BANKRUPTCY.

King Country Chronicle, Volume III, Issue 187, 2 September 1909, Page 5

BANKRUPTCY.

A meeting of creditors in the estate of Jensen Bros, bankrupts, was b»td in the Court Moose Te Koiti on Monday last the 30th August. Mr Gerard, official assignee, presided The bankrupts' statement was read by the assignee, and showed that the •am of £1946 3s Id was doe to unsecured creditors, and that the total capital held by the foot brothers when starting business in Te Koiti, amounted to £75.

H. A. Jensen was appointed spokesman for the brothers Jensen. By the Official Assignee: Why did yoo put in the value of the sections under mortgage to Messrs Roper and Winger at £ 1140? H. A. Jensen: I valued them by the price we obtained for sections previously sold; we sold sections at £4O each and erected buildings: we received about £l4O in cash: subsequently the sections and buildings were included in Roper and Winger's iecunty. * Official Assignee: Who was the firm started by! Jensen: Two brothers started in November and two more joined in January. G. N. Jensen had from the beginning acted as manager to the firm; G. N. Jensen had in December assigned his estate in Mart in borough. Mr Gerard: Did you give G. N. Jensen authority to carry out large deals for yoo? Jensen: Yes, we gave him power of attorney at the Bank of New Zealand, Te Koiti, and gave him verbal authority to do as he pleased in connection with business transactions of all kinds. A. J. Jensen stated that he joiard the firm in February without knowing the full position of the business. Official Assignee: Were no demands made opon you in February which yoo coold not meet? Jensen: Not that I am aware of. the manager looked after financial business altogether. Mr Gerard: Where is the manager now? Jensen: At Aria. Mr Gerard: Did ym or your manager sign contracts, official documents. Jensen: Sometimes one of os signed them, sometimes alt of us. Mr Gerard: Who signed bills? Jensen: I signed some and my brothers signed others. Official Assignee: You state that W. A. Jensen was not asked to sign bills, why was that?

Jensen: In order to save expense in altering deeds etc. Official Assignee: Did G. N. Jensen negotiate for the purchase of the mill at Aria? Jensen: Yes. Official Assignee: Was it with your consent?

Jensen: Wc did not know of the deal until afterwards nor did we know the price paid until afterwards: wp were Mrttsfled with the purchase and signed the hilts» but we werw not satisfied afterward*.

Official Assignee: Who. called upon T. and S. Motrin's manager in> Auckland? Jensen: Mr Aidncy. I *-hink. it was not one of the Jensen Bros. Ofßeial Assignee: Did you give Mr Aidney power of attorney? Jensen: No.

Official Assignee: Did you sign the balance sheet Mr Aidney had in Auckland?

Jensen: I am not sure. I signed a balance sheet, but do not know which one Aidney had with him. Official Assignee: Did you know Aidney used a stamp per pro Jensen Bros?

Jensen: Yes. knew he used it but bad not given him authority; the stamp was intended for the manager to use on cheques. G. N Jensen had banking power of attorney, not a registered power. Official Assignee: Did you know what your rt nan teat position was on March 31st last?

Jensen: No, J dUI not. The manager and Aidney attended to all clerical work; we did not bother about it. Official Assignee: Do you know that a balance sheet was made in March? Jensen: I am not sure of date, but knew that a balance sheet was made some time, and I think I signed one for the Bank of New Zealand; I did not took at the balance sheet when signing it, but would imagine that that it would show a credit balance of •t least £500; did not verify balance •bee* afterwards; took it for granted all was welt.

Official Assignee: In spite of the fact that a judgment wat standing against you for £200? Jensen: Yes.

Mr A. Thomas stated on oath that he was at the beginning of the year carrying on a sawmill at Aria: placed mill and business in agents bands for sale; thence got into tooch with Jensen Bros; dealt with G. N. Jensen. who said he was prepared to boy mill for £4OO on terms: a team of bollocks* was to go in with mill. Jensen said there were ftve brothers so could work mill cheaply. C. H. and J. Jensen were present at the time; also, the agent Mr Waters; this was on 9th February last. Looked opon G. N. Jenten as a partner until he saw bills did not hear his signature, and had also heard rumours that G. N. Jensen was not* partner. Official Assignee to H. A. Jensen: Were you present at this interview? H. A. Jensen: f do not remember the interview; might have been there. J. Jensen also stated that he did not remember the interview nor the facts referred to by Mr Thomas. H. A. Jensen, when shown some figures by the Assignee stated that be believed he had seen figures like them in a balance sheet. Official Assignee: Did you sign a balance sheet? Jensen: Yes, f signed on*, might have signed two, believed one was sent la T. and S. Morrin. and one to the Bank of New Zealand. Official Assignee: When you saw the batenet sheet showing capital at something like £1825. were you not elated? Did you not feel a Carnegie? Jensen: Thought things were going well hot did not feel a Carnegie; trusted to my brother for correctness. Official Assignee: Did you not know then the purpose for whkh the balance sheet was made out? Jensen: No, I did not know then, but know now. Official Assignee: Before you signed

the balance sheet when yoor brother presented the sheet to you to sign, what conversation took place, did yoo not express surpri-ii at the splendid position? Jensen: I may have expressed surprise: 1 did not agree with the use the balance sheet was being pat to. bat did not say so. Official Assignee: With regard to the 1400 acre leasehold at Otorobanga? Jensen: Mr Howarth holds leas.*: Mr Howarth had lien of £l6 upon it, Mr Officer of Mangaweka also had a Hen on the property. Fred Byron Darrow stated on oath that be had started trading with Jen sen Bros, some tbTce weeks after their arrival in Te Koiti: be always looked opon George N. Jensen and Peter Jensen as being the firm of Jensen Bros.; Considered that George N. Jensen shoo Id certainly be present.

V. S. Hattaway, also on oath, stilted that he bad always looked upon George N. Jensen as one of the firm: had let a contract to Jensen Bros..which G. N. and P. Jensen bad signed: had paid them a cheque as Jensen Br op. had receipt for same; all my accounts sent to Jensen Brus. were sent to G. N. Jensen.

H. A. Jensen, recalled by Mr Sharpies: Had sold mill at Aria to C. Harris, of Martinboroogh nearly three months ago; knew the miil was not paid for in cash: got £SOO for mill; could not tell exactly how all extended, but could account for nearly all of it. For Mr Harris* loan of £"»00 considered that security given reached £1400; could not explain why, what they had given £450 for in March 14th. should appear in balance sheet on March 30th at £ll3O. unless that was its value. On the motion of Mr Combs seconded by Mr Darrow it was unanimously resolved that "the Official Assignee should make every effort to get G. N. Jensen to join in the bankruptcy of the firm of Jensen Bros, as soon as the assets realized allow him to incur the expense legal and otherwise, to take him through such action. The meeting was then adjourned "sine die."