INSOLVENT STOCK DEALER

Taranaki Daily News, 19 December 1931, Page 13

INSOLVENT STOCK DEALER

BANKRUPTCY AFTER JUDGMENT. COURT CASE OVER A HOUSE. Arising mainly out of. a judgment given against him in the Magistrate’s Court, Frank Dent, drover, was examined in bankruptcy in New Plymouth yesterday on a petition filed by accreditor. Unsecured debts totalled £252 12s lOd, ao-ainst which there was an offset of £213 8s 4d stated to be due from Thomas Martin, Smart Road, on a judgment in the Magistrates Court, lhe estimated deficiency was £39 4S/6d. The meeting was adjourned without a resolution being passed, but pent, agreed i to supply the deputy official assignee with details of stock transactions I through Newton King Ltd. and the Farmers’ Co-operative Organisation Society. The four unsecured creditors were! J. A. Somervail, labourer, New Plymouth, £226 2 s lOd; Ross, carpenter, Fitzroy, £2 2s; F. W. Amoore, valuer, New Plymouth, £2 2s; C. E. Monaghan, solicitor, New Plymouth, £22 6s. Real estate held by Dent was. estimated to have no value. It was listed as 30 acres of Public. Trust leasehold on the Smart Road, the lease having 3J years to run at a rental of £45 a and paid up till December 31, and 15 acres on the Carrington Road leased from the Wyatt Estate, with 2J years to run at £BO a year, and paid up to December 19. 1 In a written statement Dent said that in 1924 he was employed by the New Plymouth Harbour Board, and at the same time was milking a few cows on his own account. Subsequently lie bought more cows and commenced a milk-vending business. As that busiI ness did not provide sufficient income for his requirements, he took up a property on the Smart Road from one Somervail. In order to get on that property he assisted Somervail to the extent of £325 by paying off his liability to Newton King Ltd. and taking over in return a few head of mixed stock. _ He obtained a lease from Somervail of la acres of ■ land, and a lease from the trustees- of his father’s estate of 34 acres. By assisting Somervail he released him from his liability to King’s, Ltd., and he received back his. title to his property and his car, which had been lodged with King’s in support of a guarantee he had given them on behalf of one Waterson. Dent and his wife worked hard on the place and did fairly well in pigs, poultry and dairy farming. Then, unfortunately, the house was burned down, and he entered into an agreement with Somervail to rebuild. ■ The arrangement resulted subsequently in a court case, whereby bankrupt was endeavouring TO obtain moneys expended by him in rebuilding the house. Somervail counterclaimed and judgment went against Dent and his claim and in favour of Somervail on his counter-claim. Dent had spent considerable money in the building, and the result of the judgment ■showed a loss to him in cash of approximately £lOO representing money spent, and in addition to the amount of judgment entered against him. He sold his interest in the Smart Road leases, together with stock and goodwill, to Thomas Martin in November, 1930, for £7OO. Bankrupt received £3oo in cash, leaving the balance on a bill of sale over the stock. Martin could not successfully carry on, and Dent was forced to realise the security. He lost over £2OO of the money owing to him by Martin, for which he had received a judgment in the Magistrate s Court. He understood that Martin could not pay. During the year he sold certain stock to Thomas Hipiti. He was to pay under an order on his milk cheques, but Dent was not satisfied that he was doing his best with, the stock, which on realisation showed him a loss of about £4O. Since selling to Martin he had been droving and stock dealing. About the time judgment was given against him in favour of Somervail he had been dealing in a small way in stock through Newton King Ltd and the Farmers’ Co-operative Society. He owed both these firms money for purchases at the time for which they would have been paid in the ordinary course on resale of the stock. On judgment being given he allowed the stock purchased to be sold, the proceeds being credited to his accounts with the firms mentioned. His wife always had moneys of her own, and any stock dealings he had had since Somervail’s judgment had been carried out on Mrs. Dent s account and with her money. Complete details of his stock dealings and the transactions on his wife’s account could be obtained from Newton King, Ltd., and the Farmers’ Co-operative Society. Dent attributed his position to the losses Buffered in stock dealing, the sale to Martin, and Somervail’s judgment. He had disclosed all his assets. His life was not insured. He was married and had four children. He had no company shares and. no interest in any estate. He was at present living on Carrington Road, where he leased land at 30s a week. ' . Examined under oath, Dent said a battery radio set, though registered in his name, really belonged to his wife. He owned a pony, saddle and bridle used for droving. The furniture was his wife’s. . Counsel: Who owns the. stock on Carrington Road ? , Dent: My wife. Since the judgment I could not get credit, so I dealt in my wife’s name. ‘Counsel: Who refused you credit?— King’s had something to say. But who actually refused? —I can’t say anyone actually refused, but it would not have been fair for me to continue buying when I could, not pay the judgment. ' Is it not a fact that you decided not to pay• Somervail from the beginning? —No. Did you not tell me that Somervail would never get “a penny?”—No. Creditors present at the meeting were J. A. Somervail, F. Amoore and C. E. Monaghan. The deputy official ruseignee (Mr. J. S. S- Medley) presided.