IN BANKRUPTCY

Taranaki Daily News, Volume LIII, Issue 204, 7 December 1910, Page 7

IN BANKRUPTCY

RE THOMAS RICHARD SOUTHALL. • A meeting of creditors in the estate of T. R. Southall, sharebroker, was held in the Official Assignee's office, Devon street, yesterday afternoon. The Deputy-Official Assignee, Mr. J. S. S. Medley, "presided, and there was an attendance of about a dozen creditors. Mr. A. R. Standish appealed on behalf of the bankrupt, and Mr. Quilliam represented the interests of Mr. Thorne George, of Auckland. Mr. E. R. Good, bankrupt's father-in-law, was the only secured creditor, and was also present. The bankrupt's position, as submitted to the meeting, showed:—Secured creditor, £79 5s 4d, less estimated value of security £6O, leaving £l9 5s 4d; unsecured creditors, £192 2s 3d; total liabilities, £2ll 7s Id. Assets, nil. BANKRUPT'S STATEMENT.

I came to New Plymouth in January, 1908. At that time I was employed in the Roads Department at a salary of £175 a year, and when I came here the only liabilities I had were some £3O of accounts in Christchurch, which I have since paid. When the Government retrenchment scheme was enforced I was retrenched, and retired from the service in July, 1909. From that time until early in the present year I did canvassing and any other work which I could obtain, earning altogether about £54. I then arranged to start as a sharebroker, and took in Mr. J. Green as a partner, one of the terms of the partnership being that he paid certain liabilities incurred in connection with the business, amounting to some £2O. Shortly afterwards, Mr. Green left the Dominion, without paying these liabilities, which I subsequently had to settle, and took with him some £ls of the moneys belonging to the firm. Since I started as a sharebroker, business has been dull; and my total gross earnings have not averaged more than £lO a month, and against this, in order* to keep faith wi'in my agents, I have had several losses—having had to take up and re-sell shares for clients who failed to complete. In consequence of my being retrenched from the Government service, and subsequently Mr. Green's default, and the non-suc-cess of my business, I have run into debt. As several creditors have been pressing for, payment, and I can see no prospects of business improving, I have had to have recourse to the present proceedings. I am at present Avithout means, and have no immediate prospect of bettering my position. REPLIES TO QUESTIONS.

' Examined on oath, bankrupt said he had an account at the National Bank for about five months past, and there was a credit there now of £2 15s 7d. He had no petroleum shares in his own name now. The promissory note for £142 14s 3d had been given to Mr. George after he had been worried a great deal, and he was in a state of desperation, more than anything else. Included in that amount was a sum for £37 10s, which was in dispute all through. This was in connection with the sale of 200 petroleum shares which he had purchased on behalf of a client, and which had riot been taken over; these he had to sell. He had no offer to make, as he had nothing. He kept a cash account since he started, up to the present. Mr. A. Goldwater: »You say your earning powers J havfe been. £lO a month, and you have also got money from Mr, Good. That should have been sufficient to have enabled you to pay a certain amount to your creditors—your butcher and baker, for instance; they are here;— Bankrupt: I have paid small accounts all through. Did you get any regular amounts from Mr. Good?— The payments came irregularly.. Mr. Good explained that the money was paid to his daughter, but of course the bankrupt benefited by it. Mr. Gold water: Do you owe subscriptions to the various clubs to which you belonged, such as cricket, golf, etc.—l owe the Cricket Club, not the others. Do you not thing the money should have been used in paying creditors? It was altogether dishonest on your part. Mr. Good said bankrupt's house was in his (Mr. Good's) name, Mrs. Southall agreeing to pay the interest on the.mortgage as rent, viz., £27 10s on £550.

Bankrupt said foe was not getting £175 a year all the time he was in the Government service, having started at 10s a day, which amount was later raised to lis a day, and then he got £175 for the last twelve months. Had no offer to go back to the Government, and had not sought one. Mr. Quilliam: The total amount is not a great deal for a young man; and I don't see any reason why you should not pay the whole lot. Bankrupt: I ihope to. I do not want to get off with a penny of it. I will certainly do my best to clear up things; but I do not see mueh hope of doing so here.

In regard to .his sharebroking experience, bankrupt said one man gave orders for certain shares, and when he got them for him foe refused to take them, as bankrupt did not have his signature on them. Mr. Quilliam: I think you are much to blame in taking on so hazardous a business as sharebroking.—Bankrupt: I had experience in the business in South Africa. I commenced in the worst time here. You can't make any offer ? —Xo. Shouldn't you have called your creditors together before? —Xowi I think I ought to hsne done so, but I was always expecting tilings to improve. Did you feel inclined to make ah offer at first?— The amount is larger than I expected. A creditor: Did you have a partnership agreement with Mr. Green?— Only a verbal agreement. Mr. Green was with me a little over a month. The Assignee: Have you any prospect of getting money .from any relatives ? I have certain prospects, but they are very remote ones. A creditor: Is the furniture in your own name or your wdfe's? —It was explained that this was included in the secured claim. The furniture was set down las £2B by the valuer on behalf of the I Assignee, bankrupt's valuations being | £6O, and in this was included £lO fjr office furniture. A creditor: Had you any reasonable hope of paying?—l had hopes if the business improved, but it got worse. A creditor: Did you not know three months ago that you were in difficulties ? You knew things were bad, and you came to me as a stranger in the town. I had confidence in you.—l paid you the first month.

The Assignee: There are two or three courses open for the creditors. It seems to me the bankrupt has made himself liable under the penal clauses of the Act. If they thought bankrupt had contracted debts without reasonable hope of being able to pay, he was liable; and the creditors could say whether they should move further and oppose the discharge until he paid something. A creditor: Can you make an offer in three months' time? —Xo; I see no chance. It's a case of making a fresh start.

Do you know of any opening here?— Xone at all; I am going away from here. What did you get out of "Dorothy"? (Laughter.) You spent a lot of time over the performances; and don't you think it would have been better employed in your business? —Y«s, it was a waste of time, I think now; and I 'wish I had not .taken any part. Mr. Goldiwater moved that the meeting be adjourned until the 14th inst,,

when the bankrupt might have some offer to make. Mr. Bellringer: If the bankrupt made an offer pf lOs in the £ it would probably be accepted. Mr. Standish said it was absolutely impossible for bankrupt to make that offer, as he had nothing. He had hidden nothing, and had done nothing criminal. It was unfortunate that he had got into 'the position he had. After further discussion the motion for an adjournment was seconded by Mr. Morey, and carried.