A PECULIAR BANKRUPTCY

Otago Daily Times, Issue 16611, 7 February 1916, Page 2

A PECULIAR BANKRUPTCY

EX-SOLDIER'S LAND DEALS. APPARENT SURPLUS OF £9000. The first meeting of creditors in the bankrupt estate of William John Holt, farmer, of Whangarei, was held at the office of the Official Assignee at Auckland on Tuesday afternoon (says the Star). The liabilities to unsecured creditors were stated to be £1517 4s, while a sum of £15,898 17s was due to secured creditors. The estimated value of the securities was £25,032, and other assets £9251 13s, leaving a considerable nominal surplus. The bankrupt, in his statement, detailed a large number of land transactions since early in 1914, involving several lawsuits lost by the bankrupt. He explained that, though his assets exceeded his liabilities by over £9000, he had been obliged to file owing to the issue of a bill of sale by a creditor named Poynter, who had obtained judgment for £577. Had he not done so some of his properties would have been sold below their value, and the creditors generally would have suffered. In the course of his examination, the bankrupt stated that he came to New Zealand 11 years ago, with £1000. and subsequently received between £3000 and £4000. Pretty well ever since his arrival he had been speculating in land, and it was a fact that he had been as a rule very short of ready cash. He had kept no books, but had passed everything through the bank. For some years be kept three accounts with different hanks, and had changed his accounts at various times. He always felt certain that he had a balance on the right side. The last remittance he received four years ago,_ but ho was unable to say exactly what he did with it, thou eh he believed that he placed it in three different banks. The Assignee: Would you be surprised to hear that some people have expressed doubts as to whether you have received any remittances at all?— No.

Why wouldn't you be surprised ?—I would rather not say. Bankrupt wont on to say that he had been suffering for a long time from heart trouble and from a growth in the neck, and his affairs had been partlv in the hands of members of his family. Ho was unable to say whether he had signed a receipt for one remittance, which arrived when he was very ill. He had not kept all his bank pass books, as he did not consider them at the timo to be valuable as records.,

Tho bankrupt was examined in much detail regarding his exact procedure in certain transactions, and incidentally explained his non-production of documents by saying that as_ he had such a large surplus he did not think that the creditors would require him to produco all his papers. Tho assignee at this stage remarked that it seemed advisable to appoint a committee to go into the bankrupt's affairs in detail. After further discussion tho committee idea was abandoned, and the meeting was adjourned to a date to be fixed bv the assignee, who agreed to get what information he could in the meantime regarding the bankrupt's affairs.