BANKRUPTCY.
IN ESTATE OF J. A. McDONNELL.
The following statement has been filed with the Deputy Official Assignee in the bankrupt estate of James Angus McDonnell, farmer, Gisborne: - "I came to the Poverty Bay district in 1896, and was then solvent. For the first four and a-half years I was engaged in station work, first as head shepherd on Rangatira station and afterwards as manager for Mr G. O. Ormond, at Mahia. I then started sheep-farming at Pouawa, in partnership with my father-in-law, Mr A. Nicholls, and continued there until 1910, when the partnership was dissolved, I taking over the property and selling out to Mr Jobson with about £2500 to the good. I then resided at Mangapapa for nine months, and was engaged in stock driving work. During this period I was laid up, and was unable to work for four months, through blood-poisoning. I next leased a house and small property at Patutahi, and was farming there until last October, when the house and contents were totally destroyed by fire. Since the fire I have been wool-classing, fencing, droving, and doing kindred work for a living. I would not have needed to file but for the fact that the secured creditor stepped in under his security to realise. At the time of the fire my furniture was insured for £300, and the company has declined to pay me under the policy, resisting my claim on technical objections connected with the signing of the proposal for insurance. Short of actually bringing an action in the Supreme Court for recovery of the insurance moneys, I have done everything possible to obtain payment. With my livestock taken from me, and not having any funds to purchase new furniture to replace that burnt, I am practically without means, and after consultation with a number of my unsecured creditors had no option but to file."
The unsecured, creditors are : Gisborne - J. R. Shaw (settler) £26, G. G Shierlaw (agent) £l0, N. Hooper (clothier) £3 8s, A. G. Gunn (draper) £6 15s, Dr. C. W. Wilson £l2 12s, Dr. Coker £9 9s, Dr. Reeve £3 3s. G. Barton (dentist) £4 10s, G. Dodgshun (dentist) £3 3s, Langford, Hogan and Gillies (stable-keepers) £3, Gisborne Publishing Co. £2 4s, P.B. Herald Co. 6s., T. A. Crawford (chemist) £4 10s, R. Robertson (clothier) 12s 6d, W Hay (coal and firewood merchant) £1 12s 6d, J. B. Leydon (coach builder) £l0 10s, Adair Bros. (drapers) £42, R. Hannah and Co. £8 10s 6d, G. R. Paslev £7 10s, Thos. Adams (stationer) £3 15s, G. Wildish (saddler) £1 8s, McLernon and Son (jewellers) £l, Common Shelton and Co. £2 4s, Chrisp and Coleman (solicitors) £7 7s. Patutahi - Mrs Taylor (formerly hotel-keeper) £20. J. McIldowie (farmer) £24 10s. Mangapapa - Bell Bros, (storekeepers) £4. Te Karaka - J. B. Poynter (sheepfarmer) £l2. Tokomaru Bay - B Taylor (hotelkeeper) £2 6s. Auckland - New Zealand Farmer £2 15s: total, £241 6s. The only secured creditor is F. Hall, for £l50.
Source: Gisborne Times, 18 August 1913, Page 3.
BANKRUPTCY.
The meeting of creditors in the estate of J. A. McDonnell, sheepfarmer, was held before the deputy-assignee (Mr J. Coleman) this afternoon. There were present: Messrs J. Adair, J. B. Leydon, R. Mitchell (for Hannah and Co.), L. T. Burnard (for South British Insurance Co.), G. K. Paslev, J. Shaw, and W. Hay.
The debtor, for whom Mr T, Alston Coleman appeared, gave evidence bearing out his statement. He said he had lost, on 300 ewes which he bought at 15s, and also lost on a shipment of frozen mutton which he sent Home the year prices dropped. The house that was burned at Patutahi was insured for £300, and when he claimed for the insurance he was told that owing to complications they could not pay. Mr Burnard, who appeared for the insurance company, said that there were three reasons why the company would not pay up. The first was that bankrupt, when he insured, did not disclose to the company, that insurance had previously been refused by another company; secondly, that the chattels of the bankrupt were mortgaged; and thirdly, he did not disclose that he had had a previous fire.
Bankrupt said he had never been asked to sign any papers by the company. Mr T. Coleman said that the secured creditor had seized the stock, which would realise about £150. The amount owing to Mr Hall which, owing to lawyer's expenses and interest, now amounted to about £180 or £190.
Counsel put m a letter from Dalgety and Co. in regard to, the mortgage and insurance.
To Mr Burnard : He saw the South British Insurance Company, and they took his insurance. Had they asked him any questions he would have answered them. He held shares in the Gisborne Sheepfarmers' Company but sold them two years ago. He was canvassing for the Bristol Producers' Company, and received £3 per week, but lost on his work, owing to travelling expenses being so heavy.
To the Assignee : He purchased the shares in the Mount Owen Rising Sun Mineral Company two years ago. He was perfectly solvent at that time. If he had received the fire insurance money he could have paid everybody in full.
Mr Adair said that his company held a lien on bankrupt's shares in the company.
Mr Pasley commented on the statement that an insurance policy had been issued without details being required.
Mr Coleman said it was for the meeting to decide if they intended to press the matter further.
Mr Burnard said that the Insurance Company's reasons for not paying out were not technical grounds, but for three substantial reasons that he had given. The three points were all in favor of the company. It was the duty of the insurer to make full disclosures.
The Deputy Assignee thought he should be instructed by the meeting to request the company to pay the insurance.
Mr Pasley said he did not consider the insurance company had any right to withhold payment on the grounds set forward.
It was decided to apply to the insurance company for the amount of the insurance, and if a refusal is given, legal opinion to be obtained, and a meeting to be called to consider any further steps.
Source: Poverty Bay Herald, 25 August 1913, Page 6.
Chris Korte's New Zealand Genealogy Project
1862 - 1924 (62 years)
Has 4 ancestors but no descendants in this family tree.
[1, 3, 4] 
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