MEETING OF CREDITORS

Waikato Times, Volume 102, Issue 17134, 22 June 1927, Page 8

MEETING OF CREDITORS

WALTON BANKRUPT. FURTHER PARTICULARS WANTED. A meeting of the creditors of Archibald Smith, of Walton, was held in the Courthouse, Morrinsville. In Ihe absence of the O/licial Assignee, the clerk of the Court, presided. Mr Mowbray appeared for the bankrupt, and Mr Tompkins for the creditors. Mr Bisley was vol oil to the chair. The bankrupt, in his statement, attributed his failure to losses in his dairy herd, inability to meet the demands of his creditors, the bank pushing him for payment, and sickness in the family. Statement of Accounts.

A statement of accounts, giving all details of his bank pass book, had been lodged with the Official Assignee. He had kept only a pass book and cheque book. lie had no means except from the farm. The farm of 243 acres was bought in 1017 at £32 10s per acre. He had put in £SOO in cash and £I2OO spent on a house. The money had been provided by his mother. Mr Mowbray had drawn up all papers connected with the purchase and mortgages. His mother paid all costs. Part of the farm, lis acres, had since been sold as a going concern for £i2 per acre. His mother bought all the stock and he farmed the place. His mother lived with him most, of the time. Ho was to receive £3 a week as wages. After the sale of the 118 acres his mother got £7OO in cash and went into business at Onchunga, and the second mortgage was transferred to him. Ho always got the cream cheques, out of which he paid accounts. His mother signed all cheques. He bought about £6OO worth of slock. He started his own bank account after the sale of the 1.18 acres and was carrying on on Ills own account. He had paid his mother nothing for the use of the farm. His mother had lived with him after he had built a house on the unsold part of the farm. She had a separate banking account up to the time she left for Onchunga. She had gone out of business three or four years ago and had been living with him since. He had done a lot of improvements on the farm in fencing and manuring. He had built a house on it, which cost £7OO, and paid for it by money got out of the sale of the business by his mother, also sheds and milking machines. No arrangements were made for the repayment of loans to Ids mother. He was to get the farm when the loans were paid off. He valued the improvements on the farm in the seven years at £I2OO. All business was done in his own name and accounts paid by him. He got a bank overdraft when lie started on the farm to make improvements and it had been carried on ever since. Winslone and Co.'s bill of sale was for manure. His account with the Bank of New Zealand, Auckland, was guaranteed by his mother. He closed ihe Auckland bank account, about three years ago and operated an account at Matamata. He did not remember telling any creditors that the farm lielonged to his mother. Mr Bisley had got him an offer of £I2OO for the equity of the farm, but it would not have been enough to pay his debts — that was why he did not accept it. In reply to questions bankrupt gave full particulars of each creditor's account. Most of them were for goods supplied, except about £IOO. He considered that the, value of the farm to-day was about £3O per acre. It was mortgaged at £2O, leaving an equity of £l.O per acre. His mother was not in a position to pay any debts. He. had paid most of the interest, rates and outgoing expenses since he had been there. Bankrupt decided to file about a month ago. In September, 1920, bankrupt thought his position was right and he would'be able to pay all his creditors. Creditors questioned ttie authority given him by his mother lo sell. His Mother's Money Lost. Bankrupt said all his mother's money had been lost on the farm. The fall in the price of land had been the cause of all the trouble. His mother had furnished the house and all the furniture was hers. Many or the accounts were long standing; £i7i> was over 12 months. He proposed to keep the farm and try and re-stock it. lie had never been bankrupt before or assigned his estate. He, had 54 cows.

The statement of accounts showed debts to unsecured creditors to be £670 4s Gd and assets £'C> 16s, with a deficiency, after making certain allowances, of some £536 JGs 7d. The following resolutions were proposed by Mr Ivey and carried unanimously:—That this meeting is clearly of opinion that the bankrupt's rnotlier is in partnership with him in the farm; that the meeting be adjourned to Hamilton to further examine the bankrupt, and that the bankrupt supply full information on his transactions with his mother in the properly and also his bank book; that the creditors are of opinion that the attention of the Official Assignee he drawn lo ttie action of the bankrupt in incurring credit by representing himself as owner of the farm and in incurring credit while he was insolvent.

Bankrupt, on the advice of his counsel, refused to hand over to the chairman his authority to sign as vendor on behalf of his mother.

It was resolved that the Official Assignee realise upon the shares in the. New Zealand Dairy Company and coal and timber shares, cither by selling to advantage or obtaining a 75 per cent, rebate from the company.