MEETING OF CREDITORS

Press, Volume XLVIII, Issue 7805, 7 March 1891, Page 6

MEETING OF CREDITORS

BENN AND CO. A largely attended meeting of the creditors of Messrs W. A. Benn and Co. was held at the Oddfellows' Hall, Amberley, yesterday. Mr Fa Courage, who occupied the chair, referred witu regret to the stoppage of a large firm in the district, which was the means of aiding the farmers iv sales of produce, and laborers in the industries of the floor and flax mills.

A statement of the affairs was read by Mr G. H. N. Helmore, solicitor for Mr W. A. Benn, trading as Benu and Co. He said the position would be stated, aud the opinion of creditors would be taken as to tbe realisation of the estate. After the reading of the accounts, Mr Benn intended to read a statement. The liabilities were—Secured liabilities per list, £11,210 ; unsecured creditors, -3-3497 ; total, £17,707. Assets valued at—Properties, in hands of secured creditors (ledger cost £15,301), £11,925; stock debts, unsecured (ledger cost £4224), £3542; total £15,467; deficit £2240. Wete it not for losses and depreciation of property below cost, Mr Benn would show £2000 to the good. Liabilities, secured—To Bank New South Wales, ordinary account, on overdraft, £2810; grain account, £625; bills discounted, £6200—total, £9535. Mortgage on mill to Rangiora Building Society, £700; Christchurch Finance Co., £625; to Mr F. C. Tabart, on flax, £250—total, £11,210. Assets secured — Stores, saleyards, dip, secured by first mortgage to Bank, £2000; mill property, £2000; bills recently discounted, £0200; bills collected, £150; security held by Christchurch Finance Co., £625; flax secured to Mr Tabart, £250; grain in hands of Bank, £700—total, £11,925. Surplus, £715. Liabilities unsecured — Sundry creditors £4614; bills payable, £1683; wages, about £200—total, £6497. Assets unsecured — Book debts, value £2498, £1800 ; stock and plant, £550; cash, £122; personal effects, £150; equities from properties if carefully realised, -"1000—total, £3542. He also read detailed lists of the accounts, which were laid before the meeting. Mr Benn entered into an explanation, by ascribing his present position to neglect in looking mora closely into his accounts, as he would explain. Letters had, however, been sent to him, threatening criminal prosecution, and he deemed it right to make the fullest statement possible. He had declined to make any prelerences, or to sacrifice the interests of any of his creditors when his real position a few days had come upon , him as suddenly as the stoppage of his i business had come to all of them. Io had been alleged that he had sold stock ami not paid over che money for a recent sale. Of this all he could say was that he was prepared to give everything up uiueservedly to his creditors, but desired them for the sake of his family to spare him from bankruptcy proceedings or charges of fraud. At the commencement of last year everything in his business loosed prosperous. Flax was selling from £30 to £40 per ton, and apparently there was no fear of any fall or adverse circumstances to be anticipated. In April or May, when news of a fall in price came, it was thought to be due to a "corner," and advices recommended him to go mi with the industry. For the last three months there had been fair paying prices. Last April be considered his position ac £4000 to the good, taking properties at wliac they cost. The fall in flax brought him, however, he estimated, into the position of being £2000 worse off at the end of the year. Grain, also, left a deficit, and shipment of wheat to England turned out badly. In January of this year he got what he considered a fair statement of his affairs, showing that he was, as he thought, £2000 to the good. This statement'was made out from data supplied, and he could see now that he was culpable In not having thoroughly tested those figures, but simply ■ ook che tzeneral results of the balances as taken out by his clerk, in which he now discovered discrepancies in regard to the true position of several accounts which reversed the position of affairs from what-he had expected. He had no further excuse to offer, and they must judge him to be either a rogue or a fool. -His' personal expenditure had always been. limited to £300 a year for house expenses, rents, &c, and he had not put away a single' penny or made away any '6f his ' property. The imme dlate cause of stopping was that on, Monday week he was ill at home, and had been so for some time.. The Bank balance day was close at hand, and he was asked to keep his account' close. He therefore staved-off payments sd as to be able to meet them aIL As he could not attend td "business on that Monday, he drew on Mr Tabart In a lump for various sums which he had undertaken to collect, and he paid that into the Bank on the Monday. On Tuesday the Bank manager came and. (old him he .had cheques for several hundreds due* for payment. He said there would be enough to pay them, but he pointed out there'were other payments which were pressing, and that he aid not see where funds were to come from to meet these,- tit tbe same time thac the Bantc. would pay tbe in even if it was ovex the limitijE lie could satisfy him that the assistance to be afforded wo did be securely covered. Bfe then told the manager (Mr Potts) to go through the ledger himself and draw his own conclusions, which he trusted would be favorable. This was done, and a state of affairs was laid- before him which he could hot have Imagined, possible. After consulting" With tne manager and his guarantor at the Bant* t&t to the real state of his properties, which they put at halfwhat they cost him, he (Mrßenu) decided tbat further efforts to carcy on were useless. It remained with him to make every amends in his nower, and this he proposed doing by assigning his estate and . effects, to trustees to be appointed by the meeting. He felt sure they would realise a better return from the estate in that way than if he filed In bankruptcy, as the properties if realised carefully would make a fair yield. As stated ne was _ow -.edhiless, and there was nd property in his family which would afford the slightest assistance. If allowed to go on without prosecution he had ,some hope of getting assistance to enable him to carry on. As to the nature of ah arrangement made with Mr C. B. Mason for the saleyards when it was evident he had to stop, Mr Mason came forward at an inconvenience probably to himself and took up. the yards, so that they were being carried on, and the value of this property and goodwill was thus maintained. After going on with, he hoped success, it would remain with Mr Masou to decide whether he would purchase the land,* stores, Sec, from the trustees at some price to be decided upon. ' Their business would be safe with Mr Mason, and the sales would be faithfully carried out by him. He (Mr Benn) "had not the least intention of embarking in business again, but he desired to see a completely satisfactory realisation of his estate,! aad must look for employment outside for himself and his family, and devote What He could to meet the claims of all to whom he was indebted. As to the bills under, discount. £6200, the Bank manager would admit they were a good set of bills, which,,with full care and nursing, would realise nearly their full value. He had many times made several thousands in a year, and in January last had every prospect of doing the same this year. Seven-fears ago he started £2000 in debt to tbe fate Mr Wilkin, and in three years paid that off and came out to tha good with £3500, as proved by the balancesheets of a certified accountant. If his health had been better he should sooner perhaps have arrived at the truth, and by gettinjc assistance .have tided over the difficulty. One who had threatened to prosecute' him in connection with an agency, he stated, had, after a full explanation, offered to hold over his claim and to give him the agency again if the business was carried on. He relied on the fairness of the creditors themselves to their own interests/and hoped they would follow the suggestions • which he had offered.

Mr Potts. Manager of the Bank, in answer to; the: Chairman, said the bills under discount were all fairly good, and the majority of the acceptors were in sound positions. In replyjfco Mr T. G., Russell. Mr Benn thought if the estate was liquidated now it would realise nearly 10s in the £, at all events 7s 6d to the unsecured creditors. In reply to Mr J. B. Fisher, Mr Benn said the Bank of New, South Wales had offered him accommodation up to the last, and the Manager's conduct Towards him was that of a liberal character up to che investigation on Monday week by him when he found the state of the books. He had not been pressed by the Bank. Mr Fisher expiated thac the Bank of New South Wales was impression till' the investigation of the books the Bank had a margin of £4000 in Mr Bean's estate. The manager, however, . finding the positioa of affairs pointed ie out, and Mr Benn himself stopped the payments of the cheques. Mr J. lanes asked-if it was not thought strange that the cheques were stopped after and not before a sheep sale on Mon.Uavweek. ,~ Mr Pitts' replied thaUse only.took action on hearing Mr BowSt was pressing Mr Benn.

Mr Spackman, for several creditors. [ thought that the statement made showed that the matter should be further jPVSf- ; tit-gated. According to what he ha4_sald, IMr Benn's books showed against him iv January, which he ought to have known of at the time. Hence, ne should apply that the matter should go Into bankruptcy, especially in to the disposal of the proceeds of the- last sheep sale. He objected to the business being handed over to trustees, ope of whom should be the Bank's nominee, or the business being carried on by Mr Benn. (Mr Benn said he had no wish to dp so.) And the transfer of tbe yards to Mr M-taota was equal to a construction that tnts arrangement was for Mr Benn, it being difficult to sever the connection. Mr Benn said regarding the amount alleged to have been paid into the Bsbk for stock, the money would not amount.to more than £100. and he most bitterly regretted the position that he had put the two persons in who were most concerned. _ , _ ... Mr Fisher said the Inspector of the Bank desired him to say that It would not come into the trusteeship, nor had the Bank attempted to overreach conditions, as the Bank was prepared to carry on Benu and Co. till the books were inspected on the Monday. The Chairman, in reference to a remark made by a creditor, said he thought it was a pity the law did not provide tbat money from auction sales was not paid to a separate account as a trust account. (Applause.) Mr Benn said If the feeling was that he should file he should do so, but recommended trustees, as a means to realise the most, and. with a view to being able In the end to recoup all to whom he owed anything. Mr T. G. Russell moved—" That Mr Beun be requested to file In bankruptcy on Monday next." Mr .1. Innes seconded the motion, which was carried by a majority, one or two opposing it. A vote of thanks to the Chairman terminated the meeting.