IN BANKRUPTCY

Taranaki Daily News, Volume LIV, Issue 135, 29 November 1911, Page 2

IN BANKRUPTCY

A LAND AGENT'S DIFFICULTIES. A meeting of creditors in the estate of David Cliarteris, land agent, of New Plymouth, was held in the office of the D.O.A. yesterday afternoon, when there were present: Messrs J. S. S. Medley, D.O.A (in the chair), and the following creditors:—J. Clarke, W. D. Webster, E. Griffiths, E. A. Golding, W. C. Weston, A. Bewley, H. T. Joll, I. Aroa, W. P. Nieoll, A. Veale and F. P. Corkill. Mr. R. C. Hughes appeared for the bankrupt.

The statement of assets anil liabilities was as follows:—Liabilities: Secured creditors, .£B6l 3s 2d (estimated value of securities, £1090}; unseemed creditors, 30, in various amounts, totalling £299 fis 4d. Assess: Book debts, £320 las, estimated to produce £00; property, £27; surplus from securities in hands of secured creditors, £237 10s lOd, a total of £324 10s lOd, showing a surplus of asset 9 over liabilities amounting to £25 10s fid.

The bankrupt, in his statement, said that when he came to New Plymouth in the beginning of August, 1907, he had about £IBB in cash, which he placed in the Bank of New Zealand, as well as tja equity of about £4OO in property in Devon street, and an equity of £2OO on the Frankley : road. Six weeks after he started in business as a land agent ./in Devon street. ! Until about two yeans ago his business practically paid its way, but since then, owing to commissions on exchanges remaining' unpaid, and his capital being sunk in equities in real estate, for which there was at the moment no demand, while rent, interest on mortgages, advertising and other expenses incidental to the business absorbed all his ready money available. The climax came when a couple of creditors refused to extend sufficient time to realise his assets, and left him no alternative, in the best interests of the whole of his creditors, but to place his affairs in the hands of the D.O.A. Unless forced by waiting, his assets should realise more than sufficient to cover all his liabilities within the next few months, and he could 1 only regret for their mutual benefit his hands were forced as they were. If the properties were sold how they would be sacrificed, and probably realise only the amount of (mortgage, when by waiting a substantial equity should be obtained.

The D.O.A. pointed out that the security consisted of properties at Fitzroy and Moturoa, of an estimated value of £1099, ok which there were mortgages to the amount of £B6l 3s 2d. The question for the creditors to decide was whether it was advisable to realise on the properties at once. If they did they would be liable to the mortgagees for the amounts, etc. Mr. E. Griffiths said that he understood Mr. Cliarteris had made a suggestion to the creditors that if he were given six months' time he could adjust matters. He considered that if the values were right the properties could be disposed of fn time. Mr. Cliarteris had 'been here long enough for them to have a knowledge of his veracity and straight-going. During the past two years it had been hard times for land agents. There were, however, good times ahead, and he would like to see Mr. Cliarteris given an opportunity of straightening matters out. Mr. Charteria pointed out that the mortgagees were willing to give him plenty of time so Tong as the other creditors were.

In reply to Mr. Weston, bankrupt said that he "could make no offer. Everything had been taken out of his hands. If he had time he would pay all. He was almost certain that lie could get someone to guarantee the interest on the mortgages. Mr. J. Clarke said that he was extremely sorry to see bankrupt in this position. In fact, he considered the position showed him to be practically solvent, and he should not be there. He was quite prepared to allow him sixmonths 'to realise his properties. Personally, he did not think bankrupt had exaggerated their values, and it should be easy to get the estimated values, when creditors would get 20s in the £. If a sale were forced now they might not realise the mortgages. He accordingly moved that this meeting of creditors recommend the D.O.A. to give Mr. Cliarteris six months to realise his land assets, provided the interest to the mortgagees was guaranteed. Messrs R. C. Hughes, J. Clarke, E. Griffiths, W. 1). Webster and A. Veale immediately guaranteed this, and the motion was seconded by Mr. W. D. Webster and carried unanimously. <Mr. R. C. Hughes said that he was sorry this meeting had to be called. He came in as a creditor only six weeks ago by advancing Mr. Cliarteris money to pay pressing claims. When he found this was insufficient he called a meeting of creditors, at which he understood all agreed to allow Mr. Cliarteris six months in which to pay. He had since understood that one creditor did dissent to those about him, but not audibly to Mr. Hughes, and he recorded the vote as unanimous. He was therefore very much surprised when that particular creditor enforced judgment. , The D.O.A. here interrupted him, stating that he could not allow any reflection on a creditor present.' Mr. Hughes said that he only wished to show that Mr. Cliarteris' bankruptcy was not because he sought to avoid payment, for as a matter of fact he was most anxious to pay 20s in the £. Tho meeting was then adjourned for six months.