THE DUNEDIN BANKRUPTCY.

Wairarapa Daily Times, Volume XIII, Issue 4138, 15 June 1892, Page 3

THE DUNEDIN BANKRUPTCY.

J [By Telegraph.] Dunedin, June 14, The meeting of Arthur McDonald's creditors promises to furnish sorao { , startling revelations. It is alleged that the bankrupt forwarded to Engs e land large quantities of rahbitskins and wool falsely puoked with inferior qualities beneath the surface. The bankrupt s'ated that in the early povt of 1890 he was worth £20,000. Owing to a fall in the wool ) market of 20 to 25 per cent, he incurred a loss of about £40,000. This left him owing Brooks and Co, lon- ' dun, ahout £15,000, and Low, Sons 1 and Bedford atout £6,000. He saw i these firms, and they gave him fresh '' credit and allowed him to go on, On 1 his return he made a commission of £I,OOO on his first large order to buy oats, which it seems was paid pro- ' rata to the firms. Other orders came | in, which lurncd out well, und the prolits he made wero placed in his v wife's hands as trustee. He first heard 1 of the coinpiainta of false packing of 1 rabliitskinß on his arrival at Hobart ' in October. He admitted giving the * instructions detailed in the evidence of his employers as to the packing, but .denied that it amounted to false ' packing, ' A letter was put in sent by the ' bankrupt to Low, Son«, and Bedford, j who had complained of the false packing of wool, in which it was stated i that an expert hid been engaged to ' undertake the packing and classing ' who had no interest in packing in the 1 manner complained of, except to show ' s;ood results from biß work, It con- ' eluded, " It is needless to say that he is no longer In my employ." Cross--1 examined as to who this meant, the \ bankrupt had to admit that the ex- < pert had not been in charge of Low's ' wool complained of.

Davis, who packed the wool com< plained of, then gave evidence that he did so according lo McDonald's instructions.

All through the enquiry ''Mr Hosking who appeared for the bankrupt, kept up a vigorous protest a3 to its conduct and scope, He said the meeting had been converted into a tribunal of an extraordinary character, They had been brought there not knowing what they had to meet. Charges of extravagance of living were made, as well as a number of others, at the instance of one creditor, who had at his disposal the bankrupt's clerk and book No meeting cf creditors was ever intended for such a purpose. A motion giving the bankrupt live guineas a week for four weeks was carried unanimously