IN BANKRUPTCY.

Timaru Herald, Volume XCVIII, Issue 18084, 25 June 1924, Page 7

IN BANKRUPTCY.

APPEAL BY CREDITORS. j Because Frederick William Coch- \ rane, who went bankrupt in T. ima.ru, did not furnish his Christchurch credi- : tors with a list of 32 additional creditors in Christchurch, an application was made at the Supreme Court in Christchurch last week, before his Honour Mr Justice Sim, to have the payments made declared void. . ~ , Mr Donnelly appeared for Mr A. W Watters, Official Assignee, of Christchurch, who instituted the proceedings, and Mr W. D. Camp bell <apposed the application on behalf of C. T. Dawson, of the firm of Dawson and Porter, of Timaru. George T. Dawson, director of the firm of Dawson and Porter, said that he had been connected with the sale of the Wentworth Tea Rooms m To Mr Donnelly: He knew that Cochrane had been in business m Christchurch, and he thought that he had been interested in a timber company at Port Craig. He had made an attempt to hunt up as many creditors as he could find. Mr Donnelly said that on May 4, 19 23, Cochrane authorised the sale of the Wentworth Tea sale taking place on May J. ,^ n *' lay 11 the creditors met, and L. ison and Cochrane were appointed trustees, in winding up the estate,. • the creditors decided to accept lbs J the £ as full settlement of debts, and the payments were completed on Mo lb. On -May 19 Cochrane was ml judged a bankrupt. A sum ol ~l,e lbs "Dd was obtained for the tea-, coin-, and the total debts m i nnaru amounted to .22219 10s, but there were creditors m Christchurch to uho Cochrane owed -21020, and they uo-o excluded from participation m the payments made out. When Cochrane was in Christchurch, ho was connected witn two private hotels, and the debts were i ordinary trade debts. Cochrane had suppressed from the T.maru creditors l all knowledge of the Christchurch Creditors. The Timam creditors had not made inquiries, and took the ; t-.s iof other creditors coining along. H' '.submitted that the banding over of the proceeds of the sale of the business those proceeds being Cochranes tot 9 a-cts, was an act of bankruptcy, am tended to defeat the creditors omitted from the arrangement made. Mi- Campbell said that the three principal Christchurch creditors participated in the payments. . . j His Honour reserved his decision.