IN BANKRUPTCY.

Gisborne Times, Volume VI, Issue 191, 20 August 1901, Page 3

IN BANKRUPTCY.

ESTATE OF GEORGE SEARLE LIVELY TIMES.

Tuk adjourned meeting of creditors in the estate of George Searle, carpenter, was held yesterday afternoon. Present: The Assignee, and Messrs Whinray, Hall, Hubble, Evans, Nolan, and Chrisp (bankrupt’s solicitor). Mr Chrisp said bankrupt was prepared to pay 7s in the £ in a fortnight, guaranteed, 6s in six months, and the balance in 12 months, or as soon as possible. This, Mr Chrisp considered a fair offer. The amount was not a large one, and if they gave the bankrupt time he would pay his debts in full. Mr Hall : Will he guarantee the balance of 13s

Mr Chrisp: He could not guarantee that. They would have to accept the offer made or nothing. Mr Whinray asked if Mrs Searle was in possession of the land for her husband. If so, she should pay the £6O. At Mr Hubbfe’s request debtor_ was sworn. 'VP -.-■ j

Mr Whinray asked as to a few cows not put in the statement, had not bankrupt offered them for sale to Mr Harris ?

Debtor said ho could not recollect offering them to Mr Harris, but he refused to answer questions about thorn, as they were not his.

Mr Whinray: I have got a witness to prove that they are.

Debtor: Bring your witness here. Mr Whi nruy said ho was not prepared to accept any terms. The young man came here about Id or 20 months ago, incurred considerable liability, and also acquired much property in various, parts of the town.

Debtor: I deny your statement. Mr Whinray: lie was the agent by whom the properties had been juggled to and fro, and he gave his brother security over my furniture. Debtor: Your furniture was paid for at that time.

Mr Whinray said the statement proved otherwise. The bankrupt said he did not know whether his wife at marriage had £‘lo or £OO, yet she had purchased these properties. Searlo had not been in the retail trade to make any losses. Had he boon fully employed ? Debtor stated ho had not boon fully employed, and had lost a lut of time on account of wet weather.

Mr Whinray : How much have you earned for yourself or for your wife as agent ? Debtor said he had not earned 30s a week on an average. Ho had no interest in the house ho was living in, and was paying 12s Gd a week. The house ho built and sold had a big mortgage on it to Mr McNair at Matawhero. The property was sold for £375, but when the mortgago and Mr Peckovor’s commission and other things had boon paid it had all gone. Mr Whinray got £0 out of it. An acre of the land went with the house. Mr Whinray : Wero there not, in farming parlance, any springing cows '! Debtor : No ; they are empty, if you will uso tho plural. The cows were never in my possession.

Mr Whinray: You want to sot up yourself as a poor man, when your wifo is a wealthy woman '! Debtor : I don’t want to hide behind my wife’s petticoats. Mr Whinray : You apparently trusted tho family when you gave them a mort-

gago over my furniture. Debtor : 1 distinctly deny evor giving a bill of sale over your furniture. There wero only two articles of yours included. Mr Whinray : Give mo tho bill of sale, and T will prove that statement false. Mr Chrisp said Mr Whinray's furniture had been put down at £2O. Mr Whinray ; My furniture) amounts to £ 10.

Mr Hall said he would like to give the young mail a show if he would guarantee the 13s. Mr Hubble got on his feet at this stage, but debtor rose too, and exclaimed : “ I bar Mr Hubble.”

Mr Hubble : You liavo not got a million to eight show.

At this stage debtor called Mr Hubble’s account into question, and a strong wordy warfare ensued, Mr llubblc using terms that would bo ruled out of order in a do-

bating society, ami Mr Searlo retorting in terms that were not meant to be polite, among other questions asking how often had Mr Hubble boen bankrupt? Mr Hubble : I have gono through once and paid 20s in the X. Mr Evans said ho thought these questions were going too far, but his endeavor to calm down the proceedings were unavailing, for soon thero was a volley of cross-questions and replies. Mr Hubble wanted to know if debtor was a competent tradesman. Debtor: Are you a competent bricklayer ?

Mr Hubble: Yes, I am. How much do you earn a day ? Debtor : 1 can earn 9s a day. Mr Hubble : Do you smoke? Debtor: No, nor drink. Mr Hubble : Or gamble ? Debtor: No. Mr Hubble : Then how in the name of goodness are you bankrupt ? What did you pay the doctor ? Debtor: I don’t know what that has to do with you. Mr Hubble said it had a lot to do with him, and further questions elicited replies to the effect that he had paid X2O. In reply to further questions the debtor again introduced tho subject of sheltering behind women’s clothing. Mr llubblo then asked some startling questions, that if published should enable Mr Searlo to recover enough from tho newspapers to pay his creditors many times over. Ho regarded tho questions with amazement, and taunted Mr Hubble with merely asking them so that they would appear in the papers. Denials by tho debtor wore met by counter charges by Mr Hubble, who declared that he would bring these matters before the Supreme Court. He was submitting further startling questions, when the Assignee said the question was whether they would accept the debtor’s offer. Mr Hubble proposed that the debtor s offer bo not accepted. He went on to allude to the bankruptcy in very strong terms. Debtor, in a scornful tone, said that Mr Hubble, with his little .to, spoke as if lie

was the mouth-piece of the lot. Mr Hubble: i am speaking for my little Xo 10s. Debtor said he would like to ask Mr Hubble some questions, and he added: — “ How much is Mr Whinray paying you for mouthing for him here ? " Mr Hubble : I am speaking for myself. 1 do not consider this an honest bankruptcy. If it was misfortune I would do all I could to help you. I move that the matter be brought before the Judge. Mr Hubble then stepped forward and placed a five pound note on the table, and said he would give that towards the expense of bringing bankrupt before the Judge. He appeared to think the reporters an honest lot, for the note was placed temptingly near one of them. The Assignee said he would regard that as a negative. He was about to put the when Mr Hall interposed and said that if Searlo would give a guarantee with his offer he would be willing to accept it. Mr ’Whinray said he would oppose

accepting any terms. Mr Hall: He says he will get it. Mr Whinray said ho would be in favor of sending the bankrupt before the Judge straightaway. It was a travesty Debtor said that Mr Whinray was the cause of the travesty in bringing him

there. Mr Whinray : You don't know what I mean. It was, he continued, an insult to the integrity of the town to have to suffer such a thing. He would move : “ Failing the payment of 20s in the X one week from date, that the Official Assignee be instructed to COttSuH a soneuor with a

view, to bringing the conduct of the bankrupt under notice of a Supreme Court Judge, to be dealt with as the dee sion oi tho Court directs; that any other course would be aiding and abetting by the creditors.” He went on to refer to the debtor’s conduct in warm terms of indignation. Mr Hubble seconded the motion, which he said was what he himself intended. • Mr Whinray said he would feel ashamed 0 live in'the place if such attempts (which

he stigmatised by a strong term) were allowed to go unchecked. It was an indignity to the whole district, and an insult to the reputation of the place. Mr Hal! said he thought any such motion should be left to give the bankrupt a chance to guarantee his offer of 20s in the £. The motion was declared earned, the hands held up for it being those of Messrs Whinray and Hubble, while Mr Hall held up his against. Mr Whinray then urged that steps should be taken to secure the furniture. The Assignee, to debtor: Of course I hold you responsible for that. Debtor expressed a strong desire to question Mr Whinray, and as the meeting dispersed, regretfully stated that that gentleman had had all the say.

W. O. SHEET'S ESTATE. The first meeting of creditors in the bankrupt estate of W. O. Skeet,. builder and contractor, of Gisborne, was held at the office of the Deputy Official Assignee yesterday. Amongst those present wepe: Messrs A. Parnell, Hennessy, File, Gaudin, F. T. Morgan, DeLautour, Ormond, Ford,

[ Ilookey, T. Coleman, T. Adair. J. Brown, Clayton, Evans, Webb, Edwards, Morrison, Bright. F. Hall, Peltio, Muir, Good, O'Meara, W. King, Kennedy, Symes, Eliott, Whitby, Harding, and a large number of workmen. The Assignee stated that the creditors present had no doubt seen the statement of the bankrupt. The position was briefly this : The debts to the unsecured creditors amounted to £4252 10s 6d ; there was a secured debt to the Union Bank of £'2552, for which the bank held security valued at £425 and Mrs Skeet's guarantee and the guarantee of some others for the balance. The total liabilities were £69(47 18s sd. The assets were £4320, and the deficiency £2062 18s sd. The assets consisted of stock-in-trade £9OO, book debts £2OOO, furniture £430, shares in various companies £9O, and contracts in progress £9OO, making a total of £4320, Tho chief business before the meeting was to decide what way the assets should be realised. In the ordinary course of business, without any special instruction, he would call for tenders for the stock in trade, he would collect the book debts on commission, and the furniture and shares would be sold at auction. With regard to the contracts in progress, these were being carried out under the management of the debtor. In one case the owner had taken it out of his hands and was completing it himself. In two other casos, where ho thought it would not bo advantageous to the estate to complete, he would likely disclaim the contracts. That was the position, and he would be glad to have instructions from tho meeting. With regard to the stock in trade, he I suggested that tenders be called. The Assignee stated that if there was no objection or suggestion from the meeting he would call for tenders for the stock-in-trade, to be in by Saturday next. He would call a meeting for Monday to consider tho tenders. With regard to the book debts, all tho demand notices were ready to go out. As to the furniture, tho

debtor was entitled under the statute to £2~> worth.

Mr Eliott, manager for Dalgcty and Co., who represented Messrs Gammon and Co., of Wellington, proposed that Mr Skeet be granted the whole of his furniture. Mr Honnossy seconded the motion. Mr A. F. Kennedy said he thought that at the previous meeting there was a general expression of feeling that it was a pity that the furniture had been included amongst the assets, and as far as one could seo at that meeting, the creditors there represented were in favor of it being eliminated, as it was recognised to be Mrs Skeet’s property. Tho Assignee : Of course, the debtor must show it in his statement. Mr DoLautour said there were a number of creditors outside who were not

inclined to oppose Mr Skeet, but they wished for somo further information. He reforred to Messrs Mills and Co., Limited, the Kauri Timber Company, A. and T. Burt, Stewart and Co., and Sargood, Son, and Ewan. It was just a question whether it was wise to propose tho resolution at this mooting. He proposed, in the interests of those outside creditors, to ask tho debtor to give certain explanations, and ho thought it would be more convenient to defer tho motion until Monday next, until the information asked for as to whether all tho assets were fully before the creditors was supplied. It was for them to consider, those who were friendly to tho debtor, as ho believed the outside creditors were, whether it was wise, in the interests of tho estate and of tho debtor, to force this resolution that day. lie was not prepared to oppose it in any way.

The Assignee : The resolution will have to bo confirmed at another meeting. Mr DoLautour: In that easo I think there can be no objection to passing it.

Mr J. W. Bright said that, although only a small creditor, ho thought it would be ungracious of Mr Sheet’s creditors not to pass the resolution. He had boen a good citizen for a number of years, and none of them would be a party to break-

ing up his home, selling his furniture by auction, and doling out to him the X'2s worth allowed him by the Act. He would certainly support tho resolution. Tho motion was put, and carried unanimously. The Assignee said the next item was the shares in companies. Ho thought tho best thing would be to offer them at auction.

Mr T. Coleman suggested that the companies should buy them at their face value.

Mr Clayton said if tho creditors wished it the Assignee need not submit tho shares to auction.

Mr W. King proposed that the shares be offered to tho companies at their paidup value. This was seconded by Mr Clayton and carried.

The Assignee, referring to the contracts in progress, said thero wore three —the hospital, Mr Matthews', and Mr Johnstone's. The hospital would take about a month to complete, and everything was progressing favorably, and he proposed tot carry this on under the debtor’s management. Mr Acland Hood had taken over his contract, as he had a right to do in the event of bankruptcy. There were two other contracts, and as he did not think there was any profit in them to tho estate he would disclaim them. That being all the business, he would call a meeting for Monday next, at which tho debtor might bo examined, and to consider the tenders for the stock in trade.

Mr Eliott did not see what good purpose could be attained by deferring the examination of the debtor. If any creditor had any questions to ask he could do so at the present meeting. Mr DoLautour said he did not think it would be desirable to examine the debtor at present. It might happen that, as the result of his inquiries, he would be able to tell the outside creditors that the affairs were satisfactory. He did not think it advisable to ask a lot of all-round questions that would do no good. The Assignee said there would be a special meeting in three weeks’ time to confirm the resolution about the furniture, of which all the creditors would got notice. Mr W. Fettie said the question of workmen's wages was to be settled. He thought it should be decided that they should be paid in full, so that there would be no necessity to bring them back to the adjourned meeting, An expression of opinion should be given that they were fully entitled to their wages. The Assignee said there was no doubt whatever that they would get their wages paid in full ; the amouut of wages was £461, and there could be no question that the estate would realise that amount. The wages were a first charge. Mr J. T. Evans proposed that the meeting determine that the wages be paid first, Mr Fettie seconding the motion. The Assignee said there was no need for the motion. The workmen had absolutely rh« There was no doubt whatever that the men would be paid in full. The meeting then adjourned till 2.30 p.m. on Monday next.