BANKRUPTCY.

New Zealand Herald, Volume XXV, Issue 9179, 8 October 1888, Page 3

BANKRUPTCY.

DEBTOR'S EXAMINATION. William Henry Scbritzky, a bankrupt, made the following sworn statement before the Ollicial Assignee, on Saturday, regarding his affairs : —I came to the colony about thirty years ago with an elder brother. We were jointly possessed of about £3000 in money and live stock. We bought and leased land at Oliora, in the Mangonui districts. We worked together, and having perfect confidence in each other, no deed of partnership was ever executed, nor was there ever any understanding as to the respective interest in the properties we acquired or the profits in our trading transactions. With few exceptions the deeds of properties were made out in our joint names. In this way we carried on successfully until about the date of my brother's death, which took place suddenly on July 4,188-1-. He had always taken the lead in all our business matters, and I never interfered with him. At the time of my brother's death we were jointly interested in a general store business at Ohora, various properties and land, live stock, &c., and a schooner called Swallow. After his death a will was produced. In his life-time he had hinted his intention of making a will, but I was not aware that he had done so until after his death. The will is in his own handwriting, and has since been admitted as legally executed. 1 was appointed by the will as one of two executors, but the other party named refused to act, and consequently I acted alone, with the approval of the parties interested. I decided just to carry on precisely as if my brother were living. About ten months ago the gumdiggers—with whom I did a large business, buying their produce and selling them stores —left their occupation and the district, as they could not make a living on account of gum being so low in price. This was a very serious loss, not only in trade, but about £400 in bad debts. The reason I used the old style, " L. and H. Subritzky," was deceased had a nephew in business in the locality, of the same initials as myself. I cannot say that I notified to the creditors that I was trading on my own account, but think they were all acquainted with the fact that my brother was dead. Stock was taken and valuations made on my brother's death, and I believe these papers are now in the hands of my solicitors. Some of the properties were put up to auction, but none were sold. A property at Onehunga has since been realised. With that exception everything went on as usual. The stock-in-trade, gum-buying, etc., were dealt with just the same, and the transactions passed through the same books, which were not closed at my brother's death. At the time there was no thought of bankruptcy, and I did not see any necessity for being exact, and besides I had never been brought up to business, and my brother had managed everything up to the time of his death. All the debts owing at the time of my brother's death have long since been paid. I am not prepared to say how much I have paid since July 4, 1884, on account of debts contracted prior to that date. I should think it would not be less than £800. The value of the stock-in-trade on the date named might have been £300 or £400. The book debts (native) were then much as they are now, but the European debts were very much less than now. The live stock, as regards cattle, has somewhat decreased, but the sheep have diminished by two-thirds. None have been sold. It is understood the natives have taken them. Some time before my brother's death, he told me that he had deposited all the deeds of property at the bank, for safety, and I am not aware chat they were so deposited for any other purpose. All the present debts have been incurred since my brother's death. I am not aware whether my brother had any liabilities other than those connected with the "joint business. My sister-in-law, her youngest daughter, and a grandson of the former, who is now fifteen years of age, assist me in the business, in return for their maintenance. The block of land and concrete house on the south side of the harbour (Ohora) belonged to my brother, but I was not aware of this until the will was read. The 200 acres of land on which the store stands was claimed in the same way. A few months before he died, my brother purchased the old Baptist Chapel in Wellesley-street West for £2500, leaving £1500 on mortgage at 8 per cent. It earned the interest for a short time, but lias been untenanted for about two years. Its present, saleable value may not exceed the mortgage. For some years there has been an overdraft at the bank, and this has been increased from about £300 at the date of my brother's death to £837 at the present time. The bank holds deeds of our proper ties. They were deposited for safety. To the best of my belief there was no overdraft at the time they were deposited. About five or six months ago I issued a few cheques before I knew the bank had closed my account, and they came back dishonored. About four or five weeks ago the bank issued a writ for the overdraft, i upon which I called a meeting of creditors, j and offered to hand over my estate to ; trustees on their behalf, with the under- I standing that I was to take over the business after the creditors were satistied. The bank insisted upon the full payment of their claim, and refused to listen to an assignment. I believe they were the only dissentients. Upon this I was advised to tile. The store business was for many years almost exclusively with the natives until the advent of gumdiggers, about ten months ago. The estimated surplus from joint securities in the hands of secured creditors amounts to £160. The unencumbered joint assets are valued as follow :—Store building, £50 ; native book debts, £300; live stock, £650 ; poultry, tools, fiat-bottomed punt, boat, furniture, and schooner, £84 : total, £1244. The remainder of the assets consist of :—Stock in trade, £200 ; gum, £480; sugar, £64; European book debts, £200; my interest in sundry properties, £956 5s : total, £1930 ss. I cannot say why my solicitors have put down part of the latter set of assets in the schedule as "joint." The stock, gum, sugar, book

debts have been acquired and contracted since my brother's death. Assuming that these figures are adjusted and stand as now shown, the estimated value of my interest, will be £2552 se, against an unsecured liability of £2076 9e 9d. If the dissentient creditor does not yield to the wishes of the other creditors, I can see nothing for it but a forced sale of the assets, as I have no means at disposal to make any other proposition than the one already made.