"PECULIAR BANKRUPTCY "

Dominion, Volume 12, Issue 252, 18 July 1919, Page 5

"PECULIAR BANKRUPTCY "

ESTATE WITH LARGE SURPLUS. (From Our Own Correspondent.) Palmorstnn North, July 17. There were extraordinary envelopments at a meeting of, creditors of J. W. Runnier, bankrupt storekeeper, of Palmerston North, which was held on 'Wednesday. When he filed his petition in bankruptcy Kimmor showed liabilities amounting to .£'2ooo, assets i152'28, leaving a surplus to credit of .£3228. No creditors put in an appearance at the meeting, and bankrupt in a written statement' said that his reasons for filing tho petition were that goods supplied to him on the credit of his own name to carry on the business, lately known as Biminer's Cash Store, had been forcibly taken possession of by a third party under a claim of right, lie therefore put the matter in tho hands of the assignee, with a view to protecting ,thc interests of those who had supplied him with goods. Since filing lie had received word from many cf the creditors stating that such third i>arty lad paid their claims in full. Apart from tho business, bankrupt.said that ho owed no debts, and owned assets ai. minting to about JJBSO. Tho Deputy-Official Assignee said that it was a most peculiar bankruptcy. There were in point of fast now no. creditors, surd having been received that Messrs. Watson Bros., grocers, had .laid all the accounts. No proof of debt had been lodged with him. Mr. Innes, solicitor for Watson Bros., said that it was tho most stupid bankruptcy in tho history of New Zealand. It was absolute nousenso to say that the bankrupt's goods had been takon possession of. Bankrupt's'statement did not outline the real position. As a mattor of fact it was well known that Rimmer was only carrying on tho business for Watson Bros, in the capacity of_ a servant. There was no reason for him to file. Mr. Hurley, who appeared for bankrupt, held that ftimmer was perfectly justified in the course he had taken, and that ho had the approval of his largest creditors for what he had done. The meeting dragged on for somo time longer, and eventually the assignee pointed to the fallacy of it continuing, as he coul do nothing, and any proceedings were irregular as there was no quorum,, and no creditors. Eventually the meeting broko \ip without anything being done, it being pointed out that all they could do was to wait until the statutory two months had expired, .during which period any creditors who had neglected to furnish proof of debt were at liberty to do so. Bankrupt could then apply to have his bankruptcy annulled.