BANKRUPTCY.

New Zealand Herald, Volume XXIX, Issue 8886, 24 May 1892, Page 3

BANKRUPTCY.

ESTATE OF ISAAC McLEOD. A meeting of creditors in the estate of Isaac McLeod, storekeeper, Helensville, was held yesterday in the ollice of the Official Assignee. PresentTho debtor and his solicitor (Mr. Armstrong), and the following creditors : Messrs.. Buchanan, Smith, Littler? Douglas, Downie, and Reynolds (for Messrs. Metcalfe Brothers). '

In answer to a question by Mr. Littler, the debtor said he had arranged to transfer certain machinery at Helensville to Mr. Deacon eighteen months ago for the balance (£175) of money borrowed three years ago. Mr. Littler said he could prove this property was in the debtor's possession seven months ago. The debtor was then put on oath, and in reply to the Official Assignee, said he had not told Mr. Littler or anyone else that this property was his within tho last seven months. To tho best of his belief it was eighteen months since he parted with it. He had collected rents on behalf of Mr. Deacon up to January last. He did not believe lie had told anyone either that the property was his or that it was Mr. Deacon's. The Official Assignee asked Mr. Littler what proof lie had to oiler. Mr. Littler said lie had heard it from somebody else. The Assignee said he could not accept that as evidence If proper evidence were produced it might result in the property being claimed for the estate. After some discussion it was resolved, on the motion of Mr. Buchanan, seconded by Mr. Reynolds, '• That this meeting having heard Mr. McLeod's statement with regard to his affairs, is satisfied with it as far as it goes (at the time of tho meeting only a portion of the statement had been taken), and that the Official Assignee be requested to do all in his power to facilitate his discharge provided the result of his investigations warrant tho same."

The book debts were scheduled ab £1200, rind estimated to bo worth £200, bub Mr. Littler said they were nob worth Id in the £, as they were chiefly owing by Maoris. The debtor agreed, for the convenience of the estate, to collect the debts outside of Helensville for a commission of 25 per cent. The debtor's complete sworn statement was as follows " 1 started business three years ago as a storekeeper and timber merchant at Helensville. By the aid of a friend who allowed me to draw upon him for £300, I took over some bush contracts from the estate of P. and 1. McLeod. I had no capital of my own. I let these bushes to contractors, one of whom let me in for £180. By another bush contractor in the district, who had a big job on hand, 1 lost £197, value of supplies. In a similar way I made several smaller losses by bushmon. I joined in partnership with Mr. Clinkard in a bush, and did very well out of it until a cargo of timber was thrown on our hands at Adelaide, involving a loss of about £400. We also sent a cargo of timber to Mr. Guthrie, of A lawsuit was involved in this transaction, and I estimate my loss over this affair ab £100. I started a gutnfield on the Wairoa, for which 1 had to pay £50 per quarter in j advance to the native owner, part of the arrangement being that I should work out ! a sleeper bush. I let the splitting of these

sleepers, and when they were gob to Helensville more than half were rejected by the Government Inspector, and to make matters worse I lost a cargo at the Kaipara Heads by shipwreck. I estimate my loss on the sleepers at £110. My available cash and stock of goods ran very low, necessitating my buying gum for cash instead of goods which left little or no profit. I tried to sell out and was offered £250 for my interest in the guinfield, stock at cost price, and book debts as they stood. At this time I was in arrear with my rent, and the native owner let this be known. This prejudiced my position, and in the end I only got £50, instead of £250 for my interest in the gumfield, and £110 for the stock-in-trade. The buyer would not take the book debts over, which amounted to £11200. I valued the book debts now at £200. These are my only assets, except about £20 worth of plant. The household furniture was willed by my first wife to her children. My unsecured liabilities amount to £895 7s Id. The overdraft of £306 Is 5d is admitted by the bank to be fully secured by an anticipated surplus from securities held on account of an old debt belonging to the estate of P. and I. McLeod. My wife is interested in certain shipping, namely, the cutter Emma and the schooner Opotiki. In November last the cutter Emma was bought in my wife's name from Mr. Schnauer, of Onehunga, for £150, which was paid as follows, namely : £75 was borrowed from Mr. Stewart, £50 paid in instalments deducted from the cutter's earnings, £22 by promissory note cashed by Mr. John Abbott, with the understanding that it should bo met out of the cutter's earnings, and the remaining £3 was paid by my wife. The schooner Opotiki, which was under charter at £10 per month, was put up for sale about January last, and was bought in my wife's name for £50, through Captain Rawson, with the understanding that the money should bo paid out of the vessel's earnings. No part of the purchase money of either of these vessels has been paid out of funds belonging to my estate. About November last I borrowed £25 from Mr. Downer. If ho says that I told him this was for the purpose of purchasing one of the vessels ioned, he must have misunderstood me, as the money so borrowed was intended for use in my gum business, and was so used by me. It is true that at this time negotiations were pending for the purchase of a vessel, and in this way the misunderstanding may have arisen.