AN UNSATISFACTORY BANKRUPTCY.

New Zealand Mail, Issue 1403, 19 January 1899, Page 29

AN UNSATISFACTORY BANKRUPTCY.

A meeting of creditors in the estate of Andrew Moran, grocer, a bankrupt, was held in the Official Assignee's office on Friday morning. There were seven creditors present. The bankrupt was not present, and Mr Gale said that something ought to be done to compel him to attend. The Official Assignee said it was disgraceful, and explained that the bankrupt's absence was an act of contempt of Court. The bankrupt, he said, had paid over £3 16s to Mrs Moran on the day he filed, and ho had informed him that he must repay that amount. At this stage (11.20 a.m.) the bankrupt arrived. The report prepared by Mr E. Gerard, the substance of which appears elsewhere, was then read. Mr Gale said it appeared that a system of professional bankruptcy was growing up in New Zealand. Men got out of their liabilities by transferring their property to their wives, and he hoped the result of the meeting would be that representations would be made to the Government and Chamber of Commerce on the subject. Under examination, the bankrupt said he was bankrupt in 1895, and his discharge was suspended for twelve months. The business was carried on in his wife's name till May, 1895. She had some money of her own—he could not say how much —when they were married. He owed her £IBO at his last bankruptcy. He had £I3OO when he first went into business. Could not say how she got that money. (The Official Assignee: It is very extraordinary.)

His wife had a crt of her own before the first bankrupt y. Mr Gale said it was a remarkable proceeding for a woman to transfer the whole of her business to her husband without any statement of accounts being made. The bankrupt did not know when his wife took over the business whether she was insolvent or not. The value of the stock in the shop now was about £6—you could make a good show with that. Mis wife got financial assistance from her friends, and goods from two houses in town since the bankruptcy. His wifn requested him to make these purchas' <• ' 1 she supplied the money. Mrs Mc ■> amo was placed over the door a v -.-La. ..iter the bankruptcy, and he did not object to this. He admitted that he had said at a meeting of his creditors that he did not care j if they did make him file, he would j start business again next day; but be | denied that he had said this defiantly. ' He admitted that he should have filed two years ago, when Mr Gale stopped his credit. j Mr Wilberfoss asked how the bar!!:- ' rupt could reconcile this statement with one he had made to him that he was getting to windward, and was making . 100 per cent, out of some sauce he was making. j Other creditors said the bankrupt had made similar statements to them. j The bankrupt said that continued j sickness in his family had assisted in bringing about his bankruptcy. j Mr Gale said ho was getting tired of this " sickness business." Mr Townsend was of the same opinion. It was too often used as an excuse by bankrupts. Mr Wilberfoss moved, "That the

debtor be submitted to a public exami nation," and in speaking to the motio; said he was sorry that a criminal in formation could not be laid agains him—he would havo done his best t. put him in gaol. The debtor: Thank you! The Official Assignee said that r public examination would bo expen sive. To do the thing thoroughly ; solicitor would have to be engaged. Mr Gale said it was not a question c' money, and if the Official Assigne' found, after paying the preliminar expenses, he had not sufficient mone • to engage a solicitor ho (the Offici' i Assignee; should ask the creditors t make a contribution for the purpor of securing the services of one to pu' licly examine the bankrupt. He co. dially seconded the motion. Mr Townsend said the different fltat [ ments made by the bankrupt had h up to this. If Mr Moran had told tl truth, and stuck to it, the credito: : would not havo treated him harshi It was his experience that th© trade. l people were not hard upon dobtors. The Official Assignee: It is n opinion they are a great deal ti . easy. Mr Gale: Hear, hear ! Mr Beere, who represented the ban' rupt, said the creditors were treati> the bankrupt harshly in this cas There was no proof that Mrs Mor.-• had any property belonging to tl •' bankrupt. Mr Townsend then moved, "That tl■•-. meeting requests the Official Assign • to make representation to the ©overment of the frequency of transfers - trading property to wrVes, with tl • object of defeating creditors, and r quests that the Bankruptcy Act be t amended as to protect creditors frc such impositions." Mr Frost seconded the motion, whi was carried. Tho meeting then adjourned Bine di .