IN BANKRUPTCY

Hawke's Bay Tribune, Volume XXII, Issue 153, 14 June 1932, Page 5

IN BANKRUPTCY

A LABOURER’S FAILURE AFFAIRS OF OSCAR MATHER. CREDITORS DISSATISFIED. The adjourned meeting of creditors in the bankrupt estate of Oscar Mather, labourer, was held at the Napier Courthouse yesterday afternoon before Mr G. G. Chisholm, Official Assignee. It was disclosed that a bill of sale had been obtained by bankrupt over a truck under hire-purchase and on furniture, which was the property of his wife, who since had obtained a bill of sale on it from another money-lender. Mr Chisholm informed the meeting that since the last meeting he had ascertained that bankrupt had earned an average of £5 15s a week during the wool season, as compared with £4 10s per week as stated by bankrupt at the previous meeting. He had spoken to Mr Orr, of Puketapu, from whom bankrupt had bought firewood, and he scouted the idea that about fifty cords, the property of Mather, was still on the ground. He complained that his fences had been left in bad order, while much of the rubbish had since had to be cleaned up.

Counsel representing Mr Orr said that at the most, not more than 15 cords were on the ground. Bankrupt had been through most of it, having taken away the best of it and left mostly knotty wood that was difficult to get at. Mr Orr had been obliged to put on labour to repair fences, which Mather had undertaken to do in his contract.

Mr Chisholm: I am not surprised that there is no wood for us. There is no doubt that the bankrupt was trying to make the best of things in his statement. CAR TRADED IN. Mr Chisholm informed the creditors that the car, stated by bankrupt to be at a certain garage, was not there. It had not been for sale in any case, as it had been traded in on a truck which was being converted from a car which had previously been through a fire. It appeared to him that the bankrupt, had not been frank in his statements. Bankrupt explained that he did not state that the ear was not for sale in the garage because he was not asked the question. Counsel stated that, when the car was bought in his wife’s name, bankrupt had not thought of filing his petition. Mr H. A. Mossman stated that the bankrupt, instead of taking cash for the balance owing to him on the first truck he handed back, elected to take the car, his wife not being mentioned in the matter. Counsel for a creditor: That does not get over the fact that it was an asset of his. Counsel further explained that bankrupt subsequently traded I 1 ’" car in for a truck which was in the garage, as no effort had I' ade tn possess it. He had since ortained that bankrupt had obtained a bill of sale on the original truck when he was not entitled to do so, the hire purchase not being then satisfied. BANKRUPT EXPLAINS. Bankrupt explained that when the bill of sale was being prepared by Mr Stubbs he stated that the furniture belonged to his wife, but he had the authority to mortgage it. He also stated that the truck was under hirepurchase and could not be included. He was surprised to now see it included in the bill of sale. Mr Mossman strongly protested against the statement made by bankrupt. Mr Stubbs, who was well known in the district, was a man of high integrity and was not likely to act ur that manner, he said. “The bankrupt said that he had not been pressed,” said Mr N. P. Eriksen, a creditor. “He must have been by the bank because I was called upon to pay in cash the balance of a guarantee.” Bankrupt admitted that he received a number of letters from the bank about it. - In reply to counsel, bankrupt stated that in February last, when he got the car, he had some creditors pressing him. As he could not keep his payments up be had to let the truck go back to the Hawke’s Bay Farmers’ Co-operative Association. Mr Chisholm stated that as far as the firewood was concerned there was little prospect of the creditors getting anything. SECURITY OVER TRUCK

Mr Mossman: Bankrupt gave us security over the truck, which did not belong to him, and now he says that the furniture belongs to his wife. The wife has also borrowed on the same furniture from another firm of money lenders. The whole business has been manifestly unfair. To say that Mr Stubbs would put in a statement in the bill of sale that was not in order is most unfair. We could not do business on these lines. Mr Chisholm: It seems to be a real mix-up. I don’t think that bankrupt has been at all straight about it. Mr Mossman: 1 am as good a loser as anyone, but I don’t like losing in this fashion. Mr Chisholm : The car was traded in for the truck shortly before the bankruptcy. Mr Mossman: I don’t want to be hai'd, but this is about the dirtiest bankruptcy that I have seen There is nothing clean about it. Mr Chisholm: That is how 1 feel about it after investigating the position.

Mr-Mossman: No one can say that 1 am a bad loser. I have not sued or pressed bankrupt at all, but I can’t suffer to be treated like this. After further discussion the meeting was adjourned to enable counsel to epnfer with bankrupt and his wife and to report on a possible proposition being made to the creditors.