IN BANKRUPTCY.

Taranaki Daily News, 18 November 1922, Page 8

IN BANKRUPTCY.

A NATIVE AGENT’S FAILURE. A meeting of creditors in the bankrupt estate of Te Kata Thompson wad held at Hawera on Tuesday last. Mr. Sage, deputy official assignee, presided, and the creditors were fairly well represented. Mr. P. O’Dea appeared for bankrupt. The amount owing to unsecured creditors was shown as £2380 10s sd. and the estimated value of the securities was given at £550, leaving a deficiency of £lB3O 10s sd. The total assets were set down at £1055, including book debts estimated to produce £lOOO. The total deficiency was computed at £775 10s sd. The following is a list of the unsecured creditors: John Blake and Son. £6 17s; Armstrong. Craig and Barton (solicitors, Wanganui), £712; Comerford and Co., £2l Is lOd; Currie and Jack, (solicitors, Wanganui), £32 9s l(kl;

Goldstone and Patterson, £lB 18s; Sash and Door Company, £4 4s 2d: Marshall and Hutton \solicitors, Wanganui), £2O 8s sd; W. Pettigrew, Stratford, £4 15s 6d; W. G. Strange, £2 9s lid; Treadwell, Gordon and Brodie (solicitors, Wanganui), £.lO Us; Ha lienstein Bros., ; C. Begg and Co.,

£l3 15s 8d; Hawera Electric Light Co., £1 8s 7d; H. S. Harman, Wanganui, £24 10s 9d; R. T. Douglas, Auckland, £lB 15s Sd; Dominion Hardware Company, £57 14s 6d; Gray and Barley, £4 18s; P. Coutts, £540; T. AV. Boland, Tokaora, £290; A. Best. Eltham, £700; A. ’Coleman, Eltham, £500; Mrs. Kahupukoro, £lOO. In his statement the bankrupt said: “I started business in Hawera in 1916 , as a Native agent. After twelve months , I extended my business to money-lend-ing to Natives, which proved a failure, as the Natives began to dispose -of their interests in the land from which they leceived means of repaying their debts. The other branches of my business are i still pretty sound. The direct cause which led’to my present position was the non-com plot ion of a sale. I made to one Coutts. f consider that if the matter, had been treated with any do,gree of fairness and justice I would not have been placed in the position 1 am in today. As is shown by the notice of bankruptcy the petition was filed by one of my creditors. 11 allowed to carry on I I think there is a prospect of realising I much more than otherwise.’ ! 'Hie D.O.A. said that with regard to the supposed assets there was 40?, acres of freehold on Fraser Road, which had been sold to J. R. Corrigan. There was an amount owing, but this would be wiped out by charges against the debtor. The position as far as he was concerned was that the state showed a large deficiency, and the question was whether t.ey could realise on the assets in any wav. He understood that there were large claims arising out of dealings in Native lands, but the transactions were very complicated, and it was impossible to trace at that stage how the money ; had been received or disbursed. Seem- ► ingly Mr. Thompson had kept no cash ' look, in which case he might come r.n- , der the penal clauses of the Act. There 1 was no indication of how cash had boon ; spent apart, from the bank-book. Mr. 1 Thompson asserted that quite a number ; of his debts had been incurred in oon- ' nection with Maori leases in the way of ' legal costs and disbursements to other ► parties for the Maoris. Mr. L. A. Tay- ‘ -lor, who appeared for the petitioning , creditor (Mr. Coutts) had, he under- • stood, something to say. ‘ Mr. L. A. Taylor cross-examined bank- ’ rupt at length. He said that Mr. Coutts * was quite dissatisfied with the position ♦ as revealed. Ho desired a most search- * ing examination of the books. Mr. I ay--4 lor moved that an examination o< debt- >; or’s hooks be made and a report pre- ’ I sc-nted to a future meeting of crediThe D.O.A. said that before he could > l-.ave the books examined ho would re- > ouire an indemnity insuring him against

£ any loss. > Mr. Taylor thought that debts • J amounting’ to over £3OOO should pro- • > vide £lO 10s for an auditor's fee. Mr. Taylor further said he wished to add to C his motion provision for calling evidence ;♦ in rebuttal >of that given by bankt* rupt. !♦ Mr. O’Dea questioned whether such a t* I resolution could bo accepted. £ Replying to Mr. Weir, the D.O r A. said that' if the resolution was carried he £ would call upon the creditors foi* a guarantee of the cost. Mr. Weir said he was not prepared to commit his clients to any further expense, but it may be the duty of the D.O.A, to consult with the Crown Prosecutor. He moved that the evidence be duly considered by the D.0.A., and that the question of carrying on the debtor’s business bo loft In his hands, >f the D.O.A. to take such further action to call the creditors together again as he saw ill, This was carried without dissent.— y. Abridged from Hawera Star.