IN BANKRUPTCY.

Wairarapa Age, Volume XXX, Issue 8401, 16 April 1907, Page 7

IN BANKRUPTCY.

4 ESTATE OF J. W. McRAE,

The first meeting of creditors in 'the bankrupt estate of James W. Mcfarmer, of Stronvar, was held in the Masterton Courthouse, yesterday morning. The creditors present ■were-.—Messrs J. H. Pauling (Masterton Farmers' Implement Company), J. Carpenter and F. W. Temple (representing C E. Daniell). Mr C. A. Pownall appeared for the debtor. Mr B. J. Dolan for the New Zealand Loan and Mercantile Agency Company, and Mr P. L. Hollings for the petitioning creditors. A protest was lodged by Mr Pow* nail against Mr Dolan's appearance on the ground of want of status. He said the Loan and Mercantile Company should value its security, and prove in the ordinary way to give Mr / .Dolan status. Mr Dolan said the Company had regard to all the circumstances, and had decided to proceed on the present course. He added that the Company had done what it was prefectly entitled to, in executing process. Mr Pownall argued that the Company's action was hardly advisable, as it prevented the debtor from paying off the petitioning creditors. /.. The D.O.A. said that all formah*- •__ ties had been complied with and he * did not think that there would be any sacrifice of assets. Mr Pownall did not offer any ob--1 jection to Mr Dolan questioning the •bankrupt if necessary. Bankrupt, under examination, stated that he had a small grazing arun at Stronvar, leased from the •Crown. His two sons had an adjoining property;*also a Crown lease. Bankrupt's property was mortgaged to the Government Advances to Settlers' Office for £SOO. He had certain bushfelling done on about 200 acres of the property, and he had also •arranged with the Crown for grass •seed to be sown on the property. He borrowed a further £3OO from the ■Government in order to pay the bushfellerd. He and his son had signed certain papers to the New Zealand Loan and Mercantile Agency Com•i . pany. He had been in the habit of mK :giving the Company "a statement of •stock every year, and when he signed the papers he thought it was in con-, nection with the stock account and not a mortgage over the stock. He •found he could not get the Government money unless the New Zealand Loan and Mercantile Agency Company postponed their mortgage over the land. He knew that caveats had been lodged against the land. The itfew Zealand Loan and Mercantile -Agency Company postponed their mortgage and asked him to sign a rfresh mortgage, and these mortgages were made payable on demand. He ■objected to signing on demand, and wanted twelve months by which time he could clear their account. They declined to give any time. The Government money had to be returned. The men who had been bushfelling ■waited from the New Year until now, and then had to sue him and after getting judgment made him bankrupt. He said his statement of assets * and liabilities were quite correct, and he had been forced into his present t position by not being able to finance. He considered he was quite solvent notwithstanding the bankruptcy. He had simply got into a corner for the time being. The New Zealand ! Loan and Mercantile Agency Com•pany's account had been running for about eleven years, and the I Company had been pressing him for about 18 months. He'had 1,970 sheep valued at £1,250. The sheep were running on his own and his sons' place. He had one horse valued at about £l2 or £l3. The other three horses belonged to his sons. All his debts were trade accounts excepting those owing to G. Cork (£ll 2s 6d) and C. A. Pownall (£39). These items were for money borrowed to enable the bushfellers to get tents and stores. He was certain that if he had another twelve months he couldj with the land now being grassed, have paid fully £SOO off. ' By Mr Dolan: He had made private sales of sheep during the past year. He did not pay the money to the New Zealand Loan and Mercantile Agency Company. More sheep than were originally named on the bill of sale still remained. * By Mr Hollings: The workmen had .given him every consideration, and could not help themselves. Their claim for bushfelling at 26s per acre was correct. Mr Pownall said he objected to the sale of bankrupt's stock being con--1 ducted by the New Zealand Loan and Mercantile Agency Company. Mr Dolan replied that the Com- * pany, under its chattel security, was entitled to sell on its own behalf. The Company, he said, was willing to meet the creditors in every way pos- : sible. Eventually it was agreed that if ;any of the other stock auctioneers were available, the sale of the stock •should be conducted by one of them. The meeting then adjourned.