MEETING OF CREDITORS.

Wairarapa Daily Times, Volume XVI, Issue 5562, 18 February 1897, Page 3

MEETING OF CREDITORS.

ESTATE OF A, YULE.

_ Au adjourned iheeting of creditors in the .estate of Alex. Yule, of Waingawa, bankrupt, was held yesterday afternoon: Creditors present, Messrs J. 'Craig McKerrow, W. McKenzie, Eliott, J. Mowlom. A. J,. McKenzie, It. Daysh, Knowles (Bank of Australasia), Heagerty and H. S. Izard. Mr Izard 'appeared for the bankrupt, Mr C. A. Pownall for certain creditors and Mi; W. G. Beard for tho Official Assignee. Mr, W. B. Chennells, Deputy Assignee, read the lengthy report prepared by Mr Beard, which showed that the JToatlierston lands compriso about 1500 acres of freehold land. They were originally owned by Alex. Yulo (father of tho bankrupt), who devised them to bis wifo absolutely. Mrs Yule, upon lier decease, left eight children. Mrs Yule loft her property as follows To bankrupt an annuity of £175; to caali of her.other sons an annuity of £SO; to each of her daughters £SO annum and £IOOO oacli additional. In nddition to bis annuity bankrupt takes 568 acres being rural sections 478, 479, 480, 481, 482, 453 and 484, town of Featherston. This land includes a large dwelling-bouse, and is the best portho wliolo property. Tho r« tho property passes to the threrothor sons. In August 1894 all except George Yule, who was under age, arranged with Messrs Levin and Co., for advances to take over certain leasehold properties in the Forty-milo Bush. Advances to date totalled about £11,500, to be bonio in equal shares by tho mortgagors. Under an agreement affect• ing the bankrupt's share only £3,770 \yasowing to Messrs Murray, Roberts and Co.

With regard to the Forty-Mile Bush lands, the report shows that in addition to the freehold lands the bankrupt took up Native leases in the Mangatainoka and Mangaono Blocks; so far as can be ascertained threo lenses totalling about 3000 acres, in the namo of the bankrupt only. Since the date of tlio lease one of the brothers has been managing, the costs of improvements coming out of the moneys raised from Messrs Levin and Co., the bankrupt stating that none of the moneys raised from Messrs Murray, Roberts anMjo. were expended upon or in with these lands. The mortgages to Messrs Jjevin and Co. include theso leasehold lands and are liable with the freeholds for the payment of all moneys secured thereon. Certain rents are due and the Natives insist on payment, Messrs Levin and Co. ninst pay in their own interest or otherwise the Natives can terminate the leases. Portions of the leasehold lands have been sub-let with all timber rights and the lands it is understood are being further improved by the lessees and one of bankru pt'sbrothers. This brother and also other brothers and sisters claim undivided shares in these lands with the bankrupt, on the grounds that he holds the lands in his own right and as Trustee for them.

Mr Beard further expresses the opinion that bankrupt's brothers aud sisters have a claim in respect of the leaseholds and the bankrupt is entitled to an equal share in the profits. Tl4jt|inkrupt's interest in the freehowlands is to the extent of 537 acres, which at £ls per acre is worth £8055; ho has also an eighth interest in tho leasehold lands which taking the value at £2OOO is worth £'2so; assuming bankrupt's share of the debt to Messrs Levin and Co. to be £1437 and on Messrs Murray, Roberts and Co.'s claim £5,207, there is a balance in favor of the bankrupt estate of 13095. In stating the position thus it is assumed that Messrs Levin and Co. will be prepared to charge one-eighth only of their claim under the mortgage as against the bankrupt's share, but it is very unlikely they will consent to do so. If they refuse to adopt this course the creditors must, if they desire to protect their interests and desire any benefit from the properties,'sell the bankrupt's interest in the same and purchase at a price which will leave them a margin after satisfying Messrs Levin and Co.'s mortgage and the amount duo to Messrs Murray, Roberts and Co. To take this course would of course imlve a heavy responsibility upon iflpbreditors, but whether the creditors do so or not the properties should, I think, be submitted to uuctiih to test their values, as it is possible that an outsider might be found to purchase the bankrupt's interests. The position of bankrupt's interests is very complicated and difficult to deal with, aud unless the creditors combine together in an attempt to extricate the interests nothing is likely to be realised therefrom. If Messrs Levin and Co. are not pepared to charge a separate eighth of their mortgage debt to bankrupt's share they will probably submit the property to auction and buy it in on behalf of the other brothers and sisters, thus extinguishing the bankrupt's interest. With regard to the bankrupt's partnership, Mr Beard in the report expresses the opinion that the other members of bankrupt's family can be held responsible for debts contracted with respect to either of the properties, but there is nothing toshow that any of the debts were so contracted. He did not think other members 1 of the family could bo held liable for £ of the debts contracted by the bankrupt in his butchering business or the business carried on by him at Waingawa. Dealing with the family's guarantee the leportsaysßefore tho bankrupt filed his petition in bankruptcy and after he had convened a Meeting of his creditors, the brothers and sisters of bankrupt (except the one who was under age) guaranteed to pay the bankrupt's debts extending over a period of two years and to giye a security over their interests in the Featterston property. They were!pressed to give effect to this guarantee, but ultimately declined to do Bo'aud made an offer of compromise which the creditors declined to accept and insisted upon the bankrupt filing his petition. I have no doubt that had the other members of the family been proceeded against before Alex, Yule was made bankcreditors would have succeeded in holding them liable under but as the underof the guarantee was no doubt that Alex, Yule should not be forced into bankruptcy, it is iu my opinion, very doubtful whether they can now be made to act up to the guarantee, The expense of an action to determine : the liability. of the other members of the family , would taery considerable, v . Ua Messrs-Murray, Roberts and Coin claim i—J Jo' not,; think their .claim floder, their agreement can be .distniibei; The' agrement;wM iib .flonbfc giTOT in'the brdinary; ifray 1 6^

business. Messrs Murray, Koborts and Co. must, however, value their security and prove for the balance of claim only. If the Official Assignee is then dissatisfied with' their proof ho can require the property comprised in the security to be submitted for sale upon, such terms as the Bankruptcy Court'may direct. The D.O.A. reported tho result of the sales of assets and other matters. The Waingawa property lmd realised £262; traction engine and chaffcutter, £400; equity of redemption of housentCarterton, £2B; butchering business at Wellington, £3OO. The value of the furnituro at Carterton was .495, Mrs Yulo claiming goods to the value of £5-1. After deducting £25 worth allowed to the bankrupt ft balatico of furniture valued at £l6 12s Gd remained for the creditors to disposo of as they desired; cither to hand back to bankrupt or dispose of. Messrs W. McKenzie and A. G. Pilmer claimed preferential payment in full for stocksupplied from tho date of a meeting of creditors held prior to tho bankruptcy. Discussion regarding the propriety of realising tho whole estate followed. It was resolved on the motion of Mr J. McKenzie, seconded by Mr J. C. McKerrow, that the balance of tlio furniture belonging to the estate be banded to Mrs Yule—Carried.

Mr J. I). Heagerty proposed and Mr W. McKcnzie seconded that the Assignee be instructed to offer the bankrupt's inteiests in his freehold and leasehold properties, and his stock for sale, or to take such other steps for separating the bankrupt's interest from those of the rest of the family, as he shall think best. Also that lie be authorised to take such other proceedings in relation to the matters contained in Mr Heard's report as he shall think best in the interests of the creditors, The motion was carried Mr Izard alone dissenting.

Mr Heagerty moved and Mi' Izard seconded that the claims of Messrs A. G. I'ilmer and W. McKenzie, for stock supplied, whilst the estate was in the hands of Trustees, be paid in full, the accounts to be subject to the Assignee's approval.

The motion was carried unanimously. Mr Barton wrote requesting that a resolution be moved rescinding the previous resolution to pay Mr W. G. Beard's costs out of the estate. No one moved in the matter which accordingly dropped. The meeting then adjourned sine die.