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A QUESTION OF COMPOSITION. Re Ho Shui Chau, an application, for approval of composition, Mr. Wakeman, the Official Réceiver, stated that the case had been before his Lordship for approval of a scheme of composition, and debtor had asked that the matter might be brought up again.
It was decided that the matter be brought up again.
A QUESTION OF TIME.
In the matter of Chan King, the well known contractor, Mr. Holborrow appeared and asked for further time in order that the debtor might
make a statement of his affairs. He believed that he could meet all his liabilities.
Mr. Harston agreed and the time was extended another three weeks.
A DANCING MASTER'S POSITION.
Re J. H. Pidgeon.
His Lordship remarked that there was no statement of liabilities.
Mr. Goldring, who appeared for the debtors said there was no need for it on a debtor's peti. tion. The usual $100 had been paid to the
Official Receiver.
His Lordship. The usual course is to give the Court some notion as to what the facts are.
Mr. Goldring-Provided enough money was paid to meet the expense the order was usually
made.
His Lordship-Oh, no. statement of liabilities.
There should be a
Mr. Goldring-I thought that was only in the case of a petitioning creditor.
His Lordship-Provided the court is satisfied. Mr. Goldring-As your Lordship pleases. The matter was adjourned.
I
CAPTAIN MITCHELL'S AFFAIRS. Thomas Alexander Mitchell, master mariner, attended for his public examination in bank- ́| ruptcy. Mr. Steavenson, of Messrs. Deacon, Looker and Deacon, watched the proceedings on behalf of the debtor and Mr. Grist was present in the interests of Messrs. Ewens and Harston, who were creditors.
Debtor said he was a master mariner in com- mand of the Fook Sang and had been captain in the company's service for ten years. His salary was £37-10 per month. In the statement of his affairs his liabilities were put at $18.829. He had incurred that amount through a divorce action in the court of Scotland. It hung on
for a long time and the liabilities were for lawyers' fees. The claim by John Robert Calver for $3,812 was the defend- ant's costs which were given against debtor as the Scottish Court had no jurisdiction out of Scott land. The claim by Taylor and Rorie were the costs of his own lawyers. Of the claim of $3,500 by Messrs Jardine Matheson and Company, $2,000 was money lent to him by the firm while he was going on with the proceedings in Hong- kong. The other $1,500 was a bond which he entered into with Mr. Keswick, that gentleman having advanced the money to assist him in the action taken in the Supreme ourt, ' The claim by Captain Austin for $1.000 was also in respect of the divorce proceedings. The same applied to the claim for Mr. Veitch for $500, and the claim of $8,425 by Messrs Deacon, Loooker and Deacon was in respect of his own costs. He had no assets beyond his pay except a life insurance policy for £2,000 which he had assigned to Messrs. Deacon, Looker and Deacon. He had only taken out the policy two years. He did so for the purpose of protecting his creditors. He was still keeping up the policy. He assigned it to Mr. Looker by way of a mort- gage in order to secure any monies he might be owing Messrs. Deacon, Looker and Deacon and Messrs. Jardine, Matheson and Company.
His Lordship-They can hardly be described
as unsecured creditors.
THE HONGKONG WEEKLY PRESS AND
The Official Receiver-The policy is a new one and has no surrender value at the present time.
His Lordship-It seems to me in the event of the policy being paid the demands on the estate would be cleared.
The Official Receiver-Yes, in the event of -his death.
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His Lordship-If there is a discharge the policy must go. It reverts.
The Official Receiver He has made a verbal proposal. He asks for adjudication. He asks for adjudication and offers to keep up these premiums on this policy himself.
His Lordship-The difficulty is this. The policy will cover all the liabilities.
Mr. Grist said he appeared for Messrs Ewens and Harston. He objected very much to the debtor paying the premiums on this policy out of the benefit of those two secured creditors. He the pockets of the general body of creditors for had no right to do so and the policy ought either to be sold or surrendered.
His Lordship-It can't.
Mr. Grist-Then let it lapse. Captain Mitchell has run into a great deal of expense in defending actions that were not worth defending.
His Lordship-From what I know of the affair it is hardly aptain Mitchell's fault.
Mr. Grist-I am not dealing with that parti- cular branch. I refer to the action brought against him to recover costs in the Scotch courts. He ran up expense to my clients of $700 in unnecessary and frivolous defence. Now How he comes and offers to pay $100 a month. many years will it take to pay off his liabilities at that rate. I submit Captain Mitchell has not dealt with his creditors in a way that we should have thought he would have. Here is a case where costs are given against him. Instead of consenting to judgment he fights it and runs up a great deal of expense irrespective of the other action in which he would have to pay the whole
costs.
His Lordship-It appears to me there is something not quite regular. I do not see how creditors who have an insurance policy in their hands can be described as unsecured.
The Official Receiver It proves as an un- secured creditor.
His Lordship-They must surrender the policy. It is quite clear that the proceedings at present are irregular. There is a preference of $100 a mouth to these two creditors.
The Official Receiver-He is allowed to do as he likes with his salary.
Mr. Grist ertainly not. He is entitled to sufficient sustenance out of his salary.
Mr; Steaveuson said they viewd this question of the mortgage of the insurance policy as of no security whatever. The policy was a new one and had no surrender value. It was only a security in the event of his death. Owing to the fact of Captain Mitchell's precarious life at sea they thought it would be well for the general body of creditors, as also for themselves, if Captain Mitchell took out an insurance policy.
His Lordship-It seems to me you cannot hold it.
Mr. Steavenson - It is not for our individual benefit. It is for the benefit of the general body of creditors. There is a clause in the deed of mortgage that it is for the benefit of the general body of creditors. As to frivolous defence mentioned by Mr. Grist he had not stated the case correctly. We were advised by counsel that the assignation in this case was bad because the consideration mentioned in the deed was not sufficient. The action was practically dis- regarded.
Mr. Grist-The defendant got a receiving order which was stay of proceedings, otherwise the action would have been proceeded with.
His Lordship-It remains for the creditors to arrange a scheme.
Mr. Grist indicated that he would like to ask the debtor a few questions.
How long have you been in the employ of the company as captain --Nearly ten years.
And during that time you have been drawing a salary of £37 10s P-No, the salary varies from the start until ten years.
How much had you when you started first P.-—-—--- £30 a month.
That has gradually risen to the present time ?—Yes.
His Lordship What were the dates of the proceedings in Scotland ?They started in 1906 and concluded in 1906.
For these ten years you have been in receipt of a salary of upwards of £30 a month. I take His Lordship-It is a peculiar position.
it the ship supplies you with board and lodgings. The Official Receiver-He proposes to ask for You have only to supply yourself with clothing? adjudication.
---Yes.
[January 18, 1909.
What do you spend generally for clothing About $100 a month ?More than that.” Clo- thing, I should say, costs me over $200 a month. Your own personal expenses, I mean P-1 would put them down at 3200 a month.
How do you spend it?--I don't quite know. lead a very quiet life. I spend all my spare time on board the steamer.. I am a strict teetotaler, but still my expenses go up.
How P-I could not tell you. I call at nine ports on the run from Yokohama to Calentta. I have expenses in all these ports, and I find that to keep up my position runs me up to $20) a month.
Are you not making a mistake P-No. You are at sea four out five days f---Oh, no. How much of your time are you at sea P Not one half,
Supposing your expenses come to $200 a month, you can pay $200 to the Official Receiver P-I have my mother and three sisters at home, and I occasionally send something to them.
Are they dependent upon yon P-Not entirely. Are these presents of money included in the $200 a month? No, I should say more than $200 a month.
His Lordship-The other creditors are litiga- tion creditors
Mr. Grist They are creditors, and every effort should be made to pay them. No man has a right to live extravagantly when part of the money ought to go to his creditors. What right has a man to make presents when he is a debtor? These creditors have just as much right to be paid as any other.
His Lordship-The man has to keep up his position.
Mr. Grist-He offers $100 monthly. That is $1200 a year. It will take him fifteen years to pay off his liabilities. I submit that your Lordship should make an order for him to pay $200 a month. (To debtor). Do you pay the premiums every month P-No, every quarter.
Since this petition you have paid one or two premiums -Two or three.
Mr. Grist That should not be. If they have. taken up this policy they must keep up the premiums themselves. It should not be taken out of the estate.
His Lordship-The policy covers the whole of the debts.
Mr. Grist-Yes.
His Lordship-It meets the claims of all the creditors.
- !
Mr. Grist-No, my Lord. There is no men- tion of the other creditors. After payment is made to Messrs. Deacon, Looker and Deacon, and Jardine, Matheson and Co. the balance goes
back.
His Lordship If the assignment is for the general body of creditors there is no very great objection.
Mr. Grist--If the assignee will transfer it to the Offical Receiver for the benefit of the creditors I should not object.
His Lordship There no doubt the policy is big enough to cover the whole of the debts. If an arrangement could be made for carrying out.
Mr. Grist-Meanwhile the claim of the creditors mentioned is the first charge upon it.
His Lordship—I don't think it is possible to close the public examination. It seems to me that the matter rests with the creditors to make some scheme among themselves.
The Official Receiver-I understand the debtor intends to apply for adjudication.
His Lordship-Has there been a meeting of
creditors?
The Official Receiver Yes. It was resolved that he be adjudicated bankrupt.
His Lordship What would the result be? The Official Receiver-Everything goes to
the trustee.
His Lordship-They cannot prove as un secured creditors and retain the policy. The Official Receiver-That is so. His LordshipI think we can close the examination.
The Official Receiver and Mr. Grist said they had no objection.
Mr. Steavensen asked that Mr. F. B. Deacon be appointed trustee.
Mr. Grist objected
His Lordship said the matter had better rest with the Official Receiver.