Cambridge Chronicle

Friday 16th June 1899

MR. J. M. LOGAN’S BANKRUPTCY

CREDITORS’ MEETING

THE SUGGESTED HOLIDAY.

A meeting of the creditors of John Maxwell Logan, boat builder, of Chesterton, was held at the office of the Official Receiver, No 5 Petty Cury, on Monday. The Official Receiver (Mr. E.W.J. Savill) presided. Legally the meeting was a small one, as the only creditors present who had proved were Mr. G. Stace and Mr. H. Gatliffe.  The Official Receiver also held a proxy, and these three constituted the meeting.

The following is a copy of the Official Receiver’s observations supplied to the creditors: –

“The Receiving Order was made on the debtor’s own petition and he has been adjudged bankrupt. The bankrupt states that he commenced business as a boatbuilder on the death of his father in March 1883, when he took over the business with the stock in trade.  There was no cash capital, but he estimates that the business was solvent at the time.  He does not appear to have kept proper books of account.  He has kept no cashbook, and his ledger contains only accounts owing by debtors.  He acted as election agent to Sir G. Newnes up to and including the election of 1895. He states he was not aware of his insolvency until a week before the receiving order, and he gives as the cause of his insolvency: – ‘Pressure by mortgagee, Miss Attack, and in consequence of her issuing writ to realize her security, also loss of trade by the amount of bicycling interfering with the boat trade, and the diversion of boat building from Cambridge to London.’  Of the unsecured liabilities one creditor for £10 is returned as for money lent.  The properties held by secured creditors are as follows: – (a) A plot of land with boat-houses, and a cottage and garden mortgaged for £800, the amount now due being £863 5s. 8d. The security is estimated at £1,000, the amount at which it was valued in 1895, but the property has recently been offered for sale without finding a purchaser. (b) The freehold property known as “Logan’s Boat Yard,” and a house and garden on the Chesterton Road, mortgaged for £1,500, now due £1,532 12s. 6d., estimated as of no value beyond the amount secured.  The mortgagees in this case also hold two policies for £500 and £100 on the bankrupt’s life.  The bankers hold a further charge on the above securities for about £265, but this is also secured by a personal guarantee.  The assets are probably fairly estimated with the exception of the surplus from securities which is not likely to be realized.  On the contrary it is probable that the security estimated to produce a surplus will not realize the amount of the charge upon it, and that the Creditor will therefore prove against the estate.

The Official Receiver said he understood that the debtor estimated the value of the property at £1,200.

The Debtor: Yes, that is always what I was given to understand.  Mr Swan gave the valuation at £1,200.  Mr Peed was the solicitor who negotiated the loan for the extra £200, and he said Mr. Swan stated that it could be “loaned” up to £900.

The Official Receiver remarked that when the property was offered for sale there was no bit for it.

The list of the debts proved having been read.

The Official Receiver said there were sixty-two unsecured creditors, none of them for very large amounts.  There were four secured creditors, and the particulars of the debts he gave in his observations.  The assets consisted of stock-in-trade at Chesterton, estimated at £300; trade fixtures, £15, with £60 book debts.  So the estate roughly showed, if it could be realized at that figure, something over 10s. in the £. after allowing for costs, but the secured creditors might probably come in and prove as unsecured creditors, and that would considerably reduce the amount of dividend.  He did not know whether the debtor had any suggestions to make with regard to the proposal.

The Debtor said just at this stage he did not know exactly what proposal he could make.  He did not know what the estate would realize so as to make a definite proposal.  As they knew, he had been carrying on the business since he filed his petition for the benefit of his creditors. A very good business had been done; this, of course, being the time of the year when business should be done.

The Official Receiver: I have received about £60 from carrying on the business during the last fortnight.  Of course it is a good time just now, and we have made the most of it.

The Debtor said he did not know exactly what to propose until something more definite had been arrived at as to what creditors intended to do. He was quite willing to do all he possibly could for present emergencies.  He was very sorry indeed to have taken action, but under the writ the creditors would have lost everything and he did not think that was a right and proper thing.  Although it had been suggested he might go out for a holiday, he felt that was a cowardly thing to do, and he thought the most honourable thing to do under the circumstances was to give up and let the creditors take their share of what was due to them as far as possible.  He might say whatever was done in this matter, if health and opportunity were given him, he would as long as he lived feel it his duty to discharge to the full every debt that had been contracted up to the time of this business.  He was extremely sorry that the creditors had been put to this inconvenience.

The Official Receiver stated that as far as the carrying on of the business was concerned, a great deal must depend upon the position the mortgagees took up. If the mortgagees came in and said they were going to realize their securities and sell to the highest bidder, then, of course, the prospect of carrying on any business was gone.  He did not know whether the bank proposed to do anything.

Mr. Collin (Messrs. Francis, Collin and Francis) said the bank were not in a position to do anything unless the mortgagees moved.  He understood Mr. Eaden, the first mortgagee, was waiting to see the result of the sale of the adjoining property, “The Spring” before doing anything.  Their present attitude was merely to prove the gross sum.

The Debtor was questioned as to the advisability of carrying on the business another month or two months.  He said if the weather turned up rough it would be a difficult matter to realize much each week.

The Official Receiver: Would you clear £5 a week?

The Debtor: I don’t think I should be justified in saying that.  It might be the average.

Mr. Collin: Clear?

The Debtor: No.

Mr. Macintosh, junior, stated that boats sold better now than they would three months’ hence.

The Debtor: Somewhere about July is the best time for selling boats.

The Official Receiver remarked that he was paying £3 per week for wages, and also £3 per week to Mr. Logan, who could not work for nothing.

The Debtor, replying to other questions, said there were ten lettings for the barge, and one for the “Waterwitch.”  Then there was the Rob Roy Club, who paid at the rate of 75 per cent. upon their members, which realized about £12. There was also the College Servant’s Club.  He did not think it would be advisable to go right on to the end of the season.

The Official Receiver said if the meeting did not appoint a trustee the estate would be wound up by himself.  He thought the best way to wind up would be to sell the boats at the end of the month.

No resolutions were submitted, and the estate will accordingly be wound up by the Official Receiver.

PUBLIC EXAMINATION.

The debtor presented himself for public examination, at the Cambridge Bankruptcy Court, before Mr. Registrar J. F. Eaden, on Wednesday morning.

Replying to the Official Receiver, the debtor said he had sworn to a statement of affairs showing liabilities £545 19s. 5d., and assets £511 14s. 4d., which was correct.  He took over his present business on the death of his father in March, 1883.  He was one of the executors under his father’s will.  A statement of affairs was then prepared and it showed that the business was solvent.

Was there enough, besides the business, to pay all the legacies under the will? – Just About enough.

What came to you as your share? – The land, stock-in-trade, and one-third of the book debts out of which I had to pay the trade debts.

Were there any books kept in the business at that time? – The same books as are kept now.  There is a record of hiring and of work done. There is no general ledger and no cash book.

Were they sufficient to show your position at any time? – I should not think so.

There is no record of amounts owing to creditors? – No.

Did you ever prepare a statement of assets and liabilities? – Never.

Did you try to ascertain what your position was? – I used to run matters over in my mind as to the condition of affairs, and it was not until recently I found that the estate would not pay 20s. in the £.

When did you first borrow money on the property? – I had to borrow at once – immediately on my father’s death.

How much did you borrow? – £400.  I only received £316; the other went to defray testamentary expenses.

Did you build your own house? – No, it was my sister’s.

How did it come into your possession? – I rented it first, and then it was mortgaged to me.  After that my sister sold it, and it was bought in for me by Messrs. Eaden and Spearing.

When did you raise the money on the Lady Margaret plot? – In 1883.

Virtually, you have had these mortgages ever since you have had the property? – Yes.

You were election agent to Sir George Newnes? – Yes.

What income did you make from that? – I made £100 a year.

Nominally or actually? – That was the amount I had.

Were you able to look properly after your business while you were acting as agent to Mr. Nownes? – I think so.

Do you say that you election agency did not interfere at all with you business? – I could not say truthfully that it did interfere with my business.  It was suggested to me that it did interfere with the business, but I do not think it did, except that it might have influenced a few people.

You got this £100 a year until 1895? – From 1892 till 1895.

Did it not occur to you that a good slice of your income had gone? – Yes.

Did it not bring to your notice that you were in difficulties? – Not exactly in difficulties.  I curtailed my expenditure.

When did you actually know that you could not pay your debts in full? – The week I failed.

Had you not been a good deal pressed before then? – I had been pressed, but then I did not want to raise anything more upon the property.

Could you if you had tried? – I think I could

When was it you borrowed £40 from Mr. Forbes? – In February.

Could you have paid him then? – Well, I could not have paid him straight down.

Did you not give him some security? – I gave him a promissory note.

Did you give him any pictures? – No, sir.

Had you any reasonable expectation of being able to pay this £40? – Yes, I thought I should be able to sell my property.

You say you have been pressed by creditors a great deal.  Why did you not take some steps to ascertain your position before? – I used to go through the matter in my own mind, and I thought if trade was anything at all I should be able to get along.

As a fact, are you not more than twelve months behind with the interest on Miss Attack’s mortgage? – Yes, a little more than twelve.

They have pressed you a good deal for payment? – Yes, they have.

Would not your books enable you to furnish a deficiency account? – Not in the form required.

Can you suggest any item which has contributed to your deficiency? You show a deficiency of £53. Actually, if the mortgages do not realize the amount of the security the deficiency will be nearly £200. Can you furnish any items which will explain that amount? – Some few years ago I borrowed a sum of money for a younger brother.  I raised the money through a building society on a piece of property I had unencumbered.  I paid the building 15s. per week, which he promised to pay.  That was when he left Hull to go to Bury St. Edmund’s, and he had no money.  After that he got into difficulties at Bury St. Edmund’s and I borrowed a further sum of money.  The around raised was about £160.

You say that pressure by the mortgagee has conduced to your failure.  How is that? – They issued a writ in addition to advertising the place for sale, and I could not very well get the money to pay the debt.

That may be a reason for filing your petition, but it does not make your position any the worse? – Oh no.

Who does your furniture belong to? – To my wife.

How did she acquire it? – She lent me money for the business after the death of her father.

When did her father die? I think in September, 1891.

How much money did she lend you then? – She lent me from £180 to £200.

Was that for the purpose of your business? – It was to go on with the business.

When did you make over the furniture to her? – I made it over to her at once, but I had nothing to show, so in February this year I gave her a receipt for the furniture, which I believed was valued at £175.

What does this receipt express? – That all household effects, pictures, plate, and furniture for £175 was parted with to my wife.

It was a proper receipt? – Yes.

Was it drawn up by a solicitor, or registered in any way? – No.  It is only a stamped receipt.

Who is it in possession of now? – My wife.

No creditors attended to ask questions, and the examination was concluded.