BANKRUPT SCHEELITE MINER

Otago Witness, Issue 4048, 13 October 1931, Page 63

BANKRUPT SCHEELITE MINER

MEETING OF CREDITORS

The adjourned meeting of creditors in the bankrupt estate of Edward Bartholomew Callery, miner, of Macraes Flat, was held on Friday afternoon before the Official Assignee (Mr J. M. Adam). Mr O. Stevens, instructed by Messrs Aspinall and Sim, appeared for the bankrupt. lhe estimated liabilities to unsecured creditors amounted to £3BB ISs, the estimated assets (stock in trade) to £750, and book debts to £7, leaving an estimated surplus of £368 2s. The principal unsecured creditors yore: —J. F. Warren (Palmerston). 187 17s; C. E. Griffen (Macraes Flat), £112; 1-raser and M‘Leod (Palmerston), £29; W. Williams (Middlemareh), £l9; A. G. Ockwell (Macraes Flat), £l4; G. Stanley (Macraes Flat), £23; Ford Motors, Ltd., £9; H. Wilson and Son (Dunback), £6O; M. Keen (Dunedin), £l3 Is; C. Smith (Palmerston), £l4; and John Edmond, Ltd., £3. There were no secured creditors. Mr Baylee appeared for J. F. Warren, and C. E. Griffen, Mr G. M. Llovd for I'ord Motors, Ltd.; Mr C. J. Payne for II- M ilson and Son; Mr L. R. Simpson for Mr Keen and Mr O’Shea for the creditors (Messrs M. Hislop and Harold Boreham), who claimed wages. In his written statement, bankrupt said that on his return from the war he discovered a scheelite mine at Macraes Flat, and commenced working it about February, 1919. As the Government had contracted to buy all scheelite produced during the war and for six months afterwards, the prospects at that time looked bright. He first produced about of scheelite, which he sold for £1250, hut a considerable portion of the sum was required to pay the expenses of mining and providing the necessaries of life. .Practically all the money he had obtained from the mine since he started to work it had been spent in developing it and in purchasing tools, equipment and the like. lie had not worked the mine continuously, but he had operated it at various times when scheelite was on the rise. Unfortunately, just as he would have some scheelite for sale the price would drop, and he was compelled to sell at the ruling price, which was generally considered to be below the cost of production. As a result of adverse circumstances, he was unable to complete a contract for five tons of scheelite up to time, ami he found he was in debt after the sale of the scheelite produced. The mine still appeared to be in first class order and had the market improved during rhe past two years he would have had no difficulty in meeting his creditors. He had been negotiating for the sale of the mil and equipment, and if the sale went through he would be able to pay the amounts owing as soon as the deal was complete. As a result of being badly gassed at the war, he had been in indifferent health since returning from he front, and he had been more or less under the doctor's care during the past 12 years. Ue c-vuld only attribute his bankruptcy to the falling scheelite market, ill-health and bad luck generally.

To the official assignee, bankrupt added that wages were owing to two men, and he believed that the amounts were considerable. He denied that the sums amounted to £l6B and £lB5 respectively. There was also an amount owing to the National Mortgage and Agency Company, Ltd., but there had been some difference between them over the sale of scheelite. Mr Adam pointed out that the firm proved for £B3 8s 4d, whereupon bankrupt said that he would like to see a statement of the amount. Bankrupt continued that he owed about £l6 which he had borrowed from three men. He was single and supported his •mother, and he could makt no offer to his creditors. To Mr Payne: He had not transferred any shares to his brother as he had none to transfer. He had previously held an interest in the Golden Point mine, but the mine lapsed and he lost his interest at the sale. No one held any shares on his behalf. Asked by Mr Baylee if his brother, Jack Callery, had any shares in the Golden Point mine, bankrupt replied that he had, but he had not directed anyone to put them in his brother’s name. He knew a man named M’Beath, and on April 22, 1931, he instructed this man to put 7000 shares in the Golden Point mine into his brother's name. The shares belonged to M’Beath. The last time hi had any interest in the Golden Point mine was in 1923. There was no understanding between him and M’Beath to the effect that he was to get the value of the shares if he gave M’Beath a clear field. He had never asked M’Beath to hold the shares for him. He had advised a Mr Lawrence,, of Christchurch, to sell shares on behalf of bis brother about nine, weeks previously, as he had had verbal instructions from his brother to do so. Cross-examined by Mr O’Shea, he denied that he had been extravagant. On behalf of Mr Warren, Mr Baylee moved: “That the official assignee take steps to have the transfer from D. M’Beath to J. F. Callery of 7000 shares in the Golden Point Gold and Scheelite Mining Company, Ltd., set aside ani vested in the official assignee.” The motion was seconded by Mr Griffen and carried. The question of the disposal of bankrupt’s scheelite mine was left in the hands of the assignee to decide whether tenders should be called for the purchase of it or whether it should be sold by auction#-