BANKRUPTCY

Grey River Argus, 17 April 1929, Page 8

BANKRUPTCY

ESTATE OF LINUS EVELYN WALKER. A meeting of creditors in the estate of Linus Evelyn Walker, confectioner, of Greymouth, was held at the office of the Deputy Official Assignee (Mr A. Naylor) yesterday afternoon. The creditors present included: — Messrs F. Murray (Murrays Ltd.), I. Nelson (Hannah & Co.), Ramage (Abbie aud Ramage, Cobden), Stewart Ross, Cotter (Hudson & Co.), W. D. Murray and L. MeGlashan. Mr Naylor, Deputy Official Assignee, presided. Mr W. J. Joyce appeared on behalf of bankrupt. The total assets were set down at t'34/6/-} and, the toted djebts £633 15/4, leaving a deficiency of £499 9/4. q The secured creditors were as follows:—Pensions Dept., estimated value of (security £lOO, debt £9O; W P McCarthy (soliciting, Gheymouth), estimated value of security £475, debt £450/14/-. The list of unsecured creditors is as follows:— J. Rigg & Co. (Wgtn), £l4/13/8, Ashby Bergh & Co. £7/12/6, W. P. McCarthy (solocitor) £l3/9/-, R- Hannah & Co. £4, Nestle AngloSwiss Co. £l7/10/9, Sandford and Jones (Christchurch) £22/7/1, Anise trook & Co. £7B/16/2, Gilbert BroA.' Ltd. £3/13/6, Dunean McLean Ltd. £55/12/10, Townsend and Paul (Wgtn) 7/-, Blackmores £lO/7/6, Baillie. Nev ille & Co. £6/10/4, W. Stewart and Co. (Dunedin) £6/4/9, Misses White £5 7/-, Tymons & Co. £25/10/3, Greymoutii Evening Star £4/15/-, Hanwell Williams £3, James Kyle £2, Tim Sinnott 8/6, Manson & Co. £3, Murray's £4/6/-, Tate’s Boot Arcade £4/5/10, Kim Williams £2/10/11, G. Harker 8/9, J. W. Chalk £2/6/-, Beath and Co. £9, Phoenix Confectionery Co. (Dunedin) £8 10/9, J. A. Hart £3O/17/6, Hallenstein Bros. £7/19/-, J. Ballantyne & Co. < Christ church) £9/16/9, Griffen and Sons (Nelson) £l9/0/5. T. Hayes £4 11/6, Thorpy’s Ltd. 17/7, G. Schaef & Sons £B/5/6, Mrs G. Martin £lOO, T. G. Walker (Christchurch) £6O, R. Hudson & Co. < Dunedin) £l6/8/10, Abbie Ramage (Cobden) £7/12/6, J. E. Hood Ltd. (Christchurch) £23, Radley and FrampltQn (Christchurch) £22/9/2, Henry Berry & Co. (Wgtn), £5/14/6; total £633/15/4. Bankrupt’s statement was as follows:— “Prior to April, 1924, I was ‘working for the Public Works Department nt Arthur’s Pass. In thtt month I took over the farm know as Lakeville at North Beach from, my father-in-law, Mr Jesse Steer. I was to pay him the sum of £5OOO for farm, residence, buildings, stock, etc., but no definite agreement was ever entered into or signed. When I entered in the farm I had only about £6O saved Mr Steer found the stock, implements, etc., to commence farming, but owing to the unsuitability of the land a con siderablc amount of work had to bo carried out by me in an endeavour to make it fit for dairying red poultry raising. Dur ng ’he carrying out of these operations the small capital I had was exhausted and I began to get behind. Other stock was brought onto the land by Mr Steer, but they were not suitable for the Const and during the whole time I was on the farm it was necessary to hand feed all stock at all seasons of the year. I incurred a lot of expense in an attempt to drain the land and make it suitable, and also put a lot of my own labour in for the same purpose, but H- was of no avail. I had to replace stock which died from time to time, at my own expense, and must have expended in this direction nearly £3OO. In addi tlon to the cost of hand feeding, the freight on same was so considerable that I continued to go back. Tn an endeavour to retrieve my position 1 took over a milk run and opened a dairy in Albert Street, Greymoutii, at a rental of £1 per week, and equipped it in an up-to-date manner, providing modern equipment, appliances, etc. I ran the dairy and milk round for some considerable time, but could not make a profit out of it, and was compelled to sell out to D. Shannahan for £l5O. I Was also compelled to abandon the farm to the owner, who took over all stock, implements, and everything else. During the whole of the period that I was on the farm ijnd at the dairy, I worked on an average over sixteen hours a day in an endeavour to make good, but was unsuccessful. After I left the dairy I purchased a. shop in Tainui Street, Greymouth, for £6OO, of which I paid £l5O In cash, having a balance of £450 remaining on mortgage. I raised £lOO from the Repatriation Department to purchase stock, etc., and gave a mortgage to it over the stock, my pension of 10/- per week, and also took out a life insurance policy for £lOO as additional security. I shortly had an opportunity to take over another shop which had carried on business for some years and had been gutted by fire shortly before, and 1 then removed to the latter, having paid the previous proprietor £2O for the balance of his lease. The shop had to be refitted and all counters replaced by me, as well as the necessary appliances for carrying on business as a confectioner and fruiterer. The shop and dwelling bought by mo ir let to a tenant at in rental of £1 10/- per week. Since leaving the farm and dairy I have been working for the Greymouth Harbour Board and the Friandale 'Collieries, and am still work ing for the latter. My earnings there are £1 per day. I have a wife and three young children depending on me. I attribute my failure to the heavy losses sustained by me whilst on the farm. In order to try and pay off by degrees, all mv earnings went, and as creditors continued to press and a distress warrant was executed against my furniture and effects by a creditor, Who had judgment against me, T was compelled to file.” Tn reply to Mr Naylor, bankrupt stated that the bill of sale was over the stock but not over the fittings. The Deputy Official Assignee expressed the opinion that it wan quea-

tiomable if there was any equity, but the best way was to offer the goods by public tender. He did not think the bill of sale was worth the paper it was written on. Mr Joyce remarked that they would take the bankrupt’s pension until it was written off. In reply to questions, bankrupt stated that a gramophone from Kilgour’s was not bought in his name. There was only one more payment of £5/17/6 to be made on the eash register- the scales had been paid for. Mr MeGlashan said he would like to know more about the gramophone. They shouldn’t let other people “get away with it.” They should all "bo treated alike. Mr Ramage remarked that the Pensions (Department was Well secured with a bill of sale on the stock. Mr Naylor: They do it every day. though it is not worth the payer it’s written Mr Naylor stated that bankrupt’s piano had already been sold on a dis tress warrant.

Tn reply to Mr MeGlashan bankrupt stated that he hadn’t kept bucks, except a rough cash account like a jour nal, showing his takings and payments. T Mr MeGlashan expressed the opinion that Mr Walker had been bankrupt long before he had filed. Mr Nelson: That occurred to me. Bankrupt seems to have been getting credit everywhere. The D.O.A. remarked that people who went bankrupt did not usually keep books, and when they filed they were never available. Mr McGlAshan: I suppose nobody had been given prefer^hco, though I doubt it. Mr Naylor explained that if a man was pressed for payment and threatened with a summons he could pay money over to avoid it; and that would not be considered as giving preference. He was not a bankrupt until he had filed. In reply to Mr Cotter, the D.O.A. stated that there were no farm accounts. Mr Joyce remarked that it appeared that all farm accounts had been paid off under pressure. Tn reply to the D.O.A. bankrupt stated that he had had an offer for the lease of the premises from somebody in Ikinmatua, only he couldn’t get what he wanted. His rent was £9/15/- monthly, and was paid up till March 31. He had tried to sell all his property, but had not had a reasonable offer. He understood that there was an offer of £250 for his shop. In reply to Mr F. Murray, bankrupt said he was £450 in debt f» -r »m the farm. It had all been paid in cheques.

Mr MeGlashan strongly commented on the fact that bankrupt had gone back over £6OO in twelve months, and the only reason given wa» that he had had to pay debts on the farm. He owed that sum without taking into account the profits on his business. It seemed a large amount. Mr Nelson remarked that all bankrupt appeared to have was £24 —to meet £6OO. He added: “I don’t think there is anything to show that bankrupt had been extravagant.”

The D.0.A.: There’s that in his favour anyway. Mr Cotter: There is evidence that l.e has got cijedit filom about 400 merchants all over the country. Mr Naylor said that one thing they would have to deal with was whether bankrupt should be allowed to retain his furniture. They would have to allow him £5O worth. Mr MeGlashan: I think we are working in the dark without we have a valuation. I should also like to see the statement regarding the farm account verified. He moved -y * * That ban krupt be requested to furnish a statement of his payments and receipts for the past two years.” He added that it seemed that the present creditors were paying off the debts to old creditors. He was not suggesting that it wag a wrong statement. It was a matter of business. They were being faced with these bankrupts every day; and it was not only themselves they were thinking of, but their duty to business people generally. He thought that bankrupt had left himself open to suspicion in not keeping books. The motion was seconded by Mr W. D. Murray. Bankrupt: What exactly do you want Mr MeGlashan? Mr MeGlashan^jT want to know exactly what you paid out and what you received. You say that it has all gone to pay farm accounts. Candidly I don’t believe it. I think I know where it’s gone, but I am not prepared to say. The motion was adopted, and it was agreed to • adjourn the meeting until May 2. The Deputy Official Assignee intimated that he would realise on the assets, immediately.