IN BANKRUPTCY.

Wairarapa Age, Volume XXX, Issue 8407, 23 April 1907, Page 6

IN BANKRUPTCY.

ESTATE OF J. W. McEAE. The second meeting of creditors in the bankrupt estate of J. W. Mcßae was held in the Masterton Courthouse yesterday afternoon, before Mr W. B. Chemiells, D.O.A. The creditors present were .---Messrs J. H. Pauling (representing the Masterton Farmers' Implement Company), J. Carpenter, E. G. Eton and J. Wickens. Bankrupt war. represented by Mr C. A. Pownall. The D.O.A. stated that the meeting had been called to ascertain the true position of the partnership between the bankrupt and his son, J. > F. Mcßae. He proposed to examine the bankrupt and his son separately. It would then be necessary to see what steps could be taken to realise the assets in the estate, Mr Pownall asked what were the reasons for examining the son. The D.0.A.: To clear up the partnership and get at the bottom of the whole affair. Mr Pownall asked whether the Loan and Mercantile Agency Company had proved their claim; if not, what right had Mr Dolan to be present? The D.O.A. replied that Levin and Co. had put in a claim, and Mr Dolan was acting for them. Mr Pownall: A friend in need is a friend indeed. He that Levin and Co. had put in a claim to give the New Zealand Loan and Mercantile Agency Co. status. The D.O A. asked Mr Rollings to act on his behalf, as Mr Dolan, who usually acted for him, was engaged by another client. Bankrupt, under examination, state that he executed a deed over 790 sheep in August, 1903, to the New Zealand Loan and Mercantile Agency Co. He was in partnership with his son at that time with regard to stock nn his place only. The partnership had been in existence since that date only, and the partnership had bought and sold sheep. The sheep bought and spld through the New Zealand Loan and Mercantile Agency Co. had been bought and sold on behalf of the partnership. The reason why the partnership existed between the bankrupt and his son in regard to the stock was because there was no boundary fence between the properties, and it would have cost a great deal to fence off the properties. The property consisting of 1,250 acres was owned entirely by himself. He had no interest in his son's property beyond the fact that he acted as attorney. He had never executed a mortgage over his own property to the Loan and Mercantile Co. He had understood that the Loan and Mercantile Agency Co. had lodged a caveat against the title of his property. By Mr Dolan: There was no deed of partnership between bankrupt and his son. He and his son shared all profits and losses over the sale of the stock. With regard to the execution of a tleed to the Loan and Mercantile Agency Co. he said that he really mortgaged his property to the company on the understanding that they carried him on until he was clear. James F. Mcßae, son of bankrupt, examined by Mr Dolan, stated that he took up property in February, 1899. In 1903 he and his father mortgaged their sheep to the Loan and Mercantile Agency Co. to secure a current account. They had other joint accounts together since that date. Everything that was purchased through the Loan and Mercantile Agency Co. was purchased in the joint names of himself and his father. He and his father signed an application for a loan of £IOOO from the Government over the two properties. There were no other accounts exceeding £2O in the joint names. By Mr Pownall: There was never any partnership between him and his father, except as to the stock on the properties. He was no party to the bushfelling contract on Stronvar. * The bankrupt submitted a list of articles on his property that were unencumbered. These, with the exception of a horse and cart, the D.O.A. was authorised to sell privately. Mr Pownall asked what was going to be done with the grass seed that was offered by the Government for sowing on the property. The D.O.A. was authorised to make the best terms he could with the Government to procure the grass seed for the property, and to employ thejjankrupt and his son to sow the seed over the 400 acres. The D.O.A. stated that he would take legal advice as to the securities held by the Loan and Mercantile Agency Co. If the advice was unfavourable to the securities he would sell the property subject to the mortgage to the Government for the grass seed and the cost of sowing the seed. The meeting then adjourned.