IN BANKRUPTCY.

Mataura Ensign, Issue 946, 17 September 1901, Page 4

IN BANKRUPTCY.

RE ROBERT DYNES. The adjourned meeting of the creditors of Robert Dynes, of Glenkenich, was held nt Dunedin on Friday. The creditors repietented wero Messrs Wright, Stephenson and Co. (Mr J. A. Johnstone), Now Zealand Loan and Mercantile Agency Co , Dunedin (Mr A. Todd). Mr Solomon was present on behalf of the Dunedin creditors, Mr Inder on behalf of Mr Henderson, holder of a second mortgage over 200 acres at Pukerau, and Mr Neave for Dynes. The Assignee explained that the first meeting had been adjourned that bankrupt might prepare a statement showing his transactions during tho past six months, so that the creditors might find out what had become of the assets. The statement had been prepared, but did not appear to him to be of much value.

Mr Solomon, having examined the statement, said that it was quite valueless for the purpose proposed, and that the Dunedin creditors had better get in detailed accounts of ail bankrupt's dealings during the past year, and have a complete statement made. Mr Inder said he wished the history of his client's mortgage to be understood. The facts were that Henderson and Dynes had worked together on a station, and ever since they had become farmers Dynes had been receiving help from Henderson. Six years ago bankrupt owed his client £475. On the 18th July last, when th 6 debt with interest amounted to £B9B 13s Gd, be (Mr Indei) had insisted that Dynes should give a second mortgage over his 200 acres on which the Advances to Settlers Department had a first mortgage of £SOO, or a writ would be issued. There was no fraudulent preference in the matter, and his client intended to stand on his rights. The Bankrupt, having been sworn, was questioned with a view to finding out what had become of his stock purchased from tho various firms, but nothing satisfactory was elicited, Mr Todd remarking that it looked as if bankrupt had somehow lost about £4OOO "in 12 months. He had systematically deceived tho companies in order to obtain credit. Messrs Johnstone and Lethbridge said that their iirms had certainly been deceived, and Mr Solomon added that bankrupt had been openly boasting of liow be had " done " his creditors.

The Assignee read a letter from bis bailiff (Mr Ken) complaining that Dynes, instead of helping him as promised, had hindered him, and even threatened him with violence. Bankrupt said that was quite untrue. The Assignee asked for instructions regarding the 150 head of store cattle advertised for sale at Gore on Tuesday, lie had received an account for JL'tiO for herding and grazing them. After sorce discussion, and an endeavor to ascertain from bankrupt the exact arrangement made by him regarding the grazing, it was decided to pay (id per head per week, and proceed with the sale. Mr Solomon wished to have Mr Henderson examined with regard to the first item of £■l7s in his account. If, as alleged, it was the balance of 10 years' transactions some of it would by statute barred. Mr Inder said that if the mortgage was going to be attacked lie was not going to provide the ammunition, but eventually agreed to give reasonable help, but standing on the mortgage.

Mr Solomon said that aptrt from the question of fraudulent preference the validity of the moitgage must be tested. Bankrupt, examined by Mr Solomon, admitted that up till May when he asked Mr Wait (New Zealand Loan and Mercantile Agency Company. Gore) whether the companies would pay Henderson's claim he hid from the dealers the fact that he owed the debt.—' Times.'