IN BANKRUPTCY

Southland Times, Issue 20627, 7 March 1929, Page 4

IN BANKRUPTCY

ESTATE OF E. M. RAINES,

RACEHORSES AS ASSETS.

A meeting of the creditors of E; M. Raines, of Winton, who was adjudged bankrupt during the recent session of the Supreme Court, was held on Tuesday afternoon before the Official Assignee, Mr H. Morgan. Mr S. M. Macalister represented the creditors who had conducted Raines’s business since his departure from New Zealand.

The Official Assignee stated that Raines had left. New Zealand and an order adjudging him a bankrupt had been made at the last sitting of the Supreme Court. Dealing with the assets, the Assignee mentioned that the sum of £-592 had been paid to him by Mr Macalister, this representing money made by the creditors out of the business after they had taken it over. A further £6BB had been received from Hogg, Raines and Hodges, bankrupt’s solicitors from the sale of bankrupt’s stock. He said that, it might be necessary to take steps to have the bankrupt brought back if there was likely to be any trouble over his horses as his evidence would be required in this connection. Consideration of this step was postponed until a later meeting.

The following letter from bankrupt's solicitors to the Official Assignee was read:— “We enclose herewith statement of. the assets and liabilities of E. M. Raines. This has been compiled from information obtained in the course of inquiries made by us from relatives of the bankrupt, and from other persons acquainted with his affairs. It appears that he has never owned any real estate. The building in which he carried on business was owned by his mother and was sold by her on December 1 last. The house in which he resided is owned by his wife, and she assures us that both the house and furniture were bought by her many years ago. In estimating the value of the horses we have been guided by expert opinion except in the case of Rin Tin Tin. This horse has been valued at £l2OO because a cash offer of this sum was made for him on the 14th February, -and has since been repeated subject, of course, to the present lease to Mr A. C. Mills being cancelled. We understand that Mr Mills also claims to have purchased for £2OO the two yearlings which are valued in the as.sefs at £3OO. You require a statement covering the transactions of the bankrupt since he last was solvent, but, he appears to have been solvent when he left New Zealand, as his trade debts then amounted to £l5OO and his stock was worth £2200 and his book debts at least £6OO. His other liability to Mr J. C. McDonald (£1800) is more than covered by his other assets (the horses), and Mr McDonald, we believe, was always willing to take security over the horses for his debt. The partnership between the debtor and Mr McDonald appears to have been dissolved in September last when an agreement for dissolution was signed by both parties. Debtor’s relatives are unable to find in his affairs any adequate reason for his sudden departure to Sydney unless it was due to the fact that he was on the verge of a nervous breakdown, as his friends knew him to suffer during the past few years from neurasthenia.” There were no secured creditors, the unsecured creditors totalling £3365. The stock-in-trade at wholesale prices sold for £7OO, book debts £1273, estimated to produce £7OO, cash in hand £6OO, and property to the value of £2225, comprising a total of £4225, were the bankrupt’s assets. This showed a surplus of £B6O. According to bankrupt’s solicitors the principal unsecured creditors were as under: J. C. McDonald, Invercargill, £1800; Butterworth Bros., Invercargill, £383; Wellington Woollen Co., Ltd., £286; Sargood, Son and Ewen, Invercargill, £197; Macky, Logan and Caldwell, Ltd., Dunedin, £166; Ross and Glendining, Ltd., Invercargill, £115; Alex. Chisholm, Otautau, £75; Kaiapoi Woollen Co., Invercargill, £53; J. A. Paterson and Co., Dunedin, £4O; Betterton Manufacturing Co., £29; Andrew McKay, Riverton, £2B; Brodrick and Co., Invercargill, £24; Bond’s Hosiery, £18; Parisian Neckwear Co., Auckland, £18; Samuels and Kelly, £18; A. E. Smith, dentist, Invercargill, £l2; Aders and Co., Dunedin, £10; P. A. Blyth, Winton, £lO.

The list of personal estate totalling £2225, was as under: Thoroughbred gelding, Rin Tin Tin £1200; filly, Some Form, £300; yearling, Charmaine £200; yearling not named £100; brood mare, Fairforni, in foal, £250; foal, £5O; brood mare, Kelmeedy, in foal, £125. A motion was passed that all expenses, including legal expenses, incurred by any creditor, including the petitioning creditor in protecting the assets of the Official Assignee, be paid out of the estate. It was also decided that steps be taken by the Official Assignee to get possession of the horses and to sell them by public tender.