A LEVIN BANKRUPTCY.

Manawatu Herald, Volume XLVI, Issue 2734, 17 May 1924, Page 3

A LEVIN BANKRUPTCY.

CHINAMEN WHO DID NOT PAY RENT. A meeting of creditors ' in the bankrupt estate of Jas. McLeavey, of Levin, took place at the Levin Courthouse yesterday before the D.0.A., Mr C. E. Dempsy, says the M.D. Times. Bankrupt’-s statement shoved the position as follows: Secured creditors 1 : P. S. Easton (Foxton) £4782 and interest £625; W. M. Anderson (Levin) £424 15/-; State Advances £280; making a total of £6lll 5/-. Unsecured creditors were given as under: Wairarapa Farmers’ Co-op. Association £ls 13/8, W. Bull and Co. (Levin) £ls 8/10, Park and Best (Levin) £ll 10/-, R. E. Ellis (Levin) £3 8/-, C. Frechtling (Levin) £ll 11/-, Horowlienua County Council £lO 3/8, F. W. Pink (Levin) £5 19/6, Hill and Sons, (Wellington) £2 16/-, Levin Chronicle £5 17/-, C. H. Martin and Co. (Levin) £6 3/1, Harvey and Co. (Levin) £6 12/6, Abraham and Williams, Ltd. £327. The assets were as follow: —119 acres at Obau, valued £4,900; $-acre with house at Levin, £800; other assets, 2nd mortage of £3OO, and small amounts bringing the total up to £551 5/-. Mr C. A. L. Treadwell appeared for Mr F. S. Easton, who was the only creditor present. In the course of examination by Mr Treadwell, bankrupt stated that he had taken over the 119 acres shown as an asset from his brother in June, 1920, this property having been bought by his brother from Mr Easton. He has subsequently given a mortgage of* £4OOO odd on this property to Mr Easton, to secure the amount owing as he desired to give a lease to two of his sons. His sons were to pay him 30/- per acre rent for the land, lie had not made any amuigement to pay the rent received to Mr Easton. His sons had been on the property since July, 1921, and had paid only one instalnient of £3O since taking possession. He had not exercised any control over the place since leasing it and denied that the lease - was other than a legitimate one. Mr Treadwell: Mr Easton offered to waive some of the principal and interest owing to him* if you eoukl find an amount equivalent to —how much? Bankrupt: The difference between £44 and £32 10/- per acre. Taking into consideration the aniount of £5 per acre I had paid down this brought the price up to £37 10/- per acre. Air Treadwell: Air Easton offered to take less than the amount secured under,-the mortgage. Bankrupt: Mr Easton offered to reduce the price to £32 10/- and knock £250 off the interest, also offering to renew the mortgage for a further- three years at the expir- , ation of the, existing term. Continuing Mr McLeavey stated that, he had leased 33 acr es to some Chinese, in, January 1921, for the purpose of a- market gardeu at a rental of £ll* per acre for 25 acres and £8 per acre for the remainder. The Chinese W were to pay the rent every six months in advance. They had paid.Ahe; first instalment but after that he had had considerable difficulty in collecting the money, getting £5 or so every now and then, in all he had received £4lO in rent during the two years the Chinese hud been in occupation and was still £2lO short of what was owed. Jie had the receipts for these amounts at home but had not produced them as he did not know that it was necessary. Further examined he could not say if fie fiad ail of these receipts —probably he did not. The fact was these Chinese were financed by tfie Wellington merchants, and had to show then* receipts in order to obtain credit. Sometimes lie had to give them a fuff receipt wnnout having received ail of the money in order to keep them going. Mr Treadwell: Then that means that your receipts show more than j uu actually received. Bankrupt: That is so. Continuing, bankrupt said he had

kept, a banking account during ike * wkoie time and dad paid practically me wkoie oil me amounts received rate mis. lie aad received me last instalment ilroiu me Ckniese in Jury, likJA lie iiad not taken any action to recover me remainder oil me rent money alter tke (Jinnese gave up tke place an He was eonvinccU mat tney dad noUnng. lie nad " Oeee a trustees in tke ALcUonald Estate ana nad received in ail XI,--iou ii-om tke estate; 11,1UU oi mis money ne nad received tnree yearn ago anu me remainder seven years ago; jjiUV kad gone in puickasing < me nouse vvluck Ue at present occupied. lkis no use iiad at me tune a mortgage ol JtdUU on it, and ke kad inter rumen a lurtner loud on me kouse on second mortgage. l or tins sum ne was paying id per cent. At tne time ol Sorrowing tins amount ke owed Hod to ALc Has ton and kad paid it irom tne sum raised. lie nad also kougnl lor 11-10 a kail acre Oi laud adjoining ins kouse. since tke kiunese nad ielt tke piaee in January Ibid kis income nau keen ini and lie kad kad to seJLi various possessions m order to live. i wo oi ins sons kad keen living witk mm and kad paid uoaid. it was not a met mat ke nad not attempted to get. work during tins period. idr ireadweii: .Now 1 put it to you tins way: ikere was no need J-'or you to work. Bankrupt: ikere was every need and i nave made severai attempts id obtam it. Mr 'ireadweii: iou kave been two dears going on witn tins business. ii you kad tried seuousiy you could kave got work during mi« time. ii.O.A«tr Weu i iiptint ne was si-

ways hoping something would turn up. Mr Treadwell: This is the moral situation: You owe Mr Easton this money. You have had your boys working on your farm and paying you nothing. Your boys lived off the farm and paid nothing for it. If you wished to deal squarely with Mt Easton the position is at least curious. D.O.A. The only thing you can do it to take proceedings against the boys if the creditors will find the money for the case. It looks as if Air Easton were a philanthropist keeping all these people. Mr Treadwell: This lias been the case all over. Air Easton has had a number of people on his properties and has been black-guarded all over the country because he has had to put them off. In every case the people have just gone on living on the property and have made no .attempt to pay what they owed. Air Easton: I want to get to the root of this trouble. We must get these Chinamen. I cannot believe that the Chinese owe anything. I do not say that we disbelieve the evidence but we must get that of the Chinamen and also of the sons. Atr Treadwell suggested that bankrupt’s affection for his sons overcame his sense of obligation to Mr Easton. Ah* East on Do we understand that the boys have lifted all the cream cheques. Air Treadwell (to bankrupt): Do you still state that yon have received no money as rent during the past 12 months. Bankrupt: Yes; the last I received was about 18 months ago. After further examination on the same lines the meeting closed.