BLENHEIM BANKRUPTCY.

Press, Volume LX, Issue 18236, 21 November 1924, Page 8

BLENHEIM BANKRUPTCY.

ESTATE OF J. J. CORRY. BIG LOSS ON PEA CONTRACT. (spscijx to "ran fbssb.") BLENHEIM, November 20. A bankruptcy of more than usual interest is that of John Joseph Corry, a leading merchant of Blenheim and a prominent figure in the local government of Marlborough. Mr Corry, who waa Mayor of Blenheim throughout the war period and chairman of the Wairau Hospital Board for many years, recently resigned from all his public positions_on account of his insolvency, and his retirement was the occasion of a number of resolutions eulogistic of his services to the community. A meeting of creditors was held today, and the bankrupt was subjected to a lengthy examination by Mr H. E. Evans, of Wellington, representing Kelway and Son, of England. A summary of the bankrupt's position showed unsecured creditors totalling £12,305 10s 7d and secured creditors £49,767 lis 2d (less estimated value of securities £36,844), leaving a deficiency to secured creditors of £12,923 lis 2d and other liabilities £SOO, making the total liabilities £25,729 Is 9d. The assets were: Book debts £2651 9s 5d (estimated to produce £2000), property (horses) £IOO, and surplus of security in the hands of a secured creditor £94. This made the total assets £2194, and left a deficiency of £23,535 Is Bd. In the list of unsecured creditors, Kelway and Son's amount is proved at £10,028. The amount of debt secured to the Bank of New South Wales is £33,510, and in this case the total value of the security is £17,401. In his sworn statement, bankrupt attributed his position solely to what he claimed was Kelway and Son's failure to carry out a. contract with him and to accept and pay for peas grown for them and on their instruction and for their seed. He had much litigation with that firm, the actions being heard at Home, and finally judgment went against him on the ground of breach of warranty of quality for £11,828 and costs, which would probably run up to £4OOO or £SOOO. He was still convinced that Kelway and Son owed him, and should pay him, considerably over £12,000, instead of his paying them anything. He was legally advised that a further appeal would result in his favour, but he had no money to carry the matter further. Had it not been for this trouble he would by the end of 1919 have been clear with the bank and had over £20,000 of unencumbered assets and ample finance to carry on his business advantageously. His wife had also lost heavily, and had still to pay anything up to £llOO, costs of an appeal partially successful, but eventually of no use to him. He considered that he himself, besides incurring five years' mental worry, had lost considerably over £50,000.

In the course of a critical examination by Mr Evans, the bankrupt said his wife took over his business on January Ist, 1924, and had been carrying it on since. She purchased the stocks as they were, but they would not amount to much.

You say you only visit the premises now. ; You hold no position?—l get no salary and do not work.

According to your statement, your wife is maintaining you!— Yes. I have maintained her for a good'many years; now it's her turn.

Questioned regarding the- horses referred to as his assets (valued at £100), the bankrupt said they' were blood horses, and included Lady Kilcheran, Pinono, Departure, Aloha, and progeny.

You had other racehorses until recently?—l.did. But they idon't belong to you now? —I sold those that I could. Your son has some of them?—He has two horses belonging to me, Barleycorn and Jonquil, but I think he will give them back if you want them, as they are a liability rather than an asset.

What was the consideration? —I couldn't get any price at all to sell them, and I gave them to him. I couldn't afford to feed them. I have no doubt he will bo glad to be rid of them.

At the conclusion of the examination, Mr H. Mills said it seemed to him that if Mr Corry had not become mixed up with Messrs Kelwaj' and Son's contract he would have been , in a strong: financial position to-day. He therefore moved that having heard Mr Corrv's explanation of the causes of his bankruptcy, the meeting regards it as a case of pure misfortune, and that it be a recommendation from the creditors to the Assignee that no obstacle be placed in the way of his discharge. The motion was seconded by Mr R,. P. Furness.

Mr W. J. Girling said the people of Marlborough felt every sympathy with Mr Corry, and hoped that he would speedily get his discharge. Mr Corry had been a most estimable citizen, and he felt that if he were given an opportunity he would speedily retrieve his position.

Mr Evans expressed surpriso that the creditors should move in this way merely on a statement made, by Mr Corry. The bankrupt had occupied about three-parts of his statement to the Assignee with an attack on Messrs Kelway and Son. He had not intended to refer to Mr Corry's statement, but in view of what the creditors now said he would have to explain. Tho simple facts were that Kelway and. Son got their judgment after the case had been heard by a single Judge, and after it had been reviewed by the Court of Appeal, and during the hearing of the case evidence had been forthcoming from Mr Corry to the same effect as the allegations now made in his statement to the Assignee, that the peas referred to in the Court were not the peas he sent Home. Mr Corry had also stated that while he would pay the other creditors in full if he could, he would not under any circumstances pay Kelway and Son, and that was a very wrong attitude. So far from subscribing to the resolution which had been brought forward, he had had it in his mind to move that Mr Corry be publicly examined by a Judge of the Supreme Court, but he had deferred this in- order to see what further light would be thrown on the bankruptcy by a full examination of the books. The facts of the bankruptcy, he alleged, were that Mrs Corry had got the business free of liability, and the only people who were going to be left were the people Mr Corry had determined not to pay. Mr T. P. Belling, solicitor for the bankrupt, said Mr Evans had placed a wrong interpretation on Mr Corry's statement about paying his creditors. When Mr Corry said that he did not intend to pay Messrs Kelway and Son, he meant that after his discharge he did not intend to work to obtain'money to pay Kelway and Son. The whole of the creditors represented voted for the motion with the exception of Mr Evans, who recorded his vote against it. The Assignee was proceeding to work out how the voting went from the point of view of the monetary interests represented, but Mr C. H. Mills, appear-

(Continued at foot t>f norfc column.)

ing for the Bank of tfew South Wales, said that the motion really had no effect anyway, and it would be sufficient if the Assignee recorded that it had been carried and the voting on it. The Assignee said that on a rough calculation creditors who had proved for £9032 had voted in favour of the motion, and Messrs Kelway and Son, representing £10,028, against it. On the Assignee's suggestion the meeting was adjourned until to-morrow rhp 6 £f v a J urth « r investigation of the bankrupt's position to be made bv Wh ° - «"**«* &.