MEETING OF CREDITORS.

Poverty Bay Herald, Volume XLV, Issue 14589, 26 April 1918, Page 4

MEETING OF CREDITORS.

The adjourned meeting of creditors m the bankrupt estate of John Wliitaker, boardinghouse and billiard saloon proprietor, Kaitaratahi, was continued this afternoon before the Deputy Official Assignee (Major Beere). Mr. Burnard appeared on bankrupt's behalf, and the following creditors were present: Messrs D. W. Coleman, E. Clare, Burke, Wauchop, -NojSui/ and Willock. The Assignee intimated that the meeting was adjourned for the purpose of examining the' agent of the . moneylender. *

Mi*. H. E. Hill, who was present, said : "I wish it known that I am not Mr. Balkind's agent now. I take exception to my name being entered m the Assignee's minutes as the agent of Balkind."

Mr. Nolan said there were two points •the meeting would like Mr. Hill to clear up : (1) That the schedule wos not filled up when he (bankrupt) left the office ; (2) he did not request the loan to be registered. | Mr. Hill said he asked for a complete schedule of all the articles m every room, so that ifc could be inscribed m the security. Debtor , brought thc details m a day or so later, setting out the various articles. Bankrupt said ho | wanted the loan particularly, as he had entered into an agreement ito purchase a lease and some stock, and bad to meet the man about ,3 p.m. . Witness j filled the security almost down to the attestation. There was only one room to go on to it. He (bankrupt) said he was 'm a great hurry, and told witness to ttll the security m from his schedule and he would sign. Witness did this, and bankrupt signed it. The facsimile was taken from the copy already signed by him. Witness handed him the cheque after Ahe had signed. So far as the original was concerned the security was filled m all but one room when debtor wanted to get away. The document was not signed m blank. Mr. Nolan: Can you tell us whether or not the bankrupt asked the security to be registered? — I. can not exactly remember the conversation. Bankrupt had intimated that he preferred the security not registered, so I conferred with. Balkind and secured his permission. Was ifc your practice to wire .Mr! Balkind m every such instance? — No. What made you do it this time?— The loan was a larger one than usual, and I just thought this action was necessary. Mr. Burke: Bankrupt said m his evidence that he did not know where you got hold of the various chattels and some of those entered were done withr out authority?— That's absurd. Ido not know what I did with the original. Moreover, everything entered m the schedule was supplied m bankrupt's own handwriting. Mr. Wauchop: What was your first transaction with bankrupt?— £ls, and he was to pay £17 10s within tho month. What' was the, security?— One Jersey cow and mare.

What was the next loan?— A further advance of £5, and he was to repay £6. The next? — £50. He was to pay that by twelve monthly instalments of £6 13s 4d. 1 The last was quite a 1 separate security? —Yes. '

You thoroughly explained what_ he was to pay for this money? — Certainly. What rate did you charge when you were Balkind's. agent?— l have never troubled to work it out. 1 always gave the clients plenty of time "to think it over," because 'it was simply a premium.

What Mr. Whitaker says about the articles m tho security is untrue? — Certainly. 1 would not lend , him the money until he brought m the schedule. / Could you show us exactly when you stopped when entering the security, — Yes, four lines from the bottom. Mr. Willock: At the time he had secured the second loan you had a list of all these articles which were affixed m the final loan? — Yes.

Mr. Burke: Bankrupt did not sign those remaining items m the schedule? — No, but the articles on his copy were' m his own handwriting. What did you do with the original? — I don't quite know. Mr. Burnard: You've heard that Mr. Balkind issued a distress?— Yes.

You had nothing to do with it? — No,; that is one thing I would not do. I think during the period of twelve months m which you were acting agent for Balkind that you only issued one distress? — Yes; and that waa when solicitors were also doing it, and I wanted to get m first. (Laughter.) Mr. Wauchop: You were. expected to issue distress warrants, ' were you not? — I used a method of my own, but it was not quick enough for Mr. Balkind. Mr. Buxnafd: The rate of interest averaged 150 per cent. ?.' ■ • - Mr. Wauchop : More than that. Why it works out at from 200 to 240 per cent. '.-■■* Mr. Burnard: In the last loan he got something like 400 per cent. ?— Yes; he wanted the whole or nothing, but it is hot my view. Mr. Wauchop : Would the twelve instalments clear the bankrupt? — Yes. Mr. Burke: But he would not .reduce the interest? — The interest waa on a

fixed rate. It -was more like a premium. He had a method* that if the payments were not met, "on she went agam." Mr. Willock: Has Balkind made arrangements to reduce the interest? — I don - fc know.

Mr. Willock: Bankrupt might clear the position up.

Mr. Burnard: It worked out at 400 per cent. * ■■ .

Mr. Willock: Mr. Balkind was going to take £20 off the amount.

Mr. Burnard : That would work on at 200 per cent.

Mr. Burke : Very reasonable. (Laugh ter.)

Mr. Wauchop : Did bankrupt ever mention a previous bankruptcy? — No; he said he was doing good business at Kaitaratahi.

The Assignee produced a statement given him by the bankrupt, showing the financial result of the auction safe as £227 lse 6d, a dead loss of £171 on the original cost of the stock. The bankrupt had only handed m three small books .and a bank pass book. The Assignee stated he had secured details of the bankrupt's indebtedness on the occasion of the Auckland bankruptcy.

A statement received from Auckland showed that m" September bankrupt was discharged, the petition to take effect after six months, so that at the present time he was an undischarged bankrupt. Mr. Wauchop: Bankrupt did not tell us he was not discharged. Mr. Burnard : He's told the , truth when he said his discharge was granted. Mr. Wauchop: He has certainly told the truth, but not tbe whole truth. Mr. Burke : Has the Assignee received a reply from the Crown solicitor? — Not yet. Mr. Wauchop: Tliere seems to be a considerable difference between the statements of My. Hill and the bankrupt.

The Assignee : That is so. j Mr Burke : He is practically an undischarged bankrupt at the present time. The Assignee said that from the books bankrupt spent £164 85..2 d m December, and h:.s receipts were £25 4s lid. Li January and February his position was that liis receipts were m excess of his liabilities, but he was then -fully £100 behind. Tlie conditions of the Act were well kuown, and he intended to take whatever action the Crown solicitors advised. * It was for the creditors to decide if further action was to be taken.

Mr Wauchop: Some action sliould be taken to prevent Balkind getting this ridiculous rate of interest.

The Assignee: Yes, I will look into the matter.

Mr Hill: May I make a statement. The Assignee : Yes. Mr Hill said bankrupt asked him if he could make a reduction m th© rate of interest, and he replied yes, and he Would have done so.

Mr Burnard ; The rate of interest is to youi* mind ridiculous? — It's more — it's monstrous.

'Mr Coleman : Did bankrupt have any nione-v m the bank on February 12th? — £3 4k lid.

Mr Coleman said the reason why he asked was that he received a letter from bankrupt, asking to send out. goods, for ivvhich be would issy^a cheque. Mr Wauchop moved that the meeting be adjourned until an opinion was received from the Crown solicitor, and the Assignee to have the necessary authority to take what action he deemed necessary m tho meantime

After further discussion, it was decided to adjourn the meeting until Wednesday, so as not to leave the claims lying idle any unnecessary period. . The motion was seconded by Mr Burke, and carried.