WM. COLEMAN'S ESTATE.

Auckland Star, Volume XLVII, Issue 158, 4 July 1916, Page 7

WM. COLEMAN'S ESTATE.

DIVIDEND OF FROM 2/6 TO 3/EXPECTED. ASSETS GREATLY DIMINISHED. SECURED TO CREDITORS. AND THREATENED LA" LITIGATION. A long report on the affairs of the late William Coleman, solicitor, of Auckland, whose estate went into bankruptcy after his death, was placed before a meeting of creditors yesterday afternoon, held at Government Buildings. In the absence of the Official Assignee, the thief clerk (Mr J. Kraer) road Mr Fisher's report to the meeting. It was stated that the total free assets would probably approximate £8,000, and a dividend of from 2/0 to 3/ might be expected. The report stated that the order of administration was made on October S, 101.">, rio that the estate had now been in the hands of the Otlicial Assignee for nearly nine months. " The creditors will remember that tho first meeting was called in an extremely early starre. as at the time 1 was in hopes of selling th~ business," contiuuod the report. " and with thnt object it was extremely important that there should ho as short a break as possible. This meant, therefore, that very little time was available for making investigations, and. in consequence, the figures then submitted had had to ho considerably readjusted." ASSETS DIMINISHED. " At that time the liabilities to unsecured creditors were estimated at £53,321. and it was hoped that there would bo about C 13,000 available lor distribution amongst the unsecured creditors. It was soon found, however, that several of the assets thought to bo available had been secured to particular creditors, and. in connection with others, claims have arisen which threatened to swallow up the whole value of the estate."' " Amongst others, a sum of £2.255, being the unpaid purchase money of a large portion of the YVaitakaruru block. and which was thought to he free, turned out to be secured to one of the creditors. Tho same applies to a bond of £100. As against these items, however, several mortgages have been discovered amounting to £1.050. These are all believed to be good, but. being subject to the Mortgages Extension Act. tho money cannot be collected until after the war. Later on a claim v/.ts made by one of the creditors auainst tho Bank of New South Wales, which held a mortgage over the properly at Hillboro" and Waitakiiruru, and. if the hank has to meet this, it claims that the amount will be covered l\v its security, and. if its contention! i> correct, tho supposed surplus from I those two properties will bo swallowed up. Then, again, the representative of i the estate which was a co-owner of i Wellington Park, claims that Coleman's estate should bo made to bear tho whole of tho mortgage of £-1.(500. which was given some little time before Mr. Coleman's death, ami also a half of a charge of £1.250. If, again, this contention) can bo uphold, there will be nothing left from the proceeds of the sale of Wellington Park." CAUSES OF DELAY. "It is only natural, therefore," continued the report, "that there should have been many anxious inquiries from creditors as to the progress of the administration, and possibly creditors should have been called together earlier, but until very recently there has boon nothing really definite to report. Even now matters with reference to proposed litigation, about which I wish to consult creditor?, arc not so forward as could be wished. Creditors will, however, realise the difficulties that have had to be met. In the first place, the l>ooks of accounts were yon- much behindhand, one side of tho accounts not having been made up for a period of eighteen months. A large portion of the costs were also not made up, and in some cases the material for preparing them was not available. Then, again, a groat deal of time was taken up in supplying creditors with the accounts showing how they stood. The Princes Street property, the household furniture, and tho oflioe furniture were sold without delay, but the negotiations over the disposal of the Ilillsboro' property have been most protracted, and. as a matter of fact, have only just boon completed. Wellington Park was also unduly delayed, owing to the desire of the co-owners to ascertain thoir financial position before the sale was taken in hand. THE REALISATION. The following was the result of tho realisation so far:—Oflioe furniture (estimated at .£3OOI realised .€302 8/-. Prine.es Street furniture (estimated at £0201, £Sl>(> lfi/3; Ilillsboro' furniture, (estimated at £225). £104 15/; Princes. Street house (equity estimated at £530), £1.307 14/8; Knox's purchase ( £521). £01S lfi/li; Raglan sections (estimated at £12). not yet sold; mortgages owing to the estate, said to ho; quite good," book debts col-j looted. £3.330 17/10: cash balance from j the bank. £1.400 12/11 : book debts outstanding. £1.548 (estimated to produce £750)-°IO.OOO shares in Uarrraki|»Recls, Lid., £100; Wellington Tark equity. £2,870. The statement parenthetically pointed out that against the last-named amount there were, claims which might be the subject of litigation, and which, if sustained, would wipe out the asset. The Ilillsboro' property sold for £4.500, and the estimated equity was £1,900, while the half-interest in Waitakaruni block was estimated at £2.500. The last two items, however, were subject to a mortgage to tho Rank of New South Wales to secure in any event £3,431, and possibly against the asset there might be a further claim by the bank. POINT'S FOR THE CREDITORS. "The three matters about which I particularly wish to consult the creditors," continued the Official Assignee, "are tbe actions with the co-owners of the Wellington Park and the Bank of New South Wales, and the disposal of the Hanraki Reefs shares. With regard to the litigation concerning Wellington Park, a motion has already been filed in Co'xrrt, and this most certainly shonld be proceeded with. A stun o-f £2,925 is involved, and the litigation should not be very expensive. With regard to •the claim by the bank, it will be about five months 'before the right oi action will arise, and by that time it is hoped that the preliminary proceedings which have been started between the two other parties may so result that the hank will not be held liable, in which event the estate will not be involved. With regard to the Hauraki Reefs Gold Mining shares, as the result of inquiries in var*>us sources, and with the concur-

rence of the largest creditors of the estate, 1 decided not to dispose of these upon the terms quoted at the date the estate came into my hands, and I stall believe that the mine has excellent prospects, but the holding of the shares-with a heavy liability is most undesirable from an administration point of view. ■ and. until these are sold. 1 can hardly' see my way to make an interim dividend of the funds in hand. Creditors will, however, be asked to-day to sanction the litigation which has boon started concerning Wellington P»Tk, to authorise mc to take necessary proceedings to contest the claim of the Bank of New South W T ales, if the necessity should arise, and to devise some scheme by which the liability of the estate concerning tho Hanraki Reefs shares oan.>be got rid of." TOTAL CLAIMS. £49,615. The claims proved against the est:ite, or of which tho office had receirved notice, amount to €49.618. and, if the litigation in which tho Bank of NewSouth Wales and the Wellington Park co-owners wore concerned wore decided against the interests of tho estate, a further £7.225 would have to bo added. After the reading of the Official Assignee's statement, a resolution was passed excluding tho I'ross while the meeting considered the three points alluded to in the statement. Subsequently it was reported that, in regard to the Hauraki Keefs shares a resolut'nn had boon carried nom. con. that the Official Assignee be asked to obtain information from one or two well-known brokers as to the artvisahility of holding on to or selling the shares, tho Assignee thereafter to use his discretion as to disposing of them. Regarding tho claim by tho en-owners against the Wellington Park Estate, the Assignee was authorised to oontest the case, while with reference to tho bank's position, authority was given to Mr. Fisher to institute proceedings in the interests of tho estate if cause of action arose.