HADLEY BANKRUPTCY

Dominion, Volume 6, Issue 1856, 16 September 1913, Page 8

HADLEY BANKRUPTCY

FINAL WASH-UP.

SIDELIGHTS ON OIL CONCERNS. INTERESTING PASSACES. (Ey TeleeraDh.- Press Association.! Auckland, September 15. An application for discharge in bankruptcy, made by IVicy Arthur Hadley, was heard before Mr. Justice Sim at tlio Auckland Supreme Court this morning. 'l'lio application was opposed by Air. Selwyu .uays, representing I'. A. Mniinston, a. largo creditor in tlio estate. .Mr. I l '. JL'arl, K.C., appeared for bankrupt. Tho adjudication took place in April, 100-1, when tho applicant was carrying on business as a hardware merchant, under the name of Hadley and Co. All tho ordinary creditors Jiad received a dividend of 13s. S)d. in tho £, but iidminston who had advanced largo sums at various times (approximating to £14,000) had receives certain freehold and plant of an estimated value of £3000.

Under examination bankrupt stated that, at present, ho was working on a salary of £o per week as manager of the firm of K. Hadley and Co., who dealt in petroleum lands. His wife was sole partner, and sho was personally attending to tlie business when necessary. Tlio firm had bt.:n interested in petroleum matters during the last eight years, and had secured three lots of concessions in petroleum-boring rights. One was known as the Carrington Road block, near New Plymouth, and, in tho negotiations for the, right's, Mrs. Hadley was personally present. Rights for thirty years were acquired from landowners without any cash consideration, but the grantors were to receive a royalty on any oil resulting from the operations. I'll© rights were afterwards sold to the Standard Oil Company of New Z-ealand, but no cash was received although the terms of sale provided for cash payment. Prior to tho company being floated, a syndicate of nine members was formed, each contributing £500, and they were to receive- 6 per cent, debentures for the amount, with £1062 in fully paid-up shares.' A circular was issued offering 800,000 shares at ss. each, and vendors wero to receive £32,000 in cash md £272,000 fully paid-up shares. • _ . Mr. Mays: And so, to put it shortly, every subscriber of a single share in tlie syndicate was to receive £1500 on tbo investment. Witness: Yes. Further cross-cxamination . on tho transactions was objected to by Mr. Earl, on tho grounds that it was not fair that the Oil Company's business should bo made public in any affair which did not concern it. . "Under further examination, bankrupt stated that his personal expenditure for two years prior to the bankruptcy was pretty heavy, and would run into at least £1000 a year. His Honour: The Official Assigneo reports that ■ your private drawings in tho preceding tlireo years totalled £3362, at a rate of £1100 a, year, and more than one-third of the gross profits.

Bankrupt admitted that these figures would be correct, but explained that he was required to travel round with and entertain tho principals of tho firms for which Hadley and Co. were representatives and these sums were debited to personal expenses.

Mr. Mays continued to ask questions bearing on the Standard Oil Company, when his Honour interjected: "If you aro on a fishing expedition," ho said, "to get information for subsequent proceedings, it is not proper."

■Mr. Mays declared that such was not his object, but ho wanted to ascertain what position bankrupt was in to satisfy the debt of a creditor claiming £14,000. "This mail," he said, "trades in,his wife's name, handles thousands and thousands of pounds' worth of property, floats companies, and lives extravagantly." His Honour: Why has not the Official Assignee previously seized liis property ? Mr. Mays: It is not easy .to catch tho man. He doesn't advertise his business, and leaves no traccs behind him. I submit that, as tho man has floated tli'reo companies, and is floating another, somo condition as to payment of debts should be imposed. His Honour: Let us have grounds for opposing the application, for discharge. Mr. Mays tnon alleged private extravagance and misconduct in appropriating tho proceeds from goods sent on consignments. Bankrupt denied that he had misappropriated money as alleged. The Sullivan Machinery Co., of Chicago, had a claim for goods, as also did Ramsay, Sims, and Jeffries, of England, but in neither case was there misappropriation. Bankrupt stated that personally. lie .did not owo more than £50. He was not aware that, in incurring household debts, it had been disclosed tTiat ho was an undischarged bankrupt. He was not very often in Auckland. Mr. Mays: Do you ask us to believe that you can koep up : thc style you do on £50 a week?

Bankrupt: Yon can believe what you like, but I am telling you tho truth. Bankrupt was re-examined by Mr. Earl, and then his Honour remarked that allegations mado could not effectually block immediate discharge. There was nothing to show that the personal expenditure of bankrupt was unjustifiable, and, in any case, he had supplied an explanation as to hove, the amount had been swelled. Asfi the allegation of misappropriation, there was evidence that the firm affected had proved its claim in the ordinary way, and drawn a dividend. As the bankruptcy was nine years old, and 13s. 9d. in the pound had been paid, his Honour saw no reason to suspend the discharge, which was granted.