CREDITORS DIFFER

Sun (Auckland), Volume IV, Issue 1022, 12 July 1930, Page 6

CREDITORS DIFFER

CONDUCT OF BANKRUPT FARMERS “CASE OF MISFORTUNE” Opposing views of bankrupts’ conduct were advanced at a meeting of creditors of W. Withey and C. Kinp, or Henderson, and 13. Moore, ot Gisborne, trading as Withey, Kins and Moore, farmers, of Henderson, before the official assignee, Mr. A. W. "Watters y esterda y. Bankrupts’ statement showed £403 owing to unsecured creditors and assets of £63, leaving a deficiency of £345. The statement said that Withey and Moore began business as farmers at Henderson and shortly afterward purchased the goodwill and stock of a pig- business, carrying on successfully until November, 1925, when King was taken into partntwship. The partnership with Moore was dissolved last year. Three weeks of continuous rain followed by two weeks of frost, was advanced as the main cause of bankruptcy. Bankrupts were unable to make an offer to the creditors. Replying to Mr. Newbury, representing a principal creditor, the bankrupt King said that he did not call his creditors together when he knew he was being forced into bankruptcy because previously he had interviewed the creditors individually. Mr. Newbury: I am going to suggest to you that you were not keen to meet your creditors and would rather struggle through any old how? Bankrupt: No, not at all. I was never afraid to meet my creditors. To Mr. Kealy bankrupt said that if he had not been forced into bankruptcy the business was infprovlng so much that he would have been able to pay all creditors. A Creditor: Why did you hot advise us of the dissolution of partnership? Bankrupt: I did so by letter which I gave to you personally’. Creditor: I never saw you in my life before. Bankrupt: You are mistaken. Creditor: All right, I’m telling > a falsehood. Mr. Newbury: Everybody’s wrong but him. "NOTHING OF THE SORT” Creditor: I object ,to a man saying that he interviewed the principals of a firm and told them of his position when he did nothing the sort. The Assignee: He’s on his oath. I will record it. Mr. Newbury: It certainly is a Case where the discharge should be opposed until some dividend has been paid. A creditor moved that the bankrupt’s discharge be opposed until a minimum dividend of 5s in the £ had been paid. The motion was recorded. An amendment was moved that sympathy with bankrupts in their position should be recorded and that the Official Assignee be instructed to facilitate discharge. The Assignee: I am afraid that is a direct negation and I must rule it out.

A Creditor: I honestly think that this is a case of misfortune. I have always found them straightforward in their dealings with me. I can’t see that by opposing itheir discharge we will gain anything. Another Creditor: That’s contrary to my experience. Another Creditor: Mr. King has been straightforward enough. He’s just made a hash of it, that’s all. The motion, taken on the amounts, was lost by £433 to £l2l.

A motion that the creditors regarded that the bankruptcy in the main had been caused by misfortune was carried on the amounts by £459 to £95.