BANKRUPT LAND AGENT

Evening Star, Issue 20983, 23 December 1931, Page 7

BANKRUPT LAND AGENT

INABILITY TO MEET GUARANTEES DID HOT FORESEE THE SLUMP Tlio first meeting of creditors in the bankrupt estate of George William Kidd, a land and estate agent, was held to-day, tho Official Assignee (Mr J. M. Adam) presiding. The bankrupt’s statement showed : Unsecured creditors, £1,887 Is 9d; secured creditors, £3,982 7s 3d mated values of securities, £4,505; assets, £3,267 12s 9d, surplus, £1,380 11s. The principal unsecured creditors are: L-'. Flew, JBalclutha, £592 13s 4d; Scoulur and Co., Dunedin, £469 8s 4d; Lane and Co., Dunedin, £255 Is; Sargood, Son, and Ewen, Dunedin, £134 13s 4d; Brown and Co., Invercargill, £lO5 16s 4d; Cossens and Black Ltd., Dunedin, £lO4 18s lid; Perpetual Trustees, Dunedin, £74; ‘Otago Daily Times,’ Dunedin, £SO 13s 2d; Trustees, Executors, and Agency Company, £26; Dawsons Ltd., £2O. The secured creditors are: James Edgar, Dunedin, £1,017 10s (value ol security, £1,850) ; Bank of New Zealand, Dunedin, £2,589 17s 3d (value of security,, £2,732) ; John Scott, Dunedin, £260 (value of security, £380) ; John Scott, Dunedin, £260 (value of security, £375). The assets consist of: Book debts, £8,598 11s lOd, estimated to produce £2,000; property, £745; surplus from securities, £522 12s 9d. “I commenced business in Dunedin as a land and estate agent in 1917,” said bankrupt. “ I worked up a very wide connection, and my business was a most successful and lucrative one. I was in a very sound position. Unfortunately, like many others, I did not foresee the slump, and can confidently say that my failure is due entirely to the economic conditions that we are experiencing at the present time. Unfortunately for myself and my creditors, I entered into certain guarantees, which I have been unable to meet at the present time. The total amount under that head which I have been called upon to pay is the sum of £2,700 14s 9d. Had it not been for this liability, I would have had no difficulty in meeting all my obligations. Although I lodged my own petition in bankruptcy. I was compelled to do so through pressure brought by the Bank of New Zealand. I arranged an overdraft with that bank some time ago, and I lodged with them security on which I consider they had an ample margin of security. Unfortunately, however, some of these securities became of no value owing to the prior mortgagees exorcising their powers of sale. Again two of the guarantees above referred to were to the said bank. I, being unable to meet the amount owing to the bank on overdraft and on the said guarantees, the bank took action against me and‘obtained judgment for £2,534 17s Bd. The bank then took bankruptcy proceedings, and, as I had every hope of coming to satisfactory terms with them, I arranged for the adjournment of the hearing of the petition on condition that if I failed to make a satisfactory offer I would file my own petition. Being unable to satisfy the bank, I was compelled to do so. I may say that I had assistance offered me which would have returned to the bank and my creditors _ what I consider a very substantial dividend; but, much to my regret, the bank refused the offer, and consequently it was useless conveying the offer to my creditors. I can only repeat that my position is duo entirely to my inability to meet the said guarantees.” The creditors unanimously agreed to adjourn the meeting till January 20, owing to the impossibility of a thorough investigation being made before the legal vacation into tho bankrupt, which was stated to be involved.