MEETING OF CREDITORS.

Otago Daily Times, Issue 19258, 23 August 1924, Page 7

MEETING OF CREDITORS.

ESTATE OF PHITJP CEE NT, BALCLUTHA. A meeting of creditors in the estate of Philip Clout, fanner and stock dealer, Balciutha, was Jield at the office of the Official Assignee yesterday. Mr E. W. Cave (Official Assignee) presided, and four creditors wore present. Mr R, R. Stewart (Balclutha) appeared for the debtor. A statement submitted by bankrupt showed debts owing to unsecured creditors amounting to £14,702 16s lid and assets (shores in the South Otago Freezing C-onv piiuyl £25, showing a deficiency of £14,677 16s lid. 'llic principal unsecured creditors were: Otago Farmers’ Co-operative Association, £14,401 is Sd. the Perpetual Trustees Estate and Agency Company, £2O; James Craig (Balclutha) £lO, National Mortgage and Agency Co. £47 12s, Booth, Macdonald (Christchurch), £74 3.5, Jas. Oark (Balclutha) £2O, Keen and Weddell (BaJolutha) £23 16s, Leonard Bros. (Balclutha.) £l7, John P. Shaw (Dunedin) £56. Debtor, in his sworn statement, said that he started farming and stock dealing m 1901. He did all his business with the Otago Farmers’ Co-operative Asosciation. His dealings showed a profit until 1908, when lie owed the company £SOO or £6OO. The company then took a security over all his assets. At that time he had a leasohold property (Tosh’s) near Balclutha, which was stocked. He acquired another leasehold property (Shows Island), and later on purchased a freehold faiin (Horan’s) at Owaka. The financing of those properties was arranged by the association- His debt (o the ossociation was always increasing, but apart from this indebtedness ho owed practically nothing. He had dismissed with the association from time to time, yearly valuations and stock sheets of all he owned, those being submitted to the association, and debtor was advised to carry on. In October. 1922, be was advised by the association to discontinue buying, and to realise on any stock, etc., which he possessed. From that time forward ho did no stock dealing, hut carried on the farms with the assistance of tha association, who got all the proceeds. In April, 1923, ho had a clearing sale of all his stock and implements, the proceeds going to the association. In September, 1923, the association sold his leasehold and freehold farms, the proceeds going to it under its mortgage. During the last 10 years he had lost heavily through floods, and when tho slump came four years ago he was heavily stocked and suffered heavy losses. Since September, 1925, he had been employed on wages and had been trying to pay accounts owing other than those owing to tho association, but Some of his creditors pressed him and ho had been compelled to file. Hie greater part of the accounts owing were incurred in connection with his farming operations, and he expected them to bo paid by tho association as usual.

Tho Official Assignee ft id that the Ireehokl properties realised £7195 ss, on which there were two mortgages, commission, interest, etc., which left a credit balance of £2713, which was credited to debtor a account. As far as he (tho Official Assignee) could gather there was no equity in the leasehold properties. Mr J. Bows (National Mortgage and Agency Co.) said it appeared as if the bankrupt's total indebtedness ■to association was at- one time in tho vicinity of £17.000.

Tho Official Assignee said it, was more than that At the end of September, 1923, it was £19.000.

Mr Bows asked if the stock and other properties on which tho association realised were properly secured to the association. Mr J. Couchman (the Otago Farmers’ Cooperative Association) answered in tho a.ffixrnative.

A discussion then ensued regarding a horse which debtor hough); through the National Mortgage, and if it wore included in the bill of sale which the association held. It sufcfuxiucntly was made clear that the horse referred to was not so included, hut was sold at the clearing sale of bankrupt’s stock and implements and credited to debtor’s account in the association’s books.

Mr Bows-; I simpoce we missed our opportunity.—(Laughter.) Mr Pews said bankrupt had Ireen carrying on under great difficulties, and it waa absolutely necessary (hat he should file. Had he not done so he would have compelled him to do so. Personally, ho did not think they should ask debtor _if he had h. proocsition to make. He did not think there could possibly be anything for division among the creditors. The South Otago Freezing Company’s shares were or.lv worthy £3 12s fid each. Ho did not think they could do anything but recommend bankrupt for his immediate discharge. It was no use wasting any further time. Ho moved accordingly. ... In reply to a creditor bankrupt said no had no bouse property of any kind, nor had he borrowed money to pay debts. Mr E. B. Jones seconded the motion. Tit emotion was carried, the Official Assignee remarking that it seemed to bo a case of sheer misfortune. ... Mr Couchman said it was only fair to ms association to say that bankrupt’s position was gone into folly two years ago, and it was found necessary to make provision for wiping off the amount in the balance sheet following. He thought it necessary to make this explanation in case pome of their shareholders should regard this as another loss.