M. J. Gannon’s Bankruptcy.

Gisborne Standard and Cook County Gazette, Volume III, Issue 442, 17 April 1890, Page 2

M. J. Gannon’s Bankruptcy.

An adjourned meeting of the creditors in the above estate was held yesterday afternoon. Among those present were Messrs T. Cbrisp, Little, Clark, Townley, Moore, Lewis. Ratcliffe, E. J. Chrisp, Day, G. F. Henderson, C. Watson, Maude, Kenny, J. Brown, Grant, Tutchen, Bright, and Dr Pollen. The debtor denied owing an amount of £750 put in by proof from the Bank of New South Wales, and the Assignee said having nothing before him he could only allow of £29 9e admitted being put in. Mr Day moved that the meeting be adjonrned for a month. Several large creditors were not present and it would be only just to allow them an opportunity of attending. The Assignee said there was no power to adjourn in that manner. If the composition were not dealt with within a month it would lapse. Mr Day allowed that that view was correct. The Assignee then read the report sent to creditors, in which he neither advised accepting or rejecting the resolution. The resolution to be confirmed or rejected was that the estate be taken out of bankruptcy and entrusted to the administration of Messrs Sievwright and Ratcliffe. The debtor said he would object to the amount of £29 9s from the Bank of New South Wales.

Tbe Assignee said the claim had been transferred to the Bank. The debtor said there were several other claims which he did not think to be right, because claims were made against him on account of land which had long sines pasted out of his hands. The Assignee said the debtor had any amount of time to attend to these things before. Debtor said his time had been fully* taken up. In reply to Mr Townley the Assignee said he did not see how he could get a shilling in the pound or anything out of the estate, and he aid not think trustees could do any better.

Mr Townley said then It was one of those estates that should go to tbe Bankruptcy Court. It was clear that if there was nothing in it they had been deceived. He wae eorujk Mr Rees, the mover of the proposition, not present, or he (Mr Townley) would few remarks to make concerning ibis and Ks own estate. It seemed to him that a few lawyers were just getting these estates in their bands and robbed the people of th* plao«— that was the straightforward business wav of putting it. They bad now another £BOOO affair and yet were asked to taka it out of bankruptcy simply to give a respectable appearance to it. He hoped that everyone who wished to pay his own way would oppose the resolution. If they were to be robbed of £3OOO in one estate and £2OOO in another how were persons to be able to pay their wav ? Ho thought the proceedings in this bankruptcy simply a disgrace to the Court itself, and that some of those who should support the law instead of doing that were trampling it under loot, and it was quite time this sort of thing was moved against. If it were not etopped and their faces set against such bankruptcies they would be compelled to go the same way. He intended to vote againet the motion, and he hoped that all who wished to pay their own debts would do the same thing. Tho debtor said he could quite understand the very etrong position Mr Townley had taken up. Mr Townley above/dl men oonld not possibly say ho had not known hit (the debtor’s) financial position for yean past. It was only lately that creditor had taken span adverse attitude. The debtor wont on to draw conclusions from the fact that tho solicitor for the Public Trustee wae Mr Townley's son-in-law, and to allege that th* solicitor had forced the debtor’s Haiti properties into tbe market, notwithstanding that the interest had been offered. The property, he said, was sacrificed for £lB an acre. He had spoken to the Trustee on the matter when he was in Wellington, end that gentleman had spnken strongly about the matter. Had he bad time he would have petitioned Parliament to enquire into the matter. Debtor then went on to characterise as scandalous the claim for £760 put in by the Bank of New South Wales. He said other accounts had been put in in a similar way, euoh for instance ae Mr Tutchen’e, who, M. said, bed piled on more than, was owing. Mr Tutchen: 1 had to pay that. Assignee (laughing): Allow the debtor to go on, Mr Tutchen. The debtor then went on to challenge Mr Townley, or any one else in the Bay, to prove that he had deceived anyone—he had actually paid hundreds of pounds hs was not legally bound to pay. He had advised creditors not to press him, bnt he had not only been pressed but illegal claims sent in. No one had known his position better than Messrs Townley and Adair, msn of keen business insight, with whom he had had business dealings for th* last 15 years. There had been no deception of any kind in connection with the estate—what was owing to private creditors was a mere bagatelle to what he had been made liable for in the way of surveys of native lands, etc. Debtor then went on to abuse the Standabd. The information must have been got from either Mr Townley or Mr Adair. He stigmatised the facts as falsehoods, insinuated that they were undercuts from people who had private purposes to serve, and in other ways created a neat little burlesque which gave a certain class of amusement without doing damage to anyone excepting perhaps the bankrupt himself. Then the air of injured virtue was carried to still greater lengths, and the bankrupt portrayed himself much in the nature of a saint who was being persecuted by a number of people who were ruining the interest of the bulk of the creditors. Mr Maude endeavored to put a better face on things. Messrs Townley and Adair had not been able to make anything out of the estate, and the Assignee said be could not, and why not let Messrs Sievwright and Ratcliffe have a try ?—if they only got a penny it would be something. He testified that some of the properties worth honestly from £l7 had been sacrificed for £5 an acre. Mr E. J. Chrisp wanted to know whJHU they wore worth eo much more, Mr Maude had not purchased them ? Mr Maude said hs would h»ve to compete for tbe lot. Mr Ohriep said the two properties had ban sold separately. Mr Townley said the estate had bees in trust for five year* and it might just as well be left to tbe Court at once.

Debtor denied that tbe estate had been in the bands of th* trustees for five years. Mr Townley pointed opt that account* dating back five years had been sent in, It wae batter for them to go homo and strike their pens through the name in their ledger, and keep ouch names out. He wae surprised at * man of Mr Maude’s business ability pleading tho cause of such a bankrupt, Without he wished to follow in tho same way. Debtor, having cooled down, said that he had previously paid 20s in the pound, 17* fid had been stated in the Standabd, but it had been agreed to allow some small amount for dieeount. He said there was no use of them carping and quarrelling over tbe matter, and if they took a reasonable view they would see that his position was brought about by th* decline in the value of land. Land that had sold for £4O an acre subsequently only brought from £6 to £8 an acre. Some of the biggest institutions in the colony had been affected it* the same way. The motion was then put and resulted as follows, voting by proxy being allowable, but oreditora not represented counting as against i— Fob—T. Adams, W. Ashdown, J. Bailey. E. J. Beresford, A. J. Cooper, W. F, Crawford, E. Craig, Proxy, T. J. Dickson, J. Finlay, Gibson and Hall, W. Grey, G. F. Henderson, Tho*. Harris, F. Jone*. H. K. Johnston, J. T. Large, C. C. Lncaa. H, Maroroft, W. Maude, C. Mauneell, A. F. Matthews, O'Ryan, W. Ratcliffe, Rea* and Day, W. L. Reea, 8. Stevenson, F. Tanelev, Taylor, Tucker, Walsh, Ward, Ward ana Cresawell, Watson, Weston, On, andn Brassey. Value, £865. » Against—W. Adair, Brown and Smail], J. Clark, Chambers, Cook County Oonncil, Graham’s estate, Keefer's estate, Erskine, Foster, .Finn end Chrisp, Grant, E. S. Goldsmith, King, Dr Innes, Johnston and Co., Little, G. R. Moore, Dr PoUen, 81ddone» . Sievwright, Townley, Tharratt, Tutchen,