BANKRUPTCY.

New Zealand Herald, Volume XXV, Issue 9145, 29 August 1888, Page 3

BANKRUPTCY.

MEETING OF CREDITORS. A meeting of creditors in the estate of John Foster was held yesterday. Present: The debtor and his solicitor; creditors, Mr. S. Heskcth (for Vickers, of London), Cooper, Dufaur, Hunt (for Lamb), Reid (for Heleneville Timber Company), and Power (for A. Buckland). The meeting was an adjourned one. Mr. S. Hesketh, on behalf of Mr. Vickers, applied to be allowed to reduce the valuation of the mortgaged property, and increase his claim against the estate. The matter was discussed, and the teeling of the creditors present was adverse to the proposal. A motion was proposed by Mr. Dufaur that Mr. Vickers be allowed to amend his proof of debt by reducing the valuation of his security to £800, thus increasing his claim against the estate to £1102 lOe. It was pointed out that this? alteration would swamp the estate, which was now equnl to only about 2s 6d in the £, the available assets being only about) £500. Mr. Dufaur's motion was nob seconded. A motion was then earned thab the discharge of the bankrupt be facilitated, after which the meeting adjourned until Thursday, at half-past two p.m. ADJUDICATION. James Maaon, nurseryman, Remuera, yesterday filed a petition in the Supreme Court to be adjudicated a bankrupt. MiMason is another victim of the Land Syndicate transactions.

William Stephekson, recently adjudicated a bankrupt on a creditor's petition, made the following sworn statement before the Official Assignee yesterday :—I have been a building contractor for many years in the Auckland province, and for the lasfc eight years in Auckland city. During the latter period I have had a partner on two occasions—the first, one left me four years ago ; the second one (Mr. Blaikie) joined me on the 10th December, 1886, when I signed the contract for the additions to the W hau Asylum, amounting to £12,453. A deed of partnership was executed. Mr. Blaikie put in £1000 against my services and experience, with the understanding that profits should be equally divided after an allowance of £3 per week to me and interest on Mr. Blaikie's capital. At first some of my money was used by the partnership, but this was afterwards refunded. Prior to June 30th, 1887, I was taken seriously ill, and was laid up for three months. When just on the point of recovery (about the date named), Mr. Blaikie gave me formal notice that our partnership was dissolved from June 30th. The financial position at this time was a considerable overdraft) at the bank, and an indebtedness of £2368 12e 6d for material, etc. It was out of the question my facing the work alone, and consequently the Government authorities came down on the surety, who engaged me to continue the work at a remuneration of £2 per week, with a sort of understanding that if there was a profit I should geti a bonus. The contract was finished and taken over early in June last, when a final settlement was effected with the Government, and the balance, as agreed, was paid on the 27th July, and deposited to my trust account at the bank, at which time there was a debit balance of £1111 10s 4d; the payment reduced this to £437 18s 6d, and it has since (on Augus" 4) been increased to £536 Iβ 7d, by a payment £98 3s Id for. a debt contracted up to April last, and for which a three month bill was given. I have no idea why tht> bank retired this bill. I do not think my surety authorised them to do so. (Bank pass-book put in.) In addition to the present bank overdraft (£536 Is 7d) there are seventeen unsecured creditors, for material, &c., supplied to the Whftu contract, amounting to £1477 13e 6d. I have also a few private debts—probably aboub £30—but none of them have pressed for payment. A creditor for £298 sued me and got judgment. I was pressed to file, but could not see my way to comply, feeling that I had no sort of interest in doing so, and upon this I was made a bankrupt under a creditor's petition. I considered Mr. Blaikie was responsible, equally with myself, up to June, 1887, the date of the dissolution, and of my present scheduled liability, I consider £23216s 8d was incurred prior to that date. (Statements A and B put in.) I explained all this at a meeting of my creditors held about a month ago. Since the surety took over the contract, all moneys received on account of ifc have been banked, i.e., since June, 1887, and tht pass-books will show how it has been disbursed. Since June, 1887, Mr.Blaikiehas had out of the moneys of the contract the following sums :—July 20, 18S7, £71 Is 8d ; October 29, 1887, £81 17e 9d; December 17, 3887, £150; January 6, 1888, £10 2s 6d ; February 20, 1888, £150; May 20, 1888, £83 2s 5d ; July 13, 1888, £85 7e 2d. The two items of £150 each are refunds of the deposit meney under the contract, the rest of the items are for goods supplied by Mr. Blaikie, and delivered since June, 1887. As all the money had on account of the contract was banked, the pass-books will show what the surety has drawn. To the best of my knowledge and belief, he has only been paid for material supplied for the Whau contract. I have made no payments whatever since June, 1887, without the concurrence of the surety, for whom I was simply acting as a paid servant, although the Government looked to me as the contractor. I have absolutely nothing in the nature of assets except the household furniture and effects, worth about £40, over which there is a bill of sale for £21. I have not the slightest prospect at present of paying my debts, and have no suggestion to make i» the way of a compromise.