BANKRUPTCY.

New Zealand Herald, Volume XXIII, Issue 7693, 19 July 1886, Page 3

BANKRUPTCY.

Debtor's Examination.

Thomas Cole, a partner in the firm of Williams and Cole, fishmongers, was examined by the Official Asignee on Saturday in regard to the bankruptcy of the firm. He stated that he had carried on business in Auckland for many years, and was never otherwise than solvent, and was so DOW in regard to his legitimate business. About nine months ago he lent Mr. F. Williams £50, and it wa& duly repaid, and he lent him another £50, which had never been repaid. Subsequently he entered into partnership with Mr, Williams, with a view to utilising the leased premises, but on the distinct understanding that he was not to take an active part in the business, and in the agreement there was a proviso that each should draw £3 per week, and he was to pay in £300, viz , £150 and three promissory notes of £50 each at four, eight, and twelve months, On the second week of the partnership, instead of receiving £3 he had to pay £11 to make up the wages due to fishermen, and on the third week Mr. Williams wanted him to advance £17 for a similar purpose, but he declined ; but about a month afterwards ho had to pay £9 into Court to stave off a judgment. He could not apeak positively as to his partner's private drawings, but his own did not average 208 per week, allowing for the £18 advanced. He met the first promissory note duly, but the second was dishonoured. About four months ago he endorsed a promissory note for £50 for the partnership purposes, and was not a party to its renewal, although he knew that it was renewed, but it was not until he saw it in the Gazette that he was aware it was increased to £70. Had he been asked for consent to a bill of sale covering the partnership property he should have objected on the ground of injustice to other creditors. It was generally known that he was a partner with Williams, all though taking no active part in the business, and no attempt was made to conceal it. The causes referred to in Williams's sworn statement as to their difficulties were perfectly true. As to witness's private or separate estate, he owed £266 Is '2d; and his assets were as follows Stock-in trade, £120; book debts, £130 ; and furniture. £25; showing a slight surplus. He had filed separately for the express purpose of protecting his private creditors. He held a £500 life policy as security for the £50 he lent Williams before the partnership, and he believed there was a credit balance of a few pounds at the bank, but beyond what he had disclosed he had no assets whatever.