MEETING OF CREDITORS.

Evening Star, Issue 10401, 24 August 1897, Page 4

MEETING OF CREDITORS.

A meeting of creditors in the estate of J. E. Kennedy, hotelkeeper, of Sowburn, was held at the Official Assignee’s office yesterday morning. Sir R. Stout appeared for the bankrupt, and Mr Solomon for the following creditors:—A. and J. M'Farlane, Speight and Co., W. Strachan, Limited, and Thomson, Bridger, and Co. The bankrupt’s statement showed his liabilities to be £498 17s Id and his assets £205, there being a deficiency in the estate of ±293 17s Id.

The principal unsecured creditors are : W. Strachan, Limited, £2O; M'Gavin and Co., £2O 3s ; Speight and Co., £4l; A. and J. M'Farlane, £4O; Lane and Co., £4O; Thomson apd Co., £lB 13a; Thomson, Bridger, and Co., £BS; Dalgety and Co., £lO 10s ; A. G, Mathias (Hamilton Station), £2l 12s; Wm. Hall (Patearoa), £2O; R. Carr (Patearoa), £l4 ss; J. Budge (Patearoa), £33 5s ; R. F. Inder, £ll 9s 7d.

The secured creditors are George Simpson, of Patearoa, and Margaret Clunis Kennedy, wife of the bankrupt. The former holds a first mortgage over sections 1 and 5, block 7, and section 10, block 1, Upper Taieri district, as security for a debt of £2OO, the estimated value of the security b ling £SOO. Mrs Kennedy also has a second mortgage over the said sections to secure a debt of £4lO Bs.

The following are the assets in the estate; —Stock-in-trade at Patearoa, £3; book debts, £9O (estimated to produce £40); cash in hand, £SO; furniture, £ls; property (consisting of horses, buggies, harness, etc.), £97; total, £205.

The Bankrupt, on being examined on oath, sa : d he was married in 1887. His wife was keeping a hotel, and he had been a horsetrainer and jockey. Before he was married his wife lent him £3O to get things to get married with. She paid the money in cash, and got it out of the business, He started to run the business when he got the license in June. He could not say what he got with the £3O he borrowed. He gave no acknowledgement for the money, but said he would pay interest on it. He had never paid his wife any money. All the money went into the business. The business was to be run on a joint account. The license was transferred to witness. He received £IOO from his wife nine years ago—£Bo to pay Wilson and £2O to go to town with. The £BO was taken out of the business. His wife kept the money in a box of her own. There was no bank account kept. She made this money out of butter and eggs she sold. She bought the cows and poultry out of her own money. His wife was putting aside money for her own use instead of paying the wages of a servant. She never paid any money into the bank after they were married. Altogether he got from his wife a- “lump” over £3OO. He gave his wife a mortgage in June, 1896. The Bank was pressing him, and he gave Mr Simpson a first mortgage for £2OO, and his wife a second mortgage to secure £3OO. All the takings in the business had been spent in improvements to the propertv—between £3OO and £4OO. He owed the Bank about £l4O when they pressed him, and about £IOO to outside creditors. He had no other property than that mentioned in his schedule.

To Mr Gow : When bankrupt obtained goods from Thomson, Bridger, and Co. he was negotiating for a composition with his creditors, and he understood from the mortgagee that he would take over other goods on his own account if the other creditors were willing. Mrs Kennedy stated that when she was married in 1887 she had the hotel. She also had about £B4 in the bank on fixed deposit, and some cash in the house—between £3O and £4O. The hotel, with the furniture, was put up at auction, and her husband bought it in for her for £195. After witness was married her husband ran the business, and she kept her own money in her bedroom in a drawer and in a cash box. Her husband knew she had money in both places. Mr Solomon here read part of the bankrupt’s evidence, after which witness said she might have made a mistake by saying her husband knew she had money in the drawer. She thought her husband had seen her taking money out of the drawer when he asked her for it. She never kept any memoranda of the sums she lent her husband. Altogether she had lent him £392 6s Bd.

Mr Gow (Thomson, Bridger, and Co.) moved—“ That the deputy - assignee at Naseby be instructed to take steps to upset the second mortgage to the bankrupt’s wife at the first available sittings in the District Court; and that arrangements be made, if possible, for Mr Solomon to take legal proceedings in connection therewith.” Mr Lintott (W. Strachan, Limited) seconded the motion, which was carried unanimously. . The meeting then adjourned.