THE HARDING BANKRUPTCY

Taranaki Daily News, Volume LV, Issue 180, 17 December 1912, Page 6

THE HARDING BANKRUPTCY

MEETING OF CREDITORS. * A meeting of creditors in the estate of James White Harding, stock dealer, was held at the office of the fi.O.A. at Hawera 6n Friday afternoon. Mr. C. A. Budge, D.0.A., presided. Mr. R. D. Welsh and Mr. R. Spenee appeared for the D.0.A., and several of the largest creditors, and Mr. R. 0. Sellar (instructed by Mr. Allison, Wanganui) for. the bankrupt. The bankrupt was also present. The 8.0.A. read the following written statement from the bankrupt:—

"Shortly after coining to New Zealand about 15 years ago, I acquired a farm on the Norfolk road, near Inglewood, containing 503 acres and 3 roods, or thereabouts, which was mortgaged to the Public Trustee for £3OOO. A little later I acquired a leasehold at Tariki from the School Commissioners of 242 acres, which, with the Norfolk road farm, I fanned and dairied for about six years. I then commenced dealing in cattle, freezing and shipping to England, and was the first person to ship cow and bull beef to the United Kingdom. I thus opened up a trade hitherto untouched. At first I dealt mostly in the Inglewood and Stratford districts, but later also in the Hawera district. About five or six years ago I acquired the Otakeho farm of 101 acres 2 roods. This farm I took over subject to the two mortgages on it in exchange for a piece of land at Marton, and did not pay any money down.

"After some years in business, my dealings became very extensive, and during the last seven years the average turn-over would be about £200,000 a year. Altogether since I commenced business I dare say my turn-over In stock has been over £1,000,000. I have t dealt principally with auctioneers, and have paid some thousands of pounds in commissions on my transactions.

"When I came to Hawera about four years ago, I took over a lease of a 500acre farm from Mr. T. Mason. This ' lease ran out about a year ago, and I was sued for £SOO damages for breach of the lease. I compromised the action, but had to pay damages. "In May, 1911, I went to Australia for business purposes, with the object of [seeing what business could be done in Queensland, and left Mr. Mason's farm, fully stocked, in charge of my manager, who was conducting my business, buying [and selling for me during my absence. 'On my return from Australia in September, 1911, investigations showed that there were short ISO cows, 78 yearlings, j 24 bulls, 3 bullocks and 2 steers, making a total of 257 head of cattle, and, in adI dition, there were some 285 head of sheep short on this farm. These losses of cattle and sheep, together with; losses in the business, meant a total loss to me of £ 1250. A statement was prepared by Mr. O'Callaghan, accountant, showing these figures, and showing that, after allowing for the profits on any transactions and the above shortage of cattle and sheep, there was a deficit for tho three months of £1250. At the samf time during my absence losses amounting to about £BOO were incurred at the Inglewood end of my business. A large quantity of meat was shipped on consignment while I was in Australia, and when the returns came in some months afterwards there proved to be a loss of between £SOOO and £OOOO.

"About a year ago I formed my business into a small company called the Taranaki Meat Exporting Company, which paid out about £II,OOO a month for stock purchases and about £IOO a week for wages. I got £l4O profit out of it for the season's working, and drew £5 per week as wages. 'ln connection with the shipment of meat to England, I was sued for «<ror £llOO by Weddell and Co., of London, in October, 1912, for losses and expenses on meat sold in London. This meat cost 2%d per lb, and .Weddell's advanced; 2*4 don it, selling it for iy 3 d, 2d, 2y B d, and so on, resulting in the above loss! Previous to being sued by Weddell and Co., I had paid them sums of £250 and £lB5, making a total of £435 on account. Their original account was £I3OO odd, and after my paying off £435 there is a balance owing of abont £9Ol, for which I was compelled to confess judgment. I purposed defending this ,'aetion, but my credit and consequently my business operations were stopped, and I relinquished my defence. "My liability to Gillies and Nalder in October, 1912, was £844, but this was reduced by November to £278. My liability to the Loan Co. on April 30 last was £IOB7, but by November 30, 1912, this was reduced to £745, and my liability with Newton King in July last was £2087, but this had been reduced by November to £BO2. My liability to the Bank of New Zealand, Inglewood, was £2OOO a little before October, 1912, and this is now reduced to £1740. I paid a promissory note of Newton King's just a couple of days before I called my meeting on November 20, in anticipation of my carrying on. "Previous to November 4, 1911, I was a widower with two little girls. These children are entitled to a half interest in the Norfolk road farm, and as th'ey were provided for it is part of the consideration of my marriage, which took place on November 4, 1911, that I should provide for my prospective wife by a settlement of the other half interest in tin; Norfolk road farm and my interest in the Otakeho farm. Accordingly, prior to my second marriage, Mr. Allison, soli-, citor, of Wanganui, drew up a settlement in consideration of my,prospective marriage of those properties upon my intended wife. The properties settled were as follows:—Otakeho farm, 101% acres., valued at £45 an acre, making a total of £4507 10s, subject, however, to two mortgages (a first mortgage for £lß4oand a second mortgage for £994), milking a total of £2834, leaving a balance of £1733 settled on my wife. The interest in the Norfolk road farm settled on my wife was as follows:—A half interest in 503 acres 3 roods, at £25 an aero, making a total of £12,575; subject, however, to a mortgage of £2850 to the Public Trustee, leaving a balance of £8725, half of which, namely, £4802, was settled on my wife; so that the total value of the property settled on my wife was £4802, plus £1733, or a total of £0505. The Norfolk road farm is now in the name of the Public Trustee,' on behalf of my children by my first jniiirriage as to half, and in the name of my wife as to the other half.

''lf it had not been for my credit being stopped I consider that I should have boon able to earn- on, as notwithstanding set-backs, I have generally been able to make up losses from time to time.

"When I was married I had little or no furniture, as my children lived with my manager, Mr. Surre.y. The furniture in the house belongs' to my wife. •'Before my first wife died she had a piano which her aiother gave her, also a very little furniture. The piano is over 20 years old. This and the furniture she gave to my two little girls. "The Princes street property is, in my opinion, of the value stated by me. as it is well-known that the house, which is insured for £2OOO, is a most substantial one. It would probably not bring the value on a forced sale "I paid £IOO for the Can-ick Gold Mine shares, and these, I believe, have risen in vulue. and are worth £l5O. Ihe Huyms Copper Mine shares I have valued at the price I paid for them, less Uiii. and the Patea Freezing Company shaves at what I paid for them.

"Palmergton North business.—This T started about two years ago, and on September 1 last I employed Mr. Casey as manager at a salary of £4OO a year. T put £IBO cash into Mr. Casey's hands, and he made a profit of £8 the first n",mth, and £3O the second month. I ;i i tach last balance-sheet from Palme~rston North. "Australian business. —This I started about 18 months ago. I took over to Australia when I went the sum of £3OO. Shortly after I had another £125 sent over to me, and then on my return had £370 sent over from the Bank of New Zealand and £ 150 from the Loan and Mercantile, making a total of £Q4S put into that business. Mr. W. A. Thompson, formerly of Putea, is in partnership with me in the Australian business, and about January last went over to manage it. I have written off £6OO odd of this amount in my books, but T have not yet got a balance-sheet from Mr. Thompson.

i"Mr. Barlow, who has been with me for 15 years, has for the last four years managed the Inglcwood end of the business." THE EXAMINATION OF DEBTOR. The bankrupt was examined by Mr. Spence, and in answer to questions he said: "In the statement submitted to my creditors on November 21, 1912, I showed a sum of £IOO for wages, rent, rates and taxes. I since find that this amount should be considerably increased. Wages should also have been shown to G. E. Goble £47, A. Goble £3O 13s, H. Goble £lB 3s, A. Hignett £3 ss, C: Smith £7 10s, A. C. Marr, junr., £2 ss, J, Fawkner £3, A. Barlow £<SO. These amounts were omitted from my statement to a private meeting." He also had omitted from this statement £9O to G. Smith (rent) and Mrs. J. W. Harding (rent), the amount of which had Hot been made up to date. Mr. Spence: Tell us what items totalled approximately the £l9O. Bankrupt: I could not. The names I took into consideration when assessing the £IOO wore Barlow's men, Casey, and Casey's men. Mr. Spence: That was all? Bankrupt: Yes. Pressed' further, bankrupt said he thought he took the nurse's wages into { consideration, £7 10s; also the rates of • I the Tariki farmv

| Replying to another question, bankrupt said 1 he had been in business iu Australia since 1911. Mr. Spence: Who is your partner there? Bankrupt: William Thompson, formerly • of Patea, but now residing at Brisbane, j The business is run under the name of |J. W. Harding ami Co. The last communication from Mr. Thompson arrived I about three weeks ago, and he would [•produce it if he could. He had put ! £9OO into the Australian business. He I had received nc balance-sheets. Mr. Spence: What do you think is'in that Australian business now? i Bankrupt: I have not the slightest idea. Mr. Spence: Have you ever asked for a statement or balance-sheet? Bankrupt: No. Mr. Spence: Have you ever known the position of it? i Bankrupt: Noi. j Mr. Spence: Have you ever tried to I find outf

Bankrupt: No. He added that he was leaving on November 1 last for Australia to look into the business. He could not go on account of having to attend his business here.

Mr. Spence: Mr; Harding, have yon always kept regular and proper books of your business transactions ?

Bankrupt: Yes. Mr. Spence: Sufficient to set forth your business transactions and to show your financial position from time to time?

Bankrupt: Yes. Mr. Spence: Did you ever take out balance-sheets?

Bankrupt: Yes; sometimes. I have got some of those balance-sheets in Hawera.

Mr. Spence: How many, do you think? Bankrupt: One or two, or two or three. He added 1 that these could be produced.

Mr. Sellar: I will produce everything I can get. Mr. Spence: There was £l4O in hand mentioned in your private statement? Bankrupt: Yes.

Asked what had' become of it, bankrupt said he had spent it. He had to pay for defending Weddell's claim. The £l4B was W. 11. Young's cheque, and he said he received' it about a fortnight before his private'meeting. As soon a3 he cashed the cheque he paid Mr. Allison, of Wanganui, an amount for Treadwell, Raymond and Stringer. He gave details of a few other smaller amounts spent. The D.0.A.: Will you swear that no payment of importance Ims been omitted from your statement of the distribution of the £148?

Bankrupt: Yes; to the best of my belief. He added that he had a list of what he did with the money. (The list was obtained and produced). Bankrupt said he had receipts for all the payments therein contained, except 19s 4d belonging to Mrs,. Harding. The statement referred to c&e whole proceeds of Young's cheque. When he received Young's cheque he had no money whatever in hand. Since he received Young's cheque he bad received £22 odd from the Auckland Freezing Company. Mr. Sellar said this money was in the hands of Mr. R. Sage for the D.O.A. Mr. Spenee: When was the marriage settlement prepared, before or after the marriage.

Bankrupt: Before I was married. Mrs Harding gave the instructions to Mr. Allison to arrange for the settlement. Debtor was present at some of the interviews.

Replying to further questions by Mr. Spenee. bankrupt said be had a 'house burned on the farm at Norfolk road, and the insurance money was being used in re-building. The amount was about £4OO.

Mr. Spehce: How many bank accounts had you ? Bankrupt: I had my own bank account at tlie Bank of New Zealand, Ingle wood; a banking account in my own name in conjunction with one Oliver at the Bank of New Zealand, Hamilton; an aocouat at the Bank of New Zealand, Palmerston North, in the name of Priest and Harding; an aecount at the National Bank, Palmerstoii North, in the name of Casey and Harding; an aecount at the Bank of New Zea'land. Inglewood, in the name of Casey and Harding. He also had an account in a hank at Brisbane. There was an agreement with Casey, a copy of which lie could get. There was no written agreement with Thompson. He had not had a penny from the Ausbusiness, with the exception of travelling expenses over there. Surrey, Oliver, Barlow, Priest and Casey wers all on wages. Mr. Spence: Have you paid anv of these men lately ? Bankrupt replied ill effect that these men hirl drawn their moneys through the banking accounts. Mr. Spenra: Have you paid Mr. Surrey any money lately ? ' 1 Bankrupt replied that he had not paid Surrey anything for wages for 18 months, but lately lie had paid him £3O for stock. There was another sum of £2 10s paid through the N.Z. Loan and Mercantile Agency Co. Within six months lie had paid 110 other money to Surrey, j No payments had been made to Barlow. I He to get balance-sheets from

Priest, Casey and Barlow. These would be produced to the Assignee. Answering other questions, bankrupt said his wife was in fairly «ood circumstances when lie met her. Ile had made the settlement on her because he thought this was proper and in order that she and the two children should not he in want. lie w;is then in a good position. J.[e had shown his wife as a creditor for £sl for rent of the Norfolk road farm up to November 30 last. There was no other money owing to his wife on any iimmnt whatever. Mrs. Harding purchased furniture for the Princes street house, and she paid for it. He had paid two cheques, totalling £25, for furniture in this house. He got the money in small amounts from his wife before he bought a typewriter for £lO and a desk for £ls. This was all the money he had paid towards the purchase of furniture for the Princes street house.

Mr. Spence: What is the value of the rest of the furniture in. the house? Bankrupt: I have not the slightest idea. He had seen some of the' receipts for the furniture in the house in the name of Mrs. V. S. Harding. - Beyond travelling, personal and .household expenses he had not paid any money whatever to or on account of'his wife. His wife had an account- at the Post Office Savings Bank, Hawera. ■■ Replying to questions, as to expenses "on his various farms, bankrupt said he could not remember - what amount had been expended during the past, three years. Up to three or four months ago all expenses in connection with the Norfolk road farm were paid by Barlow out .of the banking account, but 'he' could not say what amounts were paid.' ''He. paid Mrs. Harding 15s per acre for 503 acres 3 roods (but there was nothing.in • writing), on condition that Mrs. Hard'.', ing looked after the children and they lived with him and had anything they wanted. The whole of the rent went to Mrs. Harding, and she expended it in the manner stated. 'This was under an agreement between himself . and his wife.

Mr. Spence: When was .this agreement, entered into?' ""'' ; "" ~ , ' ,it ' / i ,;; Bankrupt: I ean'nb.t "say.'''''But".n'p ; period was mentioned. , ' .'."...' :.../ Mr; Speiice: Youcanno.t<,say.- j eves-[a ] p-i proximately Ijow long ,the.. agreement between yourself 'and your wifejias'been' existing?.. ',• ,' ~/ ~: . '.. ~, „

Bankrupt: ...Yes, lean say app.rQxj.Mi mately—between one month anrtolSv month's. . He addfd:,•"Withj .toi" my answer,;.J,,,\ip3Jv #i( .,.tq's!sj(- g ,tJ)at''Mr,i ■Spenee,insets.lipcni n>e tailing.Jliim approximately w)nm. n>y6elf i . , 'ii)KV;,iiiy wifivi made these ■arrangements. «»i capifloi f e* ' member this, and to satisfy hi-rri i feyit is from 1 a'month tS'WTfftfJrEns. I ''- '■'•"< ;

Proceeding with tlie i pxaminatiJDn^Wt?- 1 - bankrupt answered Miktiiff'thought l 'tire?' rent was to bo paid to Mrs. Har'dirig quarterly.-' He idid not think ;'thjre .had been,anything .spent on the Tarity'farra"' during, the last ,tw.elv^,ni.ont'hs. : ! ! The 1 damages mentioned "in his ' stateliest' ii) Masoir amounted v to : £1 J 39; :, of" : <vhl<;]L"Ue ' had paid £6O. •:<> •.••■).■! .n -i i-'-i ! - '■="""• ' Mr. Spcnce: marn'a|c v what statements of. yourjppytidn, halve'; you given 'to the "'creditors? ' I'',',''•'.'";".? Bankrupt: T have''givcr two ; sfofa:' ments so far Us "I remember'. 1 'O.w.':to Mr. Hewitt, nianagor *fltte W.'Z.'toan and Mercantile Ageney_Co.,jit Stratfqrd;, the other" waif,' qnlv" a sort of al statement to MrA'arfe'y, Tlawera. Sit years ago (about)--I wave a statement i tp.,th« Bank of %jw! ZeaUnd, InglewoodJ Abqni, twelve years .ago I gave a statement to the Bank of Australasia-; New 'Plymouth. Mr. Spence,: Will you.swear that since your marriage, beyond what you have «worn to, you have hot given any state-:: meut whatever of your'position', either;, verbal- or written, sighed or' -unsigned, to any person, partnership, corporation or bank?

Bankrupt: No. As far as I cam remember, I have given no 'other* state-, ment. . i Bankrupt added: There was a conversation between Mr. Gillies and mys'elf,. which he (Mr. Gillies) said was a statcimerit, and which I saw was not a - statement. Mr. Spence: Are these the only tsatements ? •: Bankrupt: Yes. Mr. Spence then questioned the bankrupt about a sum of £2OOO drawn out in July, 1912. He asked what that was for. Bankrupt replied that this was a temporary loan, as the bank would not increase his limit. He had a lot of.stock, but be desired to hold this, as he thought he could make more money by keeping the animals. The £2OOO was a repayment of a loan on March 20, 1012. Mr. Spence: At March 20, 1012, when you borrowed the £2OOO, were you being pressed by anyone? Bankrupt: Yes.

Mr. Spence: By whom? Bankrupt: The Bank of New Zealand. Inglcwood, but not more than usual. Tlie manager asked me to reduce mv overdraft on account of the bank balance. I had to meet payments to auctioneers, who were pressing me. Some I paid and some I did not. Mr. Spence: At March 20. 1012, when you borrowed Hie £2OOO, were you being pressed by any«»e? Bankrupt: Yes; I will swear that the bank said I must reduce my overdraft. Witness added that the money was placed into the bank by his banker, who got it from a friend. Mr. Spence: Who lent you the £2000? Bankrupt: I decline to answer until I go up for my public examination. He added that he did not want the name made public. 'Mr. Sellar advised his client to answer.

Bankrupt replied that his hanker got a friend to lend the money, but 'he ' (bankrupt) did not know who the friend J was. ' Mr. Spenee: Will you swear that you do not know the name, of the friend who lent the ;'J:!00(H Bankrupt said lie had staled to the Assignee and three of the largest creditors -whom he got the money through. Mr. Spenee: Will you swear that you did not slate to this meeting a few moments ago that you did not want the name of tlic lender made public, but that you were prepared to give the name to the .Assignee and three of the largest creditorsV Bankrupt: Yes; I have told you who I got the money through. The (piestiou was repeated. Bankrupt: Xo; T swear I did not say it. Mr. Spenee: Have you not already told the meeting whom you got this money through? Bankrupt: Yes. M'r. Spenee: And you don't know where you got it from? Bankrupt: I think the bank manager told me the name, but I have forgotten it. He added that he did not pay much attention to the name, because lie only wanted the money to tide him over a difficulty for a few days, when he could sell his stock and pay the money into the bank. After some further examination on the point, bankrupt said: [ believe it was Herbert Curtis who lent the £2OOO, but I do not know the lender personally, and I am only guessing at the name. At six o'clock the examination had not concluded, and, on the motion of Mr. Gillies and Mr. Casey, it was resolved that the meeting adjourn till n. date to be fixed in January by counsel engaged. The D.O.A. will notify the creditors of the date.—Hawcra Star.