Bankrupt Eulogised

Sun (Auckland), Volume II, Issue 383, 18 June 1928, Page 13

Bankrupt Eulogised

‘•MOST OPEN-HANDED MAN”

No Money for Seven Years

DESCRIBED by a creditor as having been “the most openhanded man,” Thomas Darby, gentleman, told a meeting of creditors to-day that for seven years his brothers and his wife had supported him. He had lost his eapital of l£ 8,500 in land speculation.

His creditors passed a motion asking the official assignee, Mr. G. N. Morris, to facilitate the bankrupt's discharge. One of them expressed the opinion that “if at any time Mr. Darby is in a position to meet his liabilities, he will do The financial statement showed unsecured creditors £sl, secured creditors £1,265, estimated value of securities £1,265, and deficiency £sl. In his sworn statement bankrupt said: , “Up to about seven years ago I was the owner of various properties with which I had various dealings and finally acquitted my interest in the last of such properties about seven years ago. “At that time I owed no moneys excepting those which were secured by mortgage against the various properties, and in my opinion the security adequately covered the mortgages. '“NO BUSINESS WHATEVER” “Since then I have been in ill-health and have retired, and have had no business dealings whatever. The amounts set out in my schedule, excepting the amount due under the mortgage to Mr. Beveridge, is for amounts with which I have been assisted from time to time by those to whom moneys are owing. The reason I have nrrw been forced to seek the protection of the court is that I have been sued on a mortgage which I raised on a property some 11 years ago. which property I disposed of about seven years ago. The purchaser has apparently not met his obligations under the mortgage, and, although in my opinion there is ample security for the moneys, I have been sued for the principal sum. “Having no assets, I have no alternative but to file. Had the slump not come I have no doubt that I would have realised to considerable advantage on the properties.” KEPT NO BOOKS “Did you keep any books?” asked the official assignee. “No, I have never kept any. My solicitors did,” said Mr. Darby. “Any bank account?” —“For four or five years I had not. I started one six months ago two bills I discounted.” Bankrupt declared that he had no assets and no furniture. The Official Assignee: : What do you mean by “acquitted your interest?”— The mortgagees sold up the properties. “There was no profit?”—“Oh, dear, “After being sold up, you had no more capital in the last seven years?” —“No.” “Any income?”—“Only what I got from my brothers and my wife.” “Then you have been living on moneys received from your brothers and your wife in the last seven years?” —“Yes.” Bankrupt said that his wife had paid the upkeep of the house from her own estate. He himself was 60 years of age, and he had been in ill health through worry. “I was honest to my creditors and not one of them mistrusted me,” he said. “I told them I hadn’t got a copper.”

The Official Assignee: There’s an.account here for whisky and beer. Doctor’s orders? —Yes. Questioned by Mr. IT. D. C. Adams, representing Dr. Beveridge, the only secured creditor, bankrupt said that he had transferred his interest in a quarry to his brothers about three years'ago. His brothers had put capital into it and formed a company. Bankrupt had no interest in it. “LAND SPECULATOR” Mr. Adams: Have you any profession or business? —A land speculator. I bought and sold and lost money. Asked if he had made any money through business or discounting bills in the last seven years, bankrupt said: “I have not made more than £ 6.” He had never done' any business on behalf of his wife. Mr. Adams asked if it were not true that two or three men had handled a property before it came back to Darby. “Have they?” asked bankrupt. “Do you know that the property is not worth £2 10s an acre?” —“I would not take any notice of that. The valuer doesn’t know anything about it.” DARBY ESTATE Mr. Darby said that he received the £8,500 out of his father’s estate. The last payment was made seven years ago, and all the money was gone. “Have you had any mortgages?”— “No. they all had mortgages on me.” “Were you a party to a marriage settlement?”—“What do you mean?” The official assignee ruled out the question. Mr. F. D. McLiver represented the bankrupt. Mr. T. Maclndoe, moving that the official assignee should facilitate the discharge, said: “Mr. Darby has suffered the vicissitudes of land dealers. He has always done his honest best to meet his obligations. The case seemed to have been forced by a creditor who holds security and who has taken extreme measures which look like persecution. Mr. Darby was the most open-handed and generous man I have ever met when he had money.” M.i\ J. IT. Jackson seconded the motion. Mr. Adams was not allowed to vote, as the official assignee ruled his proxy out of ord<%r, and the motion was carried unanimously. Mr. Adams explained that he was not opposing the discharge, but he could not consent to the motion. There was no question of “persecution.” The property concerned was a bit of peat swamp near Hamilton, “which had never been farmed, and which would not bring £2 10s an acre, a third of the purchase price. The Official Assignee: I don’t see the object in forcing Mr. Darby through this, knowing his present position. Mr. Donald MacDonald, to Mr. Adams: If Dr. Beveridge will sell at £2 10s an acre, I’ll give you a cheque straight away! Mr. Adams: I haven’t authority to sell, but I will take the offer back" The Official Assignee ruled out further bargaining.