MEETING OF CREDITORS.

Gisborne Times, Volume XXVI, Issue 2141, 17 March 1908, Page 2

MEETING OF CREDITORS.

A meeting of creditors in tho bankrupt estate of Thomas Morrison, jointer and paperhanger of Gisborne, was held at the office of the deputy Assignee for Gisborne (Mr John Coleman) yesterday afternoon. The deputy Assiguco occupied the chair —three creditors being present. The chairman said the balance due to the Bank of New Zealand was £455. Captain Tucker had an assignment- over the stock in trade, plant, bookdebts; but the document- was not registered, and ho was advised they would not stand good against the Official Assignee. Mr Chrisp, who appeared tor the bankrupt, said he was very sorry that was so. Captain Tucker had helped liis client for no benefit and lie should not be made to suffer.

The bankrupt-, in his statement, said that- ho was a painter and paperhanger by trade, and started business in Gisborne about five years ago on borrowed capital. For about three years the business was very successful, but after that time lie sustained losses amounting to about £l2O by bad debts and fire. Having bills and payments due and coming due, he consulted his principal creditors with the result that after having his banking account guaranteed up to £SOO. t-liey gave receipts for the amount ol that account on receiving 12s Gd in the £. After sometime he again "bocam o embarrassed. A distress warrant was issued against him ,and lie had no other course but- to file. His wife had been joined in guaranteeing tho bank, and ho was unable to make any offer to his creditors. The total debts wero £GSS 10s 10, _ and tho assets, including stock £487 13s. 11, and book debts estimated at- £120; were totalled at £Bl5 9s 3d, leaving a credit balance of £159 18s sd. The liability of £512 to the Bank of New Zealand was guaranteed by Captain Tucker, who holds a mortgage on property owned by bankrupt’s wife. Under examination the bankrupt said he had filed on a previous occasion, and started in business again immediately afterwards on borrowed capital, raised by mortgaging his wife’s property. His brother was a partner with him for some time, and the business paid. His brother drew out- of the business about three years ago, and through fire and other misfortunes insolvent become embarrassed. He lost- £7O through a- contract at Tolaga Bay taking fire. He made a compromise with his creditors about eighteen months ago paying about 12s 6d in the £. After this ho dost his credit, was unable to replaeo his stock, and his business consequently suffered. Creditors began to push him, and a distress warrant being issued by an Auckland firm, he had no other course but to file.

Captain Tucker said that lie did not claim that his security over the stock was good. He had been remiss in not insisting on the registration of the documents. He did not anticipate the bankrupt’s position. A short discussion took place upon the best method of realising on the stock and plant; it being suggested that if the business was sold as a going concern, the deputy Assignee should arrange for the purchaser to got a yearly lease of the premises. Mr Coleman said he thought a better price would be realised if the plant and stock were sold by 'auction, and lie would probably adopt that course. The meeting then adjourned.