BANKRUPTCY.

New Zealand Herald, Volume XXIV, Issue 7903, 23 March 1887, Page 3

BANKRUPTCY.

Dunningiiam and Kino.—A. meeting of creditors in this estate was held yesterday at the office of the Official Assignee. Present : The debtors and their solicitor, and Messrs. Morrison (New Zealand Frozen Meat Co.), King (for self and King and Whewell), Seocombe, Protheroe (Suiter and Co.), Fisher, Sibburn, Fitzsimmons, Evans, Geddes (Brown, Barrett, and Co.) The following resolution was passed, on the motion of Mr. Geddes, seconded by Mr. J, King, Mr. Morrison dissenting, "That Mr. Dunningham bo allowed to retain furniture to the amount of £60, in addition to the piano." It was also resolved, on the motion of Mr. Seccombe, seconded by Mr. Fisher, "That the Official Assignee facilitate the discharge of the bankrupt." A meeting was subsequently held of creditors in the private estate of D. Dunningham, at which similar resolutions were passed, on the motion of Mr. King, seconded by Mr. Armstrong, with regard to D. Dunningham. A meeting was subsequently held of creditors in the private estate of G. W. King, at which it was resolved, on the motion of Mr. Tapp, seconded by Mr. Berger, " That the creditors present sympathise with the bankrupt in his prosent unfortunate position, and unanimously recommend the Official Assignee to facilitate his discharge." _ A request was made from 'the debtor King to retain £25 worth of furniture, but as it appeared that he had none except what was part of the joint estate, the application was referred to Mr. Cave for a legal opinion, as to whether it could be granted. The opinion given by Mr. Cave was as follows — "That a bankrupt might retain certain portions of his estate not exceeding £25 in value, is regulated by section 71, subsection 2, of the Bankruptcy Act, 1883. The articles then mentioned remain the property of the bankrupt, and do not vest in the Official Assignee. In the present case, tho bankrupt's furniture, which is really part of the stock-in-trade of the partnership business, cannot be appropriated by the bankrupt under section 71, and unless they severally have separate property, to which the provisions of the section would apply, 1 do not see how the allowance can be obtained." The Official Assignee said he could do nothing towards making the allowance, unless the consent of the whole of the creditors was obtained. The debtor said he could obtain the consent of all the creditors. The Official Assignee said in that case he should make no objection* The following is the sworn statement of G. W. King : I have been in partnership with Mr. A. Dunningham since 1871. We carried on business at the Governor Browne Hotel from that time until the 15th instant, when we filed the petition of insolvency. I have had Mr. Dunningham's sworn statement relative to our joint affairs read to me, and ( to the best of my belief it is substantially correct in all the particulars. It was part of my duty to keep the books, consisting of daybook, cashbook, and ledger, kept in tho manner usually adopted by hotelkoepers. During the whole of the 16 years we never deemed it necessary to strike a balance or prepare a statement showing our financial position. We uever formally divided the profits, simply drew money as we required it. We were guided in our private expenditure by the amount of business and available cash in hsnd. The cashbook shows the partnership drawings for the whole period, but these were never posted in the ledger. I was in the habit of only using the ledger for customers' accounts. I could prepare a statement of receipts and expenditure over any given period, but if it went far back it would take a very considerable time to do it. The books were alwaya kept up to date. Tho schedule referred to in my partner's evidence yesterday is not, in several respects, acourate, owing to. the time at my disposal being insufficient. An amended statement is being prepared, hut cannot be ready for to-day's meeting. As regards my private estate, my liabilities do not exceed £20 ;my assets are nil. I have absolotely no money or property whatever except clothing and a few personal effects.