IN BANKRUPTCY.

Shannon News, 16 May 1924, Page 3

IN BANKRUPTCY.

MEETING OF CREDITORS. A meeting of creditors in the bankrupt estate of J as. McLeavey, of Levin, took place at tilie Levm .Courthouse yesterday, before the D.0.A., Mr c. E. Denrpsy. Bankrupt's statement showed the position as follows:—Secured creditors : F. S. Easton (Foxton) £4782, and interest £625; W. M. Anderson (Levin) £'*24 15s j State Advances £280: nuking a total of £6XII Jss.

Unsecured creditors were given as under: Wairurapa Farmers' Co-op. Association-£ls 13s Bd, W. Bull and Co. (Levin) £ls 8s lOd, Park and Best (Levin) £ll 10s, R. E. Ellis (Levin) £8 Bs, C. Fi'echtling-(Levin) £ll lis, Uorowhenua County Council £lO 3s Sd, F. W. Pink (Levin).£s 19s 6d, Hill and Sons (Wellington) £2 16s, Levin \Chronicle £5 17s, C. H. Martin and Co. (Levin) £6 3s Id, Harvey and Co. (Levm) £6 12s 6d, .Abraham and Williams, Ltd., £327. ' Tile assets were as follow':—111) acres, at Ohau, valued £4900; 2-acre .with ttiou.se, Levin, £800;;Other assets, «nd mortgage of £3OO, and small amounts bringing the total up to £551 ss.' Mr C. A. L. Treadwell appeared for Mr 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 tieen bought, by his brotther from Mr Easton. Be has 'subsequently given a mortgage <>f £"i000 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 30s per acre rent; for the land. He had not made any arrangement to pay the ,rent .received to Mr Easton. His sons had been on the property since July, 1921, and had paid only one instalment of £3O since taking possession. He had not exorcised 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 could find an amount equivalent to—how much?

Bankrupt: The difference be-twecri. £4-4 and £32 10s per acre. Taking into consideration the amount of £5 per acrje 1 had paid down, this brought the price up to £37 10s per acre.

Mr Treadwell: Mr Easton offered to take less than the amount secured under the mortgage. ■ ' . • Bankrupt: Mr Easton offered to reduce the price to £32 10s, and knock £250 off the interest, also offering to renew the mortgage for a further three years at the .expiration of the existing term. Continuing Mr' McLeavey stated that he had leased 33 acres to some Chinese in January, 1921, for the puir-i-'me. of a market, garden, at a rental of £ll per acre for &> ..acres and £8 per acre" for the re-main<ier. The Chinese, were*.'to. pay (the rent every six months in advance.' They had paid the first instalment but after that In- had had considerable, difficulty in collecting the money, getting £5 or so everv now and then. In all he had received £4lo'in rent during the two veai-s the Chinese had been in occupation and was still £2lO short of wftiat was owed. He ,had the receipts for these amounts at home but had not produced them as he did not know that, it was necessa.ry. Further examined he could not say if he had all of these receipts—probaibly ,he did not. The fact was these. Chinese were financed bv the Wellington merchants, and had'to show their receipts in order to obtain credit. Sometimes he hud to give them a full receipt without having received all 0!' the money, in order to keep them goiug. Mr Treadwell: Then that means ilhiat yiour receipts will ,show more thau you; actually received. Bankrupt: That is so. Continuing, bankrupt said he had kept a banking account during the wjiolc time and had paid praeticully the whole of -the amounts receiviCd into this. "He had received the last instalment from the Chinese in July, 1922. He had not taken.any action to recover <tho tfemaiimder of the rent money after the Chinese gave up the place as he was convinced that they had nothing. He had been a trustee in .the McDonald Estate and had received in. all £I4OO from the estate; £llOO of this money no had received three years ago and the remainder seven yeaa-s ago; £7OO had gone hi purchasing the house whioli he •at at present occupied. This house had at that time a rnoregage of £3OO on it. and he tod later raised a liuifther £550 on the house on second mortgage. For this sum he was paying 10 per cent. At the time of borrowing this amount he owed £l5O to Mr Easton and had paid it I'romi the sum raised. He had also bought a half acre adjoining his- house for £l4O. Since the Chinese, had left the place in Ja.im-a.ty, 1923, his income had been nil, and lie had had to sell various possessions in order to live. Two of his sons had been living with him and had paid hoard. It was not a fact that he had not attempted to get work during this period. • Mr Treadwell: Now I put it to you tliis way: There was no need for you to work.

Bankrupt; There was every need and I have mmde several attem'pts to obtain it.

Mr .''Treadwell: Youi have been two years going on with this musiness. 11' you had tried seriously you could have <£()'( work <lurin.g this time.

D.0.A.: Well, I expect he was always hoping that something would turn up. ; Mr Treadwell; This is the moral situation. You owe Mr Easton 1/h.is ini't'iey. You havje haft your bjojys working an yew farm, and paying you nothing.- Your boys lived on the farm and phid {nothing for it. If you wished to'deal squarely with Mr Easton, the, position is at least curious. *

D.0.A.: The only, thing you can do is to tnfcc proceedngs against the boys if the creditors will' find the moiifiv for the case. It looks as .if Mr Easton were a philanthropist, keeping all these people. Mr Treadwell: This has been thi* case aU over. Mr Easton Jjag had a

number of pfeQjHe on his properties and has bean 'black-guarded all over the country because fie has had fo put them off. In every case, the people have just gone oil living on the property and have made no attempt 'to fav what 'they owed., ■ Mr Easton f 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 tflie and also of the sons. Mr Treadwell suggested that bankrupt's affection for his sons overcame his sense of obligation to Mr Easton. MrTaston: Do we understand thai the boys have lifted all the crqani chequtg. Mr Treadwell (to bankrupt): Do you still state that you have received no money as rent during tine past 12 months.

Bankrupt: Yes; the last I received was' about 18 months ago. Alter farther examination on the same lines the meeting closed.