J. J. PATTERSON'S BANKRUPTCY.

Taranaki Daily News, Volume LI, Issue 288, 30 November 1908, Page 4

J. J. PATTERSON'S BANKRUPTCY.

| At the District Court at Lannevirkc on Tuesday Just, Mr. J. J. Patterson made an application to the Court 10 'approve of the following composition with his creditors, and offered bv him: "That Mr. J. J. Patterson oll'er*l2s Ud ra the £, payable by instalments of os in three months, 2s Cd in six uioiilns, 2s lid in nine months, and 2s Ud in twelve mouths. Payments to lie secured by promissory notes given by bankrupt, and endorsed by Airs. *j,avinia Patterson', his wife. *The bankruptcy 1 to be annulled, and that all previous i resolutions passed be rescinded.' ml support of the application Mr. Patter- 1 son said the compromise had been approved at several meetings of creditors by an overwhelming majority of both number and value. Mr. McLean appeared with Mr. Blakiston for the Official Assignee. .Messrs. Lloyd and Baniford appeared for certain creditors in support of the application, and certain creditors who desired to oppose the application were also represented. Mr. McLean made an application on benalf of the D.O.A. to have the bankruptcy transferred to the Supreme Court.

Mr. Baniford addressed the court,! the burden of his argument being that' the D.O.A. had made unfair reports,' aid had generally acted in a wav mat i could only lead him (Mr. liaml'o'rd) to' suppose that the D.O.A. was seeking to ' diminish the estate ami needlessly worry and harass the debtor. The amounts represented by the creditors who hud voted for and against the compromise were, at the first meeting £51)70 for the compromise and £BB2 against, at the second meeting £0274 for and £312 against. Mr. Lloyd was opening his argument when, His Honor interrupted by saving that the point Mr. Lloyd had to 'gf over j was that bankrupt had married a lady at a time when she had no worldly wealth, but now the position was tha't the lady was wealthy and the husband was bankrupt. Mr. Lloyd remarked that that had happened 13 years ago, when the debtor had £BOOO over and above what lie settled on his wife, and he had no debts. He contended that the wish of the majority of the creditor's in number and value must be respected, with which his Honor agreed, except where it was obvious that something criminal had been going on, then the public interest must be paramount. The case of the opposing creditors was then put before the Court, when it was contended that the debtor had not kept proper books as. required by the Act; .that the creditors opposing had not had an opportunity of examining the debtor or his wife"; that they had been consistently out-voted by the majority; that they looked to the

Court to protect them from the oppression of the majority. The transactions between the debtor and R. CI. Patcrson were criticised; the positions of the Koru mill and Wylie and Co. were referred to with a view to show that a thorough' investigation of the estate should be made, as it was quite evident that the estate could pay 20a in the £. His Honor remarked that tire question was whether it was necessary ifl the interests of commercial morality to spend the creditors' money in making an investigation. The condition of debtor's ledger (leaves being torn out) was next re-

ferrcil to by counsel as most improper, and suggestive of fraud, lie )vas not going to allow one great creditor to impose unfair terms on a lot of small ones. On the other hand he did not want to allow one creditor from motives of vindictiveness to waste the money of the others. Mr. Lloyd contended (1) that while an investigation might disclose a lot )f interesting information it must result in great loss to the creditors; (2) the offer made by Mrs. Patterson could not stand over indefinitely; and (3) while this matter was hanging on Wylie and Co.'s business must stiller. Mr. Bamford argued that leaving Levin and Co. out of the calculation t'le approval of the compromise was still affirmed by the majority of the creditors. He also hinted that if the compromise was not accepted now the offer made by Mrs. Patterson would be withdrawn. Objection was taken by the representative of the opposing creditors to the continued use of this threat bv Mr. lianiford. His Honor said there was a strong prima facie ease in the direction that the composition was the best thing for all the creditors, but it was strenuously' opposed by the D.0.A., who had exhaustively set out his reasons for his opposition. Tin* application wm also strenuously opposed by certain local creditors and others. Tie fell that there was a possible and even probable risk that there would be no financial advantage to the creditors in further investigation, lint in the face of the statements made it seemed to him that if was only right that the court's own officers should have the opportunity of managing the estate under the Bankruptcy Act in the way that was in-

tended by tlit! Act. He would adjourn the bankrupt's application so Hint il might go with the other matters In the Supremo Court. He only hoped it would turn out better for the creditors than he feared it would.—Abridged from Dannevirke Advocate.