MEETING OF CREDITORS.

Otago Daily Times, Issue 17089, 22 August 1917, Page 2

MEETING OF CREDITORS.

<o-— ESTATE OF JAMES O'KANE. A meeting of creditors in the bankrupt estate of James O'Kane, late licensee of the Prince of Wales Hotel, was held yesterday afternoon, unci was attended by about 12 creditors. Mr K. N. H. Browne (Deputy Official Assignee) presided, and bankrupt was represented by Mr Scurr. Mr W. 0. MacGregor, K. C, was present to advise the Assignee. Mr Lang represented tho secured creditors. The unsecured creditors were: Lane and Co., £52 Os 9d ; R. Wilson, and Co., £48 8s 4d; Taieri and Peninsula Milk Supply Company (Ltd.), £9 10s lOd; Cowio and Co.. £3 10s; M'Gavin and Co., £7 4s; Neill and Co., £7 5s 2d; Powley and Co , £82 19s 2d; Scoular and Co., £101 4s sd; Dunedin and Suburban Coal Company, £8 6s 3d; Scott Bros., £5 17s; Milne, Bremner (Ltd.), £68 8s 4d; W. Hoflt (hotel manager, Mount Cook), £20 3s 9d; D.S.A. £4 10s;—a total of £419 8s Id.

The secured creditors were:—Speight and Co and Thomson and Co., £2168 3s 6d, and tho estimated value of the securities was £1750. Tho assets consisted of two horses, a gig, and harness, valued at £40; book debts, £88 0s 8d (estimated! to produce £50); cash in hand, £100;— a total of £190; leaving an estimated deficiency of £647 lis 7d.

Bankrupt, in his written statement, said that ho commenced business in Dunedin on May 1, 1916. He exchanged his farm at Nightcaps for the produce business of Mr J. Lindsay, and the equity of his house in Nile street, St. Kilda. He valued his farm at £5000. It was subject to a mortgage of £2300, and he therefore gave his equity in the farm in exchange for the produce business and the equity in the house at St. Kilda. He discovered on taking possess-on that he had made a bad exchange, and had lost at least £1200 on the_ deal. He remained in the produce business for seven months and lost £300 on his trading during that period. On January 1, 1917, ho entered- into possession of the Prince of Wales Hotel. He had exchanged his produce store and the equity in the house at St. Kilda for the lease of the hotel, and! the purchase of the stock and furniture. Mr Hoff was the licensee with whom he made the exchange, and the latter had since learned that he was very glad to get out of the hotel, as it was not a paying concern. Messrs ripeight and Co. and Messrs Thomson and Co. advanced his £1500 on mortgage of the lease and furniture, and had since made him a further advance of £260. The rent of the hotel was £13 per week, which was much in excess of its letting value. He had made evejy endeavour to economise during his residence in Dunedin, especially when he found that he had made foolish exchanges. He also had heavy family expenses, by reason of the bad health of his two girls, and had spent £57 on medical expenses since coming to Dunedin. On July 25, 1917, the secured creditors enhe was compelled to sign a transfer of the torcd and took possession of the hotel, and lease. He was adjudged bankrupt on the petition of Messrs Scoular and Co. on August 10. He regretted that it had become necessary for him to file, and he had carried on business in various lines in Southland for 18 years, and had always paid 20s in the pound. The Assignee stated that he had written to the solicitors of the secured creditors, asking them whose authority they had for taking possession of the codds as they had done. Scoular and Co. had obtained judgment for over £100, and they said it was for goods supplied since the date of the security, so he took it that there should still be some of those goods on the premises.

Mr Lang said his clients would not admit that they had taken moro than they were entitled to.

The Assignee said that the question of whether the secured creditors were getting sufficient value for the property was one to be gone into. /

On the motion of Mr Milne, it was resolved —"That the Assignee be empowered to take such proceedings as he might find necessary against the mortgagees for the recovery of goods considered to have been wrongfully seized."

Debtor, in the course of cross-examina-tion, _ said he had not been endeavouring to dispose of some of his assets with a view to getting the proceeds later on, nor had he offered money to any of his creditors to ante-date any of the receipts given him for moneys paid. The only books of account he kept were handed over to tho Assignee, with the exception of one in which was entered the wholo of his cash takings as from .January l.» This book also contained a record of minor cash payments. He took the book into the cellar on July 9, and being called away hurriedly left the book there, and when he went for it the following day it was not to be found. He paid' all his accounts by cheque. He believed, when he started the hotel_ business that he was able to meet his liabilities. He did not think' he was insolvent until he was served with a demand by Messrs Speight and Co. on July The meeting was adjourned sine die.