BUILDER'S BANKRUPTCY.

New Zealand Herald, Volume LIV, Issue 16665, 9 October 1917, Page 6

BUILDER'S BANKRUPTCY.

a UNUSUAL FEATURES. } 1 ' PARTNER REFUSES TO FILE. - A somewhat unusual condition of affairs in regard to the business relations of two 1 r partners was disclosed at a meeting of j' creditors in the bankrupt estate of Richard i Pattison, builder. Manukau Road, Parnell, j i held at the office of the official assignee, . Mr. W. S, Fisher, yesterday.' The bankt rupt was in partnership with John Brooks, ] and business was carried on under tho' r title of Pattison and Brooks, but the 3 latter had refused to file his petition in , j bankruptcy. There wore about twenty 3 creditors present, represented by Mr. . Hosking. Mr. MoLiver appeared for 3 , Brooks. I r The official assignee stated that the bankrupt had not filed a schedule of his assets and liabilities, nor a statement as to the causes of his failure, but he had , furnished him with a list of unsecured 1 creditors totalling approximately £850. ' Mr. Hosking objected to a proof of • • debt for £246 6s lOd filed by Brooks, • stating that the creditors were fully ? cognisant with the affairs of tho firm. J From time to time Brooks had made J charges in regard to amounts owing by ' | Pattison, ,but in every caso they had proved to bo unfounded. 1 ] Mr. McLiver said that Brooks was pre- "' pared to prove that Pattison had over"l drawn £118 from the firm'B business ac- • i count, but Brooks had under-drawn by! 3 about £30. Pattison, lie contended, had 5 used money which should have been do- i i voted to paying off the firm's liabilities. I 1 Mr. Hosking said that, as the result of ' an earlier private meeting of creditors, an | agreement was drawn up whereby the two ' partners should assign all the assets of the firm to the creditors, and each pay, in ! 1 addition, the sum of £100. Pattison had j agreed to /do this. Brooks said he would 1 think the matter over, and let the creditors } know' later. Ho had " backed and filled," j ? and now absolutely refused to sign any document. He had persistently thwarted r the efforts of'the creditors to arrive at a }. satisfactory settlement. j Mr. McLiver: Brooks has been given 3 . no standing at all. Every time he has tried to effect a settlement he has been i • ignored and persecuted. | ' A motion was then proposed viewing L with displeasure the attitude of John ' Brooks in regard to the request of the creditors, and calling upon him to file his j i schedule in bankruptcy forthwith, failing i i which this mooting authorises the official 1 ■ assignee to commence proceedings to have! • Brooks adjudicated a bankrupt. I 3 Mr. Fisher, to Brooks: Why do you] 1 object to become bankrupt? ,' ' Brooks: • Because of an arrangement ! " that Pattißon should give to the creditors • 1 £200 and 1 should give £100, and that ' when the creditors get my £100 thev will 5 allow Pattison to|keep his £200 to start ' another business. I know ; I saw part of the document. Several creditors protested that this was absolutely incorrect. Mr. Fisher: Assuming that it was correct, what valid excuse nave you for put- ■ ting the creditor si to the unnecessary ex- - pense of making you a bankrupt comt pulsorily? Mr. MoLiver: If Pattison paid the amount which ho overdrew it would not be necessary for Brooks to go bankrupt. ! PaUison said he had not had access to 1 tho books for 16 weeks. "I tried to get ' access to tho books," ho-»aaid, "but I ' found that Brooks had . put another lock on the office, and that is why I have not k been able to furnish a statement. The motion was carried. The meeting decided that the expenses incurred by the creditors' committee be a preferential claim against the bankrupt f estate.