AN OLD BANKRUPTCY.

New Zealand Herald, Volume XLI, Issue 12660, 14 September 1904, Page 3

AN OLD BANKRUPTCY.

LARGE CONTINGENT INTEREST INVOLVED. The bankruptcy of R. Knibb Davis, a mineowner and large speculator, which took place in Auckland in 1886, is being revived, and a meeting of creditors was held at the official assignee's office yesterday forenoon: Mr. E. Gerard, official assignee, presided, and there were 13 creditors present or represented. - The liabilities in the estate amount to £10,235 3s Bd. ' Mr. McVeagh (for Messrs. Russell and Campbell), who appeared on behalf of the bankrupt, stated that no dividend had been declared in the estate, and the only moneys paid out was a i4s dividend to wages creditors, leaving 6s in the £ due to them. Referring to more meant events Mr. MoVeagh said his firm had been instructed by a firm of solicitors in Sydney, where bankrupt waa at. present residing and in the employ of Messrs. B. Murray and Co., that he waa entitled to one-sixth interest in an invested sum of £13,000,: contingent on his surviving his sister-in-law, who was two years his junior.' Bankrupt was 63 years of age, he was experiencing a hand-to-mouth, existence, and was suffering from a rupture, ;bo the prospect was bankrupt would predecease his sister-in-law. The Sydney firm of solicitors suggested a compromise of 3d in the £, several friends having guaranteed £200, providing it would be accepted in full settlement of all liabilities in the estate. He said very scant information was available, unless paid for, in regard to this contingent reversionary interest to which the bankrupt might possibly become entitled. It was invested in a trust in England. Mr. S. Nathan said it all depended whether the interest was contingent or invested. Rather than accept so small a dividend , as that proposed he would. take the chance of the bankrupt becoming possessed of the money. The Official Assignee remarked that when he was first approached there was so little information that he refused to help the matter along, and intended to oppose any motion for annulment until he was made cognisant of the whole position. Quite recently he was approached from another quarter, and getting a little more information considered it desirable to ' call the creditors together. ; It was important to know who was entitled to the money if the bankrupt predeceased bis sister-in-law, and he counselled the creditors not to accept a compromise without having the fullest particulars before them. " Mr. Andrews (representing the D.5.0.), a trustee in the settlement of Mrs. Davis' estate, said he A had been informed by a trustee of the fund * that the money was to go, to R. K. Davis and his heirs. The family at Home had refused to allow Mr. -Davis to meddle with the fund. If Mr. Davis died the money would come to the official assignee _ arid Davis' family. In „ a letter 3 recently received from Mr. Davis he was surErised to learn that an offer of 3d in the £ ad been made to the creditors. Under the circumstances Mr. Andrews assumed that the solicitors were representing someone who was offering Mr. Davis a certain sum for his interest in the fund. Mr. McVeagh said he had given all the information that had ; been communicated to Messrs. 'Russell and Campbell, and he : had had no means, of. verifying it, so he could not vouch for its accuracy. l In reply to'a query by the official assignee regarding a previous suggestion,-; Mr. McVeagh stated that at that time the information supplied was very vague, and i simply stated that the bankrupt was entitled to a i contingent interest in a fund, the amount of which was not stated. Both the firm of Sydney solicitors and Messrs. 8.. Murray and Co. (with the approval of the solicitors) had been instructing Messrs. Russell and Campbell. ' The Official Assignee conjectured that Mr. Davis, with some ulterior motive, was,, trying to dispose of his interest at a certain sum which would give h:*m a considerable benefit after paying the proposed 3d in the £. ' I -' - ■ -.■''• ' - Several creditors agreed ; with the official assignee that such a tiling was likely. Mr. Andrews said he understood from a communication from Mr. Davis that the solicitors .were not acting for him, but for a party who was trying to buy his interest in the fund. , :; Mr. McVeagh, in suggesting the adoption of the proposed compromise, pointed out that the bankruptcy was an old one, the bankrupt; was an elderly man, tnd his means of livelihood appeared to be of a precarious character. ' ' «i,''v, "And against that,'' replied the Official Assignee, " the bankrupt is not so deserving as he might be." ' ~,,,.,. Mr. Andrews informed the creditors that the fund under notice did not exist at the time of Mr. Davis' bankruptcy; it washestablished about two years afterwards. Mr, Davis had some rich relatives. The Official Assignee said be had no funds in the estate, but would make further inquiries into the fund and the bankrupt's interest therein. > ;t . - : . __ Mr. Cave (representing the estate of Mr. John Abbott, deceased, the largest creditor) suggested that the official assignee be placed in the position that he could make a claim on the fund for the benefit of the creditors. . After a little further discussion it was decided, on the motion of Mr. John Chambers, seconded by Mr. S. Nathan, " That the official assignee be given power. to make inquiries at Home, through his solicitor, in regard to the fund, and protect any interest in the estate for the benefit of the creditors." "■. . ::■ .