the creditors required payment in cash. He was unable to comply with the conditions, though he sacrificed some shares held by him, by selling them for over £1000 below their face value. Early in 1908 he sold a large number of properties to a substantial creditor, who agreed to pay over £4000 in cash. He, however, failed to do so, and bankrupt had to find about £700 to enable him to restore the properties which had been sold, and to realise on them. He had to pay, also, large sums on account of guarantees, which had been given in reliance of the above moneys being paid. Also bamtrupt' had been deprived of over £4000 of unencumbered property through non-completion of contracts. It was explained, in answer to Mr.. Levvey, that a Mr. Biht entered into an agreement with a Mr South for the exchange of a la?ge quantity of property. In that exchange a sum of about £4000 was payable by Mr. South. Mr. Burr gave to bankrupt an order on Mr. Burr's solicitors for this amount. On the date fixed for completion Mr. South repudiated the contract, which v. as never carried through, and in consequence Mr. Sommerville was unable to recover the £4000. This amount was still owiii^ to bankrupt. He spent about £200 in an attempt to realise the estate of Burr, but he got nothing out of it. ft was a clear lo.ss. Mr. T. Young said that as this was an extremely complicated bankruptcy, and there were a great many affairs to Le investigated, it was impossible to investigate it at a preliminary meeting. The Official Assignee replied that he had thought it desirous to let creditors put a few questions to bankrupt while he was on oath. He agreed with Mr. Young on the general question. Mr. Young said that his clients suggested the appointment of a small committee to go into the whole matter of the bankruptcy, and report to a future meeting. That was the best way to proceed if they wished to get to the bottom of the matter. This course was agreed upon by the meeting, and Messrs. Hutchen, R. A. W light, and Harper were appointed to go into the matter. j A el editor questioned bankrupt as lo whether his wife would be a claimant against the estate, and as to what was owing to her. Bankrupt replied that theie was' £1200, but her securities were valueless. The Official- Assignee remarked that she would not come in until vhe creditors were paid 20s in the pound. The largest unsecured creditors in the estate were -.—Wellington Timber Company, £520: George Winder, £238 l r is 2dj R. W. Wills, £150; W. B. (riesen, £138; Prouse Brothers, £171 14 S 9d; Sffaton and Sladden, £107; H. M. and T. A. H. Field, £103 3s sd ; b. G Radford, £100. The total unsecured debts are £3078 15s 4d.

Victoria is determined to »put her glass-blowing industry on a sound footing. Already a considerable amount of American bottle-making machinery has been installed in Melbourne, and to-day two glass blowers arrived by the Talune from San Franci&co on their way to take up appointments at the Melbourne .works.