BANKRUPTCY MATTERS

Waikato Times, Volume 94, Issue 14766, 4 October 1921, Page 6

BANKRUPTCY MATTERS

A FARMER'S FAILURE An investigation into the bankrupt estate of George Whittaker, of Te Paliu, farmer, late of Ngaruawahja, was helii yesterday at Hamilton before Mr V. HSanson, Deputy Official Assignee.

The unsecured creditor was E. F. Murphy, to the figure of £4 i 7 for interest, rates, stock and goods. Assets were nil-

Bankrupt in his sworn statement said that on June 18, 1917. he leased a property from Mr Murphy, at Ngaruawahia, comprising 228 acres, lie paid about £350 casli to go in and agreed to discharge a security over his cows to the .\'.%. Dairy Association for £278. His tenure was a lease with option of purchase at £23 per acre. He carried on milking on the property for four years, but did badly out of the | .'ows, chiefly on account of the bad season, losing about. 11 cows. As far as he knew all moneys received and paid out were entered. To Mr F. Swanbrick, who appeared | for Mr Murphy: Moneys earned while bankrupt was away from the farm were included in the book, but bankrupt corrected this by saying he did not sec them entered. Ho earned £IOO while he was away for nine months. He sold some stock, which was accounted for in the books. The last year's bonus was not shown in the books, and there was still a balance to come. He had made part of the 'bonus, which was paid over to his son for wages and money lent. This was before tic had received the attachment order. He did not know that anyone suggested to him to do this. He thought the order was made out on June 14, 1921. When he left he took no stock of, because there was none to take. His son worked all through on the place except a few months. His son had bought a farm at Te Pahu, but bankrupt had given him no money towards buying the farm. The entry of £3O paid to W- Whittaker was a repayment of a loan borrowed before bankrupt, took the place over. Since June, 1921, he had not worked nor had he earned a penny. The money paid on deposit on the place was bankrupt's, except £SO from his boy and £SO from his brother, the latter bing repaid. When he gave the order to his boy he had not received Murphy's summons. The order was dated the same day as bankrupt wrote it. Bankrupt did it so as to protect his boy for getting his wages, lie was aware he was owing interest and rates to Murphy. Bankrupt's boy was to get £2 per week and found from the day he went on the place. The order was to cover all the moneys due for loansThe Assignee said the whole matter of bonus transaction would have to be gone into, and the investigation was adjourned for further inquiry. LOCAL BUILDERS' POSITION. The petition of William Ferrier Hadwin and John Southward Hadwin, who formerly carried on business as builders and joiners in Boundary Road, Hamilton, was considered by a meeting of creditors. The statement of Hadwin Bros, showed unsecured creditors at £1164 12s 8d and secured' creditors at £475, holding securities bankrupts valued at £1549. leaving a surplus from securities of £1074. Other assets were set down as stock-in-trade £'l7s ami book debts £ls. Thus there was a nominal surplus in the estate of £99 IGs sd.

W. F- Hadwin's separate statement estimated the value of his property at £ISOO, subject to two mortgages totalling £IOOO. J. S. Hadwin's statement showed the estimated value of securities at £4OO. on which was owing £290 to a secured creditor, leaving a nominal surplus of £llO.

Mr J. A. Ross, who represented the bankrupts, and explained the position as it was placed before an informal meeting of creditors, said that W. F. Hadwin was now working at Dargaville, and could be secured if the creditors so desired. W. F. Hadwin's private residence was now bringing in £2 a week as rent.

Mr J. E. Herbert, who represented Messrs Ellis and Burnand, the largest unsecured creditor, prompted enquiry into a statement made on bankrupts' behalf at the private meeting of creditors to the effect that certain joinery purchased from his firm and condemned iiad had to be sold at a sacrifice, which fact, it was asserted, had brought matters to a head. He asked when that sale took place. ' J. S. Hadwin, the bankrupt in attendance, admitted that no attempt had been made to return the slock back to Ellis and Burnand. It had been sold in Auckland. The money had been paid to some of the creditors, if not to Ellis and Burnand. Mr Herbert contended that even if portions of the stocks supplied had been condemned that was not a legitimate reason for making the statement which had been made at the meeting n August. They should have sent the supplies back, but they had turned them into cash instead. That was the first they had been told of any joinery being •ondemncd.

Bankrupt said that his share in the business was simply as a workman. The cheques were all paid by \V. P. Hadwin, who made all (lie banking arrangements and whose wife looked after Ihe books.

Dealing with Mr Herbert's point. Mr Sanson said that, the statement made at the private meeting in regard to what had brought matters to a head did nol seem, on the face of it, to look a particularly reasonable statement of ttic circumstances. A letter was read wherein it. was shown that shift beads on a particular job had been condemned by the architect, and reference was also made to condemned joinery.

After further inquiries, Mr Sanson said that it did not look as if J. S. Hadwin could help them a great deal. Bankrupt reiterated that he knew nothing of the business end of affairs, and had never seen the-books. Mr Sanson said that, from the books before him it was impossible to tell how the business had been going. The meeting decided to require the attendance of W. F. Hadwin, and a committee consisting of Messrs Collyer, fiiil teridge and Farrell was appointed lo act in the disposal of the assets in the estate.