IN BANKRUPTCY.

Wairarapa Age, Volume XXXII, Issue 3152, 1 April 1909, Page 5

IN BANKRUPTCY.

ESTATE OP B. AND S. DO T JGLAS. A meeting of creditors in the bankrupt estate of Bernard Douglas, farmer, of Opaki, and Susie Douglas, his wife, was held in the Courthouse, Masterton, yesterday afternoon. Mr W. B. Chennells, Deputy Official Assignee, presided. The only creditor present was Mrs Barnett, of Palmerston North, who was represented by Mr C. A. Pownall. Bankrupts were represented by Mr 0. Pragnell. The written statement of bankrupts is as follows:—We started bus 4 - ness in Feilding as private hotel proprietors in 1903, the business of which we sold in August, 1906, for £675, and after paying all liabilities had a net capital of £450. We then purchased a lease of a dairy farm near Feilding, the purchase money being £BOO, including stock, upon which we paid £450, the balance, £350, being payable by instalments. As the lease had nearly expired, we advertised a sale of the stock, etc., and subsequently a client came along and entered into an agreement to purchase the lease and stock as a going concern for the sum of £650. We then withdrew the property and stock from sale. The purchaser declined to complete, and under instructions from our legal adviser in Feilding we put the stock and lease up for sale again, with a view to suing the purchaser for damages for breach of agreement, but owing to the bad season the stock and lease fetched only £290. This sale took place in August, 1908. Prior to this, we again entered into business as boardinghouse keepers in February, 1908. We did this as the previous proprietor had become insolvent, and the landlord, who owned the furniture, | induced us to take it for a period i of six months. Ws found that this | business did not pay, so at the end 'of the six months we came out of it. In respect of agreement entered into for the sale of. the farni near Feilding, the purchaser became liable to us for about £4OO, which we sued for, but the matter is not yet settled, as we did not feel inclined to risk more money in going on. At this time (August, 1908), we had a capital of about £l5O, and purchased from Mrs Barnett for £550 the equity of a dairy farm of 105 acres at Linton. We also took over from Mrs Barnett the stock, etc., amounting to £425, making the total purchase money £975. To finance this we borrowed £3OO from Mr T. Strawbridge, and gave him a second mortgage over the property, and a bill of sale over the stock. Our three sons also lent us £250 without security; and we also gave to Mrs Barnett a bill of sale to secure £275, subject to the one given to Mr Strawbridge. Owing to this venture not proving remunerative, our next step ,was to exchange on level terms the dairy farm for the property we now occupy at Opaki, the interest in each property being £1,500. After we had entered into the agreement for exchange, Mr Strawbridge and Mrs Barnett declined to allow , Messrs Churchill Bros, to take over the stock subject to their securities. A sale by auction was then made by the mortgagees, and realised sufficient to pay off Mr Strawbridge, and a small amount t© Mrs Barnett, which, together with the instalments already paid, reduced the liability on her bill of sale to £2OO. Mrs Barnett sued us for the £2OO just mentioned and also £25 in addition thereto for a hprse and dray purchased from her. We have tried hard to sell the Opaki property for just sufficient to pay everyone 20s in the pound, but have been unable to do so. The Opaki property consists of 186 acres of agricultural land, and there is owing on upon it the sum of £3,575. Had time been given us, and reasonable terms made, we think we could have pulled through, but in view of the pressure put upon us we had no alternative but to file our petition in bankruptcy. Bankrupts were examined at length by Mr Pownall and Mr Pragnell. The meeting then adjourned sine die.