BANKRUPTCY.

Poverty Bay Herald, Volume XVI, Issue 5610, 4 November 1889, Page 2

BANKR UP TCY.

ESTATE OF ANDREW GRAHAM,

This afternoon there were present at the office of Mr Croft, Deputy Official Assignee, the bankrupt (Mr Graham), Mr Kenny (his solicitor), and Messrs DeLautour (for the Assets Company), Nolan (for the Assignee), Veale, Stubbs, Townley, Hamilton, Bryson, Finn, H. E. Johnston, Adair, and Dr Pollen. The Assignee stated that ho had this morning examined the bankrupt on his statement as filed. [The statement was published in the Herald of Thursday.] The Assignee then read the list of assets and liabilities. The bankrupt desired to make a statement. It was a painful position to find himself in after having conducted business for so many years in the place. He might revert to the business of the old firm of Graham & Co. They carried on business on a very large way and made advances to many people. He went Home leaving the business in a very fair way at the time of his departure. At Home he did good business for the tirni, and while there he received a sum of money due to him at his father's death. On his return from England he found the business of the firm not at all satisfactory. There were many transactions which had been made that had not been submitted to him and which were exceedingly risky. Mr Kinross had occasionally visited Gisborne, and these transactions were known to him and were also submitted to the Bank of New South Wales. From these transactions there were many losses. In 1879, when the Glasgow Bank failed, came the large crash, and everything the firm had had to be realized to meet their obligations. The business of the firm was carried on until 1881, when most of the properties had been realized. He then took over the business from Mr Kinross, and as he had put considerably more money into the business than Mr Kinross, it was arranged that he should take over -at good values as things were then— a number of the hotels and the wine and spirit stock. Business was fairly good then— it would be called very good as things are now — and he hoped to pull through. There was a good prospect of his doing so, though his losses had been very large indeed. The losses from station property were very heavy. Here were some of the losses : — Puhatikotika station £6,000 Lome station 3,500 Mangataikapua 1,500 Whatatutu 1,500 Tangihanga 3,000 Whiirekaka L7,000t0 8,000 East Cape station 2,000 Total £25,000 Then there was to be taken into consideration the losses on country stores. The total losses must have amounted to L30,0()0 over and above the profits. Since he took over the wine and spirit business and the hotels, the losses had been very heavy. The losses during the eight years, comparing what he was receiving and rent and what lie paid away on interest, repairs, furniture, etc, was verygreat. Some of (he losses on the hotels would show : — Gisborno Hotel £1075 Kaiteratahi Hotel 850 Roseland Hotel - 650 Waerenga-a-lrika Hotel 200 Albion Hotel 200 Tologa Bay Hotel 450 Royal Hotel 350 There were great losses in trade. He had to assist people with stock and furniture, and these losses would amount to fully LBOO. By a fire in 1882 he lost L6OO. In addition to these losses was the heavy burden he took upon himself to help Mr Kinross. There were many town properties not sold when Graham & Co's assets were realised, and on these he was paying interest. He lost over a contract which he went surety for, and this ho estimated was what finally crippled him. He went surety for the contract for the construction of the county and town roads. The contracts were greatly underestimated. The total los 3 was between L6OOO and L7OOO. It might seem to have been improvident for him not then to have taken the step he had now done. But he thought he was solvent and would be able to pull through, but, as everyone knew, year after year property has come down and especially hotel property. Then he had with Mr John Clark a third interest in Opau station which was mortgaged. This was sold at another big loss. It was no use struggling after this. He felt his position most acutely, as he had always endeavored to pay his just debts. If he got his discharge he would look upon himself morally bound to pay off his creditors. The amount of his indebtedness was so great that he doubted if he would be able to pay all. But there were many debts he intended to pay, and he would use his utmost endeavors to do so. He had not put a penny away for his wife or family, but left himself utterly destitute. He had given up everything to his creditors. He was not the only one that had found himself heavily in debt. Tradespeople will know how things are. There was not a tradesman in the place who was not wiping-off money for depreciation and bad debts, and things had been getting worse for many years. He did not know how long it would last. There was no use making promises, and he could only say what he had said before that he looked upon himself morally responsible for his debts. Though it might, be poor consolation for his creditors he might say that the money that had been expended had been for the development of the district. Though he was the loser there were many that had reaped benefits. If he had erred in his judgment and spent money foolishly it was not spent on himself or his family, but had gone in assisting others. Mr DeLautour said he only desired to refer to the Assets Company's debt, and he was instructed to ask a few questions on that account. Mr DeLautour : I did not understand in what way the losses of Graham and Company, which Mr Graham said he did not pay, affected his position. The losses were not shown in his statement. Bankrupt stated that the losses made by the firm affected his financial position. Since then ho had lost L 12.000. What, then, has become of the LS9X) of the Assets Company % Bankrupt : The losses that I have enumerated will explain that. Mr DeLautour : Were you authorised to use any part of this Lo9oo of the Assets Company's funds ? Bankrupt : No, I was not. Mr DeLautour : Were you acting as their attorney ? Bankrupt : I was. The bulk of it went in that road making contract of Oxenham's in 1883-4. Mr DeLautour : You ceased to act for the Assets Company in May last 1 Bankrupt ; Yes. Mr DeLautour : Did you disclose to the Company that their moneys were being used in that way ? Bankrupt : No, I did not. In answer to Dr Pollen, the bankrupt slated that one of the principal reasons ' that induced him to como out for the East Coast seat in the House was to fix some of the titles for the Assets Company. He succeeded in fixing up some of them. Mr Hamilton proposed that Mr Graham have back his furniture to the value set down, L 250. It would be no use to them. Mr H. E. Johnston seconded. Dr Pollen thought the creditors might fairly do that nfter what Mr Graham had said. Notwithstanding that Mr Graham had made many indiscretions he had the sympathy of the whole of the settlers here. Bankruptcies were getting far tog

numerous in the Bay, but this was an exceptional one. Mr DeLautour said personally he would have no objection to the proposition, but if it was pressed to-day ho would have to express his strong dissent. Ho had not time to receive instructions for tho Assets Company to prove, and it would be best to delay this motion till another meeting, the Assignee to have instructions not to realise the furniture. It would be far bast to have a favorable report of this first meet-' ing to go to his client at Dunedin. Mr Croft said it was tho first time lie had such a resolution before him, and ho would require a special resolution. Hs would protect himself by calling a meeting, first letting all the creditors know the nature of the resolution. Mr Townley understood that tho resolution simply expressed a wish of the meeting that Mr Graham should retain his furniture. He was quite sure Mr Graham had tho full sympathy of all his creditors. There was nothing behind the estate. They had everything before them, which had not been the case in several other bankruptcies. It was usual to deal with the debtor's furniture at the first meeting. Tht resolution was then put and carried, and the meeting terminated.