UNABLE TO MEET DEBTS.

Hawera Star, Volume XLVIII, 21 March 1929, Page 8

UNABLE TO MEET DEBTS.

LAND SALESMAN'S BANKRUPTCY. EXAMINATION AT ELTHAM. Ill—healtli and consequent inability to follow lusi occupation continuously formed the principal "reason advanced to explain indebtedness leading to the bankruptcy of Arthur Bosley, hind 1 salesman, of Eltham, who was present at a meeting of creditors held before the D.O.A. (Mr R. 8. Sage) ait Efitham yesterday. Following a- lengthy examination of bankrupt, the meeting was adjourned sine die. Mr A. Chrystal, one of the creditors in the bankrupt estate, appeared as counsel for bankrupt. Others present besides the D.O.A. wore: Messrs J. Keilar (Ford 1 and Kedlar), C. Horrocks, J .L. Weir (pei‘.sonat l creditor, also representing Mr A. Ware, bankrupt’s former employer, and Sir Walter Camcross) and Mr A. A. Stewart. The financial statement showed totall liabilities amounting to £llsß os? 7d. of which £957 1-Js 7d was owing to s’fv cured creditors. The estimaited value of property held 1 by bankrupt was £9OO, leaving a deficiency of £285 os 7d.

The secured creditors were: State Advances Department, £257 14s 7d ; A,liss Rowntree, £450; C. M. Horrocks, £250; the security being a house- property in "Elt-ham valued at £9OO. The unsecured’ creditors were: J. L. I Weir, £SO; A. A. Stewart, £32 16s-6d ; Foord and K-ei-lar. £5 2s (id; Sir Walter Ca-racross. £25; Farmers’ Co-op, Ltd., £35 Is 6d ;E'ltham Motors Ltd., £3 3s; Dr. H. A. Cooper, £l3 7s 6d; F. J. Curtis £25. ILL-HEALTH AFFECTS FAD NINES. “Owing to ifi-health I had to sell ray farm about 1918, and 1 purchased a (house in Eltham,” said bankrupt in his written statement. “T had a. small interest in the farm. I commenced as a land salesman soon after ''ea.ving any farm, but my health was in such a state that lor practically two months in every year in the busiest portion of the land sealing season 1 was laid up. “I remained for 12 months with F. J. Wilson, land agent, of Hawera, and I then joined Messrs W. H. and A. McGarry in November, 1921, and stayed with them for about 12 months._ Durthe whole of the time I wa,s working on a smafl -salary and commission. I left . Messrs McGarry in November, 1921, and then went on for 12 months with Mr Harrison and for a further 12 months with Mr MeClugga-ge. of Stratford. After that- I joined with Mr Ware and remained with him until 1928. “The winters of 1827 and 1928 were the only ones in which I was not compelled to take to my bed for one month or two. though during that time I was steadilv reducing my indebtedness, and think I would ultimately have succeeded in paying everyone “During tli© slump period after the boom times I did not earn very much, ~~ and owing to this, coupled with: my had health. I got wet'l behind and in addition had to mortgage, my house up to more than its full value. Practicably the whole of the amounts showing in my -schedule are for loans that I received from time to time. “In November of la-st year I was sued by tlie Farmers’ Co-op. Society j fo ran alleged share in commission. I I defended the action, but was unsuccessful 1 , and judgment wa-s entered up against me for £32 13s 6d. “Through my solicitor I wrote offering to pay this amount if they would give me the opportunity to get some steady work again, hut they took a judgment summons out against me in February last and an order was made against me for £2 a month X could not pay this amount, or. pay this amount together with a similar amount to my other creditors, and I had no alternative hut to file. “I am a married man with five children, and I also contribute to the support of a widowed mother. At the present time I can make no offer to my creditors. I am temporarily employed on a commission only by Messrs McCay and Laurenson, land agents, of Hawera.” PERSONAL DISAGREEMENT... Answering Mr. Weir, bankrupt said the terms of his employment with Mr. McGarrv,. were that he was to receive £5 weekly and 15 per cent, on sales. He did not receive the latter. He had to supply a car for his work. With Mr. MeCluggage- lie was on commission only. Mr. Weir: Why did you leave McGarry, with £5 a week and commission,* and take on a proposition like that ? Bankrupt: T had a disagreement with Mr. McGarry which had nothing to do with the business. What was the disagreement?—T refuse to answer that. Oh. do you ? You are here to answer questions put to you. A discussion between Mr. Weir and bankrupt’s counsel ensued, and terminated when the D.O.A. intimated that if the matter was a personal one it was hardly relevant. Bankrupt stated further that the disagreement was a personal one and had nothing to do with business: Mr. Weir wa-s pursuing further inquiry when Mr. Chrystal raised the I point that the period was in excess of three rears prior to the bankruptcy. Mr.‘Weir, to the D.0.A.; Will you take a note, sir, that bankrupt refuses Ito answer questions on the advice of Ins counsel? Air. Chrystal : That i-s not true. I have merely raised the question that inquiry as" to personal conduct is not relevant if it relates to more than three years prior to bankruptcy. Mr. Stewart: I am here as a creditor, j The man is hopelessly bankrupt and lias family responsibilities. The milk j is spilt and I don’t want to have the time of the meeting wasted needlessly with irrelevant inquiries which, can apparently lead nowhere. Air. AVeir: If that- is your attitude I you can stay just as long as you like or as short "a time as you choose. The D.O.A. ruled that bankrupt was required to give an account of general conduct apart from active business only for a period of three years prior to bankruptcy. Air. Weir: I submit to your ruling, if as it seems, bankrupt- wishes to take advantage of the provision. COMMISSIONS RECEIVED. Air. Weir to bankrupt: Why did you leave AlcCluggage ?—I left because the business did no good to me. Part of the time during his association with Air. Ware bankrupt received 65 and Air. Ware 35 per cent, commission on properties sold by bankrupt. Later bankrupt received 80 and Air. Ware 20 per cent. He was uncertain whether lie was paid £1 or £2 a- week. Mr. Ware, who entered the meeting at this juncture explained that, it- was jCI weekly/ After a succession of questions as jto his earnings bankrupt said that I while receiving 65 per cent of eornjinissions from Air. Ware it would he [a fair estimate to assess his income at £2-00 a year on commissions and £52 on salary. When the rate of commission was advanced commission earnings would he in the vicinity of £3OO u year. During the election campaign he had about two month’s work at £1 daily. Since the elections he

had earned about £9O on a commission basis with Messrs McCay and Laurenson. Part of that sum had gone in liquidation of debts and the remainder was absorbed in living expenses. He left the employ of Mr. Ware because of a disagreement concerning the latter’s return with reference to a promissory note which had been tended by a client during a business transaction. Mr. Weir: Did you leave Mr. Ware’s employ or were you dismissed ? Bankrupt: I left on my own accord. I bad informed Mr. Ware that if ho collected the promissory note I would leave him. Questioned concerning the sale of a house in F/Ithain witness admitted he had received £l6 commission of which nothing had been given to Mr. Ware. Bankrupt contended that the vendor had agreed to pay that amount to bankrupt if the latter could get- the former out of the house. Bankrupt considered that the bargain was between the vendor and himself solely, and Mr. Ware did not come into the matter. ‘‘l played the game with Mr. Ware and he never lost 3d over me. I’m pretty certain that Mr. Ware got his proportion,” declared bankrupt when ouestioned concerning' another commission of £3O. which bankrupt admitted tiaving received. Bankrupt’s statement followed a denial bv Mr. Ware that he had received any proportion. t\H DONE MY BEST.” How much do you spend on bettiim per annum ? asked Mr Weir, after a senes of questions relating to money tham' V€t * ' m cortaiu residents of EH-

Bankrupt replied that lie spent very little in bets. At the Hawera races -lie had made £3 and lie had gone to the i\ew Plymouth meeting with only £2 10s in his pocket. Mr Weir: Do you think that after bon owing money from, people of the town you were playing the game in going to the races ? r '

Bankrupt: I’ve done my best to play the game with my creditors. Mr Weir: Then it is time you learnt a new catechism. I would have paid everybody if 1 was not forced to. give up my car,” concluded bankrupt. Mr Weir submitted that as bankrupt had been engaged. a, s the agent of Ware, who held the license, the latter should have had a proportion of all commissions secured by Bosley: 'Mr Ware commenced to question. bankrupt, but his examination was ob-1 jected to by Mr Qhrystal, on the grounds that Mr Ware had no standing at the meeting in the absence of proof of debt.

The D.O.A. remarked that Mr Ware would make a statement- il he wished to do so, but that unless he was shown bv proof of <lebt to be a creditor lie could not examine bankrupt. Mr Weir submitted that the meeting should bo adjourned in order to give persons whose names had been mentioned during the examination of bankrupt an opportunity of giving evidence. Mr Stewart proposed that the meeting should agree to facilitate bankrupt’s discharge, but after further lengthy discussion the meeting was adjourned sine die.