IN BANKRUPTCY.

Star (Christchurch), Issue 12064, 20 July 1917, Page 5

IN BANKRUPTCY.

ESTATE OF W. F. BURNS. FIRST MEETING OF CREDITORS. Tlio first meeting of creditors in the. bankrupt estate of William Frederick Burns, draper, of Christchurch, was held to-day in tlio Official Assignee's rooms, before the Assignee (Mr T. D. Kendall). There was a small attendance of creditors. The bankrupt was represented by Mr Cassidy. SURPLUS OF ASSETS SHOWN. The bankrupt's statement of assets and liabilities was .set out as follows— A sets. £ s. d. Viand . . . 4,000 0 A Stoek in bond .... J"3O 0 0 Book firsts W0 0 0 riant, fittings. ei<-. . . 31" 0 Value of property, list A . . 22.3fv> o 0 Value. of prpoperty, list f? . . 2,010 0 0 Estimated equity in farm. LoI> > i r;;. held as '.•■oliiitpral srfiirity by T. Bullojk o.'or Tnam .Street property . . t'O 0 0 Total . . . .£30,795 0 0 Linbilit ies £ p. d. Secured creditors (,J. T?all»ntyno ■and Co., rent) .... 1005 10 0 Estimated wages . . • 0 (> Estimnted rates to Ecliruary, 1017 758 B 0 Estimated Tatos to date . . IPO 0 0 Estimated interest to date on property mortgages . • •Ij" " "Mortgages on property, list A . 18,3.50 0 0 Mortgages to Bank of New Zealand on properties in list B . 2,850 0 0 Estimated interest due to Papprill and Conlan on [arm . 1-0 0 Estimated interest due to Curlett on farm . ~ • • 58 10 10 Interest. duo to Retail's trustoes 31 0 £24,8-18 7 7 Unsecured creditors . • • <1 "Estimated excess of asset? over liabilities . . • • • Wlo la 10 DETAILS OF PROPERTIES. The following ore details of the estimated values and equities jn the properties set out in list- '' A - Dwelling, seven rooms, corner gerald Avenue and Essex Street : dwelling, four rooms. 6, Essex Stroefc; dwelling", 4 rooms, 8, Essex Street, value £755, equity £225. Dwelling, ten rooms'. corner Cambridge and Windsor Terraces, value ■LIOOO, equitv C 350. Dwellings at 10 and 23. Tweedy Street and at corner Tweed and Yogel Streets, value £775, equity £11,3 10s. Dwellings at 132. 131 nnd 130, Rollestoji Street, value £1250. equity £331 2s Bd. Dwelling at 10"). Huxley Street, value £250, equity £75. Dwelling. Hastings Street, value C 350, equity £7•"). Section. Rutland. Street , value £250, equitv C'7<">. Dwellings at I 11 and MO. Hazeldean Road, value £125. equity £'l2s. Dwellings at. corner of Burns and Scott Streets and 37 Aberdeen Street, and sections on old Brighton Road, value £IOO, equity £IOO, Shoo nnd factory, corner Colombo and Dundns Streets, value £I7OO, equity £3OO. Shop and dwelling, corner Tuam and Antigua Streets, dwellings at 268 nnd 2f>(>. Antigua Street, section Tuam Street, dwelling and workshop, Tuam Street, value £2OOO, equity £lO3 10s.

Dwelling, Kit, Chester Street, value £125, equity £75.

Dwelling, 101, Chester Street, value £•125. equity £125, Dwelling. " Risingliolme," eleven rooms and six acres, value £.3000, equity £4OO. Building containing four shops at 521, 520, 528 and 530, Colombo Street; shop in Colombo Street and Rrita.nnia Hotel, Colombo Street, value £B3OO, equity nil. Dwelling, Augustus Street, Redcliffs, value £l2O, equity £125. Sections, South Brighton and at Bexley. value £l5O. Twenty acres of land. Bexley Road, value £6OO. equity £IOO. Section, River Road, Opawa, value £125, equity nil. Other sections at Onawa, equity nil. List "B " consisted of particulars of properties under registered mortgage to the Bank of New South Wales U NSEC UR ED ('R ED I TOT? S £3331 13s 3d. The unse'ured creditors for amounts over £5 wore as follow :

Tiuuiru . . . . 15 17 0 TrjJal unsecured creditors . £3331 13 3 BANKFtUPT'S STATEMENT. The bankrupt, in his statement, said that Hio immediate cause of 11is filing av;is (lie issuing; of ;i distress warnmo for rent by Messrs .J- Ballantyne and Co.. Ins landlords, and the taking possession of his business premises at the cornei" of Colombo and Cashel Streets by their agents. In 1009 he bought out Mr M'Clca's interest in the, drapery business with which lie was a partner. His interest in the partnership was £IOOO and lie obtained an advance of £2OOO upon iiis freehold property, and so purchased ."Mr M'Glen's share. Business was good until the, change of the halfholiday revolutionised it. It was essentially * a Saturday business, and the takings fell away heavily and never recovered. The war caused very great loss owing to the numbers of customers that left the country, as the business was chiefly a. men's branch. He found it impossible to get the usual financial assistance, and despite the cut. ting down of expenses in every possible way the, business got into arrears, particularly with the heavy rent and which averaged £llOO a year, and were a heavy outgoing to recover. Since purchasing the business 1 the rent and rates were increased from about £lo>o to about £I4OO. In May last, matters financially became so bad that he consulted his leading creditors, and on iheir advice nailed <i meeting of creditors on Mav 10, 1017. The meeting wis fully attended, practically all his creditors and certainly all his trade creditors being represented. It was decided that, he should assign his estate to trustees selected by the meeting for the benefit of fiis creditors. These trustees were to realise, lie followed their nriviee, and the creditors had all the assets valued. Stock, plant and books were valued at £7700, and the trustees received an offer of Gs 4d for the estate, hut owing, he understood, to the, landlords requiring payment to the enj of December next, his trustees threw the matter up. The landlords advertiser] the stock for sale by auction, so he was compelled to seek the protection of the Court. He drew £6 per week at first, and then £4 during the last two I ■rears. Mrs Buvns had assisted in the

business without salary. Hp was instructed by Messrs Newburgh, Best and Co. to take stock. This he did most carefully, and his estimate oi the value of that stock was at least 10s in the pound. The landlords sold the stock under power of their distraint for £IBOO, this showing a loss of about £2OOO. Last year lie had had to draw heavily upon the rentals of his properties to support the dmpery business. Mr Hamilton, u he, represented Messrs J. Bailantyne and Co., said that the bankrupts statement in ifi«;ard to the landlords requiring: payment to the end of .December next was manifestly wrong, }-snllsnryi)f> and Co. had' tried to meet them all through, and had deferred carrying o'iit the sale since they took possession at the request. of Ruins and the creditor--. The Assignee said that- after the sal<* was brought about, nothing more could be done. The stock had brought as much as could he expected by tc'idei * and there would be about £3OO left for the creditors. The rest ol the. est at ft consisted of a large number of properties mortgaged to various poodle. He did not know whether Mr burns had imvt sat denvn to consider another thfv woro paying. Mr Cassidy said that this had been done, and tiiey appeared to be. selfsupporting. , . . „ The Assignee remarked that m through them on an income n J u ' penditure basis, it. appeared that would take, them all their time to mn*o ends meet. The mortgages, 'on hi} speaking, uc.,, £22,130, which at h per cent, would give £l32<i, while rentals were only £looo and rates as well a,s a- fair amount foi expenc i ture and upkeep, showing a loss <> £250 per annum or more, borne laie.s Mere still owing. The bankrupt said that there Mas ahvavs a profit oMt of the lumses, but it went into the drapery hus j ,v^; In replv to .a question, tho npiPsentativo of Messrs Tonks, Norton and Co. said that the propei ties had been bought for less than they were set down ' U T"he bankrupt said that last year he paid off £llOO of solely trade accounts. . . . In reply to Mr Nicholls. the Assignee said that lie had not looked into the value of the, properties. Mr Nicholls said that most of the mortgagees would have to apply to the Court for leave to sell, and it was a matter of ihe Assignee's consent. Some of the properties could not be allowed to uo back. The Asignee said that t at present, when it Mas almost impoKMnle to realise on such properties, it was hard to say what, to do with them. It was impossible to say what he Mould do. On Mr Robinson's motion the action of the trustees, Messrs Newburgh, ?,est and Co.. was confirmed, and the Assignee was empowered to reimburse l.hem for their services. Messrs Orchard and G. R. Robertson (representing Messrs Tonks. Norton and Co. and Miss Yarr) Mere appointed a committee to assist, the Assignee in disposing oi' the properties.

Ft was decided to allow Mrs Burns to retain the furniture.

£ R. d. Miss 0. Y-irr .... nee 14 1 F. 1). Host even, amount of two bills vo Thompf-on . ] 40 0 0 F. D. Kfstpvpn, (imount- of ad- - van cm ai'H i u t oront nvr>r ?ectinn at Brighton imk! JJexlcy 411 n 0 Pin?, ITarris and Co. . 30.1 0 r> Sargond, ,Sou and Kwpu . 1W 10 0 "Ropti avid (!lonflinins: . lfiS G 10 ,). !•:. 1 )o:>«!Vl . . 302 0 0 (icoi-r;f> Doughty <i»d Co., WoIlincton ..... in 1.) H Bnidhury, Grpaleaux and Co., Auckland 117 0 0 Kahn Bros. .... ■11 10 0 .lames Fleming .... 20 0 r, Arthur and Co 3fl 0 0 Fore Sirp?t Warehouse, Aiuklanrl ..... at 1 3 I. ai'd H. M'orlcy, Wellington . .M. J1 oy'.voo.'J and C't>. . 27 0 o 15 0 fi H. Vincent and Co. . , 13 IS 0> Manning's Brewery . •S 13 1 "Prof-s" Company sr. 10 0 "Times" Company IS 0 r> Hovels, Bros, and Kirk ir, fi 2 A. Budd and Co., . 15 10 0 A. \V. Brai!?ford and Co. . 10 16 8 Kenan's trustees, Cleraldino 31 0 0 Mrs Curie! t. .... 4ft n 0 IT. (i. Ba unt on O 9 4 W. Conxrcro and Son, Ltd. 14 15 1 Porrv, Perry and Kinnc-rney,