Creditor Bandies Words With Debtor

Sun (Auckland), Volume I, Issue 245, 6 January 1928, Page 9

Creditor Bandies Words With Debtor

A LIVELY EXCHANGE INNUENDO AND DENIAL Innuendo and thinly-veiled threats were bandied freely and excitgdiy across the table in the office of the official assignee in bankruptcy this morning when John Linton Scott, bankrupt builder of Avondale, was being examined by proxy for the petitioning creditor. TN the absence of the official assignee, -*■ his deputy, Mr. V. K. Crowhurst, presided. Words began to fly when the bankrupt was termed a rogue. Invited to substantiate his contention, the proxy embarked upon a series of questions which roused the ire of the debtor. It was contended by the questioner that Scott had transferred his property at Dannevirke to a woman to defeat his creditors. This allegation was hotly denied by Scott, who held that he had been made bankrupt through the spite of the petitioning creditor. “You are trying to rub in all the dirt you can; that is not a man’s action,” he said. “You cannot dig deep enough into the mire to get it,” added bankrupt. The' creditor persisted that Scott had not been playing the game. Vigorous refutations followed this contention and here another creditor took his seat in time to express an opinion. He voiced loud exception to his brother-creditor’s remarks and only on the intervention of the deputyassignee did the proxy subside. Debtor’s schedule showed £66S owing to unsecured creditors and £665 to secured creditors. The value of securities was given as £790. The assets, which totalled £216, consisted of book debts £3l, property £6O and surplus of securities £125. The deficiency was therefore £425. BANKRUPT’S STATEMENT

In a statement, Scott said he had been building in Auckland for 31 years. Two months ago he convened a meeting of his creditors, who agreed to an assignment of 10s in the £. This was duly paid to all, with the exception of two creditors, who agreed to wait until he had completed two contracts. In the meantime another creditor demanded repayment of £llO, and he borrowed £75 to meet him, but the offer was refused and he was made bankrupt. Questioned by Mr. Crowhurst, bankrupt said he was forced into his present position by the petitioning creditor to whom he owed £llO. He offered £75 cash in liquidation of the debt and could easily have arranged for the balance. However, the creditor would not accept the offer and obtained a judgment against him. Given time he “could have paid 20s in the £ had he been allowed to battle on for a bit.” Asked if he kept books, Scott said they had all been burned in a fire two years ago, but since then he started afresh.

Scott admitted to the deputyassignee that this was his second bankruptcy; his previous failure having occurred in 1923. There was not*a quorum of creditors present and no resolution was passed.