J. J. PATTERSON'S AFFAIRS.

Taranaki Daily News, Volume LI, Issue 302, 17 December 1908, Page 2

J. J. PATTERSON'S AFFAIRS.

INVESTIGATED BY THE SUPREME COURT. THE KOKU MILLS. By Telegraph.—Press Association. Wellington, Last Xight. An interesting application concerning the all'airs of •). J. Patterson, of Dunnevirke, a solicitor, who carried on business as a sawindier as well as under the style of "Wylie and Co," and "The Koni Mills Company (Taranalii),'' was made in Banco to-day lie fori- Mr, .Justice 'Chapman. Mr Patterson's allaii',, it was explain ed, became very involved, and he was adjudged bankrupt in August last.

His liabilities were shown at £10,7)0, and subsequently amended to about £IO,OOO, of which £OIOO was owing to secured creditors. His assets were stated at £12,370. The creditors met when bankrupt ottered a composition of 12s (id in the pound. This 1 was accepted by a large majority, and was recommended by the Deputy Official Assignee. Application was made to the. District Court for its approval to tin? composition, and was upposed by some of the creditors, and the application wis rendered abortive owing to technical objections. F'resli meetings were, called and the creditors again passed a re-

solution approving of the scheme, although the Deputy Official Assignee now opposed it, owing to some further in formation which he had obtained. Upon examination of the bankrupt and bis wife the bankrupt applied to the District Court to approve the composition, and the proceedings were removed into tlr. Supreme Court and now came before Mr Justice Cooper at Wellington. The Deputy Official Assignee opposed the application upon the ground that it was not in the general interest of tho creditors and that the bankrupt had committed offences under the Bank-

ruptcy Act for which the Court would be justilicd in refusing his discharge. t Mr. H. H. Ostler appeared in support of the application, Mr. I'. S, McLean, of Napier, for the Deputy Official Assign >e, Mr. Freeman Potts, of Dannevirke, for the objecting creditors, representing debts totalling £577, and Mr. Youig for creditors representing £5500 in favor of tire composition. Bankrupt gave evidence on oath stating that the books in connection with the Koru mills were kept by an employee. He had never refused to gire the Deputy Official Assignee any information or books. For practically two years he had not done any business as a solicitor. Witness never kept the hooks in connection with Wylic and Co. He had not illegally transferred «ny property either to Mrs. Patterson or to his son. In answer to Mr. Young witness stated that lie invested some money in the Koru mills and eventually had to take them over. He was not a sawmiller, and had to employ a manager. His partner went away, and left the business to him, He liad carried it on as best he could, lie had invested money in Wylic and Company, and upon the death of Mr. Wylic he had to take the business over. The books in connection with that business were kept by a clerk. The 'estate would pay about as in the £ if the composition were not approved apart from any claim on Mrs. Patterson. If the composition were approved Mrs. Patterson would endorse ; the promissory notes in connection with it, but if it were not approved shewould not give up any part of the property. Witness told Mr. Freeman Potts [ that he believed he could pay the whole of his debts if he got time. At present he had hopes of paying them.

Mr. Freeman Potts: Why did you not offer your creditors 20s in the pound? Witness: I told them I would give 12s (id in the pound and offer 7s (id as soon as 1 could. Mr. Potts: Didn't they ask you to satisfy them that you would have ths balance and you said that you could not satisfy them more than that? "Witness: I could not, either. Mr. Potts: We have offered you a lot of time, have we not?

Witness: If 1 have the estate in my hands 1 can pay 20s in the pound, if 1 can turn round about a bit. Mr. Ostler: You don't profess to be an expert book-keeper? Witness: No. I just put it on one side when I get it and .on the otlwr when I pay out. Witness, continuing said that Mr. Potts had made a proposal to him that if he (witness) would pay the creditors whom he (Mr. Frcjman Potts) represented, the extra 7s 0,1 in the pound, he would not raise any objection to the composition. Mr. Potts denied this, and was about to make an application when his Honor interfered by saying that he could not have, an altercation. After further evidence, his Honor intimated that he would reserve his judgment.