IN BANKRUPTCY.

New Zealand Times, Volume XXVII, Issue 5729, 26 October 1905, Page 6

IN BANKRUPTCY.

ESTATE OP LAURENCE JOHNSTONE. A SERIOUS "ALLEGATION. The creditors in the estate of Laurence Johnstone, bookseller and stationer, of Manners street, v.-as held in the Official Assignee’s office yesterday morning. Proofs of debt wore handed in to the amount of about .1100. The Assignee, though ho had no statement from bankrupt, said there were a number of creditors who had not proved. Ho had not been able, to get a statement, as Johnstone had been in the hospital for the last two.or three months, but he intended to visit him with a view to ascertaining how his affairs stood. The principal creditors are Catherine 18. Swinburne, .£l9O 3s 9d (from whom the business was purchased); Tiros. Broome, ,£IOO 12s (who endorsed a promissory note he had had since to pay); Collins Bros wholesale stationers, £4.3 10s Id; H. 11, AlcDougall. stationer, .£22; Littlebury and Co. ill 14s 3d; C. At. Banks,’Ltd.; All 10s; and “New Zealand Times” CoAll 2s 3d. There was A 23 owing to Mr Drake for the rent of a shop in Molesworth street (the bankrupt having conducted two businesses up till recently). The stool; of the Molesworth street shop had been partly realised at auction. Messrs Macdonald, Wilson and Co. sold some A 22 worth of stock, and held a balance worth, at retail prices, between A-10 and ASO. There was also All' ISs owing to Mr James G. Smith for rent of the Manners street shop (which ho holds on lease from the Wesleyan Trustees), in addition to which there is a claim made by Air Smith for Al 5, 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 he know whether’ it was worth anything. Air Barnett said he had understood Air Smith to say there was three mouths to run, with a right of renewal. Mr Broome had gained the impression 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 A 350 and A-100, but it was in such bad order that he did not expect it would realise more than 5s in the Al. At the auction sale of 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 Alanners street shop for 2s 6d that was marked os 6d, and when he 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 Air Barnett, and carried. Mr McDougall said Air Johnstone had been in business for nearly twelve months, and previous to that had filed his schedule at Palmerston North. Air Ashcroft: Had he obtained his discharge ? Air AlcDougall: I couldn’t say. A creditor: Ho is not far from getting his final discharge! Air McDougall drew attention to the fact that certain fittings at the Alolesworth street shop belonged to the estate He also asked that Johnstone’s assistant —Aliss Mitchell—be examined as to what became of the stock purchased from Collins Bros, as late as the end of September. If goods had been sold, where was the money ? , , . Mr Ashcroft said one day s takings had (since the business had been in his hands) amounted to 6s 9d. Atr AlcDougall said that to get rid of Collins Bros, stock so quickly the daily takings must have amounted to considerably more than 6s 9d. After resolving to make further inquiries into the case, the meeting adjourned sine die.