A PECULIAR CASE.

Dominion, Volume 5, Issue 1274, 1 November 1911, Page 7

A PECULIAR CASE.

INSOLVENT GOES BANKRUPT. KIVAL CLAIMS OP CREDITOItS. The first meeting of creditors in the bankrupt estate of Thomas Ilighet, ironmoulder, was held yesterday morning. Mr. C. R. Dix appeared for the. bankrupt, and Mr. F. G. Bolton for one of tho creditors (Mr. C. T. Midlane). Bankrupt's unsecured liabilities were shown at .C.lfiO Is. 7d., and his secured debts at .CBG2 las. 10d., making a total of .£1222 17s. od. As against this he declared' property at Evans Bay, of which (ho Government valuation was il.'iOfl, but of which ho said the real value was .£I2OO. Taking tho Government's valuation instead of bankrupt's, tho result was a surplus instead of a deficit. Tho largest unsecured creditors were M. J. Xeagle, lioseneath, .£SO; Jackson and Co.,' painters, .£-11; Herdman ana Kirkcnldie, solicitors, £22; C-. T. Midlane, importer, .£157. : Bankrupt, in his sworn statement said that about twelve years ago he had, with some money left him. -purchased the property he now owned nt Evans Bay. Shortly" afterwards he built a house- on the land, with borrowed money, and afterwards a shop. Some years afterwards he sold tho first house he had built, and with tho proceeds and other moneys received from bis wife, be built another house. After ho had nearly completed his new building a fire took placo which destroyed it. Tho value of the building was .£750, and the insurance was £M, so that he lost .£350 by the fire. The land had not sinco been built upon. The secured creditors were the Government Advances to Settlers Department and the Wellington City Council. His present position was brought about by his largest creditor (Mr. Midlane) pressing for payment of moneys duo to him. Midlane's son was injured by falling off a bicycle and over a bank into his section awl injuring himself. Midlane obtained judgment for damages to tho amount of £175. All his other creditors were willing to give him further time. According to a statement made by Mr. Bolton, bankrupt's and his wife's affairs were inextricably mixed together. Ho contended that the mortgages obtained on the property wero made as against the security of all tho property, and now when the apportionment was mado of the amounts to be charged against bankrupt's property and against his wife's, tho greater share was being apportioned to the bankrupt's land. The Official Assignee pointed out that Ilighet had many years ago filed a petition in bankruptcy, and that ho had not sinco been discharged. Mr. Dix thereupon contended that the effect of this was to givo a preference lo the creditors in the earlier bankruptcy before the later claims could bo satisfied. Bankrupt was questioned at some length by Mr. Bolton as to his dealings with his own and his wife's moneys. Ilighet slated that ho had kept a bank account, in his own name, but it was solely for his wife's money. Certain individual sums payable to him had not been used to pay any of his wife's accounts. The Assignee was asked on behalf of the creditors to ascertain whether any of the debts were incurred by or on behalf of bankrupt's wife, and as to whether the furniture really belonged to Mrs. Highet, who also owned a considerable amount of property. The Assignee suggested that as there was a strong probability of the creditors in the former bankruptcy (at Oamaru) coming in under the present one, it might be'in the interests of both creditors and bankruots

if bankrupt made his creditors an offer. The said this would bo especially satisfactory to the bankrupt, for it was nuite clear that he was in an extremely srave position.

Tho meeting was adjourned sino die to permit of the Assignee making investigation into the bankrupt's transactions.