Gannon’s Bankruptcy.

Gisborne Standard and Cook County Gazette, Volume III, Issue 432, 22 March 1890, Page 2

Gannon’s Bankruptcy.

A meeting of the creditors in the estate of M. J. Gannon was held at the Courthouse yesterday afternoon. Present: Dr Pollen and Messrs Kenny, Day, Adair, O’Ryan, Ratcliffe, Ward, Erskine, Scrivener, Maunsell. Moore, R. Watson, Keefer, G. Watson, Tutchen, Maude, Dickson, Jones, Rees, Sievwright, and Bailey. Debtor said there was no liability on Matawhero No. 1 block, but it was impossible to put a correct value on it until they knew what work there would be in it. In regard to the book debts he said they were connected with the Poututu, Whangara, Tokomaru, Waipiro, and other blocks, but the Judges had to decide who was to pay the cost. There would be about £3OO secured. Mangapapa Block he said he did not consider was worth the liability upon it. The delay in getting the survey made was the sole reason of the certificate of title not being obtained in Pukemaura Block; he estimated the value at 15s an acre. The land would eventually have to be obtained to gain access to Government land. Pakirikiri, 10 acres, was valued by the County Council at £l7 an acre, and was held by the Loan and Mercantile for security on advances made. Whataupoko No. 7 (70 acres) he valued at from £4 to £5 an acre—£4oo full value. It was mortgaged for £3OO, the business being transacted through Mr Gully. He had no other assets except those mentioned in the schedule. He kept aimpleaccountsof transactions made. He kept no cash book, and was sorry to say his business produced very little cash. Owing to tbe state of the native land laws it was almost impossible to get any business done and when it was done to get any cash for it. In 1888 he bad had a meeting of his creditors. Ho had not kept a record of what took place, but he did not think he had increased his liabilities since, except that £172 was due to Mr Sievwright on a property in which he (debtor) was only nominally owner. The mortgage was foreclosed and £172 was the difference. Legal expenses had also increased, but not private liabilities, as he bad taken care to let hie creditors know his position, laying it fully before them. Had called n meeting of his creditors in January last. Expenses had increased in oonnection with the survey of lands and also legal ex. penses. Dr Pollen asked whether Mr Dickson’s account of £97 odd bad been increased since the last meeting. Debtor said be bad bad several transactions with Mr Dickson since.

Mr Moore said Mr Gannon had stated at the meeting in 1889 that his liabilities were £7so—at most £9OO. Debtor said if Mr Moore had an account of what took place he would say whether or not it was correct. It was through such persons as Mr Moore, who did not send in their accounts and gave credit without consulting him, that the total was made more than he thought it was. Dr Pollen substantiated what Mr Moore had said, having a clear recollection of what took place. At the meeting referred to the debtor was to have given them 10s in the pound, The debtor said at that time he had interests in Matawhero and Haiti, which he reckoned would have left him solvent, and with something to the good. A proposition had been almost unanimously agreed to at the meeting referred to, but instead of the thing being settled as he had hoped, the Mangapapa. properties, worth £4O and £5O per acre, had been forced into the market and sacrificed. This he attributed to being pushed by creditors for small amounts, like Mr Moore, when he (debtor) was trying to do hb beat in the interests of the creditors. Mr O’Ryu* in fairasu W Mr Gannon*

would like to state that he was at the meeting referred to when Mr G mnon eaid ho estimated his debts at £BOO, but Mr Graham had shortly afterwards suggested he shoii d reckon up the claims of those persons io the room, aud these alone had amounted to £l4OO. Mr Sievwright would like to know how debtor arrived at the value iu tho Pukcm >ura block, which he had s iid was worth fifteen shillings an acre. If that was so they would very quickly have a clean sheet. The debtor said the Land Company hid some land some 30 or 40 miles inland, and it was valued at ten shillings an acre, and his land being so much nearer the sea fifteen shillings an acre would be fair. Mr Tutchen: Do you remember offering the land to me for sale? The debtor : I do not know. Mr Tutchen: Yes, you offered it to me for seven and sixpence an acre and I said I would not give you two and sixpence an acre—that it was only fit for pigs to run on. Debtor (sarcastically): Did you? Mr F. Jones denied the accuracy of Mr Tutchen’s statement as to the value of the land. It was good land, and worth at least ten shillings an acre.

Mr Rees said it was not much use quarrelling about ths value of the land unless information could be obtained that would enable creditors to judge wbat io do in the matter.

Mr Maude suggested that Mr Gannon should lay some proposal before them. Dr Pollen Slid that unless Mr Gannon could show his way to pay 20s in tho £ ho (Dr Pollen) should oppose him on principle. Only a trifle was owing to him, but it wa« time such a state of things should be prevented. Mr Gannon had been in the district for a number of years during the good times, and had plenty of opportunities of making money, and he (the speaker) could not help thinking that the state into which his things had got could not have been so except from gross carelessness if not from something much worse. By tho bankrupt's schedule it Would appear that he owed large sums to tradesmen in the town, and yet be was to be seen swaggering about, spending money on elections and in publicbousee and elsewhere, making political speeches (which were very good indeed) and so on. The other day the bankrupt had headed a deputation and had gone to the B irough Council, to represent the public of Gisborne. The deputation had told all about the depression and had pointed out the cause of it, which was said to be due to native land laws, the harbor, and such things. While admitting that legislation had put things in a deplorable state he (Dr Pollen) considered that the place was kept back more by men like Mr Gannon who did not pay their just debts to tradesmen, tho consequence being that tradesmen could dot pay each other, and everyone was affected. Bad legislation had to be blamed for many of their troubles, but he regarded mon like Mr Gannon as no credit to the district. The debtor interposed and said that such remarks should not be allowed, and referred attention to tbe fact that that was a publio

place. The Assignee said that he would see that personal remarks were not made. Ho could not allow Dr Pollen to continue in that strain. Dr Pollen .did not wish to refer to Mr Gannon personally. It was in regard to his actions that he spoke. It was in a etriot sense of duty that he felt prompted to refer to these bankruptcies. Creditors were time after time attending like meetings aud hearing read nonsensical statements from which uothing resulted. They had a Judge now who'had expressed the opinion on the Bench that when creditors came before him to oppose the discharge of a bankrupt, in whose estate there were no assets, the discharge would be refused. Mr R. Watson : When did he say that ? Dr Pollen said it was reported in the papers, and he could not see that Gannon’s case was any better. He was not saying this through ill-feeling, (Debtor: Certainly not 1] hut as a public duty. The bankrupt was quite welcome to have the amount due to the speaker. Mr Dickson corrected Dr Pollen, and stated that it was he (Mr Dickson) who was at ths head of affairs with regard to the deputation concerning the Ministers, and setting forth the district’s wants. Dr Pollen: Mr Gannon acted as spokesman.

Mr Dickson said he (the speaker) had got the whole thing up, and was tbe primary speaker. It Dr Pollen had correctly stated what had retarded the district, it would be that it was wanting in men of publio spirit at the head of affairs. [Dr Pollen: Hear, hear I] If they had proper legislation, men of foresight, and proper conduct of public bodies, it would be very beneficial in placing things in a mon satisfactory position. When a man was down, it was better to show a good spirit, and give him a helping hand along. Dr Pollen: Certainly, it he is Reserving of it. Mr Sievwright said it seemed to him that the people who had allowed Mr Gannon to get into debt should take some of the blame to themselves and not turn round and throw everything upon the bankrupt. He was rather gratified sometimes to see people get nipped, to teach theme lesson. [Mr Maude: You can have all my nips.] It would be better to have an offer and have the business closed instead of going on bickering over semipolitical matters. Mr Rees agreed with Mr Sievwright’) view that they should come to the business before them. Dr Pollen had been very warm and in matters of the kind some allowance could always be made for warmth of feeling, but they should all reoognise that unless there were actual fraud, when a man got placed in such a position tbe first duty of the creditors was to try and get as much as possible out of the estate. If some arrangement were oome to by which the debtor should assist in getting the land matters settled something was oertsin to accrue to the creditors, but it the estate was left in the hands of the Assignee praotioally nothing could be got out of it, on account of the complex nature o! tbe titles. He would move that the bankruptcy be annulled, andJ that two trustees be appointed to tbo estate, and to bs assisted by Mr Gannon. Mr Maude said he had asked the debtor if he were agreeable to the proposition and Mr Gannon said he was. He (Mr Maude) would second the motion. As Dr Pollen had

made such a vigorous onslaught upon Mr Gannon he would like to say a few worda on the other side. He considered that Mr Gannon had been a very serviceable publio man, and had given his time and abilities in the service of the County Council, the Harbor Board and in other ways. He had also contested elections though not successfully. When he was down they tried to keep him down. He was only a young man —let them give him a clear quittance to go and make a fresh start in the world. Some of the creditors there present might come down and they would not like to be treated as some wished to treat Mr Gannon. [Dr Pollen :Mr Maude 1] He treated Mr Gannon as a private friend. For months past ths debtor had tried to find a means to prevent having to go through tbe Court, but had been unable to do so. He wanted to do what was right between man and man, and they should help him out of the difficulty. The motion was then carried, the voting being as follows, by proxy otherwise Fir: Adams, Ashdown, Bailey, W. F, Crawford, R. Craig, A J. Cooper. M. Davis, Dickson, Gibson and Hall, W. Gray, Lucas, Henderson, Marcroft, Maude, Matthews, Rees and Day, W. L. Raos, Sievwright, Stevenson, Siddons, Tansley, Tucker, I. C. Taylor, R. Watson, Ward, Ward and Cresswell, Jones, Kenny, Finlay. Against: J. Clark, Erskine, Forster, R. Little, Moore. Messrs Adair and Mauneell declined to vote, and Dr Pollen had previously left tho room.

Mr Bailey proposed Messrs Townley and Adair as Trustees, but Mr Adair had declined and Mr Townley, who had just arrived, said ho certainly would not act. Mr Maude proposed, Mr Kenny seconded, Mr Sievwright. That gentleman said he had »o wish to act, but would do.so if he oould assist the creditors.

Mr Rees proposed, and Mr Dickson seconded, Mr Ratcliffe. Tho trustees nominated were appointed by eight votes to three, the dissentients being Messrs Moore, Townley, end G. Watson. Mr Day said he held a number of proxies which ho might put in, but tho Assignee Mid it did not matter, as ths motion would b* tartiod in nuabtt *Bd valus.jj