EXAMINATION OF A BANKRUPT.

Hawke's Bay Tribune, Volume VI, Issue 261, 20 October 1916, Page 2

EXAMINATION OF A BANKRUPT.

(Waipukitrau Correspondent. I The adjourned meeting Pf creditors in the estate of J. R. :Paku was i held at the temporary Court House ; Waipukurau. the bankrupt was in attendance for examination. Deputy Assignee Smith presided. Mr. Sproule was present as the assignee’s advisor ; Mr. Currie represented Murray Roberts and Co., Mr I Kent for Rupuha ti Hianga, and J. Rapaea; and Messrs Norris and Mackersey for various ■ The secured creditors are Messrs J. jE. Reid, J. Winlove, Turner and 1 Butler; and the security was estimated to yield £lOO in excess of their claims. The unsecured creditors are Murray Roberts and Co £1 321, B. J. McCormick £79 18/-, W.’ S. Glenny’ £l4l 2/6, H.B. Farmers £65 6/2, C. H. Cranby £27 15/6, Blakiston and Blakiston £25, G. F. Hall £2l 14/10, F. L. Bailey £l5 12/-, F. J. Lloyd £l6 9/-, C. Floyd £l3, H. R. French £l2 2/2, Trixie Saunders £9, Nicholson and Sori £8 9/6, C Saunders £6 14/7, R. E. Lucas £6 12/4, Public Trustee £6, N.Z. Railways £3 10/-, T. H. Slatford £4 18/-, Drs Deck and South £2 2/6, McAffer £2, F. H. Lockyer £2, R. Hannah £2, J. A. Blom £1 0/10. Against the total of unsecured debts £1793 7/11 were assets, book debts estimated to produce £7OO, cash in bank £l3 3/7. furniture £lOO, surplus from security £lOO, estimated deficiency £BBO 4/4. The bankrupt’s statement on oath was:—l am a Native interpreter, land agent, and motor mail contractor. I have three children and my wife is an adopted daughter of Rupuha. I commenced business in Dannevirke in 1912, as Native interpreter attending the Courts there, and at Waipawa and Waipukurau. My assets were then small. I commenced to have business relations with my father-in-law in 1912. In addition to interpreting work I had the oversight of the working of Rupuha’s farm at- Porangahau of 1262 acres. Later another farm of 451 acres was purchased, in my wife’s name near Dannevirke. Later a grazing lease of 439 acres was _ acquired from the Crown in the joint names of Rupuha and self. That! was situated at Porangahau. I managed the properties, but had no fixed salary and I was not responsible for losses. The stock on the three farms were ear-marked with Rupuha’s registered brand. That brand was transferred to my name on April 16th, 1914. I suggested the transfer, because the bank, refused to increase the overdraft limit, and the manager said if they were mort-. gaged, the security of the farm given for the overdraft might be realised, so, by the transfer of the brand, I money could be raised to carry on. The sheep were mortgaged by. me to Murray Roberts and Co on’ the 21st of July, 1915. I bought the ■shearing machine out of my own money, also wethers and hoggets. The cost of the water supply on the Porangahau farm was also paid byj me. I gave a mortgage on my pri-' vate house in Waipukurau in pay-’ ment. Advances by Murray Roberts were used to pay for goods for the farm. With my partner in the interpreting and land agency business, we did well. One deal result- ■ ed in £470 in fees and commissions. Though I received no regular wage from Rupuha I did receive gifts.' One sum was £2OO which was paid' in cash. My wife received £4OO. The proceeds of a sale of a property in my wife’s name for £4,900 was’ handed Rupuha as he was the real owner. He handed me £.2.200 to; buy the farm near Dannevirke. Rupuha himself could not hold it, as he held too much land. I only . received £2,200. My wife received £4OO which I understood was a gift. The proceeds of stock sold off the. Dannevirke farm was retained by the H.B. Farmers’ Co., to pay accounts in connection with that' f arm. Eight hundred and nineteen! sheep sold by me from the Poranga-’ hau properties were sold by Murray! Roberts and Co in February last, j and the proceeds went to pay ad-/ varces in connection with the farms j by that firm. I consulted Rupuha; on all and I acknowledge noj personal liability. Rupuha was pre-| sent with me, when we executed av bill of sale before Mr. Mackie. The? motor car included in the bill was to run to Tikokino. I deny that in ’he letter offering. C. Barlow the Sunbeam car for his debt, the words “or Chalmers car” were in the letter when I signed it. It was signed before Mr. Kent.

To Mr„ Kent: If you state those words were inserted by you shortly after by signing, in pursuance with an understanding arrived at between us, I reply I have no recollection of it.

To Mr. Currie the bankrupt detailed the various bank accounts he had operated on. Entries of stock sold were made in the farm books, all the sales took place through the firms supplying the advances. There were two carrying businesses, Wai-pawa-Tikokino, and WaipukurauPorangahau. Cars were transferred from one run to another. Advances made by Murray Roberts were sometimes for the motor business and sometimes for the farms. I understood Rupuha and I were working together. Rupuha used sometimes to pay for benzine and •Cvages for cars on the Porangahau run. He (Rupuha), joined in the security for the Tikokino service of his own free will. He was a partner in that run Had there been profits in the Porangahau run, he would have got half.

To the Assignee: The stock purchased by Ernest White were taken on to the Porangahau property and ear-marked with the transferred brand. The best of them were picked out and sold as fats through Murray Roberts and Co., and the proceeds went to the credit of their current account. I know this evidence contradicts the evidence I gave in the White case. The statement just made is the truth. The transfer of the seven horses, including the racehorses, was made by me last month to Rupuha at Mr. Kent’s instance. The horses were purchased with my own money. To Mr. Norris: I kept a strict account of all transactions. Ellen Te Kuru left the firm of Paku and Rapaea about £l9OO to invest. Most of it was invested through the firm of Norris and Larnach. The balance was disbursed by orders. Paku and Rapaea took over McAlister s restaurant business. No goodwill was paid. We ran it for about five months, Mr. Kent intimated that he had advised Rupuha that he could not retain the horses. As the bankrupt had to return to camp by the 6.30 train the examination of further witnesses was adjourned.