AUSTIN WALSH COMPANY.

Auckland Star, Volume XXXVI, Issue 206, 29 August 1905, Page 2

AUSTIN WALSH COMPANY.

■ LITIGATION BETWEEN LIQUIDATORS. The progress of the sale of the re- : maining assets of Messrs Austin Walsh , I and Co.. the Auckland tobacco busi- j ness now in liquidation, was aired before Mr Justice Edwards in Chambers : jat the Supreme Court this morning. j The matter arose out of an appliea- I j tion of Mr Hanna, solicitor for Mr W. ' ,B. A. Morrison, one of the company's ' j liquidators, who asked His Honor to 1 order that an offer of £1000 which had | been made for the rest of the assets I should be accepted. I Mr F. E. Shera, solicitor for the ' other liquidator (Mr J. J. Odium) opposed the application. Mr Blair (for Mr Hanna) explained that a large portion of the assets bad i been already disposed of. On August | 9 a meeting of creditors was called by I Mr Morrison, and an offer was then re- • ceived from Mr Hanna (on behalf of a j client) to purchase the balance of the j I assets, consisting of leaf and cut to- I ! bacco, fixecf machinery and book debts, | : for £ 1000. The offer was accepted j j practically unanimously by the creditors, but Mr J. J. Odium, the other j liquidator, refused to agree, on the j ground that tbe price was not good ' i enough. But there had alreaoy been j three auction sales held and it was j 1 clearly shown by Mr Morrison that j the price was satisfactory. j Mr Shera: The real objection is that it was not a proper meeting. Mr Blair admitted that proxies were , : not demanded or produced, but every j creditor in Auckland receive notice of the meeting. His Honor, examining the documents, said the notices appeared to have been i not all in writing. ! Mr Blair said that creditors represent- \ ing £1345 out of a total indebtedness ' of £2188, actually vcted for the accept- : ance of the offer. In addition to ibe ■ creditors there were also present Mr j Dufaur (£250) and another creditor fori £4, who both abstained from voting. ] ! The matter was acute to this extent j hat Mr Morrison felt as a liquidator i that it was really only his business to do what the creditors asked him to do, j and what was for their benefit. The ! creditors were satisfied with the offer, j j Mr Odium had during the past ten days : I sounded the absent creditors on the j ■ matter, and only creditors representing \ j £20 opposed the offer ' j Mr Shera: And the receiver (Mr Dv- | j faur) who represents £250. He urged j [ that the meeting should be adjourned. I Mr Blair: He urged his objections at the meeting, and was over-ruled by ihe majority. The only objecting creditors were Messrs. Dufaur, £250, McCroskie, £9, Kauri Timber Company, £ 1 1/, , Ley land-O'Brien and Company, £3 12/, \ S.Z. Express Company, £3 3/6, Collins Bros., £3 13/4. Although Mr Odium! had been going round with a document and an ex-parte statement for 10 days he could only arouse that small amount of opposition. If he really thought ihe matter had not been properly dealt with he should have applied immediately for another meeting. The present litigation was costing the creditors probably £2 1 a day, because the rent of the premises cost them £5 a week. Even then they I had no right to keen the premises, and if they had to remove the machinery it would be "worth no more than pioiron. "New Zealand," continued Mr Blair, "is unfortunately under the influence of a huge lobacco trust, and the liquidation I of the Austin Walsh Company was brought about by the operations of the American Tobacco Company. Having got this offer of £1000— which is equivalent to 12/0 in the £—Mr Morrison ! thinks it is one which ought to be accepted and jumped at." His Honor-. You have no objec'ion to calling another meeting, Mr Blair, I suppose? r Mr. Blair: No. But I say the meeting ought to have been called at once. His Honor: Are all the creditors in Auckland? | There is one in America and one in j Germany. Mr. C. H. Walsh (£4OO is in England or Ireland. Of course, you can't give them notice of the meeting, but Mr. Walsh is represented in Auckland. (To Mr. Shera) : It seems very reasonable if the main body of creditors agree. Mr. Shera 9_id the last meetin<* was I informal, nnd no proxies were call_dJ The assets were worth twice a_ much as was offered for them. His Honor? Well, could Mr. Odium get a purchaser? Mr. Shera: Mr. Odium thinks the offer ought not to be accepted at a scratch meeting of creditors. Finally, His Honor, consulting the convenience of the parties, adjourned the application till next Friday, to enable a meeting of creditors to be called for next Thursday. His Honor observed that if a great body of the creditors wished it tbe offer should be accented. It wa9 not so much a question of what the assets ware worth, ns what could be erot for them. Mr. Shera observe! that a targe number of the shareholders would lose all their money.