A CONTRACTOR'S BANKRUPTCY

Dominion, Volume 11, Issue 150, 14 March 1918, Page 11

A CONTRACTOR'S BANKRUPTCY

PROPERTY SPECULATIONS

■ A ineetiug- of creditors in the estate of David M- OwenSj contractor, a Ijankriipij ivas held yesterday atternooi!, the Official Assignee, Mr. S. Tiinstey, presiding. Mr. a! Dunn appeared for tho debtor, Mr. Jd.'ii. .'Jiivuns for tho Official Assignee, and Mr! George Hutchison for iriooper. The bankrupt,, iu his sworn statement, ascribed iiis present position to several, causes. .About 1&10 he entered "into an arrangement with tho late Georgo l'innoek t» alter the Foresters' Hall into a picture theatre. The work was partly completed when die prospective purchaser refused to complete, .and the property was thrown on his hands. Ho had to restore it at heavy expense. It was vacant for 2}. years, during which, time ho had to pay very heavy outgoings. About 1908 there was a, general fall in land values,, and it was impossible to deal with Wellington, city properties. It was necessary to reduce rents, and some of his properties were vacant for a considerable time. Ho had purchased the laud in Pirie Street on which tho houses were subsequently built at very high figures.. He paid £26 10s. ' per foot for land in Pirie Street that to-day was not worth more,than £15 At the tiinn of the last, strike.he made ' a loss of £250 on a contract owing to labour difficulties. Thinking that he might; improvo his position, about four years t»o he entered into negotiations with Mr. J. H. Hooper; land agent, 'for the exchnnge of all his city -properties for » farm at. N'ikau. It subse■lUtentlv appeared that the farm..property'had been misrepresented and. grossly 'over-value'd'. The farm and the stock on it wore sold by the re-

•spective mortgagees before' iho esenange could be tom])l6tetl ( and ho derived no. benefit wlmtovor. iiooper recovered judgnieut. lor bis commission on tuo exchange.. Ho had licuii in fiJMuciitl (lillicultii's Jor mmin Uijjo, Inib. oiil pi- cletcrenoc.. to- .fclic wislies-'-u)i" tho'Viiicf oreditors ho' liad not iiliid hitherto! The majority of his vroditors were- willing that, ho should, carry on, on the oliauce. of being paid J -The ■otatement of- accounts- sliowcdLJabilities—Secured•• creditors, -£11,801) 35.. 6r1., less.estimated value o)' securi-v-ipe.'£l3,o3o, surplus £1220 l'is. (3d'.; unsecured'creditors, £188(5 Is. 4d. As-sot.,s—Stock-in-triide, £l!i;' book debts, estimated : to. produce £16 17s. 6d.; .surplus from-Kecurities, r £1220 12s. (3d, The., principal .unsecured creditors were: To Aro Loan Co., £250; Mr. Jobson, traveller; £150; Mr.: James Stevens, timber merchant, £ift): Booth ' and Go.,- timber-morchants, £224 145.; E. AV.' Martin, plumber, £100; AV.; Pethericfc, painter., £]10; J. H; Eoopor, laud agent, .£220; and Sander Bros.-, contractaiv,i'lol 9s. Bd'. The secured creditors wore: Wellington Trust, Loan aiid' Investment Co.', ; £3500; Catholic •Ciathedral Fund,: £1500; Hart -' ¥dv. Petone, tiinbef rilerchant, £1970'; J. Brown 'Maara.ma. ; Crescent,; £4286; i liassoH and Jlinter, £100; ; Misses Davies, £400; J/'Ol'sen, grocer, £53 7s.

■ l\lr: G'eoVge'-'HUtcliigiriij t\ - Ho appeared i'or Mr J. H. Hooper, asked the j if his-books'had been Linded I Over : ib 'iW , Assignee.'■; Bankrtpt'.' replied' ■ that' they -had, "and., that' , they were 'made : up" to the la'st'irieek- of so. ■ He did not keep the books himself, lint his ■■'daughter-a-nd a man,.■ ah' ordimtry Horkilig 'loan,- kept-them.- '■'■He'.h'ad- nothing,to keep in the 'books', for'he isifl been out of r work'for the" past "four or live years. ''He never received "this rents;, they were , 'collected ■ by .- Ih. Brown; ■'.'Hβ. received ; about £10 'or £12- ii -Treek in -'relit,"'--'i.nd detailed 'the njiitals an|d gave'the ■nanie.s of the. tenants. He;collected £1'53.■ Jast weok aud paid' Mr. Brown £1.- There was about Wo -weeks'- rent'' diie "By most of the , tenants.-He ivas'supposodto own the Foresters' Hall,' bnt tie 'knew nothing about : it.'- ; -Mr.'Bi , oiynV who was. the mortgagee';": cdllected /'' ihk .rents. Therfe' Tii3 a.'hbuso;ali the; baclc, , wMch was-let. The-I'orestefs , ' Hall was let to Eobert's as a'-graiii store. He leased it to Roberts, but had ho: copy or counterpart; of the lease.' He!, had not drawn ehequos, during the; past 3i years, as-tho bank' book''ivoiild show. Ho, had hot used "any' other person , b biink account, and'his wile had not a biiuk He'did not gamble. He gambled -in" propert, ,, , -worse , luck*-.'-. coiild hot Vsinember giving' J. S. 'Orciiard 'authority to ioJl tiib farm : : at Nik-au. Ho had not. Been taking any contracts, but jobs. :\Vriang passed! in each case. Ho gave , ordtrs lor. some of those- supplying material to receivethe moneys m. respect to-' the jobs.. . Ha had .lever given any wiyate* person an order' to' , , receive ; mointy.- He receiv'ed '£o(i' ; from Air. 'fanner,-'solici-tor, in'respect, to a small job, and the money *as : paid- over ilor'-'material, cartiige,"etc.' _except about.£ll, 'which he thought he paid over to somb'credi- ; turs or .used for living , expenses. Mr. Hutchison pointed out that in tho book produced .there was an entry for 1918 on one page,.and three.pages further on there' were, entries for 1917,; and he believed the- books were doctors wl. He insisted that tho original books should be produced, iVhatever tlieir nature.' * . '" ,' Mr. 'Hutchison .asked tho . debtor what ho had.dqiie.'iritii. his i;SO. watch. JJebior:' That hits tiothing to do ivith you.. : . Mr. Hutchison: liis. the property of your creditors. Where is it J , . . Debtor: I won't toil you. ' The Assignee: . Vher.o' is that v.atch? ..... . '... Debtor: I don't like, .to tel! you. The Assignee.: You''won't toll me: , - ■ -Debtor; Jt is in pawn. ~ ; '. Mr. Hutchiaoji: \Vhero is the ticket? You got a.panrn ticket.,' . Debtor said ho had the, ticket . at homo and ivould bring it io the Assignee. ...... In answer to Mr. Drum he said ho had an, .invalid daughter. He. h,'..-J received no-benefit, from- the--services of Mr. J. Hooper: -.The majoiitv ; oi-. his creditors t were.. wiiiiiig that ha should continue in business..but fllDojwr,- one of the 'Jargesl; creditors;, would not agree. .... Replying to Mr. Hutchisfjn, he said that belonged to his wife. He gavo.it-to heir about 15 years a^o. James Wi'liajn Brown, #, retired farmer, residing ih Wellington, and a mortgagee of 'tho property belonging to Owen, said the ..mortgage was executed in 1911. At (that.time the amount was for, £20G0, at 10 percent. It was a second The mortgage was over all Owun.'s property, subject !o first 'mortgage-. orer : each. He Bad sijico paid £2130 on a -first mortgage which fell duo*. Hβ collected the. reals because Owen got-back in his payment, and several ajoounta were due in respect to • first- mortgages, which ■he paid. . The rents were used for this and for other disbursements. ■' ■' -. ' The meating--'was-, r.6-this stage ad-journejl-to. Tuesday afternoon.