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-- PaulKlemick - 08 Sep 2007

IN BANKRUPTCY.

RE JOSEPH HOFFMAN.

A meeting of the creditors in the above names estate was held yesterday. Mr. R. Dewar, Deputy Official Assignee, presided. Mr. W. Henderson appeared for the bankrupt, and eight or ten creditors were present at the meeting.

In the course of his examination the bankrupt said he had been in business as a coal miner for about 11 months. He produced his books and handed them over to the Assignee. His only assets now were about £15 of book debts, and there was no money owing to him except what was down in the books. His brother (Thos. Hoffman) did not owe him any money. He had a lease of the coal pit (Johnston's), but it was in his brother's name.

Mr. Henderson wished to explain that the lease from Johnston was to Thos. Hoffman. It began in March of last year and was for a term of two years. There was a clause in the lease against transferring during the first nine months. It had been proposed to transfer the lease from Thos. Hoffman to the bankrupt for a nominal consideration of 10s, but that had not been carried out. Johnston, objecting to accept the bankrupt or to release Thos. Hoffman. When bankrupt was behind in his payments of royalty, Johnston (or his agent) sent a claim to Thos. Hoffman. Bankrupt had the right from Thos. Hoffman to work the pit for his own benefit.-(A creditor. "At our expense.")-but Thos. Hoffman had taken it back as from the first July. The plant at the pit belonged to Johnston, and the two horses he worked belonged to his brother. He had paid £15 to his brother on account of one horse, worth then £25, but he could not say what it was worth now. Since he had filed he had received no money and had paid no money away. He paid £9 9s 9d royalty on Saturday, the day he filed. He had been going back from the time he started in the pit (in August last), and had not kept any bank account. His earnings in June were about £68, out of which he had to pay 2s 6d a ton for digging, which came to about £31 12s 6d, royalty £9 9s 9d, and out of the balance there were two men to be paid and two horses kept. One man was getting 35s a week and found, and the other 20s and found. He had paid them their wages and had found feed for the horses.

To Mr. Shirley: He bought a horse through Wright. Stephenson and Co. from his brother. His brother resumed possession on the first of July. The account against Tregilgus up to last Thursday included part of his brother's account. He collected from Tregilgus last Thursday £23 odd.

Mr. Shirley said the amount was £24 7s 6d.

Bankrupt, continuing, said he had also received money from Newman. He paid Johnston's royalty (£9 9s 9d) on Saturday afternoon after he filed.-(Mr. Henderson: Under my instruction.) - He had a bicylce but it belonged to O. J. Wilson. He had paid all wages, as soon as he got the money from Newman, up to the end of June last.

To Mr. Henderson: His brother had to pay wages from the first of July. He got a cheque from Tregilgus the previous month and £32 of that went for wages. His brother went to the pit last Friday night, but did not take any horses away.

Mr. F. C. Smith, solicitor for Mr. Johnston, explained the position of the pit as between his client and the Hoffmans. Mr. Johnston had not recognised the bankrupt as his tenant, though he had paid royalties, but always looked to Thomas Hoffman. There were reasons for so doing, and for not agreeing to the proposed transfer from Thos. to Joseph Hoffman.

In answer to Mr. Henderson bankrupt said that one horse belonged to his brother. The £[]5 mentioned was for anothe horse and harness. He had paid £15, and the harness was now worthless, and his brother took back the pit and the horse as from 1st July.

Several creditors (Messrs Shirley, Roberts, Buchanan, Paterson, and Turnbull) were dissatisfied with bankrupt's conduct and dealings, and Mr. Shirley wanted to know where the £40 that Mr. Henderson had estimated the book debts at, and offered a divident of 4s in the £ on, was now.

Mr. Henderson said £8 or £10 had gone in costs of filing, and that was equal to 1s in the £.

Mr. Shirley asked for an order from the Assignee to take possession of the horse which was still at the pit, but Mr. Henderson said he had better be prepared to pay the balance of the purchase money-£10.

After some further discussion it was resolved on the motion of Mr. Paterson, seconded by Mr. Buchanan, that enquiries be made regarding the horse at present in the possession of Thos. Hoffman; also the bicycle, and that the Assignee take legal advice as to the position of the creditors in regard to the horse and the pit.

It was also moved by Mr. Turnbull, seconded by Mr. Roberts and carried, that the meeting be adjourned for a week, and that the bankrupt prepare a statement of receipts and expenditure in detail from the time of his taking possession of the pit.

Mr. Henderson promised to get this statement, and the meeting adjourned. "The Mataura Ensign", 21 July 1904.