BANKRUPTCY.

Taranaki Herald, Volume LIV, Issue 13744, 5 September 1908, Page 6

BANKRUPTCY.

J. J. PATTERSON'S ESTATE

A meeting of creditors in the estate of J. J. Patterson was held at Dannevirke on Wednesday last before Mr N. L. Gurr, Deputy Official Assignee. DEPUTY OFFICIAL ASSIGNEE'S

KEPOKT

The Deputy Official Assignee's report upon the estate was as follows; — Owing to the incomplete state of the books and accounts and the shortness of the time at my disposal, tho books only coming into my hands to-day, 1 have, not been able to make as exliafc&tive an examination of the debtor's affairs as 1 could have desired, i have, Jiowever, gone throngh the ledger balances, and analysed the statement and lists provided as far as possible with tho following results* — Book debts: Mr Patterson shows ledger balances in his private estate I amounting to £29,600. These are made up of the most part of losses sustained over his various transactions and investments, dishonoured cheques, and promissory notes, and generally amounts which have no \ alue whatever, and which should have been wiped off long ago, and should not in any way appear amongst his assets. With regard to tho £9953 standing to the debit of the Koru Mill, in his ledger, this represents all the moneys lie has invested in the concern, and his estate can only benefit by any surplus which map remaii%after satisfying the Koru creditors. No portion of this amounf can, therefore, be included amongst the assets of his private estate. The same thing apx>lies to the £3642 moneys invested in Wylie and Co., except that 'there will be no surplus in this estate to' come to him. After careful consideration, I have written down the debits at £1200, and consider that a fair estimate of what they will realise. This, of course, excludes . any surplus from the Kcru mill, estimated at £2348. The Koru mill debtors aro returned in the statement at £239, This amount does aov agree with the ledger balances as extracted, but . as the book does not appear to be posted up to date, and many of the~ accounts are confused, I have taken the 'figures as they stand. Wylie and Co. : I have included the debit balances in mv statement as £2000. \ Stock, Wylie and Co. : In the statement which I present with this,' I based my results on a stock value of £1100 as shown in tjie debtor's statement, whereas tho Stock, after being cheqked, amounts to £ . ' Koru stock shown as £150, I have included in the £3000 at which the mill is valued as a 'going concern. Sundry creditors : These amounts all seem fairly correct. In the case of the Koru mill tho majority of the credit balances are not shown in the ledger at all, the list* being presumably complied from the accounts rendered. J. J. Paterson : I have taken the amount of surplus held by secured creditors at £1000, but I cannot give any assurance as to the correctness of the amount. Koru Mill : Had I received the returns in this estate in time I should have gone up. to Koru, and ascertained for myself t!ie position of affairs there, also as to the probable value of the property, and also made some" enquiries as to various moneys collected, which do not appear to have been accounted for. As it is, should the creditors think it desirable, I shall taxe an early opportunity of going to New Plymouth on this business. I will now place before you the statement I have drawn up showing as nearly' as ,1 can the position of affairs from my point of view, asd in which the whole estate shows a deficit of £2180, and I am sure, that 1 have not underestimated the state of , affairs when I say that I consider it will take me all my time to j*ay a dividend of, say, 11s in the £, and when the stock is further written down to agree with, the stock sheets, it will reduce the dividend considerably.

BANKRUPT'S STATEMENT.

The bankrupt's statement was as. follows: — Up to 1900 I had a fairly good capital, the result of a- good many years' labour, and was doing very well. I Since "that time i have had Job's luck, more or loss, on evory side, and in nearly all my ventures. In 1903 I was induced to put a sawmill into the Pin Piri bush, whijbh after severe losses by fires and others causes was finally cut out last year, -resulting in a net loss to mo ol about £5000. In the year 1903 1 took up flaxmiliing, and this I have carried on with varying success, finally after being burned out, and very little insurance, my flaxmilling business resulted in a net loss of over £2500. In 191)4 I joined Mr W. J\ Greenaway in Glengarry and in New Plymouth ventures. "We" came out of Glengarry fairly well. But in New Plymouth things — especially after the departure of Mr Greeunway — got worse, and after being burnt out at the Koru mill with no insurance, and heavy- losses from -drought and bush fires and failure of crops, was unable any longer to bear the heavy drain on my finances, and finally closed down the Koru mill last June. Ihe result of these ventures shows a defliciency balance of nearly £ 1<5,000. About ten years ago, and-during the whole of the period above referred to I was practically a slopping partner in the business of Wylie and Company into which business 1 was drawn in 1899. This business was fairly good till the fire of 1906, by very heavy loss was sustained/ This 1 did not fully realise till after the death of Air Wylie last year. From time to time I have invesed nearly £4000 of capital in llio business of Wylie and Co. After the death of Mr Wylie the position of this business gradually became acute. The Koru mill was stilldnmiing my finances and losses following in other .ways and the continued worrying of sundry creditors in the different matters in which I was involved had eaten up all my resource^ until finally the- pressure became so groat on all sides and I was unable to obtain relief otherwise, and was forced reluctantly to seek the protection of the court to ensure an equitable distribution amongst the various creditors "in the differeut concerns in which I have invested my capital. I have practically no- private creditors, and almost the" whole of > the liabilities now under consideration are for amounts contracted by persons on account of matters in which 1 was more or less interested, and of which in many cases f. have 1 Kt tie knowledge, and 'in some cases for liabilities I have unwisely allowed myself to bo persuaded to help others to my sorrow. To a creditor: He could not give the total amount of Wylie and Co.'s losses to date. Ho had put £3000 into the business and luul not drawn a penny out. Ten years ago Wylie and Co owed him £700 and lie had been putting money in ever since. He was cer-

tain the business had not been paying for the last two years. To the D.0.A. : He intended to go into the affairs of Wylie and Co at once.

A RESOLUTION.

After further examination of bankrupt the meeting resolved that Mr Nation (representing Levin and Co., creditors) should be empowered to appoint an outside accountant to make an independent investigation of bankrupt's affairs and to report through the Official Assignee.

THE KORU MILL.

Afterwards debtor stated that he had received an offer from Mr Brown of £3000 for the E;pru mill, but he was doubtful if he could complete now. On the motion of Mr Downes, seconded by Mr Nation it was decided that the disposal X>f the K-oru mill should be left to the D.O.A.

AN OFFER.

Mr Nation then enquired if the debtor could not make an. offer. Mr Patterson replied that he had come prepared to make an offer, but had not been given an opportunity. He was willing to pay 10s m the,* if the bankruptcy were annulled. After some discussion it was pro* posod that the debtor should pay 5s in three months, 2s 6d in six months, 2s 6d in nine months and ,2s 6d in twelve months, on approved anji guaranteed bills; the bankruptcy to be annulled and all previous resolutions carried at the meeting rescinded. Tim proposition was, then put as a special resolution and carried. The meeting adjourned for a fortnight. 1