DEBTOR AND CREDITOR.

Otago Daily Times, Issue 13782, 21 December 1906, Page 3

DEBTOR AND CREDITOR.

A SEARCHING EXAMINATION.

A largely attended meeting of tho creditors o[ Frederick William Mortimer, of Musselburgh, builder, was heid at the officc of the Official Assignees on Friday afternoon. Mr Brugh appeared for the bankrupt, and Mr A. S. Adams for the larger creditors.

Bankrupt's statement showed unsecured creditors, £513 Gs !)d; secured creditors, ,£32, i, estimated value of securities £000; leaving a lwJar.ee of £75. The as.'els were tools of trado at Hampden (£8 10s 1/1) and (£G 15s), which, with the balance of .475 beforementioned, mado £00 5s Cd. Deficiency, £153 Is 3(1. Tho chief unsecured creditors were l'aterson and Ba.rr, £116; C. M. Howison and Son, i'-i8 Is 4d; Ahum and Sons, £38 Is; If. Stevenson, £26 Is; Andrew Lees, £28 163 'id; M. Mortimer, £15510s; T. Smith and Co., £11 Jfls; and J. Murdoch and Co., £'51 10s 2d. Tho secured creditors were Arthur Heckler and William Husscll. trustees in the estate ot Benjamin Bray, to whom £32-5 was due, and William Mortimer, whose claim was £200. Tho securities were mortgages over allotment 21, block IV. High street. Musselburgh. , Tin; following writieu statement'filed by bankrupt was read by the Assignee:—"Oil the occasion of my marriage about five years Hgo my father presented me with a house in Hampden, and my wiie v/iib the furniture in same. For some lima afterwards I worked on waged. About two years and arhalf ago I sold my houso in Hampden for about i'2GO, and after paying up some small debts I ctime to Dunedin with £210, and started in business us a fruiterer and confectioner in Gcorgo street. I remained in business for nine to 12 months. The business was not successful, and when I sold out I hod only £80< to £100 loft. I afterwards worked for wages ill Otago Central for about three months. , During Uih timo my wifo and child had been ill, anu when I came back to Duncdin my capita! was rcduccd through expenses to £51. Willi this 1 started at my trade, and erected houses for sale. I purchased from timo to time allotments in Musselburgh from tho Property Syndicate (Limited), paying down a Email deposit, obtaining a loan and progress payments na the building proceeded. During the last 18 months I erected four such dwellinghouses—two in Normanby street and two in Iligh street, Musselburgh. In addition to this, I did contract work lor my father at Hampden. Tho first house I erected at Mussc'burgh I sold to my father, after having endeavoured to effect a sale through agents for about i month. I was becoming a little pushed and my father took the place over to assist inc. I lived in this place as a. tenant at 32s 6d per week until last month, when it was destroyed by fire. I then began another building in Xormanby street, Musselburgh, which I completed early this year. This building was on the market for sale for chlit or nine months, and during that time, so that a sale might lie tho more easily effected, was unlet. In the meantime "I proceeded-with two buildings in High street, Musse'burgli. besides going to Hampden from timo to timo to exccuto contracts for my father. I''or Tiim I. built a house for £275, and a greenhouse for £75. This greenhouse was blown down by u very heavy wind, and I had, at my own expense, to ieiu»talo it. The want of capital, and mv houses net selling readily, was beginning to hamper me somewhat, but the money I roc-cived from my fathar for tho above work relieved me considerably, so that I \m nblo to complete the two houses in High street. Somo months ago my largest creditors wore Messrs A. aad I). Macphersou, and to ; pay themselves they took over ouo of my Iligh street houses at a fair figure. Following that X sold the A'ormaiiby street house, which had remained vacant, to my fithor for £-150, and the flat) cash received (being the amount over the first mortgage) helped me considerably with my finances. About the BiicWo ci last November, as otic of my creditors was pressing me, I went to Hampden to try and . i sice a loan from uiy father, and so put myself right- I obtained £200 frqpi him upou the security of a second mortgsgo over my Higli street property. In addition to this bo made mo an advance of £50 on a- contract to build a house which I was about to undertake lor him. and I had also £15 of my own. The total sum of £265 I brought to Duncdin in notos, and that night the bouse in which l lived was burned down, imd my notes wo burned in it. li I had saved the i-G5 I could havo pulled through mv difficulties, aj;d, by keeping to contend work, cou'.d have paid evoryoue 20.3 in the pound in the course of a. little time. I attribute my position to the following causes:—First and chiefly, to tho loss of the £203; secondly, labour, material, and niouey to Ihc anient of £00 supplied ajid lent to my brother (C. M. Mortimer), and never repaid; thirdly, loss on properties not being disposed of quickly, and loss on greenhouse beici blowh down, say, £IW." Bankrupt, being sworn, said he could not exactly givo the cost of the first house and (section transferred to his father. Had kept books of account, but these had been burned in the flic.

Hie Assignee said he was given to midevttaud by Mr Adams that -after tho fire he sent someone out to examine tlio place, nnd that someone found in a ceriain cupboard where thftic books were kept a number ol accounts charred round the edges, but not destroyed. From his own cxpsrience in his official captivity he had found the most difficult thing to burn was a book, and if these accounts wcro j'.ot destroyed hc-w were the books destroyed ?

Mr Adam? said he would produce tlieao accounts, which, lie thought, Mr Mortimer would admit camc from the cupboard.

Mr Brugh said lie had made a visit to tlio house, and it did not bear out that in the slightest degree. Bankrupt, continuing, said ho had arrived at lb'.', price of the house by allowing a decent margin for prolit. He could not rememlier V,-hat the first house cost him, but it was sold {or £120.

Mr Adams: Well, can you succeed any better with the second house?

Bankrupt: I thing it cost about £100. I tronld not be positive. The second house was fold for JC-lotl. Continuing, ho said the first house was p'.aeod in the hands o! agents 'o nell for £tSU. His father came down to town, nr.d lie arranged to sell the house to him for £!20, and remained as tenant. Regarding the second house, he thought ho wrote to his father. Itc asked £473 for the second liouso through the agents. There was a mortgage oi £250 on the first house, and he first Tcceiveil A'lOD from his father and afterwards £70 in various sums. Ho transferred the house on receipt of the £100. The mortgage on tlio R'cond liouso was for i'3oo, which left £150 to b» paid. He got that in ra?h in two sums of £100 and £50. He transferred the house when ho got the £1011, ami received the £50 almost immediately afterwards.

Mr Adams pressed bankrupt to say how his father got the money, but bankrupi declined to disclose his father's bivrucss affairs. Mr Adams then made come remarks as to transactions between father and son which it is not desirablo to publish.

Bankrupt, continuing, said when ho last went lo Hampden his wife went a trip home. He did not know how long she wsut before the firo took place, but she went with tho intention of stopping away a fortnight. His wife went, to Hillgrove, but he could not say how long before lie went to Hampdon. Aburn was threatening to suo him bofore his wife v,c:it awnv. Tlio second house and '.and would cost about £560. IJe naked his istlier to lend him XiOO on the house, and ho agreed to Jo so. The first mortgage on the property was ior £325. He asked bis father to let him have another ,CSO, and ho said he would get him (bankrupt) in build him anojher place, and would let liiiu have tho £50 on that. The building was two shops and dwellings in Hampden. Had lio specifications for these, but there were plans. They did not agreo upon a price, lie was to do it by contract. Mr Adams: Ono or another of you was very confiding.

Bankrupt, replying to further questions, said lie was net going on with the work; that his father was doing it himself. lie (bankrupt) had been workbig at it for wages. ThoTo was no arrangement to work out the £50 he got. II is father paid him the £250 in Hampden. No one saw the money paid over. It was paid in notes. There were twenties, tens, and jives among the notes. Bankrupt had A'ls o; his cwn in a ten and'a live pound note, and added this to the money.

Mr Adams: That, would make about 15 separate note?. Bankrupt said, further, that no mcr.c-y passed at Ilislop and Crcagli's in Onmani when the mortgage was executed. They came back from Oamaru, and ho thought* he got llio money from his father that night or next morning.' Ho then went to Ilillgrovc. Did not know where his father got the monc-y from. He kept a bit in the house. Thought hie father Fold his business last March. Thought lio (bankrupt) .'topped at Ilillgrovc and came bad; to Dunedin by the late express the day following by himself. Ilis wiia did not come because htr mothsr became ill. His father-in-law met liirn at the Dur.edin Station. IJis fatlier-in-lav.' had b?en staying with them, and had been living in the house while ho was away at Ilampden. He and his father-in-law had simper hi town, and walked out to the house "at Musselburgh about 10 p.m. That would take about three-quarters of an hour, and it would be about a quarter to 11 when fbey got home. He supposed they went to bed about, a quarter to 12. They lit a lire to havo a cup of tea. His father-in-law was reading tlio paper, while he was working about with his papers and books. He got tho papers and books out to e«b who he was to pay the money to. Tho lire lit was m the iron! room, antl there wag no fender. They believed the fire was out. before they went to bed. Ho tcok out his money and counted it, and placed it in a- drawer with the papers. His book was in the cupboard. It was an ordinary exercise book, with paper covers. These papers were put into the same driver in tho cup--1)0atl1' . • „ i i On Mr Adams producing the charicu accounts before referred to, bankrupt, looking at iliem, said lie thought they were all of old dates.

Mr Brugli: One is 18 months ago. Bankrupt said these were at the bottom of a box in the hack bedroom. The notes were in a cu'ilwfird in the kitchen. Ho searched for tlio money alter the (ire, but found 110 traco of it. The only way he could account for not being able to find it was by its being burnt. His father-in-law knew there w«» some money in the place, but did not. know the amount. Ho (bankrupt) searched in tin debris, but found 110 trace of the money, "books, or papers that were in the room. His wife had lier furniture insured for £150. Mr Adams: So the position is that by ft series of circumstances your father Ims two houses you built, a mortgage over another, your wife has her furniture, insured, and your creditors have nothing. Mr Adams than suggested that the creditors might appoint two or three of their number to see what steps should taken, and that prccecdmg3 bo instituted to Est aside tho mortgage lo Mr Mortimer, Mil. The wholo thing was shrouded in mystery, and bankrupt should be examined on oath as to the tauiiactions. It was finally decided to adjourn the meeting to Tuesday next at- 3 p.m., ami to ask Mr Mortimer, sen., to come down and givo evidence, and aflerwaids decido what further st»ps should be taken.