IN BANKRUPTCY.

Hawke's Bay Tribune, Volume XIV, Issue 278, 4 November 1924, Page 5

IN BANKRUPTCY.

DAVID REES. ELECTRICAL CONTRACTOR. 1 A meeting of creditors was held at Hastings this morning in the bankrupt ostate of David Rees, of Hastings, electrical contractor, but only one creditor wa a present. The' bankrupt showed his liabilities at £4l 0s 6d, due to unsecured creditors, and his assets as £6O 4s 6d, in the form of hook debts. PERSONAL STATEMENT. Bankrupt stated that he started business in Hastings as an electrical '’nntractor in March 1921, and continued until April. 1922. "When he closed down, Lawrence and Hansen’s Hastings manager took over sufficient of his book debts to well cover the amount of the debt owing by.him to the Lawrence and Hansen electric company. The remaining book debts about £lOO were left in Hastings in charge of his mother and Messr a Lewis and Simpson, uolicitors. io collect and pay his creditors in this district, whose claims amounted to about £4O. This arrangement was entirely satisfactorv to thp largest creditors here. Messrs Powdrell Bros. At the beginning of May 1922 he left for Wellington, where he met Mr. Waddle, accountant for the Lawrence x and Hansen Electric Co., who advised him that it would be less costly and far more satisfactory, to let Messrs Luke and Kennedy collect the accounts left in Hastings. a fl they were collecting the other accounts on behalf of Messrs Lawrence and Hansen. Acting on Mr Waddle’s advice, he gave Mr. Waddle Dower-of-attorney collect accounts owing to him and pav accounts owing bv him. He assured bankrupt that he would see Messrs Powdrell Bros., when in Hastings, and hdvise them of the position. Bankrupt also signed a deed of assignment which Ke was advised bv Mr. Waddle would make it easier for them to collect the book debts. ASSIGNMENT DENIED.

The Deputy Official Assignee (Mr, R. Bishop) examined the bankrupt, who confirmed his statement on oath, saying *hat a deed of assignment of the debts had been signed to the Lawrence and Hansen Electrical Company. The Deputy Official Assignee read correspondence from the Lawrence and Hansen Company to him. a s Official Assignee, denying the assignment, and from Lewis and Simpson, solicitors, +o the Lawrence and Hansen Company saying Rees had informed them that he had executed a deed of assignment of £l7O due by E. A. Westerman; end £2OO. due by Everybody’s Theatre, besides £2OO other debts, to the Lawrence and Hansen Company. A sum of £4OO was due to Lawrence and Hansen and the balance was to be used, in paying Rees’s other debts, including £29 15s 9d due to Powdrell Bros., of Hastings. Rees had informed them that he thought there would he a surplus after payment of all debts. The Lawrence and Hansen Company, in a letter to Lewis and Simpson said that there had been no deed of assignment and that they could not understand the reference made to their pa’ ing Rees’s debts. What money they received was used in the reduction of the debt du« to them, which was still undischarged. There was no £5OO to collect and they had no knowledge of the big figures mentioned in the letter. In reply to the assignee bankrupt repeated that he had made the deed of assignment. He hacj never received the £l7O from Westerman or the £2OO from Everybody’s Theatre. The Deputy Official Assignee pointed out that if the estate had been assigned to the Lawrence and Hansen company as stated bv the bankrupt.- it .was illegal for them to keep the mono” themselves as they, as trustees, should have paid the money out to the creditors, pro rata. The matter could be investigated and a search made for the document, if Mr. Powdrell would guarantee the expenses (about three guineas) which would.be returned if th© money became available. Mr. Powdrell agreed and the meeting was adjourned sine die.