FLOOD ATFERMATH

Gisborne Herald, Volume LXVI, Issue 20002, 29 July 1939, Page 16

FLOOD ATFERMATH

DEALER’S BANKRUPTCY LARGE DEFICIT SIIOWX MEETING OF CREDITORS Heavy shock losses and the silting of his property following -the floods of December, 1938, were attributed as ihe reasons for his bankruptcy by a stock dealer, William Hogan, of ftuatoria, when he was examined by the deputy official assignee, Mr. E. G. Rhodes, at a meeting of creditors yesterday. Creditors were represented as follows: —Mr. F. W. Nolan, representing Mr. A. D. Leash; Mr. W. .R. B. Wil lock, Williams and Kettle, Limi.ed; Mr. L. C. D. Harries, Gisborne Sheepfarmers’ Frozen Meat and Mercantile Company, Limited; Mr. M. R. Maude. C. W. Farr, Akers Brost, and H. C. Beach; and Mr. H. Kunioka. . In his statement, Hogan said that he commenced business on his own account as a stock dealer, having £6oo* in capital at -the time. He carried on successfully until February, 1938, and just prior to that month rented a property and paid £SO in advance for'rent. Losses In Flood The -place was no sooner stocked than -a flood occurred, between. 350 or 400 sheep being drowned. The sheep had cost approximately £1 2s 6d each. The place was heavily silted and still .remained so. Although the flood had cost approximately £SOO, 'he desired to carry on business and -meet all creditors in lull, but was unaible to obtain credit and the stock he had was sold by the firm with which 'he dealt. Although he managed to .reduce his debts slightly as a result of his earnings, he found it impossible to meet the pos’’ •tion. One creditor, said the bankrupt, - had now issued a distress warrant against his car, -being the only asset, apart from his house, which was mortgaged for £SOO. In consequence, he had no alternative but to file his petition. Unsecured creditors were shown at £549. 0s lid and assets :at £390, this including a valuation of £350 on Ms house. Secured creditors were shown at 12s and were made up as follows: Williams and Kettle, Limiter, £2ll 10s lid; Gisborne Sheepfarmers Frozen .Meat and Mercantile Company, Limited, £180; Aker Bros., £2B; Hawke’s Bay Jockey Club, £l6; Poverty Bay Wine and' Spirit Company, £32; Collett Motors, £8 10s; Commissioner of Taxes, £2B; C. G. Aneell. Limited, £4O; Chrisp and Company, Limited, £5; C. W. Farr, £335 3s 6d; Sam Ngarimu, £4O; J. Thompson and Sons, £ll 3s; H. C. Beach, £8 13s 10d; D. J. Barry, £43 13s 4d; H. Kunioka, H 127 5s 3dl; Waiapu County Council, £l2 12 s 2d. Government Valuation Answering a creditor, the bankrupt -iid -that the Government valuation on his house was £675 and that he himself had not made the valuation >f £350. The mortgage over his land was heldi by Mr. Leash, the mortgage being given in June of last year. The noney was owing to Mr. Leach when the mortgage was executed. and. was not paid over to him. Bankrupt said that the amount he owed Mr. Leash was £460, which, with interest, brought -the amount to £SOO. Answering .the assignee. Hogan said '*e had 'been out of business for 12 months. Since then, he had operated a itaxi for five or six months and Ver drove a carrier’s motor-lorry. \t present he was working on a commission basis for Mr. Leash, but his warnings were very small. He was living in the -house, which was the -übjeot of the mortgage, but was livmg rent free. A car which he owned was in good condition and was worth "rom £9O to £IOO.

H-ogan told! the assignee that money owing to the Hawke’s Bay Jockey Club was for nomination and riding fees. He had been a racehorse owner or about a year between 1936 and ' 937 and 1 was in the habit of betting a little. It was now about 18 months ‘.ore he last had. a bet. To Mr. Maude, bankrupt said that nability to carry on had caused him to file. Judgment summons orders id been made against him by creditors., The meeting was adjourned.