A MEETING OF CREDITORS

Southland Times, Issue 23181, 23 April 1937, Page 5

A MEETING OF CREDITORS

BUILDER’S AFFAIRS A SURPLUS ESTIMATED A meeting of creditors in the bankrupt estate of James Muir Black, builder, of Invercargill, was held yesterday. The official assignee (Mr A. McCarthy) presided. Mr M. H. Mitchel appeared on behalf of Black and Mr B. W. Hewat for T. D. Smith, the principal unsecured creditor. The unsecured creditors were: City Corporation, £11; E. Hodge £ll 18/6; T. D. Smith, £249 4/5; John Edmond, Ltd., £l4 15/6; C. Davis, £l5. The secured creditors were: F. G. Stevenson, £125; M. H. Mitchel, £265 18/6; George Poole and Sons, £644; Invercargill Co-Operative Building Society, £460; F. G. Stevenson, £lO3 6/8; J. Kerse, £3Bl 10/9; Scandrett and Sons, £4O; a total'of £2019 15/11. The estimated value of the securities was £2760, leaving a surplus of £740 4/1. The book debts amounted to £45 12/6. Bankrupt’s position was given as follows: Total debts, £2321 13/9; total assets, £2828 6/1; surplus, £506 12/4. Bankrupt’s Statement In his statement bankrupt said he was building “spec” houses in Invercargill from 1927 until the slump came on. He had all his money owing on second mortgages and in equities and properties when the depression started. Since -the depression he had been working on wages and doing odd jobs. He had within recent years built only one house on contract and lost money on it. In October 1936 Poole and Sons, who were his biggest creditors, pressed him and he was forced to give them some securities over his second mortgages, and recently the petitioning creditor, who was his next biggest creditor, pressed him and he had no option but to file, despite the fact that he offered that creditor security over his freehold property. Except for the petitioning creditor’s account, which was unsecured, his unsecured creditors amounted to about £5O.

In reply to Mr Hewat, bankrupt said he had no furniture, which was owned by his wife. He could produce balancesheets for the past three years, but did riot have them with him. He had no record of properties bought and sold during the past three years, and had no books showing details of his liabilities. He had rough notes of properties bought and sold. He had not had any statement during the last five years showing his position.

Mortgage Given

Bankrupt said, in reply to Mr Hewat, that he gave Poole and Sons, whom he owed over £6OO, a mortgage over everything except the Heriot street property, which had a mortgage on it. At the time he bought the Heriot street property he was owing Smith £2OO, for which there was a judgment. There was a half-finished house on the property and he improved the building to the extent of about £3OO. He did not pay Smith because he was unable to do so. He had hoped to sell the property and pay Smith. When he bought the property there was a mortgage of £270 on it. He had not sold any properties during the past three years. Poole and Sons had no security from him before October 1936. He did not think he was doing anything out of place by giving Poole and Sons security without telling Smith. He valued the property he had put under security to Poole and Sons at £l5OO. Poole and Sons had security over all his mortgages. He did not think his secured creditors had anything to fear. After taking judgment against him Smith gave him a “fair run” and even further credit. He would not suggest that Smith had agreed to wait until bankrupt had sold his Heriot street property before bankrupt paid him. The hearing was adjourned sine die.