AN ABSCONDING BANKRUPT

Taranaki Daily News, Volume LIV, Issue 312, 29 June 1912, Page 6

AN ABSCONDING BANKRUPT

MEETING OK TITS CREDITORS. A PROBLEMATICAL POSITION. A meeting of creditors in the estate of George Wilson Cunson, who was adjudged a bankrupt on a creditor's petition, was held at the office of the Deputy Official Assignee, Mr. J. S. S. Medley, yesterday afternoon. The bankrupt, wlio was in business at New Plymouth 'last year as propietor of a motor garage, absconded in September last. Eleven creditors, or their representatives, were in attendance. Mr. Medley told the creditors that he had no statement to put before them, for the reason that bankrupt liad left New Plymouth. As far as he knew, the total debts were £77!) 12a 7d, but he anticipated that investigations would disclose an even bigger deficiency. As regards the assets, the position was at present very problematical. The first asset was a debt of £l5O owing to Gunson by Father Bergin, of Manaia, on the sale of a car. Two promissory notes were given by the priest for this amount. The first promissory note was due on November 6, and the second not until May, 1013. Until lie obtained legal advice, he was not sure whether he could demand payment before those dates. A CURIOUS POSITION. In answer to a creditor, the Deputy | Assignee said that, curiously enough, | Father Bergin's own solicitor's held the promissory notes, and, as far as they knew, these were only copies. Father Bergin could not recollect whether he, ■ had signed any more notes, but as.far as ho (Father Bergin) knew, they were the originals. There seemed no doubt j that Gunson got the two promissory j notes, and sent them back to Father Bergin for endorsement by a gentleman in ' Manaia. As far as he (Mr. Medley) j knew, Gunson did not get the notes back. According to the evidence given in a recent court ease, involving the j sale of the priest's motor-car, the Assignee said he was inclined to think that the two promissory notes (they were not stamped) were the only two in existence. Mr. A. H. Johnstone interjected that it was quite likely that the two promissory notes would turn up later in somebody else's possession, having beennn- t gotiated to them by Gunson. In that j case Father Bergin must have signed two sets of notes. Mr. Johnstone added that i he was inclined to this theory by reason V , of the fact that Gunson had some time ; ago worked a similar dodge on someone else. . ASSETS? Continuing, Mr. Medley said that the only other assets were the book-debt 3, and they were problematical. They had apparently been, taken possession of and -realised by Mr. R. Wallath. The only thing Wallath had as evidence of the transaction was a receipt for £350 pur-.I porting to have been signed by Gunson. The point was whether or not the transaction would stand on legal grounds. If Gunson committed an act of bankruptcy before he absconded on September 25 last, the assignment to Wallath. would, not hold. ( Creditors, generally, seemed to be of the opinion that Gunson had done so, and Mr. Johnson said that, taking the 'sale of hook debts, furniture and other effects all into consideration, it was a, question whether the transaction could not be nullified on the grounds of fraudulent preference to Wallath. Questioned by the Assignee as to whether he was preferred to the other creditors. Mr. Wallath, replied: Not knowingly, at any rate. Mr. Medley. Did you force Gunson at all. Mr. Wallath: Not in the slightest. Mr. Hutchen: It was Tather a risky thing. Mr. Johnstone: What about the furniture? Did vou pay cash for it? , Mr. Wallath: Yes, for the bulk of it. K , Mr. Johnstone: In addition to a se-s curity over the furniture;, you held a security over Gunson's house. Mr. Wallath: Yes, but we had it right from the start (the time it was erected). Mr. F. C. J. Bellringer asked whether Gunson had interest in any moneys that might be coming to him, to which the Assignee replied that he could not tell, as ho had not had an opportunity of examining him, while a creditor remarked ironically that he would "dearly love to shake hands with Mr. Gunson again." It seemed quite an age since he had had the pleasure of seeing him. "NO FEAR'" J Mr. Wallath then came in for some more questions. Mr. Hutchen: The stock in the garage was sold under distraint by the landlord.—Yes. 1 Mr. Johnson: Some of it was dis- |

trained by you, was it not, Mr. Wallatli?—No fear! (and then after a pause) I only took a lathe which I had hired out to Clunson. Mr. Johnstone: There was something vise—a motor engine? Mr. Wallath replied in the negative, and subsequently added that there was .some small tiling which lie could not remember for the moment. Mr. Wallath was also heard to regret that lie had ever had any business dealings with fiunson, as he (the speaker) was being blamed for some of Ciunson's doings. He also had regrets from a financial point of view. ft was elicited that about £SO was owing in wages, which w raid be a first call on the estate, if they were due in respect to a period falling within four months of the bankruptcy. Mr. Lyttle, to whom £3O 15s 7d is owing in wages, said that his claim was within the time limit. Mr. Rtandish pointed out that the cost, flay £2O, of making Gunson ft bankrupt, would also have to be taT?en into account. After further discussion Messrs. Hutclion and Johnstone were deputed to confer with the Deputy Assignee, with power to act in conjunction with him, in order to unravel the involved state of affairs. * The principal creditors are. Hatrick & C 0.,. Skeates & Brockeat (Auckland), Magnus, Sanderson & Co. (Wellington), Cycle and Motor Supplies (Wellington), ami the Continental Rubber Company. There are a large number of local creditors, but none of them have big claims against the estate.