IN BANKRUPTCY.

Hawke's Bay Tribune, Volume XVII, 14 November 1927, Page 5

IN BANKRUPTCY.

ESTATE OF MISS A G. HEWSON.

PERSONAL STATEMENT.

Following is the personal statement of Miss Amelia Grace Hewson. Hastings, submitted to a meeting of the creditors in her bankrupt estate, held in Hastings this morning:— I am a spinster residing at Has- - tings. In 1907 I was well off. and decided to take a trip to England. Before doing so I appointed H. E Beamish, of Hastings, to manage my affairs. I returned from England in December 1908, and was persuaded to appoint Mr Beamish as my attorne vto look after my business affairs, although I was back in New Zealand. Mr Beamish from time to time bought and sold properties in my name. The whole of the transactions were carried out by him. and I relied entirely on his advice and statements, and acted on the information he gave me. He dealt with my affairs entirely as if thev were his own. rarely consulting me about what was being done, and handling all the money in connection with the transactions. He would, from time to time, place amounts to my credit, but never clearly explained to me how I stood. I always understood from what Mr Beamish told me that mv affairs were prospering. He has often told me that he was doubling mv capital. During the last five years Mr Beamish has induced me to sign certain promissory notes. Having no business experience myself. I did not understand the nature of those documents Mr Beamish explained to me that I was not endangering i position in any wav bv signing these, and that he would meet them when they became due. and that they were for his benefit. I do not know wha has become of the proceeds of these promissory notes nor of certain mortgages which were raised on my property. I did not know until June last that I was insolvent. All my present liabilities are on the promissory notes above referred to and all mortgages negotiated by Mr Beamish and for working expenses in connection with the property at Tuki Tuki which Mr Beamish acquired in mv name.. 1 had nothing to do with this property myself. It was managed entirely by Mr Beamish, and I have had no money out of it. . I have personally never incurred any debts at all for my own living expenses and clothing and personal expenses which have not been paid. My present position is entirely due to the way in which Mr Beamish has handled m.v affairs. Had I known my true position I would never have signed' the promissory notes nor permitted myself to incur the liabilities which are now owing. I attribute my position to the fact that I trusted Mr Beamish, and he entirely misled me as to the nature of the transactions and as to my true financial position. I have lost about £9OOO. Mr G. G. Chisholm Official Assignee. presided, and Mr E. J. W. Hallett represented Miss Hewson. There were only three proved creditors present—Messrs C. J Tipping. H. A. Mossman. and James Brown—and three creditors who had not proved. LIABILITIES AND ASSETS. In the statement of liabilities and assets, the unsecured creditors were shown at £2903 14s 7d. the secured creditors at £528?. whilst the value of securities were estimated at £7025. showing a surplus to contra of £1737 15s 4d. The assets were composed of this £1737 15s 4d and £2O from property, totalling £1757 13s 4d. leaving a deficiency of £1205 19s 3d Mr Hallett explained that there was £l5O, estimated value of furniture, to be added to the assets. Mr Hallett explained that the committee set up had endeavoured to dispose of some of the assets, notably the Tuki Tuki property and the house, but no offer worth considering had been received. Referring to the valuation placed on the properties, the bankrupt knew nothing of the values, but. from information received from Mr Beamish these valuations were excessive, with the exception of the Boundary road property which had been sold for £B5O. subject to a mortgage of £6OO, portion of which had been paid leaving an equity for the creditors of about £2OO, The residence in St. Auhyn street was mortgaged, and that, together with accumulated interest, left no equity on the propertv and he suggested that it be handed over to Miss Hewson. Mr Mossman said that that matter had been thoroughly investigated, and there was no equity in it for the cre-

deitors. He moved that the property be abandoned to the bankrupt. This was seconded by Mr Gatenby and carried. STATEMENT OF AFFAIRS REQUIRED. Mr Gatenby (representing Mrs Gore Martin) said that evidently Miss Hewson knew nothing of her affairs. She wa» blameless in the matter—everyone would admit that —but a statement of the affairs of the estate was required. He moved that ths attorney' for Miss Hewson (Mr H. E. Beamish) be require'’ to provide the Assignee with a full statement of Miss Hewson’s affairs with payments and receipts, accompanied by vouchers. This was seconded by Mr H. A. Mossman and carried. Mr Hallett explained that her Southampton street property had been bought in by the mortgagee. The Tuki Tuki property of 85 acres was to be sold through the Supreme Courh in three weeks, but the mort gagees would probably buy that in. The Assignee: Then evidently the Boundary road property is the only property that anything can be got out of. Mr Mossman said that the Tuki Tuki property was worth more than was owing to the mortgagees, but it had been under offer for nine weeks, and no offer that could be accepted was received. Mr Nat Beamish said he knew a man who would be prepared to pnv £45 an acre for 70 acres of the Tuki .Tuki property. Mr Mossman: That’s the man we re looking for Mr Hallett: He can buy it at that price at the auction. At this stage one of the proved creditors left, and no further motions could be taken. “AN EXTRAORDINARY POSITION.” At the suggestion of those remaining. the Official Assignee undertook to see to the disposal of the stock and implements on the Tuki Tuki property. He would also investigate the matter of the furniture, both at the residence and at Tuki Tuki. The Assiggnee (referring to the bankrupt’s personal statement): This appears to be an extraordinary indictment to say the least, but I can’t say anything until I heard both sides. Tlie only thing I can do now is to convey to Mr H, E. Beamish the resolution carried by the creditors, and see what he has to say. The Bankruptcy Act can require a statement covering three years, hut I can summon Mr Beamish for examination and question him over the whole period of his responsibility. All I can say now is that it is an extraordinary position. After Mr Beamish’s statement is received and his explanations given, it may be necessary to call another meeting of creditors. but m anv case I will advise him in due course. Mr Hallett: Mr Scanned is handling Mr Beamish’s affairs, which are at present in course of liquidation. Mr H. A Mosman said that the deepest sympathy was expressed for Miss Hewson, whose filing had been made only so that she could get a definite knowledge of her position. The Assignee said it was obvious from her statement that Miss Hewson knew nothing abaut her estate, and the only person who could give that information was Mr H. E. Beamish. The meeting then adjourned sine die.