BANKRUPT FARMERS.

New Zealand Herald, Volume XLV, Issue 13816, 31 July 1908, Page 7

BANKRUPT FARMERS.

AFFAIRS OF THOMAS JOHNSTONE.; [by telegraph.—own CORRESPONDENT.] Hamilton, Thursday. The adjourned meeting of creditors in the estate of Thomas Johnstone, farmer, of Hamilton, was held in the courthouse, before Mr. E. Gerard, official assignee, yesterday. Mr. A. Swarbrick appeared for the petitioning creditors and others, Mr. Watts for Messrs. • Green and Colebrcok, Mr. Gillies for Mr. Molesworth, Mr. Northcroft for bankrupt, and Mr. S. Lewis for Mrs. Nixon. . William Goodfellow, local manager of the TTTm of Messrs. Green and Colebrook, said lie had the principal dealings for the firm in connection with securities given by the bankrupt over the property and chattels. The form that the securities took was arranged by his solicitor, Mr. Watts, and also Mr. Northcroft. Mr. Watts was.. his principal solicitor; Mr. Watte said he had no desire to keep anything back from the meeting: but' in view ox a possible action in the Supreme Court, anything which occurred between Mr. Goodfellow and himself should bo privileged. •- In the course of examination, Thomas j Johnstone said he knew, he owed between | £300 and £400 to the Farmers' Co-opera- ; tive Society. Mr. Watts served him with \ a notice under the bill of sale. He could I not remember what happened to* him on the day of —the most eventful day of his life. ' Mr. Gerard Then the sooner you go into an asylum the better. ~ Bankrupt, continuing, said he had since made over absolutely all he had in the world to Green and Colebrook. i ■ Mr. Gerard stated that a,, proper accountant's examination would have to be made, in view of a very possible prosecution. . • ■- / ' '.. Witness, considered that in the early part of the year he was in a sound financial position. He had never represented to anyone in Hamilton that he had £7000 in the bank, and. denied stating that he was coming in for a legacy. A : long discussion then ensued regarding the Tokomaru property, and the documents in. connection with the sale from Johnstone to Albrechtsen and Johnstone's repurchase of the property were put in: The conclusion arrived at was that the property, over which Watch horn holds the first mortgage, and Litchfield r second mortgage, still stands in the ."name of . Albrechtsen, no transfer, to Johnstone having been made, and that Johnstone's interest in the property amounted to nil. As the property is now being sold under the second mortgage, it was decided to drop this asset out of the calculations altogether. Mr. Gerard said he had submitted the matter to the Crown solicitor, who was of, opinion that Green and Colebrook's position was bad, and' he thought he would be justified in spending the creditors' money in removing the mortgage. He asked Mr. Watts whether he- wished to be allowed time to consider the matter, whether he intended to adhere to his proposed line of action, or whether in order,to remove the mortgage he '.. (the official assignee) should enter upon an action. Mr. Watts said if Mr. Gerard would allow him the use of his notes, he would take further advice on the matter, but tinless he was advised very differently he would not consent to the removal of the mortgage.: '■-■■■■. •: -: - The proceedings closed shortly before midnight. * ;• A MASTER!ON CASE. [by telegraph^-—own CORRESPONDENT.] Masterton, Thursday. The bankruptcy petition has been filed in Masterton of Christopher Heaton Smith, The liabilities are set down at £1071, and assets £1070. There are only four creditors, all unsecured, as follows:—Dalgety and Company. £98; Abraham and Wil- : liams, £620; W. and C. A., £24; N. Z. ; Loan 'and Mercantile Agency. Company, £329. The assets comprise .the 'lease of 349 acres (valued at £430): furniture £200, stock and. implements, £450. Bankrupt in a written statement attributes his bankruptcy to losses .on forward delivery consignments of stock. . ~ :