W. Waring Taylor's Estate.

Manawatu Standard, Volume IV, Issue 219, 11 August 1884, Page 2

W. Waring Taylor's Estate.

The following are extracts from the reuort of the Official Assignee m the above estate :— The stock m trade was set down m the bankrupt's statp meiit-at £ 29,640, which is not-expect-ed to realize more than j£lo,ooo a,t the outside. With regard to the pros pei'ty, it has been found that with a ;few ...trifling exceptions, the wliolb is mortgaged to an amount far m excess of its realisable value. That so, far from its being likely to prove an ivailajble: asset, it is more likely to B well the amount of the unsecured liabilities 'by at least £1 1;200,- but the exact amount can only be ascei^ tainedon ,ths realisation: of .the. variolip ptopWfcies \>y the' Respective mortgagees. That of the unsecured liabilities amounting to ' - i&i4,t&2 ; &**• sd, the following amounts are for trust aid agency moneys which, instead of having been held sacred for the pur p jses of the respective trusts, have bjeeil appropriated to ;jbha nfce>i ,of the bfihkrtfpt any security' what ever being given m consideration oi the same :— II. Gillard. £1163 ; Mrs TiftadtlV* ' £51 3 ; 'Rev. J. : Duncan, Js*7'; !ij - Mutch (Boardmati -and J^ Brtdye^ PHipSott,' jeii99's 4ev. Ji lnglisi il<&9; Maty Taylor; fJIO3 j ' J. T. Dalrymple, L3OIB ; orthern Assurauce Company, L l 9l§; J. nojil, -MM) i i vMay's 'es&te, Lj22,522; total, L 37.191. Of the foregoing I would specially direct the attention of the Court to the circumstances conn.ee ted : wijbh the estates Nos/3, X l2> and 13.~Rev. J". l>imcan, No. 3. I hold a statement m the handwribing of the bankrupt tc the. ,effecti th«\t w;e,re ; fceh}; hj him to the. amount of LSfSO, which siim J hold as a trustee, and to be m jvjested at interest m real security iv and which said summit!: ; .afcciued intereaj»..a^i\fttiqp.,sp L3O, oi t lereabouts, are still m my hand?, oi ,8 scurities respectiag the wime. — >( Signed W. Waring Taylor.— lit! Jjanuaryv JiSS^'i 1 ?-/-!) tiuHy ilioVe^r, [that the moneys were not invested ir •my securities,' *W;hatev,erj although m a jcounts current rendered on the l7tli October; 1882-and 80feh- September; it is uiadelto appear |hat a l6an of L 250 had been' made (wfcdbiti per. s6n unknown : in Napier, a commission of 1 per cent, being charged for the saiifie,. and another loan to Ml iJoOi there beinfr no t entrie* iijt the bankrupt's books to vertify siich alleged 1 transactions, nor any ' 'securities^ -top represent t]ie same.-r---tflyt.h^'Trust; No. 5 Yin {his trW"tti« Wankrupp was the .aciiirgp, trustee, and as much. sold a certain piece of land t9 one Willia'hV Tonk*. ::; I aikinforinert "by b& dftli(B :; 6o-triiste^s, that' the b ilaftbe ' v tli'e' 1 |iurchab money a nbiiiliing '^b lit 200, was I'to1 'to remain -ok' mortgage ; to ike' trustees" "secutfed pp the aforesaid land. On this'understanding t £hey executed a ance'fo Torifcs", dated' lQ]ft QclQUei-; T lfeßo. -I?nc :ba'nkrupt, 'however, *fn p jace of hayi n » such mortgage r exe^ cuted' received* the purchase' m6ney . (LI 200) ''kiin&ir, 1 and used the same fir his own , purposes ; .Tonk>» haying raisetl J t^e: |^QO^y>itU wliisi t^^jr t^e- same by exeoutirig' ,a moi*igago.o^ 'the Isaicl proper ty'to Messrs ,-Pearce atici' J ofiristonJ— Northern As/surance .Company, No, 11 : The.sum of J l ,3000: w,as insured m this company on St. O'bbji's Church, lately destroyed by flre/theJbaukrupt being |fee logal agent of the . companjjr, and of this Bum LI 000; was reinsured by the bankrupt iik die South British., insurance Com.7 piny^ After, the fire the latter corns p iriy-irefused^ to pay over the, iLIOOO "mien demanded by the bankrupt unftii tftq ajlfty ftavV grac^e allowed by tliej terms 'of s the policy of insurande hjad expired. The bankrupt, howe,ver, on-^'ay 15th, 1 1884, informed tjie South British Oompany t^^t !iia bknkers hads refused J;o give him any accom6dati6ni uhd thaf a hill fijf. ;Is 1 72j jive to the company; thatday^ vyoujdjlje djsljpnored iUuless .his account was pluojjd m funds ; j he, akq ojftered to. |pay< iche manager ;.qf the cbmpany a further .sum of one hundred: pounds on account of. a bill then current given by him (the bankrupt) tp the. saiji t n\auager, in v settlemenc jof some othet trust account oC which the bankrupt, iiyas ; tji.iewage.nt; .ilTnd^r t)»^s;e pivcu4jata»cej (! t])e^.n'^ EWM&h Qi>inpai)j paid the L}QQQ, and tjbe tjankpuptijop verged, tjiis^um,, less the ltloo,f;toj)is.,own use, . declining..^ f pay :iho „=• Oh\)roh , affthopitics.. ,sThe Northern lu^urapqe iCpmpanyi. , s^nce had to make good this LIOOO ■'jt[ii-^M-d ; hKni > ;9nCl^A!clt' r ,un > 4 nqwrji-ank creditors for this amount, together vj'ith oilier: iSL9W • reckitfed;. fot. i\n-e---liiiuuis, and also converted by the "■biankrup^ id r hf§ otff^-^gS. |^i 'Jp&^tnasi tl|oyd, Nq. : .:.4|-? -QP „ tyceinber Sjlst, JBBO, tlie bankrupt was indebte l daov.|^j.Thoinai -I^oyd^in. tha ,aum ojf LX3.B2T, and Mr Lloyd having Jost faith m the bankrupt, appofnfctd Messrs W. EL. Levin aud G. B4&ar4 as 1 his attorneys m .the co!ouj£ ; ; T am informed that . .fteae gentjfeivien applied for a stateuieht of accpunts but failed' to obtain Jqrtine, ahd^hud .^s> gonte^Jj ififa. paytnent ojwing: to Mr .Thomas .Lloyd, r as per his proof of deb't/Li^iß.ismade up of interest on the balance of ac^ouqts b_e r tjwßfcii! the, \ bankrupt anil- ; himself. „ Tlie bankrupt's ledger shows " ISTr a debtor p^v^^," nothinof Ijavtng beetf' qjjedited 4 for interest noi tpe aooount balanced for years. The continuous ' piiessute brought >to beav upon the bankrupt to pay up the moneys due to Mr Uoyd and others ijsridered It neceisary > for him to obtain funds at ■ all 'hazards, > ! 'and, m stated 1 hereinait eiv these were'obtained Jjy nt|}i«ipg- flf^ho Rifles -May Wtates.^-rMay's Estjiie, ; 'N pi |3. Tb6 ihVeßtigation'pf the acicounts and cotl^apondence in> -this itjaiter Tei|eal^ the ginvesi tpiacofliluptcip phppart qf t^e banlji^int.. May «Hed m i^on^ dpn op the \Qth December, 1881, upplqiftting two tnisteeTi for hitfUoglish estate, and two trustees for his oolonial estate^ the bankrupt- being 6ne of the latter. There were oertain Assets in/> England ftnil the 'colony amounting m the aggre^atV to ' be-' jween .i£60,()00. and[ £70,Q00. . Thje Ww tEngliisJi trustqe^ , renounced, i^nd administration, with the will annexed, in i so;fai I.ftj.1 .ftj., I'the1 'the ; English -estate, ;was concerned, WM granted; !Q the, i^>4 sid.ua.ry legatee, Mr. r Jonas Arundel, now m the colony. One colonial trustee also renounced, leaving the bankrsA|>t,£Qle, trustee ip> tU© colquial

estate, amounting m- value to some £43,787. The assets, r^prdse^iqil, the same, consisted of lOl^.iß^ank .^of New Zealand shares and^dithiejfeshares. valued at L 23,905 ; mortgages ans accounts due, L 15.250; rea,l oftiperiy, - L4G32. Total, L43,T87. With rer ferepce to the 1014 Bank of New • Zealand shines, the will specifically ' bequeathed 6G5 of the shares on the Colonial Renter to a number of legatees principally living m Eng- , land.,,. The legatees liviug.. in^ Jbfi* 1 1 colony here had 160 of these; shares' • transferred to them. The balance of !• 505 shares have been. sold: : by the ' nahkrupr, and tue proceeds converted ' to his own uses. 49 other shaVes, ber £ng the baji^ce o|H».hares 6w4ed by • the testator/ and not spje<^fieaily be- • queathed, were trabsieiTed to the , resjiduafcy Tlegafee. ISTiiorireJDa'hiifagi ; 300 shares (iuaking-1014 m all) were - l>equeathe(t upon; cevtain ; jtrustgl for • ]Vlary Jane Arundel (now Mrs 5 Scamptoh}, 1 Sh'| and husband > having learned that the bankrupt ■ had converted a laig6 ttUmbe? of ftKese' shares to bis own purposes, corn- \. menced proceeding^ agaiust him m »! Nav^mbeS, 1883 .r<*3uii*©f:v*nW I was that the bankrupt: made good a 5 portion' and 'gaye aecuri^y > for •' the 1 5 balanb<J'id ? thef'^p^ !^a' mortgage i 6n sundry properties enumerated m ; sclie^nlf E of- the /bankrupt's" <a$MJ'X ment. •'■Tbe'^iioirespoad'e'nce 1 m- re- > ference to this trust shows that from > the dale that ithe estate came intb the ' bankrupt's hands (June, 1882), he ■ - deliberately deceired ' the legatees. i Hje ;: wr<Vte. numerous letters giving; : ■ preWkts for- the delay m closing ithe » estate legacies, and. m June. 1883^-^' ) with a view to still fur tniir deceive r -. thie' "legatees residing /;6u,t* of :the 1 cqlony-*-he sent to each of ..them for • execution forms of transfer for the 1 sliares bequeathed to' fchefti tu'rider the i).WiJI r# \yhen he well knew th^t^hfehad l % sqlcj the whole of the said shap^- and <* couveited the proceed*; derive^ ifrdrh • siicjt sale,' m order ; to ' pay -jessing 1 personal liabilities. These' transfers , wier^ returned to him, duly executed, 1 about November,' 1883.' In order, 1 however^ to still further deceive the 1 legatees, and account jor the delay m t" "' Cdnipletjng the trausifers . he r had , re« 1 ceived, the bankrupt issued a circular • letter .(eo|}y of which is attached here- - witiK "maVkey "^'j m'• whicirhe' stateq .. that , ne^ had nled. m the " Supreme, Conrt'a aofcenie .for fctejdijs- ' 1 trjbutiqn^of thfeTNew. Zealand da^ and requesting: tHeir consent to suclr '■ scheme, such- consent being alleecd to ■ be necessary before, necquju .tr^i sfer their jrespective; 'legacies. '^iSw^ ink- 1 I nipt hail' filed suph ana .the not' I -statement could only have' been made v M delay and dcccive v reference i *t.oi the " Mortgages and acco'unjta due, ' ;L15,250; n ' tKe ' baMr^t; ! who \ previously been i acting as agbnt !> forf Mr May, in' - Wellington^bad'reniiJered ' accounts current showing- that' he liftd -) •, acjv&tided ; lis9Bs;bflf Mr" Mav's'^Oi^ ' "count to! Marions 1 jiai'ties^on mortgage. Nio.'i'ecorddf^evei^l of 1 these tnort- , gJiges is Hbtiinable, ; and tnte presunip- r tion isthatthiy aife quite fictitious^ 1 and J -that the' ! bankrupt'" bad "the- ;. mbneys m han^d, 1 and 'kept 'them oW ' Jjis'boQks'titi^iMOi'tgagesV puyingt^in- ?' tei l^ ufo& th'eta A aU* ! if ihef were 1 genuine traiisaciiohs; an^i thus avoids I ing being calhwl Upbh to pnyup^the prliicipali'i Thirf'sum of U5985 itt hi» own hands together "with'L72.st rp- ; ceived" from ' !qthev f> uowroes-^-in ' all i 1^i3,5Q6-^the bahlt tfttptfiaa convened; to his own benefit, residuary legatee; i ,Mr Arundei,, having only secuted :: tLi744ii ! it^may; -however^ be menstioriedth'at,' id^addition to' the princi--pal suen ti of L1'3,506, -the bankrupt, has T&ieiVeW maiiy-ii uhdre'ds of ■ for interest aud vents, which he has 1 [also converted to his own use, and • the only payment of any amount I made ,liy hin^ was -tljatof L 2729 tq t the New Zealand Government for r duty under the will. The "real I property o^-I^32!' ' h*?' l|en-^mr| to the residuary Feeatee^ Tbe ?b4nkrupt's; dealing^ -^with- thi^ estate | (, has resulted m "his' converting: to^nis : own use some L26,000/of moueys re- ■ ceived^ for specific ,appvpßrjatipUj. to ; , 1 cdrtain! ( legj(tees. *' iTliat *heajo4o no I time, in do|ng this, may be judged by : .the fact th at he obtained prpbaip '. at > tlie will on the 6fh day of June, 1882, ■ ,a;id^ thftt^^n thp ,18th. Junejhq ipajd 1 into his own cretlit nt his bankers tW 1, sum, of L 2234, being the Droceed,s, ! .derived from the sale of certain ofj'ih' c.. 1 sharesi in' the Bank of New Zealand, 1 which sales had actnally been, ef- , ;feqtjed before the prqjjate^ qf i had been obtained/ itnode's Estate : , ;The-.bankrupt makes no reference t© this es^te in^ia sWVtemo%t ( oi assets ■ 1 and liabilities, but his : transacM'»ns r I ji, £^4- paytly shown- m his- |^o^&,; I appeiar to be of a- ■ very • peoul^lv and" • q jiestton,abiie gharacter. Iv his. capa-' r city ,as onb of the tiustees u of tBeV t. -estat^ he • appears to have re^eiv^d' ; large" sums of "money^-so mucH s 'd6,” , that, .according to his ledgnrin April, 1 1884; ' there stood to the credit of i- Miss Rhofles? private account' ihe'stnni i; of ;Ll j 2,075j : a'ndi to the, > credit of the ; F Rhodes' es,tfttk the i ß«>m- i of'Lßos4or a'- 1 f total «tim^f L2o,l3o'receivea by tlie ; bankrupt on: behalf of-: Missiißhodes 1 ' v and the r estate 4 . ! and converted byjfeim • f6rhiß -own- purposes;- =The"othfcr? : trustees appeared to ; hare ascertained - : ..the positron of fifiairs 'about' ; the. ; ,of M arch, and; dftraai\dfi4 ; t^e itt^itiedi- ■ ' 'a^e'pwymftUt of tho moneys which the 1 bftnkt'i'vp't) h«d received, the resignation' o£4ito office XV s trustee, and ; tW ' 1 cancellation of certain , mortgages 1 fapqn 'which ! - he ' h'ad- obtained large 1 sjims /of ; radriejr<lbno himself f in the' i names of other parties. The bftrik^ I \iipt satisfied the estate's claim by a i.cjish payment- of WBOO and-i» mor^ gage given by bis brother qn t)\e, s Jatter'^ p.ropefiy^i %pier, Miss ~§\\ ode^ 1 cl^tto^ . which had T>een to, ' -duced by v qrons . entries- to> some . ;]USOO, Wfts JPlose d Hy fmq«|gages i -given by t"be bankrupt over :^silindry properties, sand .a further mortgage "■ 'given by his brother over the latter's run. It may be instructive ■to ment^on .fcbat- inNA r prilv: -I§B3^ J,hei^bsftit-. : nipt was indebted to Mra S. A. Rhodes m the siv^nr of Lll^OOj, ? and that he tap&id A.69tis of '■' this amount 'Jy Ah9i^pnsfei' ?. f ?.98 Ban^of ; Zea,^ap[d/, shav/?.^ belonging to tj»e,j e^tajb^otithi^te iJ^nies May,,^ T^he' t Validity of the mortgage* executed by •fh^ Mooj'^6^se(M^ / 'Bihodes) is aboui.to bejtested Ky me • ; ih the Supreme J Court, the said m'brtf • <£ftg e s, . Jm^mg , beeti execuj^dl, Kvithin ' three! Vm^J^'A^l^ur^ajcrnpfe, Rational Bank 1 : The bVnkrup^, • »

w,.V •;^m^- . -. : .transactions \cith s hiV bankers appear 911 the face v qf thoni to have been tfiuse ! uhial be^een banker and : ra^rchtiEt; ,Up sto the end of 1883 j^jhenQverine t>isjg|f required the bank* yj'^p^a overdrf jf j^duced, he, by utilisnisitr^usfefhads, was enabled to comply with their wishes. In February, 1884, the bank appears to have got restive, and demanded from thfi bankrupt a statement of hid positiou. This he furnished to them underrate ofjhe Ist March, 1884, "as" pei^opy^attScKßd lierewith marked " fyV : This statement sh6w» that the bankrupt had a_surplug of assets over iMlffleTTof *T36^7?; 'aTfhbugh he ihust have known at the time he was hopelessly insolvent, there being trust ljabilitiese not shown m his statemeat, amounting r -over r L 40,000; Fn^(_W«BCclic»iEc6t«iice4 M submit -v that the. bankrupt has brought himself under the penal clauses ©f the Bankruptcy Act, vide clause 163. Books of Accoun^Vi TH^'SuikVupt'a qookH of account have been professionally kept on a system of double e)titry ;^»t^ m; consequence *>f . -b» fiilurfffq pajapc^tbeuiiaj; yearly.intervals, they are most incomplete records of his position. This may be : gathered from the following state.ment as to the date- when the books vfere balanced : — February Ist, 1855, t6 February Ist, 1858: Books properLy, kept* .ajid balanced , each year. ■■ Eeb^iaijlk iBJ^ f /ito Mirch*;3lst, 1861 : Books balanced, but capital sho>vn same amount each year as m 1859, therefore balance unreliable. AP^i Ist, ttflft ta A^k* it, 1863; Books halandfetl each year. April Ist, ,1863, to June 30th, 1867 : Books nbb balanced troin 1863, an interval .ot four and a quarter, jy ears. June 3Dih, 1867 : Books balanced- June 3pth, 1867, to June 30th, 1873: Books not .balanced from 1867, an interval oftW ( year%/ ' jiihe 30th 1 , 1873 : Books balanced. June 80th, 1873, to. June i2Bfr,> 18184 : Booka •not balanced, an interval of eleven years. An attempt appears to have "jieen made on Decpmber 31st, 1879, ' ; -t<i balance] the books, a number of additions m pencil having been made, bfct the principal ledger account were noyjcSft4ij|The}f^n^#; aIW fa V pears to have made some memoranda 1 'to enable him to arrive at his position at that date^but.the .result was, not '■ 6f snch a fiaWeWW mdwbS lim ta n^ake the closing entries m his books. Had he made such entries, his profit 'and loss account at that date would %ftve Isnown an apparent surplus of M 7,717 against a. T; trade loss of •L 15,499. The bookiefcaecountshow that during the pep'odfrpm July 1, 1873, to June 28, *Mss the bank* rupt's interest cliargpsaaiouuted to tha Bdm of L2s,977,Jand,'ihat he expended quring the same period -for personal expenses; the sum of L 16,33?. jtßVom ;ls&t^&e drifexrf thebank'iruptcy^ttift^le^get is eutirply unreliable. In hardly a single instance do ,rhe acfoiijp* current^e^dferedj'by the, ijbankrd'p! «a*'hifr tHsifkiWitors- agree' rWitlLrthf -.... ledger, and .throughout the ' , .whole 01 these four years toe only ac» ; counts that appear to have been kept , with^ Uny j dugree * of ; correotaess are > thoie <& cW tttide 1 /sales teVctistomeva, * • With these-'lsxbtii'bßforevm'e^;,! there- r.l-> fore submit that the- bankrupt has ,failed to .comply. Tyith the provisions ( , of subsections 3 aud i'4 of- clause 171 of the Bankruptcy Act..' .