J. G. Moray's Bankruptcy.

Feilding Star, Volume XV, Issue 245, 21 February 1894, Page 2

J. G. Moray's Bankruptcy.

MEETING OF CBEDITOKS. (By our Special Reporter.) A meeting of creditors in the estate of J. C. Morey, draper, Feilding, was held at the office of the Deputy Official Assignee, Palmer ston, yesterday, and tlie creditors present were — Messrs J. Myers (proxy tor fiing, Harris and Co., Butterworth Bros., Mackay, Logan and Stecn, Ross and Glendenning), W. E. Cook (proxy for Aitken, Wilson and Co., Abbott, Oraui and Co., McArthur and Co,, Sclanders and Co., Elerman and . Co.), J. Prior (proxy for Kirton and Curtis, Dr Charlton, and Goodbehere and Richriiond), L. H. Goldfinch (proxy for Mrs Hastie), F. H. Cooke (proxy for Huddenstein Bros., J. Gould, E. Feck, F. Keen, Mrs Higgin, W. H. Young, A. Eade, T. R. Cornish, and The Mercury), and J. McLaren. The debtor, who was represented by Mr Cooke, of Baker and Cooke, furnished the following written statement:— l had been carrying on business for Messrs J. Paul and Co., Wanganui, for about five years, and doing a payable trade up to the last 12 months of that time, when trade commenced to fall away, but thinking it was likely to improve again, I was tempted to try business for myself, and not having any capital to work upon, I had to keep borrowing money, which swallowed up more than my profits in the concern. I borrowed from Mrs Morey from time to time about .£B4. I started in business last March without any capital, taking over from Messrs J. Paul and Co. nearly £'500 worth of book debts, and paying nearly 20s in the £for .them. When I opened for myself trade was very fair with me as far as the booking was concerned, and I thought I had every prospect of working up a fair trade. Very shortly after trade commenced to drop away, and things got very bad. I could not get my book debts in w.hen I wanted them, and had to take various P.N.s, which in many cases were dishonored. Consequently I ha«l to borrow money on the spur of the moment at a big rate of interest to tide me over. I always thought up to a very short time of my filing that I could pay 20s in the £ if my estate was realised, but found on going into the matter I would come out short. I went to Wellington about a month ago to. arrange with my largest creditors. They gave me six months to realise on all I had, I came back with the intention of selling up all my estate, but found I had one or two smaller creditors who were pushing me. Eckman and Co., of Auckland, had issued a summons for a dishonored P.N. I went to Wellington and told my creditors I wished to assign. Thej' sent Mr Cook up with me, and we went through my estate, after which I returned to Wellington, when at a meet* ing at Cook and Gray's office a resolution was passed asking me to file. I met Mr Cook the same evening, and he asked me io meet him at his office, which I did, when the arrangement made with Mr Cook and Mr Campbell, solicitor, both acting for the creditors, was that I was to have two days to try and arrange to pay 20s in the £. I could not find anyone willing to help me, the time being tqq short, so I could do nothing else but let them put in a petition of bankruptcy which I had signed. The cause of my having to file is ; difficulty in collecting my book debts when wanted, slackness of trade, coupled with keen competition, and heavy expense of carryiug on busi-? ness in trying to work up a payable trade. In answer to questions debtor said he had mortgages of .£4OO and £20{) on his property in Feilding. The last mortgage was executed in May, 1693. Had tried in January to raise money on his and his wife's property, but was un~ successful and was in the habit of buying bankrupt stock, and selling it off, and procuring other stock for the purpose of getting rid of it more quickly. . Bight days after he called his first meeting of creditors in Wellington on January sth he had given a bill for goods supplied by Myers and Son. Had cut leaves from his cash-book because the entries on the leaves had reference to the business of Paul and Co, during the time he was acting for them. He had cut out the leaves and kept the book instead of handing the book over to Paul and Co. Had made entries in his cash-book for a short time, when he dispensed with a cash book altogether. Had not written in all the entries set forth in the cashbook a few days ago. Within three weeks prior to filing had paid amounts to three creditors. One was to Mr J. Notmanof £100 in part payment of a bill for bankrupt stock bought at Ohingaiti. The bill was endorsed by Mrs Morey and Mrs Oliver. The second payment was .£35 to Wellington Loan and Finance Company in satisfaction of a bill for money lent about three months . previously. Had paid some Wellington creditors with a portion Qf the mpney, and put the remainder, abput £20, in the bank. The bill was endorsed by Mrs Ormsbee, hia sister-in-law. The third was to Messrs Thorburn and Bush 4*ll 15s, the latter be|ng his brother t inY law. On December 15, th last had paifl a bill of £75 to Mrs. Morey and Mrs Oliyer, being part payment of thg Ohingaiti stock. These payments were made after, bis meeting of creditors on January sth. His cash takings from sth January up to February Ist were about £140. After the meeting of creditors he did not keep his day book posted up, but had kept a rough record of business done in another book (produced)- The money taken since January sth had been used" for payment of Mr Notniau's bill. Had promised to send £20 a week to Mr Lang, of Sargood, Son, and Ewen, who had been appointed receiver. Had also squared off a number of contra accounts, in which the differences were axnali. Had held sales in December and January last. Reoeived, as a rule, about £80 from each sale, with the exception of the last one which realised £4 12s. Had always got an advance from the auc tioneers on the sales, and the takings were appropriated by them in payment of the advances. The last sale was held after his meeting in Wellington. On January Bth borrowed £50 from Ratliff Bros., giving them an assignment of the book debts. Also borrowed £9 from. Mr Goodbehexe on. or about that date. On January Bth paid £4 10s 6d to C. B. Izard, interest on mortgage on his wife's property, andJ£lo to Mr Church, store* keeper, Kiwitea. Would be surprised if it were shown he had received £300 or £400 since he returned from Welling, ton... Had his banking account and stopped posting up his books since ' his return from Wellington, although he had promised his creditors that he would keep proper books and a correct banking account in consideration of his' being allowed six months to realise bis estate. Mr Not man's bill was not entered up in' his bill bqok. Did not know how much money he had received and not paid over to Batliff Bros, since he as* signed the book debts to them. On the day of the assignment to Ratliff Bros., his travellers collected £34 in the Birmingham district, of whicliKe hamfe^ a,bc>ut £1 tq B^atli# Bros^ Re , ffiighi. ? have received abo.ut £6Q pi the book, debts since (the assignment. Had pro. cured stock from Keeaing r of Waugamu*, to the value of £44, andsold it at auction. Had paid Keesiog £10. Had borrowed £15 from Mr Carr, to whoni he had given a receipt for the purohadfe* of his gig at Mr Carr's request. He possessed all the furniture in his house, haystack, two cows, etc. Had given Mra O&ver a receipt for tbe purchase ©f

all his furniture in order to protect her iv connection with the bill she had endorsed to Mr Notman. Mrs Oliver said that was not so. The furniture was handed over in satisfaction 1 of claims for money lent, long before Mr Notinau's bill was endorsed. Mr Cook suggested that the meeting should be adjourned, as the hour was j getting late. He and Mr Myers had { attended that day, on behalf of the Wellington creditors, for the purpose of moving a special resolution directing the D.O.A. to enforce the penal clauses of the Act, as the case was a very bail one. \ Mr Cook moved, That the D.O.A. be requested to take immediate steps to enforce the peual clauses of the Act. Seconded by Mr Myers. Mr Prior objected to such a motion beiug passed until a more strict enquiry j had been made. He suggested that the meeting be adjourned to Feilding in order to allow of the creditors there making an enquiry iuto the affair. The motion was carried, Mrs Oliver, and Messrs Prior, Cooke, and Goldfinch voting against it. It was resolved, on the motion of MiMyers, That the action of the trustees be sustained, and the account presented by Cook and Gray be passed for payment. Mr Prior moved, That the meeting be adjourned to Feildiug. Seconded by Goldfinch. The motion was lost.