MEETING OF CREDITORS.

Otago Witness, Issue 2823, 22 April 1908, Page 36

MEETING OF CREDITORS.

Re J. Beensell. The first meeting of creditors m the estate of John Brensell, of Queensberry, near Cromwell, hotelkeeper, was held at the Official Assignee's office on the lObh. Mr Irwin represented bankrupt, and there were four creditors present. The statement filed b£ bankrupt disclosed that he had . unsecured creditors to the extent of £333 8s 9d, and no assets of any kind. The principal creditors were the Farmers' Co-operative Association, £81 14s 9d; R. Wilson and Co., £18 10s; W. Scoular and Co., £13; Lane and Co., £8; Collins, JSB; Imperial Studio Company, £5; M'Knight Bros. (of Ophir), £9; Vercoe (Clyde), £10; Smart (Clyde), £6; Talboys (Cromwell), £7; W. May (Cromwell), £24: C. Mitchell (Cromwell), £8; G. Wilson (Cromwell), £.6; C. Gallagher (Cromwell), £30; ,A. Shiel (Luggate), £20; C. Harding (Queensberrv), £6; D. Richardson (Arrowtown), £15; J. Ewing (Pembroke), £7 10s; A. C. Murray (Cromwell), £8; H. Felton (Cromwell), £7; H. Parcels (Bannockburn), £5 and Thomson, Bridger, and Co., £7. Bankrupt's written statement was to the effect that m January, 1907, he purchased the Queensberry Inn, some 18 miles from Cromwell. The purchase money for the freehold was £700, and for tho stock and furniture £217. The freehold consisted of 330 acres of fairfy good land — 100 acres being first-class. At the time of the purchase he had only £20, but Mr Jolly (of Cromwell) agreed to assist him. The purchase money was paid as follows: — ; Simpson and Hart (of Lawrence) advanced £550, and took a first security for that amount. Mr Jolly advanced £220, and took a second security for that sum, and bills amounting to £150 given to the vendor were endorsed by Mr Jolly, and had a currency of three years altogether. Bankrupt took possession at the beginning of April, 1907, and carried on the business. - The takings averaged about £l 5 a -week. He put 75 acres of the land under crop. This was expensive, as he had to put men on to clear out a mile and a-half of water race, and he was put to considerable expense in^ repairing the buildings, which were m a bad state. In October, 1907, the mortgagees sold the property. At that time he owed his first instalment of interest. He believed the amount for which the property was sold was £1050, but had had no statement furnished to him so far. The purchaser (Mrs Satchler) informed him that included m the amount Eaid by her was £300 for the crops. Had c been permitted to cut the crop he would have been able to pay his debts m full, as the crops would have realised about £400. Apart from this, he had improved the property, and had it been 6old properly should have shown a profit. He had absolutely no assets of any description. He was brought before the court on a judgment summons, and was forced to file, as he could not do any- l thing towards paying his creditors. _ J Bankrupt stated that there were six stacks of oats, wheat, and barley taken from the 75 acres. There was nothing to show that the crops were included m the mortgage. Mr Irwin said bankrupt had received no statement from the mortgagees, and did not know whether he was clear or not. He considered the crops were really the property of the creditors. Bankrupt said if the mortgagees had not suddenly foreclosed he could have . paid his creditors 203 m the pound. The Assignee said it did not seem as if the bankruptcy had been brought about by bankrupt himself, but by the aotion of the • mortgagees, who, though they might have been within their legal rights, seemed to have proceeded harshly. Ifc was decided that the assignee should ask for a statement from the mortgagees, look into the matter of the second mortgage, and other things, and call the oreditors together again later on.