BANKKUPT CRITICISED.

New Zealand Herald, Volume LII, Issue 15834, 3 February 1915, Page 9

BANKKUPT CRITICISED.

AFFAIRS OF A BAKER.

DEED OF TRUST IN QUESTION

some severe criticisms were expressed at i meeting yesterday of creditors in the bankrupt estate of Arthur Beaumont Boyce, baker, of Cambridge, regarding the actions of the debtor. Authority was given to the official assignee, Mr. W. S. Fisher, to take proceedings with a view to establishing a claim on behalf of the creditors to some property, in which the bankrupt is believed to have an interest. The first meeting of creditors was held on August 11, when statements were made by the bankrupt that Ms liabilities to unsecured creditors amounted to £461 15s, against which were assets valued at £476, including book debts, estimated to bo worth £156, and a bill of sale assessed by Boyce at £320. The bankrupt had filed a petition consequent upon a magisterial decision declaring him the undisclosed principal in a business, and he disclaimed liability for the debts for which ho was then held responsible. The creditors appointed the official assignee and two of their number to superintend the realisation of the estate. Explaining the results of the inquiries made during the past six months, Mr. Fisher said it had been found that the bankrupt had an Interest in some properties, which had not been disclosed by his schedules. A ileed of trust had been produced to show that the bankrupt's interest was not of pecuniary value, but inquiry had shown :hat the proceedings to make the bankrupt liable for the debts contracted by a man lamed McLennan had been started more :han a year before this deed had been executed, and a legal opinion, which he wd obtained, recommended that proceedngs should bo taken to secure, a declarition that this deed was invalid against he official assignee. Mr. Fisher declared that the bankrupt's ■onduct had been very unsatisfactory. He lad stated that the goods covered by a )ill of sale were worth £320, but they lad actually realised only £30. Mr. Wisher read a report by the auctioneer ivho had sold the goods, in which he stated that certain goods had been •emoved by the bankrupt before the sale, Mid the latter had apparently sought to obstruct the sale. "Boyce has been most ;vasive and gave me no assistance whatever, " the auctioneer added. Mr. Fisher said that two horses had been left in the care of bankrupt's brother, who had been using them regularly, "and now Boyce has had the impertinence to send me a bill for £47 10s for horse feed," said i Mr. Fisher. The assignee said that after paying the costs of the bankruptcy proceedings, a little over £30 remained in the estate. He asked the creditors whether they wished any action taken in regard to the •properties included in the deed of trust. Both were undoubtedly of value. "If we allow a thing of this kind," Mr. Fisher remarked, "it simply means that anyone having property, who sees things are getting critical, has only to execute a deed of trust in favour of some relation, get rid of his debts by bankruptcy proceedings, and have the property to go on afterwards. Mr. Fisher said the money realised from the estate would pay only Is 3d in the £, and he suggested that it might be devoted to further proceedings. Unless the bankrupt could give a satisfactory explanation of the deed of trust the creditors would have proof positive that the transaction was a fraud against them. A Creditor: I think the case calls for searching examination. We should make an example of this man. Mr. Fisher: It is a disgraceful bankruptcy. Mr. Fisher added that the bankrupt's interest in the property would be sufficient to discharge all his debts. Authority was then given by unanimous resolution to the official assignee to take proceedings forthwith to have the :leed of trust declared void against the creditors of the estate.