IN BANKRUPTCY

New Zealand Mail, Issue 1756, 1 November 1905, Page 2

IN BANKRUPTCY

ESTATE OF LAURENCE JOHNSTONE. A SERIOUS ALLEGATION. The creditors in the estate of Laurence Johnstone, bookseller and stationer, of Manners street, was held in the Official Assignee's office last Wednesday morning. Proofs of debt were handed in to the amount of about <£4oo. The Assignee, though he had no statement from bankrupt, said there were a number of creditors who had not proved. He had not been able to get a statement, as Johnstone had been in the hospital for the last two or three months, but lie intended to visit him with a view to ascertaining how his affairs stood. The principal creditors are Catherine B. Swinburne, <£l9o 3s 9d (from whom the business was purchased); Thos. Broome, <£loo 12s (who endorsed a promissory note he had had since to pay); Collins Bros., wholesale stationers, <£4-3 10s 4d; H. H. McDougall, stationer, ,£22; Litt’lebury and Co., <£l7 14s 3d; C. M. Banks, Ltd., £ll 10s; and “New Zealand Times" Co., £l4 2s 3d. There was £23 owing to Mr Drake for the rent of a shop in Molesworth street (the bankrupt having conducted two businesses up till recently). The stock of the Molesworth street shop had been partly realised at auction. Messrs Macdonald, Wilson and Co. sold some £22 worth of stock, and held a balance worth, at retail prices, between £4O and £SO. There was also £l4 18s owing to Mr James G. Smith for rent of the Manners street shop (which he holds ' on lease from the Wesleyan Trustees), in addition to which there is a claim made by Mr Smith for £ls, balance of money owing by the bankrupt on account of the purchase money of the lease. It was held that that would not prevent the lease being realised for the benefit of creditors. The Assignee did not know the term of the lease, nor did lie know whether it was worth anything. Mr Barnett said he- had understood Mr Smith to say there was three months to run, with a right of renewal. Mr Broome had gained the imimession that there was one and a half years to run, with a right of renewal for a further term of three and ;a half years. The Assignee said he had had a man in the shop for three or four days, but the stock was in such terrible disorder that he would not be finished until tomorrow (Thursday) night. It was estimated that the real selling value of the stock would amount to between £350 and £4OO, but it was in such bad order that he did not expect it would" i- niNe more than 5s in the £2. At the auction Mo ot the Molesworth street stock a number of mother-of-pearl card-cases marked at from 17s to 25s had only brought from 2s to 3s 6d. He had bought a. prayer book at the Manners street shop for 2s 6d that was marked 5s Gd, and when lie got home he was informed that it could have been bought anywhere else for.2s. The best way to realise would be to call for tenders for stock and lease, and, failing a satisfactory offer, to hold a cheap sale for a fortnight. A resolution to that effect was moved by Mr Barnett, and carried. Mr McDougall said Mr Johnston© had been in business for nearly twelve months, and previous to that had filed his schedule at .Pa fusers lon North. Mr 'As hoi oft: Had he obi allied his discin') rgo ? Mi- McDougall: 1 couldn’t say. A creditor:. Me is not far from getting his final discharge: Mr McDoug.ihl drew attention to the fad that ceitaiu fittings at the Molesworth street shop belonged to the estate. Me also asked that Johnstone's assistant MRs Milcuell —be examined as to what been me of the stock purchased from (’dims Bros, as late as the cm! of September. .11 goods had been sold, where wax I he money ? Mr Ashcroft said one day's takings had mine© the business had been in his hands) amounted to Gs Oct. Mr McDougall .said that to get rid of Collins Bios.' stock so quickly the daily takings must have amounted to considerably more than Gs 9d. After resolving to make further inquiries into the case, the meeting adjourned sine die.