IN BANKRUPTCY.

Hawera Star, Volume XLVII, 26 November 1927, Page 10

IN BANKRUPTCY.

K ICR RISK BROTHERS’ ESTATE. A FURTHER ADJOURNMENT. At the Elthain Courthouse, yester day, before the Deputy Official As signee (Mr. R.S. Sage) a further stage was reached in connection with the bankruptcy of Daniel and John Kerrisk, fanning under the name of Kcrri.sk Brothers, Sole Road, Ngaere. A previous meeting of creditors, held' at Eltham on October 28, was adjourned to 1 permit oi a more detailed investigation by the D.O'.A. into affairs and of the position as between bankrupts and their father, to whom security had been given in practically the whole of the assets in the estate. Bankrupts’ statement, submitted at the previous meeting, disclosed a. liability of £507 11s Id to unsecured creditors, a total of £IO3O Ids 6d, less £l5O, the estimated value of securities to James Kerrisk (bankrupts’, father), of Wharehuia, for a loan of £529 5s sd. Assets were shown as stock-in-trade at Ngaere (three stacks of hay), held by the Stratford Doan and Deposit Company, £75; bonuses from Ngaere Dairv Company, estimated at £59 ]4s sd; '122 shares in the Ngaere Dairy Company, at 7s 6d each, £45 15s, a total of £IBO 9s sd. leaving a deficiency of £706 7>s Id. Air. A. Ch.rystal attended as represen tat iv r e ol James Kerrislc (the. only secured creditor —£529 5s od) and Johanna Kerrisk and A. Zimmerman (unsecured creditors for £74 and. £lB respectively). Air. Ghrysthl also acted as solicitor for bankrupts. Air. A. Coleman represented the Stratford Loan and Deposit Company,, a-s lie had done at the previous meeting when lie hinted at the possibility of tuither action.

DANIEL KERRISK’S STATEAIENT. Daniel Kerrisk, one of the bankrupts, under examination by Air. Coleman, said ho had been farming with his brother John at Sole Road, Ngaere, during the past season until June 20, between which date and August he was in the Waikato. His brother John was at his father’s farm at Wharehuia. He had seen John on various occasions when visiting the AVbarehiii-a- farm. At Sole Road they milked 50 cows, culling to 40. All milk cheques and accounts were in the name of Kerrisk Brothers. A bankruptcy notice was -served on him on June 13.' He did not go- to- Australia as alleged. He remembered the bailiff serving him with a notice at AYluarehuia, but could not say from, memory if his brother John was pres ent. He- did not know if any of the stock, over which there was a bill of sale, had been sold while- he was away and he did not give the Loan and Deposit Company an -assurance that no bill ol sale would be given over the stock. The creditor Zimmerman was employed- by him a-s> a farm hand at Sole Rbad and Aliss- Johanna. Kerrisk\s claim, for £74 was in respect of money lent. He- could not- definitely state from memory the full amount borrowed by himself and brother from their fa the r. A statement, certificated by bankrupts, was here submitted by counsel, which showed the total amount advanced as £1739 13s Bd. Certain credits were also .shown, leaving a. balance ol £ll9B 18s 2d due by Daniel and John Kerrisk to James Kerrisk. While in Waikato lie resided with his brother, T. L. Kerrisk, who bad then recently been married. He and John had no option hut to- give the bill of sale to their father, who insisted on it. ius they were short of cash and wanted more stock. Up to the time- of having to leave the- Sole Road farm he paid his personal debts as they came due, applying his bonuses to that purpose. He called on the secretary of the Loan and Deposit Company every six months to pay his interest. The only account he had w-as with the Union Bank; he had no money in the Savings- Bank. Though his sister had asked him for her money, the only creditor to take action was the Stratford Loan and Deposit Company. He and his- brother had farmed the- Sole Road property in a practical manner during tlie last milking -season, but turnip sickness (red water) set in and affected the milk returns. When tlie bill of sale- was given to their father, he- had no financial difficulties and fully expected to be able to pay his- debts out of bonuses. Ever since taking up dairy farming he had been more- or less in debt in the spring It was really his father who helped him out of diificulties. Quarterly notices for payment of interest were -received from the Loan and Deposit Company,t but payments were only made halfyearly. JOHN KERRTSK EXAMINED. John Kerrisk -said lie had lived at hiis father’s Wliaiehuia. farm from June, 1926, until July 1927. and received no wages. He- had never kept partnership books or accounts. His brother was with him at Wharehuia when he (witness) was served, by the bailiff with a notice in June of this year. They were served with a bankruptcy notice about a month afterwards. The brothers parted and did not meet agaip until the wedding of tlie third brother in Waikato. Their banking account was in the- name of Keixiisk Brothers excepting for a term when his brother Daniel was -at sea during the maritime strike. Oil l and on for about- a month, from June 13, he- had assisted another brother at Inglewood in sonic excavation work, .sometimes staying in Inglewood for the night anti -at oilier times •returning to sleep- at Wharehuia. lie did not know (.1 the- service of a bankruptcy notice on his brother -at W harehuia on June 13 and would swear that bis brother did not advise him- ol such or that there was a notice fur liini&elf. He had no hand in the engagement of Zimmerman and Ali.sclieski, who- were not related- to him. He kept no accounts and nobody had pressed him for payments of his

debts. A notice -and letter from the Loan and Deposit - Company, dated April 4, calling,up the mortgage, had been received by him. James- Kerrisk, father of the bankrupts, stated that in 1916 he paid- the cash deposit on a farm at Wlnarehuia for his sons and stocked it. In J 919 they sold the farm and did not repay him, as they wished, to take- up a better farm. He gave them 50 cows at £lO per head, which he considered a fair price. They sold the stock to one Burns for £517. Tliese proceeds were paid- to witness. In 1928 he provided a motor car for his sons. All the stock lie purchased went to the Sole Road farm. In February his sons wanted more -stock and he insisted an security. This took the form of a bill of sale over the stock. lie had not thought of the bill of sale until the Loan and Deposit Company asked him to go security for the land on March 2, 1927. Mr. Coleman here interjected that James Kerrisk was not asked by the Loan and Deposit Company for security until after the hill of sale was recorded in the Gazette. Continuing, witness said that the bill of -sale covered live stock, implements and the- motor car, -all of which, with the exception of an Anderson engine, waggon, car and one horse, valued at £l5O, he had since disposed of. He thought lie could have sold the cattle, had. lie so desired, without the provision of a bill of sale. If liis sons’ credi t,o-rs -agreed to- not press for paymeni lie wias willing to- do likewise, or even accept u compromise. After counsel’s -addresses the D.O-.A. adjourned the. meeting sine die.