Bankruptcy Court

Feilding Star, Volume VII, Issue 65, 10 November 1885, Page 2

Bankruptcy Court

In the estate of G. Ciicliton, a bankrupt — < The first meeting of creditors was held in the R.M. Court on Saturday, ] Mr Scott the Deputy Assignee in the j chair. Present — Mr Goodbehere, solicitor, for the Bankrupt, Mr R. Fen- i nell (proxy for 8. J. Thompson), T. B. Chamberlain, Calmer Skelly. The Bankrupt was not in attendance, he being a witness in Wellington in the case of Jones v Capper. Mr Goodbehere produced the following proxies : — J. Skerman £8 4/7 ; E. W. Mills £24 10/2; Aitken £1254 16/8; W. J. Nathan £33 2/-; R. Martin £9 7/8 ; H. I. Jones £7 18/8 ; Tnrnbull, Smith and Co. £119817/10; Thompson, Shannon . and Co. £397 2/9. Total, £2914 /4. Mr Scott explained the reason of the absence of the bankrupt. He then read lists of the unsecured creditors and assets in the estate which have already appeared in our columns. The following statement in writing was submitted on behalf of the bankrupt : — I arrived in New Zealand in 1879, started in business in Wellington in April 1879 as fancy needlework dealer, &c, and with goods brought from England value about £1000. In April 1882 thinking to improve my business position I took a shop in Lambton Quay. I did not realise my expectations and my wife being capable of managing without my assistance I answered an advertisement and was engaged to come to Feilding to sell out Palmer and Jones stock. While doing this I conceived the idea of entering into business in the same premises and on being promised a large amount of support from the mill hands of Mr J. B. Boots I entered into an engagement with that gentleman to take the premises from him for 12 months with the view of purchasing. At this stage lib 8. J. Thompson offered to sell me the business carried on by him as Thompson Bros , and after a little consideration I agreed to buy and remove his stock into the premises I had already taken. In September 1882 I entered into possession of bis stock and book debts and in January 1883 removed to my present premises. Mr Thompson engaged to remain with me for one month to initiate me into the working of the business, but on the accounts being roughly made up he informed me he could not do so and 1 was left to cope with the business difficulties alone. I found on getting to know the stock and debts that the price was too high for both and wrote to Mr Thompson to that effect. As before stated the accounts were wrongly made out, no balance sheet being drawn up. I several times asked Mr Thompson to come to Feilding to settle matters with me, but he only reiterated that the amount due to him was £800, giving no satisfactory statement as to how the account was made up. I then made a statement of the account from the vouchers which I held showing the amount due to be £432. Mrs Crichton took this statement to Auckland to meet Mr Thompson as he was threatening to take the matter into the Supreme Court. While Mrs Crichton was in Auckland Mr Thompson's solicitor offered to settle the claim for £575, but on Mr Thompson hearing tjbie he repudiated it and Mrs Crichton- came back. After her. return a wire was received saying he wished to open fresh negotiations, the upshot of which was that I agreed to make £600 the basis of settlement, £100 in cash, and the balance in monthly payments of £20 bearing interest at 8 per cent, for whioh I gave promisery notes. My Wellington business was advertised for sale, but no one offered, and'; after waiting for nearly a year I o>>mraenoed to sell the stock. In order to effect a clearance, the goods had to be sold at less than cost price, this oocupying several months causing from the time of my leaving to the time of my olosing the business a period of 18 months to elapse. . The Assignee said he had not taken stock, but Mr Criohton had done so from October 1 to October 12. It was then proposed by 8. Goodbehere as proxy lor Messrs Turnbull, Smith, and Co., That a composition of 6s 8d in the £ be accepted by the craditors on the, following terms ;:-— . That is to say 2sin4he£ to be paid in cash within seven days from the date of the deed of composition being approved by the Court and the balance to: be secured in two instalments of '2» 4d each by the joint and several . promjsery notes of the bankrupt, and Messt* Aitken and Wilson, dated on the , day of approval, of the deed ol -composition, and payable respectively atr-8 and ;6 months after date. Seconded by T. A; Chamberlain. 1 1 / / ; Mr Fennell, as proxy for Mr 8. J. Thompson, said he Was instructed to oppose the resolution, as a better offer should be made.; He explained the unsatisfactory way'in wh^ch he had Veen treated by th^ bankrupt. Some .

discussion on matters of detail followed. The resolution was then put and carried, S. J. Thompson's proxy only objecting. The next meeting was appointed to be held here on Thursday, the 19th inst., at 12 noon. j [We have omitted a portion of Mr Crichton's statement referring to Mr J. C. Thompson as it is not "privileged," and we would be liable to an action for libel for publishing it.]