Bankruptcy of a Southern Firm.

Feilding Star, Volume XVII, Issue 304, 30 June 1896, Page 2

Bankruptcy of a Southern Firm.

, — — o (Per Press Association) Dunedin, June 29. A meeting of creditors in the estate of John Ryley, trading as R. Anderson and Co., millers, was held today. Among the creditors who proved were * the Bank of New Zealand, £5116 ; and the Colonial Bank, £74,484. The bankrapt attributes his bankruptcy to the heavy price paid for his mills to the Colonial Bank, and to losses made the first year. The handicap was %o heavy that the badness, though good, cohla not bear it. On the mills' account alone £17,000 has been paid in interest and discount. He was a shareholder in the Bank of New Zealand /and National Mortgage and Agricultural Company, which had cost him 'about £6000. The Assignee explained the position. He thought the bankrupt's estimates of the assets exaggerated. Tne accumulated interest amounted to £19,000 and there were drawings by Ryley on the private account of £20,000, so that in four years about £40,000 had been withdrawn. On Octo* ber 31st last the bankrupt had prepared a balance-sheet for the Colonial Bank, k showing assets to the value of 42500 above the liabilities. The stock was said to be worth £45,000. That would require investigating. The bankrupt declared he had been requested to prepare a balance-sheet by the manager of the Colonial Bank presenting tne beat aspect he could. Mr Ritchie, of the Bank of New Zealand, said he was authorised by Mr Ewing to deny this statement. Bankrupt expressed his willingness to give evidence or if he would say the balance-sheet was highly colored, no additional credit had been given on account of it. On the contrary the liability had been reduced to about £20,000, as the " Colonial Bank liquidators were not represented. The meeting was ad* journed to the 14th of July, bankrupt to receive £6 per week in the mean time.