MEETING OF CREDITORS.

Otago Witness, Issue 3251, 5 July 1916, Page 28

MEETING OF CREDITORS.

IN RE A. TOWNLEY. The Official Assignee (Mr K. N. H. Browne) presided over a meeting of tho creditors of Andrew Townloy, cattle dealer, of Stirling, who has been adjudged a bankrupt. Mr Lemon appeared for the petitioning creditors (Messrs Donald Reid and Co.), and Mr Callan for the bankrupt. The bankrupt's liabilities totalled £724 18s lid, made up of tho following unsecured amounts: —Donald Reid and Co., £125 7s sd; Otgo Farmers' Co-operative Association, £264; National Mortgage and Agency Company, £65; Wright, Stephenson, and Co., £139; Hunter Bros, and Rice, £76 17s 6d; Henderson and Co. (Wyndham), £32 14a; and Henderson and Co. (Gore), £22. In the course of his written statement the debtor stated that about the end of August, 1914, ho started business as a cattle dealer, and had £159 4s, with which he opened an account in the Bank of Nov,- Zealand, Mataura. That was all the assets he had. About the end of J. 914 he began killing cattle for the Government and selling the meat to middlemen. This he found satisfactory, except that after about six months —about June, 1915 —through tho works retting blocked, he was left with a number af cattle on hand, some of which he so!d at a loss, and in respect of others he lost money through having to pav for feed. Afte; j his. on the suggestion of the New '.'. .■■ nd Loan and Mercantile Agency Company's Wyndham branch, he began selling meat direct to the Government instead of to middlemen, and employed tho Loan Company as his selling agent on commission. The Loan Company also sold to him, and ho also mado purchases himself, but ran an account with tho Loan Company, which paid out to him for his purchases. He got no general statement of his position with tho company until the receipt of its statement dated March 00, 1916, under cover of a letter of April 11, 1916, which showed a debit balance of £1238 Os 3d. About the beginning of March ho had had an unusually large number of cattle condemned, and a railway accident, to another lot, and wanted to see exactly where he stood. At his request the Invercargill accountant of tho Loan Company came out to Wyndham, and, although there was no complete statement, both of them came to tho conclusion that his position was satisfactory. On March 14, the Loan Company had advanced him £6OO, but that was not as much as ho wanted at the moment—he had asked for £I3OO. About March 20 he became satisfied that the position was not satisfactory, but he could not tell till ho got a statement. The Loan Company's statement showed as dependencies interest, insurance, and railages. These would be debits against him. There were also credits—namely, proceeds of veal, and 470 to 480 hides. The debits for interest, etc., would be under £SO, the credits for veal and hides ought to come out at something between £BOO and £9OO. The creditors, other than tho Loan Company, amounting to £7OO odd, were all for cattle bought in the last week or so that ho was carrying on business. In reply to Mr Lemon, bankrupt said that he had had an arrangement with tho Loan Company to advance, him the priea of all cattle bought outside of that firm, when those cattle went into the vvoiks. A good deal of discussion took place as to the nature of these transactions with the Loart Company, the Official Assignee stating that he had received v. k'ttor notifying that the Invercargill branch of this company claimed about £IOOO from the debtor. The bankrupt stated that he had no persona! assets or property of any kind. Ho had experienced some heavy losses on several deals through misfortunes of one kind and another; but all the time he had believed —and the Loan Company believed—that he was making money. The meeting was adjour? • ' order to enable the a«s ; .'. obi in '.:■ the;- information regarding h .''■-;• from the Loan Company, and :?o from :!•* freezing companies with win he business.