THE RYLEY BANKRUPTCY.

New Zealand Times, Volume LVIII, Issue 2859, 30 June 1896, Page 2

THE RYLEY BANKRUPTCY.

By Telegraph. — Prep* Association. Dunedin. June 29. A meeting of creditors in the estate of John Ryloy, trading as R. Anderson and Co., millers, was held to-day. The Assignee, explaining the statement, said ho thought the bankrupt’s values of securities was exaggerated. The bankrupt put in a statement that ho started business in 1890 with a capital of •£7OOO. Ho attributed his losses and bankruptcy first to the high price paid for two mills to the Colonial Bank. The older mill was burnt down some years ago, the Colonial Bank getting the insurance. Since then the property had brought in no business. He also bought Green Island mill, bat the machinery proved bo old that flour had to bo exported, and losses were made. Heavy losses had been made in the first year, and the firm had boon heavily handicapped from the beginning. On the mill account aloue, .£17,000 had been paid in interest and discount, or at the rate of between .£3OOO and £IOOO per year. Although the business was a good one, it was impossible through keen competition to bear heavy charges. He was tempted to invest largely in mining ventures to help the bush ness, but the reverse proved to bo the case. There was on© venture, Harowood Reefs, which, if the Bank of Now Zealand took up, might bo floated in Loudon for £20,000 or £30,000. He hud been a largo shareholder in the Bank of New Zealand and the National Mortgage Company, the connection involving him in a loss of £OOOO. The Assignee said the interest accumulated was found to be about £19,000; further there were drawings an Ryley’s account to the extent of about £20,000, bo that in four years £40,000 had been drawn. The business had been handicapped by matters extraneous to it. Replying toa question, the Official Assignee said he had not considered the possibility of the Colonial Bank being held jointly liable as carrying on business on the joint account. The Assignee read a balance-sheet prepared : by Ryloy ou the 31st October last, showing liabilities in round numbers of £BO,OOO and assets £82,500. The value of the stock was put down at £45,000. Inquiry would have to be made as to what camo of that stock. The bankrupt said he was requested to prepare the balance-shoot to present the thing in the best aspect ho could, as the Bank was going over to the Bank of New Zealand. Asked who requested that, bo replied that it was the manager of the Bank here. Mr Michie (Bank of Now Zealand) said that referred to Mr Ewing, who bad given him authority to deny the statement. The bankrupt said he was prepared to give evidence on the point, lie would look on tbo balance-sheet as highly coloured. Ho had boon requested to keep the mining stock out, Mr Miohio, ou behalf of Ewing, denied this, also that the effect of putting in the mining stock would bo to swell the assets. It was pointed out that the examination would only bo relevant if Ryloy got any credit through this balance-sheet. He said ho had not; ou tho contrary, the liability had boon reduced by £200,000. The bankrupt said tho Colonial Bank had not entered into speculations along with him. Mr Micluo, who had proved for tho Bank of Now Zealand for £sllO and ou behalf of the Colonial Bank for £74,484, said that ns tho liquidators of tho Colonial Bank wore not represented, it would bo impossible to do anything in the way of concession until instructed by the liquidators. Tho meeting was adjourned till July 14th, bankrupt in tho meantime to rcoolvo £6 per week.