MEETING OF CREDITORS

Auckland Star, Volume XXIII, Issue 15, 19 January 1892, Page 8

MEETING OF CREDITORS

E. C. EARLE'S BANKRUPTCY,

A meeting of creditors in the estate of Ebenezer C. Earlo was held at the office of the Official Assignee to-day. There were present: The debtor and his solicitor (F. J. Hammond), and the following creditors : —Messrs J. P. Campbell (L. D. Nathan and Co.), Colegrove (Nelson, Moate, and Co.), F. W.Smith, William Earle, John Earle, Broadfoot, Bycroft, Henwood, J. Conder, Hammond (for Scott), Neill (Laxon, Neill, and Co.), J.C. Morrin (Aulsebrook and Co.). The debtor's sworn statement, which was read, showed that in March, 1890, he purchased the Onehunga grocery branch of the Auckland Civil Service Supply Association as a going concern, having previously been tho manager there. He had then a capital of £300, and paid the purchase money, £256_ 17s Bd, in March, 1890 ; £200 of this capital was a loan from his brother William, who obtained judgment in September, 1891, for £259. Other creditors pressed, business became bad, and he was compelled to file. His debts unsecured amounted to £649 153 lOd, and assets £369 11a 6d, leaving a deficiency of £279 10s 6d. The nrincipal creditors were: William Earle, £261 ; A. Heather, £113 0s 6d.

Mr Lawson stated thab the evidonce of the debtor's wife was taken previous to the meeting, as sho was leaving Auckland. She claimed that the household furniture was purchased with money belonging to hei_elf before marriage, and claimed proceeds of the sale.

The debtor was examined by Mr J. P. Campbell, and stated that Mr John Earlo began to exercise supervision over the estate in September last, and remained in that position until the 14th December. The debtor was in possession during that period, Mr John Earlo receiving tho cash and paying accounts. His stock was valued ab £230 in November, and ab £113 in December. He could not say what goods he purchased in December ; had no means of arriving at it. The debtor's inioices having been produced, he stated that from December 22nd to December 31st they showed purchases amounting to £4S 9s 9cl. Other goods wero purchased, for which there wore no invoices during that time. Ho had no means of ascertaining tho amount of his purchases from December lafc to December 22nd. He did not.always enter cash purchases. His gross takings from tho 14bh to the 31st December wero about £129. He accounted for a • deficiency in stock during tho month of December by pointing out that goods purchased after Novembor 25th were invoiced December Ist. He did not intend to insinuate that his brother John was accountable for this deficiency. He stopped accounting to his brother John on the 14th of December, because ho knew he (the debtor) was insolvent, and wished to have a meeting of creditors. Ho was aware that some of the creditors had appointed John Earle supervisor of the estate, fio actod in this matter under legal advice. He gob £29 2s from Mr Bycroffc on January lith, and had cash in hand, making a total of £30 16s in band. He paid this money away on tho 12th, and tiled on the 13th. He paid £8 19s to the Official Assignee, £12 123 to Mr Hammond for legal advice, £5 5s for filing, personal expenses £4. He did not conceive it to bo his duty to pay this money to the Official Assignee. The piano was purchased from Webb and Company. Mr William Earle took it away from the shop. Accounts tor furniture purchased totalled £55 15s 3d. Goods purchased from Garlick and Crnnweli were paid for by Mrs Earle out of her own money.

Mr Campbell said there was a statement by the firm that they knew of no goods purchased by the dobtor's wife.

The debtor admitted thab ho changed "Mr" into "Mrs" in the account now produced, bub that was three years ago. r, Ho could not say what was his object- in adding the letter " s," unless becaueo the goods were his wife's. He made similar alterations in an account from R. Arthur and other accounts produced.

Mr Campbell : Will you swear you did nob make these alterations within the last ten days ?

Tho debtor: I swear they were made over two years ago, before I entered business—utiles? you made them.

Mr Campbell: If that remark is intended to refer to me, I would advise you to bo cautious. I never saw the invoices until I came to this meeting.

The debtor, further examined, said he could not say how much he paid for tho piano. He paid £4 10s for a horse, and £8 10s for harness. Ho handed over the piano, liorso and fiarnoss, to Mr Neilson for adcbbof£sS. Mr Neilson took possession of these securities on the sth inst. There was no bill of sale to Mr Neilson, but there was a sale note given on July Ist.

Mr John Earle offered to answer any questions, but none were asked of him.

Mr Campbell said that from tho investigation he had mado, the statement made by Mr John Earle, on behalf of the creditors, appeared to be satisfactory. With respect bo the bankruptcy, ho thought the case a very peculiar one, and he suggested the appointment of a committee of investigation.

Mr John Earle stated that the debtor in his stock-takings inserted a claim of Mr Neilson for £50, and entered the horse and cart as assets on the other hand. Ho did not put tho piano amongst his assets each month.

Mr William Earle said that the creditors had access to tho debtor's books, and saw that the continued to improve month after month till November. When John Earle took supervision of the estate on behalf of the croditors, he undertook to let them know if anything went wrong, and ho made a report to that effect in November. He (William Earle) considered the debtor should not have ceased to hand over his takings to Mr Earle, as the latter was asking on behalf of the creditors.

The debtor, in answer to Mr Wm. Earle, said he owed Mt Neilson, of Awitu, nothing. He put bis horse, cart and harness in his stock sheets tor November and December, bub explained to his creditors that they were the property of Mr Neilson.

It was resolved on the motion of Mr Campbell, as proxy for Messrs L. D. Nathan and Co., seconded by Mr Colegrove, for Nelson, Monte and Co., that Messrs W. Earle and Neill be appointed to investigate the debtor's accounts and report to a meeting to be held that day week.