SOLICITOR BANKRUPT.

Dominion, Volume 2, Issue 506, 13 May 1909, Page 4

SOLICITOR BANKRUPT.

THE CASE OF W. C, SOMEBVIHE. LIABILITIES: £24,000. AN ESTIMATED SURPLUS. The first mooting of oroditors in jthe bankrupt estato of "William: George Somerville, solicitor,'im held yesterday before the Offioial Assignee , (Mr; A. Simpson) and a, largo number of oroditors. ..Solicitors representing . creditors ' •wovoi—Messrs! : Fair, I-OTVoy, Young, Tanner, Levi;' Bolton, M'Leanj and Anderson. -Debtor was reprewnted by Mr. JJocro. Tho amount owing unsecured creditors ' . wns-jjiven (it £3078.155. !4d.' secured, •: ■ jG21,386 -17s. 7d.-;. less estimated valuo. :■ of securities, £33,893 ; - liabilities, £594; total'unsecured creditors, £3072 15s. 4d.; book debts, £5519 .. 45,. 6d., estimated to ' produco £3000; '", ; * total assets, £15,500 18s. (3d.; estimated surplus, £11,831 lite. 2d. r. , .-' V Tho.pi'incipnl unsecured creditors ;were Wellington Timber Company. £520; A. C. Pearco and Co., £105; R. W. Wills, : £150; W. B. Giesen, £138; Prousoßros., £171Geo. Winder, £238; H.-M; and T. ■ ■ A. H.. Field, £103; S. G. Radford, £100; Seat-on and.Sladden, £107;.Le Grove and - , Lmvrenco, £33; Carrara Ceiling Co., £21; B. A. Hansen and C 0.,£33; J, G. Lowis, £29;. -Wright and Carmen; £32; .- John M'Qrcgor, £Qsj C. H. Harris and Co., Ltd., £31.; J: 11. Duggan,£4o;Gilbort Hare, , £46; Thomas Rogers. £26; V . Kirkcaldio and, Stains, '£52; • Wellington ' Gas-C0.,. £28; W, M., Wishaw;- £23; ■.-/Jackson,and Co., £90; Walter. - Smartj: £30; C. and A. • Odlin, Ltd., £83; ■ Stewart Timber Co.,'. £84; Moncricf and ioung, £53; E. W. Mills, Ltd., £80; John Niool, £59; O. M/Banks, £38; B. Dovey, .£44; :Easson and Co., £40; W. . H'Loan, £52; To Aro Houso, £34;' Young . and Tripe,;£ 32; R, ; and E, Tingoy, £31; . Dr. Elliott, .£2O; totals £3078,155. Id. v

. Bankrupt's Written SJatoment. ' ;In. a;-written statement, debtor: attributed hl's failure .to, the- unsatisfatiiry ..state of .the money market, and; tlie great ■ scarcity, of funds for-.enabling peoplo-either to make purr chased;or loans/on mort^S o ! .leading to a consequent ..drop :in. the . value of properties. At tho begmning bf last year his'assots, ao-' cording to the, actual cash'value; showed a. surplus of over £15,000. A .largo -part. of. • hig nroporties, howovor, consisting,of vacant land, --was not intorost-bearing,--.and : was subject to mortgage entailing a considerable outlay; A considerable number of his . as. sets wero. represonted, by. second: mortgages exceeding £10,000 hold by bankrupt from, various. ': These "wero taken - from time to time in. settlement for sales, as well as for cash advanced." These in •mort ;cases; : had not'only, failed to pay. tho interest due'' .to"' hini, buthad also : imade : default, in payment of the interest due on prior mortgages', v: Inconsequence; he had had to find-large sums out of his own moneys to pay interest, duo by others in order to pre-serve-his securities; and prevent the properties falling into the hands of prior mortgagees. ; v' : ' V/hen tho Plnoh Came.

. In the early part of last: year the string, "ency .ofi/ths'imoney 'markot,became very s©. vere, and lie was called upon to pay olf his overdraft. The state of the market had; tho off cos .of not only, preventing .him -from .soli. .ing;:properties..and realising, his'; .'securities,■but also.of causing his creditors to press for payijient;.., Se strugglbd. to. meet his engage.', ments,. and to l£eej>;.his estato from being; sacrificed,' in .the .belief that as soon as there ;was; any '.improvement - he'would .be. able to pay 'all-his creditors ;in 'fu11... Towards- the end of last' year.'he 'called a'meeting ,of . his oroditors, '-asked for . -tame - for paynient, ; and offorccl-to;; assign: his . estate: trustees. ' I'll omploycd, ivho investi.that th« ; ■ estate - should . he, kept out. of " 'bankruptcy, Some: of. the creditors, however, required pay. ment in cash and securities to be given for .the balance, and, ho Was unable.to comply with these conditions, although lie sacrificed 1 •'some, paid-up 'shares: Hold, by him .by selliric them "for. over £1000 below, their fair .'value. i. The, Immediate Gauss of Bankruptcy. /. ThoMajority of his 'creditors had 'been most considerate,, but: others,:unfortunately insisted foil payment., in cash. Had ho been few-months of,respite he believed he could have succeeded in selling enough of his assets, during, the last summer'; to! satisfy his unsecured creditors, Early in 1308 he sold' a large number'of properties to a substantial purchaser,•; who. agreed,to pay over £4000 in /cash. > This..person, : :hoWever, had become involved an other matters; and had left: New: jyoaland without; making any payment .to bankrupt, and ho had subsequently to find about £700, endeavouring to restoro the properties which had been sold and to,realise on them.. vllo also had to' pay large sums in ■ rc-pect' of guarantees which had been given m rohance of/th? above' moneys being paid. rlad this sum been :rpcoived ho would nave had a cash surplus, after paying all his unsecured debts. i,v A 'number of purchaser's tailed to oornploto their contracts,, principally .owing,; to, difficulty :.in arranging the mortgages,. and ho had now been' deprived of over •:MUPO of unencumbered, property • through non-oompletion'of contracts'. -The unm'edi'ato 'causo. of the bankruptcy was tho'potit?n'W ' S ' Timber ' Company,

"No to Malw." v -The Assigneo said that ho did not kuow what- : tho book debts would pro.uuce. nor .of- what, they "A few of the mortgagees," ho commented, "have been, pretty smart in, giving, notico to sell." Mr.-Simpson :tbon. ; read "oiio of : tho letters >w vF or^ in . Proßorty, explaining! .object was t-o showtiio state which soma of tlic properties wore in. . Mr. - Beere • remarked - that the', bankrupt ' had ; no - mtorest w tho > property referred Speaking of ono of th'eso lottora, Mr. An?c^ on j r'ose firm held a security, said that a- had. no notice of transfer. .. A ,creditor: aaid that, ho hoped matters ;would.be.looted into, . done° ssigne ° r ?P lie < l :- tlla t this'would bo •Tho question- of proceeding in' a case beAlif on i p a and-W. G. Somerville, and ...Alfred. Bongo, pending at present, waa raised n on - tho motion of Mr. K. A. \\ right, seconded by Mr. Forsyth, it 1 was .-decided jto : refer,;.the matter to the | Assignee's, solicitor.: - In reply to Mr. Simpson, debtor -said he had no propositwn to, make to his' oredi- ; tors-'; Quporwlsors Appointed. : |.' Mr. Young remarked on the complicated naturo of tho bankruptcy, and, as tho 'meet-' ing could not go thoroughly into it, ho suggested that ppprvisors bo appointed to |o into tho caso with Mr, Simpson. The superi Visors could roport to a future hieetinc „ On tho motion of Mr. Fair, Messrs. R. A. Wright, Harper, and Hutcliings were appomted supervisors in the estate. ; ,W r :. Forsyth ■ asked' what amount debtor's .who had claimed for. ' The Assignee: Sho has,not proved yet. -Debtor stated that it was about £1200 ... Hio iUsigneo: Tho orcditors must be paid 20s. in the £ before her claim comes in. The meeting was adjourned sino die.