A HAMILTON BANKRUPTCY

Waikato Argus, Volume XXXIV, Issue 5338, 19 June 1913, Page 2

A HAMILTON BANKRUPTCY

A LAND AGENT’S AFFAIRS. A meeting of creditors in the estate of James Leslie MacGregor, land agent, of Hamilton, was held in the Government Buildings yesterday. Mr Fisher, Official Assignee, conducted the enquiry. Mr Rogers appeared for the bankrupt- £ The bankrupt’s examination was continued after we went to press. ” By Mr Souter; He could not say whether he had ever told any creditor that the furniture was his wife’s. It was always understood that it was his wife’s.

The Assignee; You understood so,

To the Assignee: Nothing in the way of furniture had been removed from the house before the bankruptcy. Just before he filed he handed over the office furniture to McCabe for money owing, McCabe undertaking to pay the rent. This was about a week before filing. This was a verbal arrangement, bankrupt handing over the key and giving up possession. His wife and he had bought a motor car from Messrs Souter and Co. Bankrupt then said he bought the car; but his wife signed the P.N.’s and he endorsed them. The purchase price was £250, £SO to be paid down. He originally found the £SO. It came from commissions earned; but Mrs MacGregor paid it by cheque. According to the books the amounts due on the car were paid by Mfs MacGregor. He had at various times paid fairly large sums to his wife—the amounts were shown in the books. Although Mrs MacGregor bought the car he considered it belonged to him. She signed the sale note as his agent. The car was seized by his father, Alexander McGregor, of Wanganui,

about six weeks ago. His father got judgment against him about three years ago. He had sent the car to Watt and Cohen, solicitors, of Wanganui, at their request, consigning it from Te Kuiti, He did not send it from Hamilton because he wanted to keep things quiet here as he was trying to arrange his finances. He was aware at the time that there was still £73 owing upon the car. At this stage the following letter under date May 22nd, was read from Messrs Watt and Cohen, to bankrupt:

—“We have today received from the Court the sum of £9G 5s 6d as the proceeds "of the sale of your motor car. This, as you are aware, leaves about i'GO still owing under the judgment. In addition to this we are instructed that you arc indebted to your father (the plaintiff) in the sum of £395 or thereabouts, and to your late mother’s estate in the sum of £2lO or thereabouts. Your father has instructed us to inform you that these debts must be settled forthwith, and unless you at once make some acceptable suggestion for their settlement he will proceed to have you adjudged a bankrupt. We desire you to accept this in all seriousness as we can assure you that our instructions are to clean up these matters forthwith, regardless of consequences to yourself." The Assignee: At the time you sent the car away, knowing that there was still £73 owing on it, you left yourself absolutely stripped. Do you think that was honourable conduct?—l thought I would be able to pay Souter and Co. and the other debts as soon as my friends arranged my finances. 1 was in hopes of getting assistance from Mr Ashwell and Mr M. MacGregor. Continuing, witness said that within six months of the bankruptcy Ashwell had told him that he would not see bankrupt stuck, and he could go to him. He applied to Ashwell for £4OO about May 19th, and a week later, on May 20th, he got a letter from Ashwell refusing and advising him to file. This was about a week after he sent the car away. If he had got this money he could have quietened his father, paid off the amount on the car and any pressing claims in Hamilton and carried on. By Mr W. Souter; When were your books written up?—My accountant is over there.

Mr Souter protested against Mr MacGregor treating the matter as a joke. It was no joke; it was a serious matter and might end in gaol. He thought bankrupt’s solicitor should instruct him to this effect.

Bankrupt went on to say that he had kept rough books in his own way ever since ho had been in business and balanced up roughly every few months. Everything was paid through the bank and everything paid out by cheque. Ashwell demanded that he should have his books verified by an accountant, and about two months ago he got his books made up more elaborately. It was about the end of March or the beginning of April. They were made up from his own rough books and checked from the bank book.

To Mr W. Boater: He had no other assets beyond those disclosed in his schedule. He had no book debts or commissions to come in. Mr Sou ter: Then why did you write staling that you had commissions amounting to £2OO and a mortgage of £2OO coming in?— The statement was correct at the time; but they did not eventuate.

By the Assignee: What was the mortgage?—! had got the mortgage from a man called Corrigan in Wellington; but 1 could not complete and lost it. 1 had an option and 1 got Corrigan to buy the property, but 1 could not get the money to complete, and although I had the mortgage here 1 could not complete the option and therefore lost it. Mr Rogers said this was correct and ottered to produce the deed. MacGregor had an option over a block and sold to Corrigan at tfti advance; but he could not complete the option and therefore lost it. Bankrupt,in reply to Mr W. Souter, said lie had only received about £SO out of the £2OO mentioned. In reply to Mr Fisher as to what had become of the other £l5O, bankrupt said McCabe got some of it and all he got was distributed amongst the creditors. By Mr W. Souter; He could not pay 20s in the £ when lie came to Hamilton. Mr W. Souter: You were hopelessly insolvent before you bought the car? - Well, I thought my friends and relations would see me through and never thought I would have to file. Mr W. Souter: I think it will be necessary for Mrs MacGregor to file too. In reply to the Assignee, bankrupt said his wife had sufficient assets to pay her liabilities. Mr Fisher said he would not like to press that point. Mr E. Souter: Well, she bought the car and he sent it away. It is very suspicious and runs very close to the penal clauses of the Act.

Mr Northcroft: The car was sent away under pressure. Mr W. Souter: But we were pressing him and had asked him to send back the car. (To bankrupt); What statement did you make to my brother about a will?—I do not remember making any such statement. Mr E. Souter; Bankrupt told me that by going bankrupt he was losing £12,000 through his father’s will. Bankrupt: Well, if I am bankrupt, what chance have 1 got under my father's will? The Assignee: But your father is alive,isn’t he?— Yes. Have you any interest in any other will?— No.

The Assignee said there was not the slightest doubt in his own mind that the furniture clearly belonged to the estate, and unless the creditors wished to make a present of any portion of it to the wife of the bankrupt, the ordinary course of procedure that £25 worth of wearing apparel and furniture should be selected by the bankrupt and the remainder sold, would be followed. As to bankrupt’s conduct he thought the examination clearly showed that he had brought himself within the penal clauses of the Bankruptcy Act, especially in incurring debts when he was hopelessly insolvent and incapable of paying them. The hooka were irregular, but he did not intend to take any action

regarding them. The motor car affair was a particularly glaring offence If it were established that it belonged to his wife he did not know where he was going to come in. But assuming that it was bankrupt’s he had stripped himself voluntarily of more than half his assets. It should

be an asset in the estate; but what the proceedings would be just now he was not able to say. When action was taken under the penal clauses of the Act it was mainly as a deterrent to others, and it has a greater force if it was the general opinion of ([the commercial community that he had the feelings of the commercial public behind him, and a far greater effect if he were backed up by a resolution of creditors. He would bo pleased to receive a resolution.

Mr Northcroft, on behalf of bankrupt’s father, commenced to move a resolution of sympathy with the bankrupt when he was interrupted by Mr Souter, who said if such a resolution were moved he would leave the room and the meeting would not then have a quorum. Mr Nothcroft, continuing, said that all the unpleasantness as far as the bankrupt was concerned, during the afternoon had arisen from the Messrs Souter. He pointed out that bankrupt’s father had suffered to a far greater extent than any of the others —to the extent of £4OO, while an additional £55 had been lent in February of this year. The father had an old judgment against bankrupt and was cjuite within his rights in seizing the motor car. Messrs Souter said it was worth £150; it might have been to them, who were dealers in cars; but it would not bring anything like that in a forced sale. If Messrs Souter had been as shrewd or as grasping as they appeared to be th it afternoon they might have done the same. Why the car should go back to Souter he did not know. Had Souters received the oar back McGregor would have been the best man in the world. McGregor had got into difficulties and drifted on and on, hoping that he would recover himself His father thought there was no reason why he of all the creditors should lose and he had forced the position as to the car.

Mr W. Souter said leaving the meeting was the only way he could protest against such an outrageous statement as had been made by Mr Northcroft, He would not be allowed to speak unless he seconded the motion The Messrs Souter then left.

Mr Northcroft said it was evident that there was a large body of creditors who did not think it worth while to attend, and that did not indicate that the man should be hounded down as Messrs Souter had done. He moved that no action be taken under the penal clauses of the Act and that bankrupt’s discharge be facilitated. Mr R. Clark seconded the motion.

Mr J. Douglas, on being given permission to speak, produced a cheque for £5 2s Gel, which he said McGregor had asked him to cash on the evening of Sunday, June Ist. He said he wanted to get away to Wanganui by the midnight train, and the speaker cashed it for him. It was not in payment for goods and he had lost cash to that amount. When he presented the cheque there was no funds to meet it. McGregor, when told, expressed surprise and promised to pay him the money, but had not done so. “It is very easy to write cheques,” added Mr Douglas, "but this was a bit on the rough side, I gave him the money in all good faith.”

Mr Northcroft laughingly suggested that it was a small amount compared to what bankrupt’s father had lost.

Mr Douglas: That is so; but it is easier for some men to lose £4OO than for others to lose a few pounds. The Assignee said so far as the motor car transaction was concerned he could not regard it as anything but a most improper action on the part of the bankrupt. Even from the father’s point of view it was not a proper thing at all. He promised to take the resolution into consideration for what it was worth.

The motion was then put and carried unanimously, the only creditors remaining, Messrs R. Clark, G. E, Clark and Son, Cook, Alex. McGregor and J. Douglas, voting for it.