IN BANKRUPTCY.

Stratford Evening Post, Volume XXXII, Issue 47, 20 February 1912, Page 5

IN BANKRUPTCY.

RE G. O. READER,

A meeting of creditors in the bankrupt estate of G. O. Header, was held in the Deputy-Official Assignee’s office

this morning. There were present: Messrs. McDonald (Central Co-op. Stores, Wilson (Wilson, Drake and I (Jo.), Mullen (Mullen and Marshall), and Downie (H. Brown and Co.), and Mr. P. Thomson, solicitor to the bankrupt. In tne sworn statement, bankrupt said he was a painter and paperhanger, residing in Stratford. Prior to March, 19ii, he was working in his father’s employ on time wages, and averaged £2 a week. On his father’s giving up business his brother and he had been working together, taking up contracts for painting and paperhanging, but Lad lost money on every job that lie had done prior to Decemoer last. Such losses had been due to,bad weather, and were no fault of his, as in most cases lie had worked anywhere from eight to twelve hours a day. Since the first of March last, he had received in all £llO approximately, and ho held tradesmen’s receipts for moneys paid out since that date amounting to £lO5, a part of which was for accounts incurred before March Ist, that they would see he nad not wasted or spent money in any way foolishly. Ho did not drink, bet, or gamble, and had done all lie could to keep matters in hand, but had been unable to do so. He had paid whenever lie could, and would still do so, were he able. Ho had dealt twice in land. Three years ago ho bought a property from Mr. Wake in Hamlet Street for £9O, and sold it for £l6O in July, 1910. Then in August, 1910, he bought Mr. Tichbon’s property in Regan Street West for £7so—paying down £75 deposit—the profit on tne previous section.

The balance was left on two mortgages, one for £SOO at G per cent., and a second of £175 at 5 per cent, to the vendor. Off the first a £25 instalment was to be paid each year. This, added to the interest, rates, and insurance, amounted to £73 4s per annum. He occupied the* property Himself, and as he could not keep up the payments, was, in April last, forced to sell, and sold at £777 10s. Out of this sale lie received £6B 17s 6d, but as one of the terms of the sale he had to erect two extra rooms on the house. This cost him over £3O, so that he came out without absolutely anything, and also lost his previously made £75.

Ho was a married man, with a wife and four children—the eldest aged 7 to keep, and had no property bub his furniture. He had no wish to take the present step, but through insufficient time to recuperate, and being unable to meet several accounts before the 9th instant,, and for which he had been sued, he was forced to file. The debts amounted to £92 ’Bs Id, and the only asset was the furniture, valued at £35, leaving a deficiency of £57 8s Id.

The unsecured ! creditors were:— Bellringer Bros £3 IGs 2d, Wickham Bros £4 is sd, Young, Hobbs and Co. £6 13s 6d, W. Rowe £5, J. A Thompson. 14s 6d, J. Masters and Son £2l 18s sd, R. H. Robinson £2 9s, Kemp and Sawle £1 8s sd, Dwyer and Lennon £2 13s 6d, Central Co-op. Stores £3 19s 4d, .Mullen and Marshall £3 jliH,, W : ,C. Cargill , £3 12s . 9d, Clayton Bros 11s 6d, J. Hume £2 0s 7d, Newton King £5 16s 2d, Wilson and Drake £l3 11s, W. and E. Brocklebank £1 2s Cd, Henry Brown and Co. £lO 2s od.

■ Thef D.O.A. sa:d the . statement:with regard to the land transactions were absolutely correct. Mr. McDonald remarked that the profit on the first deal would have put him right with his creditors.

The bankrupt said he thought he was solvent, when he made the first deal. He could have paid 21s in the £ when;he bought the second property. His wages of £2 a week had sufficed to keep him. The D.0.A.: What has been youi experience, Mr. McDonald ?—lt ha: been an old friend. I forget how old it is.

Bankrupt stated that McDonald’saccount had been for bread supplied before August, eighteen months ago. It was shown that about £25 of tm liabilities, were owing at the time oi his dealing in the second property. In answer to the D.O.A. bankrupt said that no creditor had secured judgment against him, but several summonses had been issued, an-j these were not proceeded with when he filed. '

The D.O.A. remarked that seeing that no orders were threatened, ho d'd not think the, bankrupt had done i In right thing in filing, and thus pre venting the creditors fron obtaining their moneys due. If _ bis position was huch that his earning, were insufficient to enable him to live and pay up back debts, then he bad nothing to fear, for under such circumstances it was very improbable that the Magistrate would make an order against him. Had he not hied, his creditors would have been able tc ha’, e received money as he earned it. or to have sued and obtained an order of the Court. It seemed to him thal there had not been sufficient exci s( for filing. The bankrupt would have had nbthing to fear in Court proceed ingr. As it was, he had oaid probably £8 or £9 in the expenses of his bankruptcy, and that money would have paid a dividend of about 2s 6tl in thf. £, and the creditors -y ou'd doubtless have been very glad to got it and hold off. What offer could nc make?

The question of liabilities owing to the partnership cropped up, tin D.O A. stating that the partnership books would have to be inspect'd. Bankrupt said he expected £3O In about six weeks, but had no money ofhnwise, having borrowed from hi? brother the money to pay the expenses of filing. After discussion, the bankrupt said he would be prepared to make an offer of 10s in the £, to be paid in twelve months.

I tow as decided that the bankrupt’s ducharge he facilitated upon payment by him of 10s in the £, in instalments of 2s 6d or more in the £, paul periodically, the first instalment, together with the preferential rent claim, to be paid within eight weeks from date. The meeting was then adjourned f r a week; to enable the D.O.A. to make an investigation of the affairs of his partnership.