IN BANKRUPTCY.

Manawatu Times, Volume LXIV, Issue 170, 27 July 1907, Page 8

IN BANKRUPTCY.

A meeting of creditors in the bankrupt estate of JbC. McArtney wan held at the office of the D.O.A. yesterday afternoon. Bankrupt's statement showed that he started business early in September, 1906, as manufacturer of spouting, ridging, downpipes and lead headed nails. About this time the building trade in Palmerston began to fall off, and all material used in his business began to rise in price and has continued to do so ever since. Not finding a ready sale for his goodß he travelled as far as Otaki, Foxton. Dannevirke, Masterton, Hawera, and Taihape, calling at all towns between for orders. He had just got a connection which would have grown when his creditors began to press him, and he whs obliged to file. The total debts amounted to £332 17s 7d, and the assets £114 18s 9d, leaving a deficiency of £217 18s lOd. The unsecured creditors are:—Duthie and Co. £76, J. Lysaght and Co. £56 7s 4d, A. T. Bent and Co. £49 0s 6d, Palmerston Gae Co. £6 lis, W. Woods Bs, Buick and Young 10s, N.Z. Drug Co. £1 4e 9d, D. Tod £6, Hankin land Loughnin £113s 6d, D. St. John £1 7s 6d, T. Shields £5, In answer to Mr Cooper bankrupt stated that he started business with practically nothing and borrowed £225 from Messrs Hankinsand Loughnin, which he put into the business , and purchased machinery, etc. He denied having represented to the Weliington merchants that he was going to form a company. He admitted under pressure writing a letter to Messrs A. and T. Burt about an account, and saying that his chief was not well and could not sign the cheque at present. He knew at the time that he had no partner, and that the person he referred to had been dead three months, " Well, said the D.0.A., I have heard of some strange cases but that takes the cake/' Bankrupt, in answer to further questions, said he employed no solicitors as referred to in the letter, and that the contents were not true. What he required was a little extra time to pay. He knew at this time that he could not meet his liabilities. Mr Loughnan, who bad advanced him nfttfgy, came round and took the stock and machinery, which bad since been sold. Mr Loughnan made the following offer for the purpose pf compromising all claims against the debtor. He would account for all moneys held by him on account of the realisation of the stock and plant, would take over the horse for £25, writing that Account off his claim. On the declaration of the dividend he would share pro rata with the other creditors, but all oosts and charges and commission under the bankruptcy were to be charged to the dividend of ther creditors other than himself. The offer was accepted, and the creditors present considered that there was no occ&ion for | a public examination. ! , yp- '