HECTOR GRAY BANKRUPT

Taranaki Daily News, 7 April 1927, Page 11

HECTOR GRAY BANKRUPT

WELL-KNOWN EX-HORSEMAN “FROM AFFLUENCE TO POVERTY” SYMPATHY AMONGST CREDITORS DISCHARGE TO BE FACILITATED. Pleading disqualification for life from his occupation as a jockey as the reason for his financial failure, Hector Edward Gray, once the best known rider on the New Zealand turf, appeared in bankruptcy before a meeting of creditors at the office of the Deputy Official Assignee (Mr. J. S. S. Medley) in New Plymouth yesterday. A sum of £939 8s was stated to be owing to unsecured creditors, most of whom are tradespeople in New Plymouth, Hamilton and Auckland. Certain assets have yet to be realised upon, however, and bankrupt estimates that the deficiency in his estate is £324 6s 2d. In the course of his statement, bankrupt said that his estimate of his loss on two farms that he owned was £15,000. At the conclusion of his examination, the creditors resolved to facilitate his discharge, providing the D.O.A. satisfies himself that all the assets have been disclosed and that bankrupt’s cnoduct as far as his affairs are concerned has been satisfactory. To unsecured creditors a sum of £939 8s was stated to be owing. A sum of £905 13s 10d was set down as owing to secured creditors, the estimated value of the securities being £1505 13s lOd. The only assets, apart from th e securities already mentioned, were book debts estimated to produce £l5 Is lOd. CREDITORS PRESENT. The creditors present or represented were: —Messrs. L. B. Gilfillin (representing Para Rubber Co., Whitford, Erson Motors, Matthews Bros., Bakers, Ltd., W. R. Shatfock and J. Pomeroy and Co., Ltd., all of Hamilton)', C. H. Weston (W. G. Emeny) and W. G. Emeny) himself, P. E. Stainton (Stainton and Co.), R. George (Ridd Co., Ltd.), L. Lovell, A. Anderson (Mrs. Clifton), and Newton King. The unsecured creditors were listed as follow: —W. G. Emeny, New Plymouth £242 12s; Jas Tombs and Co., motor dealers, Hamilton, £lB3 Is sd; Wright, Stephenson and Co., Auckland, £os 3s, 9d; Newton King, New Plymouth, £5O; Patea Harbour Board, £1 0s 2d; Gibson’s Motors, Ltd., £4 12s 6d; Ridd Co., Ltd., £l3 10s 9d; W- R- Shattock, butcher, ■ Hamilton; E. Jones, saddler, Hamilton, £5 7s 6d; Whitford, Erson Motors, Ltd., Hamilton, £2l 10s fid; Young and Collins, Ltd., saddlers, Wanganui, £9 8s 8d; Stainton and Co., Ltd., New Plymouth, £l7 10s fid; C. L. Innes and Co., Ltd., brewers, Hamilton, £ll 3s; Para Rubber Co., Hamilton, £l3 10s; Waikato Supply Stores, Hamilton, £3 14s scl; J. Pomeroy and Co., Ltd., coachbuilders, Hamilton, £3 18s - 6d; Hughes and Cossar, Ltd., merchants, Auckland, £9 6s 7d; H. J. Burrell, farmer, Bunnythorpe, £5; Rotoiti Timber Co., Rotorua, £l2 8s fid; F. M. Winstone, Ltd., merchants, Auckland, £l6 Is Id; B. P. Edwards, trainer, Auckland, £2O 18s 6d; Matthews Bros., farmers, Hamilton, £Bl 10s; B. P. Cahill, solicitor, Auckland, £8 8s; Mrs. Clifton (damages, collision), £37 ss; F. Baker, Ltd., motor dealers, Hamilton, £3O Ils 4d; Jillett Motors, Ltd., Auckland, £4 7s 7d; Govett, Quilliam and Hutchen, New Plymouth, £2B 4s; Geo. Grey, New Plymouth. £2O. DISQUALIFIED IN MAY, 1925, His difficulties commenced in May, 1925, when he was disqualified from engaging in horse racing, said bankrupt, in his written statement. At that time he had two farms, one at Hamilton and one at Midhirst. He paid £9OOO for the Hamilton farni in 1925, and sold it again in August, 1926, for £11,782 plus £320 (for furniture and car) and £257 (for two horses and implements, etc.). The purchaser (Mrs. R. J. Tiddy) took over mortgages totalling £7lOO, transferred to him a Hawera property valued at £3BOO (subject to a mortgage for £900), paid altogether £879 in cash, and gave a third mortgage for £1352. So much of the cash went in payment of current interest, rates, etc., stamp duties, commission and so on, that bankrupt received only £9B 4s altogether. The third mortgage of £1352 was transferred to a creditor who was pressnig for a debt of £5OO. At that time he did not regard the mortgage as being worth any more, as he had in fact been unable to raise £lOO on it, and to-day he did not think it was worth anything. In the original arrangements for the sale of this farm, he was to get £1352 in cash, which would have enabled bankrupt to meet his creditors. He also expected to be able to sell the Hawera property, so as to clear between £2OOO and £3OOO. Notwithstanding the value of £3BOO placed on the Hawera property, when he came to try to sell it he found that £l5OO or Sl6OO was its full market value. He had offers to purchase at these figures, but could not sell as a creditor had registered a charging order against the title, and he could not give a transfer unless this order were lifted. The creditor w’ould not lift it unless he received 15s in the £l, and as the price obtainable would not pay all creditors 15s in the £1 he could not, in justice to the other creditors, pay this one. CREDITOR THREATENS ACTION. The creditor held off a long time to enable bankrupt to try to sell, but last month informed bankrupt that if he were not paid 15s in the £ by the end of the month he would take certain steps. This meant he would sell the property, and it was in order to protect the general body of creditors that bankrupt voluntarily filed his petition. Bankrupt bought the Midhirst farm of 153 acres for £22 10s an acre 18 years ago, and substantially improved it. He had to abandon the farm last September to the mortgagees, to whom £3875 was owing. He estimated his losses on th e two farms at £15,000. He was not a business man, said bankrupt, in conclusion, his training having been in another direction. As a jockey he was able to earn a very good 'living, and it was, of course, since this source of income was cut off, and farm produce fell, that his present financial position came about. He was totally unfitted for any work other than the handling of horses. If ever he should be able to undertake the training of race horses, he did not think there was any doubt but that he would be able ultimately to pay all his creditors in full. Apart from the Hawera property, and a promissory note for £416 which he regarded as valueless at present, he had no assets, and he had no money saved. His last farm cheque was received last July. He had since had to borrow money from friends in order to meet the living expenses of his son and himself. At present he was earning £2 a week, but this might be terminated at any time. STATEMENT UNDER OATH. Examined under oath, bankrupt said he

had no interest in any horses on Mr. Ansford’s farm, nor in any horses at all for that matter. Two horses had recently gone from his farm, but they were the property of Mr. E. George. The D.0.A.: What about the horse Lapidary?—l have no idea where it is. And Paitonu ?—She is a brood mare, and was sold about nine months ago. And Madam Ristori? —She belongs to Mr. E. George. He raced her, and still owns her as far as I know. As for Lapidary, I never owned a hair in its tail. I sold the brood mare, Paitonu, to Mr. Anderson, St. Helier’s Bay, Auckland. Further questioned, bankrupt said that at ' the time he was disqualified, he did not do his own business but left it entirely to Mr. Stanford, solicitor, Marton. Mr. Stanford acted as his attorney. The D.0.A.: Occasionally you would ask him how you stood, wouldn’t you?—No, 1 never asked him that at all. Mr. Gilfillin questioned bankrupt with regard to the car bought from Tombs and Co., Hamilton. Bankrupt explained that a sum of £lOO which was to have been advanced to him, was eventually not forthcoming, so in the end, although h e offered to give back the car, his dairy company advanced him £lOO. Although it was being purchased under a hire purchase agreement, he sold the car to Tiddy with the other property. LOAN WHEN ABROAD. With regard to the third mortgage sold jo Dr. Ring, of Auckland, bankrupt found this necessary as when he- was away in England and Europe he had to borrow some money from a man for whom Dr. Ring was agent. Dr. Ring pressed for repayment of the £5OO advanced, so bankrupt sold him the mortgage at that price. He understood that the mortgage was subsequently sold back to Tiddy for between £3OO and £4OO. Mr. Gilfillin: Well, you discharged this debt to Dr. Ring, in spite of the fact that my people were also pressing you at the time. Mr. Weston: I am instructed that bankrupt had already pledged that mortgage as security to Mr. Emeny. Mr. Gilfillin: You must have known that you were in financial difficulty at the time you had the dealings with Dr. Ring. Bankrupt: No. At that time I expected to be able to sell my Hawera property for between £2OOO and £3OOO. I should then have been able to pay my creditors quite easily. "I think personally,” said Mr. P. E. Stainton, “that Mr. Gray is in a very unfortunate position. A short- time ago he was the leading, jockey in New Zealand. Now he is reduced from affluence to poverty. lam not a personal friend of his, and have not seen him for months. Certainly lam only a small creditor. But all we know about Mr. Gray is that he was the subject of a very severe sentence, which took away from him his life work. I hope that the creditors will let their judgment be tempered with mercy, and will facilitate bankrupt’s discharge.” BANKRUPT DISTRESSED. Mr. Stainton’s remarks, delivered with some eloquence, and his reference to Gray’s past occupation, seemed too much for the bankrupt, who was visibly and audibly distressed. Mr. Stainton’s suggestion about, facilitating bankrupt’s discharge, put in the form of a motion, was seconded by Mr. A. Anderson. Mr. Weston said that he was instructed by Mr. Emeny to oppose the motion. Certainly these were hard times. So much so, in fact, that many people hardly knew whether they were financial or insolvent (fervent exclamation of “Hear, hear,” from a creditor). However, he thought that the motion was a little precipitate. Mr. Emeny was amazed that the security pledged to him had been sold to Dr. Ring. Mr. J. H. Quilliam (solicitor for bankrupt) : On behalf of bankrupt I must say that I think it is inadvisable to pass any resolution that might give the impression that we do not want bankrupt’s affairs fully investigated. Mr. Stainton agreed to qualify his motion with a proviso that the D.O.A. be asked to make investigations, the creditors to agree to facilitate discharge only if it were proved satisfactorily that all the assets had been disclosed and bankrupt had otherwise acted satisfactorily. Mr. Gilfillin: Might I Suggest that a small committee be set up to assist the D.O.A. in his investigation. Say a committee consisting of Mr. Weston and Mr. Newton King. Mr. Newton King: Not me. I’ve got enough of that sort of thing already (laughter). Mr. Weston agreed to act as suggested, and Mr. Stainton’s motion was seconded by Mr. Anderson and carried without dissent. At the suggestion of Mr. King it was resolved that the property at Hawera be disposed of.