IN BANKRUPTCY.

Stratford Evening Post, Volume XXX, Issue 60, 15 June 1916, Page 7

IN BANKRUPTCY.

ESTATE OF E. A. OSMOND. A meeting of creditors in the bankrupt estate of Finest Alfred Osmond, of Stratford, agent, was held at the Courthouse yesterday, the Deputy Official Assignee, .Mr J. B. Richards, presiding. The following creditors wore pre-sent:—-Messrs W. McDonald (Central Co-op. Store). A. Drake, E. G. Foster, •). McChiggage, W. Lander (Hannah and Co.), A. Coplestone, J. Hignett, Trtlby King (representing .1. McChiggage and Hannah and Co.) Bankrupt was represented by Mr C. Wright. The bankrupt's statement was as follows:—For some years past 1 was acting as agent in Stratford for the Government Life Insurance Department, and subsequently for the National Mutual Life Office. I left the latter institution and accepted a position as an inspector with the Colonial Mutual Life Society. The'latter proved a bad contract for me, and was practically the commencement of my troubles. Some two years ago I spent much time ami money in an attempt to secure a position which would have been an excellent one for me, but owing to circumstances which t was not responsible for, failed to obtain it. From that time up to last October I was out of work, with the exception of a few small commissions f earned at. insurance work. In this period I did a fair amount of travelling about in an endeavour to get capital interested in Kow Kow ointment, without success, although I gained some valuable information, which will still assist me in floating the syndicate which is in course of formation. In October last. I was engaged by the .Dominion Financiers, Ltd., to sell shares in the Dominion .Mortgage and Finance Co., of Auckland. I was sent to Wanganui at a salary of £3 per week and 2', per cent, commission, and worked in that town and district with indifferent success, caused through the Mortgage Co. , being too closely associated witli the [ N.Z. Home Builders. -At the time of filing i had just started the flotation of Kow Kow ointment into a syndicate, and 1 have certain proposals to make in this connection to my creditors, which may mean my being able to pay them in full. At present i have had my furniture seized for debt, and in consequence I am, with my wile and family, homeless and absolutely penniless. In no sense is my present position due in the slightest to any extravagance on the part of either my wife or myself, and I am satisfied had 1 been allowed a further four or five weeks breathing spell J should not have been in my present position. I regret f am not able to offer my creditors any relief, but although 1 have to seek the protection of the Bankruptcy Court, I still regard myself

morally liable to each creditor I owe l money to, a liability ; shall endeavour in liquidate in the n?ar future. The list of unseen l ed creditors was: Alfred Coplestone (Eltluun) £25, J. McCluggage £SO, Drake Bros. Cl'l 9s ■lil. Morey and Sons £2 His, A. Manny £3 9s (id', Bellringer Bros. £6 -Is lid, Iv (i. Foster £8 los, Co-op. Store Lil. \ewton King £4 7s. Hannah and Co. £5 18s 2d, J. H. Hopkins £2 15s, T. A. YV. Nicholson 10s, V. Edwards £3 Bs, T. .Mercer £9, Masters and Son £o 16s Hid. Cash Tailoring £2 los, T. Colson £3 0\ 9d. Stratford Electrical Supply Co. 10s, Strutf.irtl Printing Co. Co 19s, l\ Plumtreo (New Plymouth) £1 7s, i). Milligan (Wellington) £6 13s (id. (ieo. Swan (Wanganui) £7 19s Dd, Nelson and Green £2 lis, .1. M. Hignett £2 Ids, 1). Graham £2 5s 3d, Hunter and Lyons £3 12s (i.l. B. Harkness (is, A. Coleman £7, N.Z. Clothing Co. £3 12sN Total £203 17s (id. Secured creditors, nil; liabilities, nil; real estate, nil.

In answer to the D.0.A., bankrupt said the furniture had been seized under warrant in pursuant of a judgment received at Court, ft was seized on May 30, on the warrant of Mr J. .McCluggage, and subsequent to that. he hied his petition. In regard" to his agreement with Mr Hignett, he would receive half of the purchase money and 20 fully paid-up £25 shares if he was successful in floating the Kow Kow syndicate. He would not have mentioned his prospects in this connection it he was not satisfied that he could float the syndicate. He had to place a minimum of 40 shares or :- maximum of 60. He was satisfied that among the many he knew in Taranaki he would ho successful, and then be able to call his creditors together and pay 20s in the £. The D.O.A. asked why, if lie bad a legal agreement and had the possibility of receiving £250 that it was not in his assets?

Mr Wright replied that the bankrut had done so at his instigation. He explained that the agreement was a personal one. Bankrupt said that for a period of six months-he had been renting a property in Began Street at .€1 a week. fie had agreed to rent the property at 30s a week, but -Mr McChiggage allowed him to pay £1 a week. The house was sold about two years ago by the mortgagee, -Mr .McChiggage being the purchaser. Mr Drake asked if all the furniture had been seized, and in reply bankrupt stated thai £25 worth should have been left him, but it was not worth £lO. Practically only a few old mattresses and other small articles were left.

Mi- Wright said that it was only comparatively recently that Osmond had gone behind with his accounts. He had a wife and family to support, ami if he were given time there was no doubt but that he would be aide to pay his creditors. Osmond was absolu'ely prepared to give the creditors the benefit that might arise out of urn Kow Kow syndicate. Beyond doubt tiie Kow Kow ointment was good, or Mr Higuett would no t have wasted so much time with it.

I. no D.I).A. said the furniture had been seized in pursuance of judgment given at the Magistrate's Court for rent, but not a distraint for rent, therefore, under Section 81 of the Bankruptcy Act, the goods seized had to be handed to the D.O.A. Under Section 120 of the Act, a landlord was entitled to preferential payment of rent only when goods are on the premises at the date of adjudication, which would be liable to distraint for rent.

Jn answer to a quest ion, bankrupt stated that he may be able to float the syndicate in about six weeks, but he would no, got the money for some time after that. Mr McChiggage said as far as lie was concerned, and if the other creditors were of the same opinion, he would give the furniture back to bankrupt. He moved that the bankrupt 1,0 given the furniture on the payment of the costs in connection therewith.— Seconded by .Mr .McDonald and carried. Bankrupt stated that he was willing that sufficient profits which may accrue to him from the flotation of the Kow Kow syndicate should be paid to the D.O.A. to satisfy unsecured creditors to the full amount.