BANKRUPTCY.

New Zealand Herald, Volume XLII, Issue 12955, 26 August 1905, Page 7

BANKRUPTCY.

MEETING OF CREDITORS.

A FLAXMILLER'S INSOLVENCY.

At the official assignee's office yesterday afternoon the first meeting of creditors in the estate of Herbert Isaac Marsh, flaxmiller, of Matata, bankrupt, was held before the official assignee (Mr. E. Gerard). The bankrupt was present fot examination, supported by his solicitor (Mr. F. Earl). The creditors present were: W. Savage (represented by Mr MaeCormick), £562 5s 3d; A. H. Ferguson (represented by Mr. Russell), £68 13s; Leyland and O'Brien (represented by Mr. J. J. O'Brien), £17 15s 3d; J, J. Craig, Limited (represented by Mr. E. A. Craig), £79 18s lOd; Arthur H. Nathan (represented by Mr. Keesiiig), £17 3s_ lid; and A. H. Ferguson also held proxies from Spooner and Co. and Jordan and Son for small amounts. Mr. H. IP. Oakden represented Murray, Roberts, and Co., and Mr. A. W. Blair represented F. Lees, but neither creditor had put in proof of debt, and Mr. F. W. Smith represented the secured creditors, Messrs. Levin and Co. The total amount of unsecured debts w»s £707 6s lOd, and the secured creditors held security for £949 Is. In his statement the bankrupt stated that he was in business as a butcher at Bulls for fivo years, and then he took up Priestley and Wallace's flaxmill, at Matata. He then had £275 in hand, and book dehts valued at £517. He agreed to pay £750 for the flaxmill, and £50 for sundries, and paid it with £75 cash deposit, £400 wowed from Murray, Roberts, and Co., £100 cash of his own, and £175 in promissory notes, £50 being afterwards paid from -nill earnings. He had had no previous experience of the business, and started work at the on-J of June. Ho started to acquire flax rights and agreements, which were now in possession of Mr. Oakden, Levin and Co.'s representative. On October 17 a shed, containing a large quantity of fibre, was burned, and the loss was over £600. He lost control of the native labour during delay in replacing machinery. Burns and Co. held security foi the £175 promissory notes, taken over from Priestley and Wallace. In March, 1905, Levin and Co. took over the security held by Burns and Co., and paid off Murray, Roberts, and Co., and then advanced £700, and made further advances, which carried him on until cheques were returned, and Levin and Co. refused to make further advances. The natives wouid not work, and he was helpless. The mill, flax rights, and plant were worth £1400 to £1500. He had a wife and /our children, and could make no offer. His solicitor, at Feilding, valued the book debts at Bulls at only £50 now, and Mr. Oakden valued the Matata plant and rights at £1000 only. In his statement on oath, the bankrupt stated the galvanised iron shed burned was 24ft by 20ft by 10ft high, and it was full of fibre. " The shed alone was worth about £40, and the re-erection with old material and, new roo,f cost £19. Levin and Co. advanced tho money on condition that Murray, Roberts, and Co. were paid off. O f the £700, he gave £400 to Murray, Roberts, and Co.; Burns and Co. received £104 3s lOd for the promissory notes, and £175 for their other security. He did not think tnafc in May last his assets were sufficient to meet his liabilities. If Oakden had kept nim going he would have pulled through. Mr. Lees acted as his banker, and was to receive fibre. He thought this arrangement was made after ho (bankrupt) issued eight cheques for wages, etc., which were dishonoured. He gave a second bill of sale to Mr Lees, wiring to his manager to put all the scutched fibre into Lees' shed, Lees to hold possession, and retain 16 or 17 bales, the proceeds of the remainder to be divided amongst the wages men. He- knew the balance was not sufficient to pay the wages. The telegram was sent two days before he signed the second bill of sale. He expected eight or nine tons to lie scutched before finishing, but only five tons and a-half were turned out.

The a-rsignee messed the witness for further elucidation of his affairs, and, at his solicitor's suggestion, the meeting was adjourned for a fortnight, to enable him to provide a fuller explanation.