MEETINGS OF CREDITORS.

Otago Daily Times, Issue 8169, 28 April 1888, Page 4

MEETINGS OF CREDITORS.

Ix KE PatbhsoM AND M'LEOD, A meeting of creditors In this estate was held yestorday morning, and attended by Messrs M. Joel, H. S. Jones (P. Hayman aud Co.), W. Wright, J. Hazlett, H. Rose, W. Gregg, 0. S. Reeves, and 3. B. Sinclair (representing the Bank of New South Wales and Messrs J. and J. Grant). The Assignee said that the meetine had been called at the instance of the bankrupts' solicitor for the purpose of considering whether they should be recommended for discharge. He (tbe assignee) might mention tbat he hail received payment of a very considerable number of accounts on the notices bemgseutout. He had now ln £1500 in cash and £180 .m bills, which were presumably good, and it was considered that the uucollccted book debts represented about £1000. Altogether there was nearly enough iv hand to pay a dividend of 2s 6d in tbe pound, and ho hoped to be able to pay that next week. Ihere would of course be more than that to come to the creditors, but meanwhile it was just as well to divide what was available. He had paid a number of charges on the estate, including Invoices of goods to baud since the bankruptcy, amomntlng in the aggregate to several hundreds ol pounds. In answer to a question by Mr Sinclair, the Assignee stated that the mode of realisation adopted had been better for the estate than if the tender hadbeer. accepted. Mr Sinclair said it would be as well for the meetI ing to know tho opinion of the supervisors befora I any resolution was considered. I'he Assignee stated that the supervisors were present, and would speak for themselves. He had previously referred to the errors in the balance sheet of Maroh 1887, aud tliere was no doubt that that was distant from the truth by £7000 apart from the valuations of the property. Mr Hazlett said he' might Btate, as one of th» supervisors, tbat he was of opinion that the estate ought to be thoroughly investigated before the assignee recommended the bankrupts for their diecharge. Pendinga thorough investigation lt would be premature to consider auy such resolution. When everything was cleared up, he for one would assist the bankrupts in getting their discharge. Mr Sinclair said that after those remarks he did not think it would bo wise to press any resolution, and the bankrupts could not expect one to be passed to-day. The Assignee asked whether the meeting would mako any distinction between the debtors. Mr Sinclair took it that the court wouid make any distinction that ought to be made. Mr Hazlett alsj thought that the meeting had nothing to do with drawing a distinction between tho debtors. Tho Assignee said that thero was no doubt of this: that his report must be vory unfavourable to Mr Paterjon, and Mr Paterßon knew that thiß must be so j but of course ho had tho right of explanation to tho court. Did Mr Rose concur In the opinion expressed by the other supervitor ? Mr Rose could not understand, as things stood at present, the debtors asking the creditors to pass any retolution in view of the serious discrepancy ln the statements. The Assignee: Have you any thing to state, Mr Paterson ? Debtor replied In the negative. The Assignee said that it appeared to him that those who had expressed an opinion as to tho necessity for further investigation held the balance of the voting power. Messrs Hazlett, Ro6e, and Sinclair represented £1600, while those present who had not spoken on tho point represented between them only about £1200. Mr Sinclair remarked that he also held a proxy from J. and J, Grant. The Assignee said that it had been suggested by the supervisors that they should proceed to make a more lengthy investigation into the affairs of the estate. Mr Rose thought that it would take two months to restate the accounts so as to find out the reason of the difference between tbe Btate of things as at the 31st March ;1887 and at the time of the bankruptcy. He (the Assignee) was of opinion that ib would take two men six weeks at least to do the work, and he had a doubt as to whether he would be justified in incurring the necessary expenditure without a resolution from the creditois. Mr Gregg said he did not think that ls 6d In the pound should ba frittered away ln this investigation. The Assignee said it would not cost so much as that. Mr Paterson: I have not the slightest objection to go over everything. I court Inquiry. The Assignee: I would liko to take leave to expend £50. I don't say it will take that. It will take two ! mon six weeks to check over. It might take two months. That would' <£50. Mr Sinclair move —'• That the assignee ba authorised to incur* turther expenditure of £50 in j the Investigation proposed, and that hiß action In I the past be approved." It seemed to him that Mr Paterson had taken up a very proper position In j courting investigation. There waß a certain dis- | satisfaction abroad, and it would be in the interests of the linn and the general body of the creditors to havo the matter sifted to the bottom. Mr Hazlett seconded tbe motion. Ho took up very much tbe same position as Mr Sinclair. It would be to tho advantage of the eßtate to have the matter investigated. No there had been a good deal of talk about the'matter." Mr Rose said tbere had been a very large dlB-' crepahcy botweeu the balance sheets of .1887 and that of the bankruptcy, which neither the investigations made nor Mr Paterson's statements had accounted for altogether, Mr H. S. Jones said the creditors would get little enough from the estate as it was, without frittering away money in this manner. Mr Rose: It may be with the result of finding out something we don't know. On the other hand it may clear Me«srs Paterson and M'Leod of any possible slur on account of their transactions. The Assignee said ho might state that they had already discovered certain goods—salt and pepper boxes—which had not been sold, and were still ln the bond. Mr Joel said, regarding tbe discrepancy In the balance sheets, there was no doubt the statement was" only an approximate one. The Assignee: Oh.no. The balance sheet was a formal one, and wbb certified to by Mr Leary. Thero was no doubt it deeeivod the bank. The motion was declared carried by value. Messrs Sinclair, Hose, and Hazlett declared themselves in favour of the motion, and Mesßrs Jones, Gregg, Joel, and Wright against it. Mr Reeves did not vote, there being, he said, some irregularity about his proxy. The ayes represented £5200, and thenoes'£l3oo. The meetiug then adjourned tine die.