AN AFFLICTED BANKRUPT.

New Zealand Herald, Volume XLV, Issue 13875, 8 October 1908, Page 7

AN AFFLICTED BANKRUPT.

UNABLE TO EXPLAIN. PECULIAR PROPERTY DEAL. A meeting of creditors in the bankrupt estate of Patrick McLoughney, storekeeper, of Tikinui, an Imperial pensioner, 72. years of age, was held yesterday morning at the office of the official assignee, Mr. E. Gerard, who presided. Mr. Buddie, bankrupt's legal representative, stated that his client (who was present), was in such a state, mentally, that he could not give a clear account of his assets and liabilities, nor the cause of his bankruptcy. .He suggested that, in the circumstances, tlio official assignee .would have to do the best lie could with bankrupt. The assignee thereupon endeavoured to obtain a succinct statement of his position from bankrupt, but was unable to do so. Hence Mr. Gerard considered lb unnecessary and improper to put him upon his oath. • Mr. Hudson (L. D. Nathan and Co.) elucidated the position of the estate to some extent. He stated that his firm had a mortgage over certain leaseholds belonging to bankrupt, with the right of purchase. The Government valuation, of these was considerably over £500. The Advances to Settlors . Office had a mortgage over them of £300, and Messrs. L. D. Nathan's mortgage was for £500. Mr. Hudson stated, further, that bankrupt some years ago bought the equity in another section for £150, and that during the last ■ six months lie was said to have Sold this equity to his son's wife for £50. The Government valuation of this land was set down at £480. , Mr. Hudson considered that if such a - transaction as stated took placo. it was not a bona-fide one, and that it could bo upset under. the Bankruptcy Act. Such a proceeding would then make this asset available for the general creditors. Bankrupt was, ho said, an honest man. The assignee said that immediately he had received information as to the alleged transaction referred to by Mr. Hudson, ho had 'lodged a caveat on the property to prevent further dealings. On examining bankrupt, it appeared clear that he had had no intention to make over his title in the property to' his daughter-in-law, without the latter first paying his debts. Bankrupt also stated very definitely that he had never received a consideration of £50, as stated in the deed of transfer, but that his son's wife undertook to pay his debts and pay him £50. . ' . ... . The meeting resolved, "That the creditors present authorise the official assignee to take any action ho may . deem necessary to revest in the bankrupt's estate the property the interest in which was in 1907 disposed of to his daughter-in-law, and that the creditors agree to indemnify the assignee pro rata to their claims, in - regard to any expenses ho may be put to in the matter." The meeting was adjourned sine die. . AN OPOTIKI CASE. A meeting of creditors in the estate of Charlie Boyles, of Opotiki, was held before the official assignee, Mr. E. Gerard, yesterday afternoon. . The total unsecured liabilities were £158 lis 6d, and the assets, according to bankrupt, who did not appear, left a shortage of £49. Mr. Gerard's agents at Opotiki, however, state that the assets are only nominally worth £50. "At the same time," said the official assignee, "I do not think there is any question, that he has misrepresented his'assets." Mr. Stewart (representing Messrs. Sar-, good, Son, and Ewen) said that bankrupt had written to his firm a year previous stating that his prospects had never been so good.' . Mr. Gerard mentioned that he belieyed bankrupt had committed a fairly serious offence under the Act. Mr. Stewart:' If there has been any funny business, it should come out. Mr. Gerard Of course, steps taken in that direction would not increase your dividend, but they woitfd shorten his liberty. lb was finally resolved that the assignee should make the best arrangemen ts he could regarding the disposal of the stock, and the meeting Was adjourned sine die. 1