BANKRUPTCY.

Taranaki Herald, Volume XLV, Issue 10654, 1 July 1896, Page 2

BANKRUPTCY.

MEETING OF G. BUSLING'B CREDITORS.

The first general meeting of creditors in the estate of ,IR. Busling, butcher, of Inglewood, was held in the offices of the D.0.A., at 2 o'clock, on Tuesday afternoon, Present :- Messrs R. G. Bauchope, D O.A. (chairman), A. A. Fantham, J . W. Henwood, F. Sohrieder, M. Sutherland, J. C. Peach, J. A. Bridgman, T. Flintoff, W. Sole, F. Lever. Mr Weston appeared for bankrupt, who was also in attendance. The D.O.A. said he was sorry to say from the little time' he had to look into the affairs of the estate that it appeared a poor affair from a creditors' standpoint. The statement showed that bankrnpt had unsecured liabilities to the amount of £241 105, and the only apparently avail able asset was book debts estimated to produce £30. He had aent out the accounts, and had received one answer in which it was shown that the supposed debtor held .Ruslipg's receipt for the amount. > ." There ' might be more accounts 'of the same kind, and from what he knew by experience he fell the book debts would not produce half the estimated amount. Proceeding,the D.O. A. said that the bankruptcy was the moßt unsatisfactory one that had ever come before him during his tenure as Assignee. He proceeded to point out the business that had been done by the bankrupt, and taking everything into account there was a disappearance of some £300 which the bankrupt could net account for. The bankrupt was present to questions. Bankrupt was then sworn, and in answer to Mr Fantham stated as follows : — He was an undischarged bankrupt when he started business, in September, 1895. Mr Pennington called on him (Mr Fantham) by bankrupt's authority to see if matters could not be arranged. This was four or five months ago. Bankrupt was going to see Mr Fantbam about the bills overdue, but Mr Pennington said he would see Mr Fanthan about bankrupt's position, Mr Fantham said that Mr Pennington called on him, and said he was in charge of Rusling's books, and pointed out Rusling's position ; whereupon he (Mr Fantham) agreed to give Rusling time. Had it not been for these representations he would have pushed the bankrupt at the time, and thus prevented the bankrupt from carrying on further. Further ques'ioned bankrupt said ; Mr Henwood had a bill of sale over the whole thing. Mr Henwood gave a guarantee for £100, with interest at the Bank of New South "Wales, on behalf of Rusling. This was the consideration given. Mr Fantham said it was a question for the D.O. A. to say whether the bill of sale was valid.

Mr Weston said 'the. affair was a bona fido transaction. , .. Examination continued : At the creditors' meeting in April the book debts were £82, and when Mr Penning, ton took charge of the books in February they were £120. He sold the cart. Mr Fantham : I thought I cautioned you not to sell anything, or let the books go out of your possession. Bankrupt ; I don't remember it. Mr Fantham : I am sorry your memory's so bad. Mr Fantham said he refused to go to the meeting of creditors, as he did not hold with the way things wero going on. Mr Weston said that Mr Fantbam had written refusing to agree, and ho then advised fiusliug not to go on with the sale as agreed to at the meeting of creditors. Mr Solo aske'l^ bankiupfc what money he had spent on his trip to Timaru. Bankrupt; It I spent any money of my creditors on the trip, it could not have beea more than £2. The Assignee : Where did you get the money ? Bankrupt : I got the money irom my boy's wages, and my own resources. The Assignea ; Then you took money out of the business? Bankrupt : Yes. Mr Sole: You knew you wero insolvent then, yot you left your business ? Bankrupt : I left a botter man than myself in charge of it. Mr Sole : Why did you go to Timaru ? Bankrupt : To a Conference. Mr Sole : A Butcher's Conference ? \ Bankrupt: No; a Methodists' Conference. Mr Sole : How long were you away ? Bankrupt : A fortnight and one day. The Assignee : You knew you were insolvent at the time ; you had bills overdue. Bankrupt: Yes. Mr Fantham : Were the book debts sold for £55? Mr Westop said that the arrangement was not carried out. When ho received Mr Fantham's letter he advised that the proposed sale shonld not be carried out; although the meeting of creditors agreed it was a fair sale. Mr Henwood said that time had proved that the book* debts were not worth the offer he had made for them. It was a speculative offer oa,his part. The Assignee asked the bankrupt how he accounted for the large deficiency in the estate. Bankrupt replied that the only way ho could account for it was that meat sent out had not been booked by his boys ; in fact that it was a case of negligence. Ho advised Mr Henwood to have the boys out of the shop, and a competent person placed in charge. He admitted that he was not a good scholar, ard this might in a degree* account for something. The Assignee said it was not necessary for a man to be a scholar to know what he bought, killed, and sold. ,

In answer to f urthsr questions, bankrupt said all moneys received prior to Mr Pennington taking over the books were paid into the bank, except a few small sums. The Assignee : TJp to the time of Mr Pennington taking over the books, the bank book showed that £69 16s 9d was ! paid in, the book debts showed £120, I making in all £180 odd. Now you killed 38 cattle and 122 sheep; '.'dud at a low estimate these would represent £350. The question is how do you aiocbunt for the deficiency if you paid all moneys except some small sums into the bank ? Do you mean to say that the bank ■ book shows your receipts with the exception of a few small sums ? Mind, you are on your oath. ' Bankrupt : To the best of my bolicf and knowledge it does. Mr Sole : How long a period do the transactions cover ? The Assignee : He started business on September, 1895, and now this is June, 1896. Mr Sole : He must have bean playing marbles. Mr Honwood : What did you owe when you started business ? Bankrupt : About £40. ' Mr Henwood : Now, was it not nearer £240. Bankrupt : No. Mr Henwood : It seems to me that paying off back scoroß has landed bankrupt where he is. Mr Henwood (to bankrupt) : You never told me you were au undischarged bankrupt when I first had transactions with you. „ Bankrupt : No ; I did not. ! Mr Henwood : And if I had known, j old fellow, I wouldn't have. touched you. j Messrs Bridgman and Flinfcoff also I made statements. Mr Fantham made a statement, in which he referred to bankrupt's conduct, and pointed out that the only cash the Assignee had been handed over was the munificent sum of 17s lOd. He moved, That bankrupt be brought up for public examination, and those .present guarantee expenses in excess of what money the Assignee cau realise from assets. Mr Henwood did not see the use of the resolution ; it was only throwing good money after bad. Mr Peach : I'll second the motion. Mr Henwood : I would like to know, if such a resolution is passed, does itjbind all the creditors present ?

Mr Fantham considered it would be binding. Mr Weston said it was only a question of personal liability.

Bankrupt said if it took him ten years he would pay the creditors off. Mr Sole : That is the old yarn. You told us that when you went bankrupt before. Bankrupt : But I mean it. The Assignee said he hoped the book debts would pay all the expenses. The motion was then put and carried unanimously.

In answer to a question from Mr Bridgman, the Assignee said that after a period of eight months in business bankrupt had a deficiency of £300^whichhe could not account for ; and the only conclusion that could be arrived at was that there was negligence, or some one had been helping themselves to the money. The meeting concluded.