A FEUDING BANKRUPTCY.

Manawatu Herald, Volume XXXI, Issue 458, 15 May 1909, Page 3

A FEUDING BANKRUPTCY.

PROPOSED ANNULMENT. A meeting of the creditors of Walter Baxendale Giessa, of Feildiug, was held before the Official Assignee at Wellington on Thursday morning. Mr J. M'Grath appeared for Giesen. Mr Reade (Foxton) represented Mr O. E. Austin, a local creditor. Mr M‘Grath stated that the petition had been filed soley to prevent the bankrupt spending a fortnight in the Terrace Gaol. He filed in self-protection, in order to avoid the stigma of going to gaol on a judgment for ,£lB which a person had obtained against him, and which at the time he could not meet.

The unsecured creditors were £2492 13s, secured creditors ,£12,538, less estimated value of securities ,£19,612, surplus to contra .£7074. There were ,£2679 ns 4d book debts, estimated tc\ produce ,£2500; property ,£2OO, surplvts from securities in hands of secured creditors ,£7074, total assets £9774, or a total surplus of £7281 7s. The principal creditors were O. E. Austin, ,£370 ; Gore Martin, ,£lB7 ; W. A. Keiller, ,£100; Skeate and Bockaert, ,£l4B ; Mrs Giesen ,£BSO, In his statement bankrupt said : “ My bankruptcy is due to the depression and tightness of money in the Dominion and to my inability to speedily realise my estate; also to a loss of over ,£2OOO which I had in connection with the second mortgage over the Palace Hotel, Wellington.” Mr M’Grath said the bankrupt had met with misfortune, and his wife had shared in it, being his principal creditor. To Mr Reade, bankrupt said he had a racehorse named Maidi, which won a race at Foxton. It was not his own, but a leased horse. The net result of the horse’s winnings at Foxton were £53. He leased the horse from Wm. Shannon. The terms were 15 per cent, on all winnings, the lessor to pay all expenses- The horse ran in the name of “W. B. Giesen ” at the Foxton meeting, but in the names “ Giesen and Shannon ” elsewhere. Maidi nearly put up a record of wins for New Zealand.

Several of the representatives of creditors wanted to know what all this was about ? Mr Reade said he was there to do his duty to his client and to ask questions about the racehorse, and to ascertain how —in a letter produced bankrupt made over his share in the horse to his wife.

Bankrupt said Shannon made him a present of the mare. Subsequently he asked to have a joint interest in the mare. To this Giesen assented, conditionally on a hall-share of the mare being given to his wife. Mr M'Grath said only a few weeks ago his client had an overdraft of ,£2OOO, which the bank called up at once. It was resolved, on the motion of Mr G. Lambert, to adjourn the meeting to May 19th, with a view to vesting the estates in trustees for the benefit of creditors, handing back to the bankrupt any interest he might have in properties in the Waikato and Aorangi, and with a further view of steps being taken to annul the bankruptcy.