IN BANKRUPTCY.

Manawatu Standard, Volume XLI, Issue 8347, 27 July 1907, Page 2

IN BANKRUPTCY.

MEETING OF CREDITORS. The first meeting of creditors in tho bankrupt estate, of Robert McArtney, plumber, of Palmerston North, was held at the office of the Deputy Official Assignee yesterday afternoon. Tho meeting was presided over by Mr G. J. Scott, the D.O.A. The bankrupt and his solicitor, Mr F. O'B. Loughnan, were in attendance. Several creditors were present in person; others were represented by Mr H. Cooper.

_The statement of assets aild liabilities, which showed a deficiency of £217 18s, has already appeared in the " Standard." It was read over by the D.O.A.

Tho bankrupt put in a further written statement as follows:—"I started business early in September, 1906, as a manufacturer of spouting, ridging, downpipes, and lead-headed nails. About the same time .the building trade in Palmerston began to fall off, and all materials used in my business began to rise in price, and have continued to do so over since. Not finding enough output for my g-n.is in this district, I travelled' ;.s ;ur ms Otaki, Foxton, DannevirLMaxtorton, Hawera, and Taihape vailing :»t to? ns in between for orders. 1 had just got a connection which woutd have grown, when I was pressed ana had to close down. Had tho building trade improved, I feel confident that I would have made money." Examined by the D.0.A1, the de!> tor said he had no capital of his own when he started business. He begari to trade under the name of '' Robert McArtney, Ltd.," but afterwards discovered he could not do this.

In reply to Mr Cooper, the debtor said lie only owed about £20 when he started business. Since then he had borrowed altogether about £225 from Mr C. A. Loughnan, all boing used in connection with the business. When he purchased, the machinery from Burt and Co., Ltd., Lysaght and Co., Ltd., and Dutliie and Co., Ltd., he told them _ he was going to form a limited liability company. He denied that he had stated the company was going to have a capital of £2500. If anyone said he had done so, he could only say that a mistake had arisen. He had given cheques and opened a banking account in the name of " Robert McArtney and Co., Ltd.," signing "per R. "McArtnev, managing At the time ho did not know the difference between " McArtney and Co., Ltd.," and "McArtney and.Co." Ho had never taken any steps for the registration of the company, as he was not aware that this was required. Nobody beyond himself and Mr C. A. Loughnan, who

had advanced tho money before referred to, had any interest in tho business at all. He admitted that when ho wrote a letter to Burt and Co. on March 26th, he referred to a man as being his principal who ho knew had been dead for three months. The letter, as a matter of fact, was written purely to gain time. Another letter, in which he had stated that his lawyers had the matter of tho registration of the company in hand, was also untrue, as he had never employed any lawyers over tho business at all. He was aware at this timo that lie could not meet his liabilities, but still thought that he could pull through. McArtney was then examined at some length as to details in connection with the business, and as to what he had done with the £592 14s which had passed through his hands in eight months.

After farther desultory discussion Mr C. A. Louglinan, the only secured creditor, and tho ono who had seized tho machinery and plant in satisfaction of his claim, 'said he would make an offer for tho purpose of compromise of all claims against tho debtor. The offer which was put in writing, was as follows:—(1) I will account for all monies held by me oil the realisation of tho stock and plant. (2) I take over the horse for £25, writing that amount off my claim. (3) On tho declaration of the dividend I rank pro rata with all creditors, Hut all costs, charges and commissions under the bankruptcy are to be charged to the dividends of creditors other than myself. _ The. meeting decided, on the motion of the representatives of Messrs Duthie and Co. and Burt and Co., that Mr Loughnan's offer should be accepted, and, further, that a public examination was not desirable.