RE GEORGE HARPER.

Press, Volume L, Issue 8483, 15 May 1893, Page 2

RE GEORGE HARPER.

The adjoui_.H meeting in the estate of George Harper was ne„v *,r>ened. The Official Assignee -aid, _. tn jg caae the matter stood on the same footing, rpui only subject that had to be considered at that meeting, so far as he kuew, was the disposal of private assets.

Mr Cowlishaw said he thought a similar resolution to that just passed in Mr Maude's estate would be the proper thing to do. The Official Assignee said that a number of proofs had been put in as against Harper and Co. These he was taking as first against the general estate and afterwards against the separate estate. This was the course he was adopting. Mr Cowlishaw said hesbould like to ask the Official Assignee in which estate he would be prepared to give an account to the creditors as to what steps were being taken to realise on the general estate, to ascertain what was really due to the estate, and what was being done as regarded the winding up of affairs.

The Official Assignee said that at present he was unable to say much with regard to the question asked by Mr Cowlishaw with anything approaching accuracy. It would thus be seen that he could not give any information at present as to the winding up or realising the estate. Mr Cowlishaw —What steps have been taken in the matter, Mr Greenwood ? Can you tell us this ? The Official Assignee—We have no accountant at work at present. What has been done by us has been to make up the law costs. With a small estate I have had to be very careful in incurring expense. I may say'that so far as I can see with the information before mc, that the results as regards the assets will turn out very differently indeed to what has been estimated in the accounts as filed in the estate.

The Hon. X C. J. Stevens said that as one of the supervisors it would perhaps be well if he gave the meeting a little information. He wished first to apologise for the absence of the Hon. E. W. Parker, who was called from town that day. He thought that Mr Cowlishaw's question applied to the general estate, and perhaps a word or two from him would be of service. Something had been done in the matter of realisation. They found that the accounts which the meeting directed to be printed could not be supphednntil last Wedne_fey or Thursday. Mr Parker ancT He wenfi-'as carefully as they could go into an investigation of the assets under the head of £54,000 odd. These included the coats, and they did not think that the estimate by the gentlemen filing the declaration would be exceeded; on the contrary they thought the 'amount would be subject to some diminution, to the exact amount of which they could not state at present. On the other hand, they found that there was not mentioned about £2000

costs recently accrued, which were not brought into account at the time the statement of these assets was tiled. There was another point with regard to some mining property, which had apparently momentarily escaped the Official Assignee's recollection. The interest in the Karangahaki mine was estimated at £1000. It did not appear among the real estate, but among other assets. They found from Mr C. P. Cox, who was good enough to give them all information and papers, that he was ostensibly the owner of the property, and that shortly before the filing of the declaration he had entered into an arrangement for the sale of this mine to the Woodstock Company for £500. He (Mr Stevens) thought it would be interesting to the meeting if the Official Assignee would state later on what had been actually done in the matter. To Mr Parker and himself it appeared to be expedient, if not necessary, to complete the arrangement provisionally entered into by Mr Cox for the sale to the Woodstock Company. He thought that the meeting would be of opinion, seeing the late period at which the printed accounts were placed in their hands, that a reasonable amount of progress had been made. They were in negotiation with a gentleman who was intimately connected with the firm re the collection *of the costs, and in the course of a day or so he hoped they would be in a position to eater into some definite arrangement with him. Mr Parker bad requested him to call attention to the exceedingly unremunerative character of the fees, which were likely to find their way into the hands of the supervisors. According to the Act the creditors were not permitted to give more than the statutory allowances, which were to be found in the third schedide, £2103 per cent, for the first thousand pounds, £15s for the second, and 10s per cent, for the remainder. If the estate should realise the amount it was expected to, the amount of the fees would reach the munificent sum of £42105. Mr Parker thought, and he concurred with him, that the remuneration to the supervisors would be proportionately less than that earned by the unemployed. Mr Parker had desired him to state that he would not be able to go on on those terms, as he did not think it was desirable to work for nothing. For himself he would say that, having once begun, he felt he ought to continue. He, however, would like as much labour taken off their hands as possible, and as one of the supervisors he desired to say that he woukl like the usual half-holiday. (Laughter.)

Mr Spackman asked if any information had been obtained respecting the £3000, representing the shares in the Blackball Coal Company. The Hon. E. C. J. Stevens said they bad not been able to get at anything reliable in respect of that, and if the rumours were correct the asset had been pledged. The Official Assignee said that he had placed before him a few minutes ago information of a meeting, but he had not yet had tune to go into it. The Hon. E. C. J.. Stevens said that did not refer to Mr Spackman's point. It referred to a meeting held by representatives of foreign creditors, who might act in concert in instituting inquiries for the satisfaction of the foreign creditors, who might be surprised at the unfortunate position of the estate, taken comparatively with what they might have been led to expect in England. The Official Assignee said that with regard to the mining property he had a long conversation with Mr Cox, who explained the position of the affair. They were not in a position to carry on gold mining in the North Island, and Mr Cox had recommended that the offer' made by the Woodstock Company was one it was desirable to accept. He (Mr Greenwood) consulted the supervisors, and they agreed that that would be the best course to take. He, therefore, forwarded the documents, and intimated that Mr Cox had kindly consented to act with him to save unnecessary transfers. This asset would realise about £400. The offer was £500, but incidental expenses as rents, &c., would absorb about £100. Of course some creditors might think little progress had been made since the last meeting. They must remember that first of all came the Easter holidays ; that the whole of the printed statements had to be first made out, and both super visors could do nothing until they had these documents before them. Since then all the spare time they had had been devoted as Mr Wilding could tell them, to taking evidence in the Lyttelton Times matter. They were now in a position to go ahead, and all that could be done would be done quickly and energetically. He held a copy of certain resolutions which had been passed by a meeting of creditors' representatives, but one which he noticed in a paragraph in the papers would no doubt commend itself. It was that the Official Assignee be instructed that the most thorough investigation must be made into the bankruptcy of all the partners. Mr Wynn- Williams said that as the report of this meeting would be published and circulated it would perhaps be advisable that the last resolution should be passed that day, especially as there was little information to be had at present. He would move—"That the Official Assignee be instructed thajb the most thorough investigation must be made into the bankruptcies of all the partners."

Mr Cowlishaw seconded the motion, which was carried.

Mr Spackman said that he had spent three days endeavouring to obtain information with regard to the books by inspection ; that he was met with a number of formalities which hindered what he submitted should be the right of all proved creditors, viz., to examine tbe books. Of course he did not ask that the private diaries, &c, as between solicitors and clients, should be open to inspection, but he said that the ordinary books of accounts should be. He therefore moved—"That the books of accounts of tbe late firm of Harper and Co. be open to the inspection of any proved creditors or their solicitors at reasonable hours, and that the accountant of- Harper and Co. be specially employed to attend to give information."

Mr Hallamore asked whether this was not pro i' for by tbe Act. Mr Sp_ckn._- id thafc whafc he granted to point out was that now asked for powers of attorney and all fiina. formalities. He said that any creditor wno improved should have the opportunity of examining the books so as to follow up any transaction in which they were interested. The Official Assignee said he had engaged Mr Miller to be present at his office to do exactly what Mr Spackman wanted in the resolution. It was intended that the books of the financial branch of the business should be placed in an office adjoining his (the Official Assignee's) office, where Mr Miller, who could give all necessary information, would also be present. He might say that there were books which even he as Official Assignee would not look at. He was most anxious to give the creditors every facility.

Mr A. E. G. Rhodes said what was wanted was that the accounts should be made up by an accountant, so that the creditors might know what they really were. They were creditors for £800, and they had no idea how it had arisen, whether on account of capital or income.

Mr Wynn Williams said that in his case there was £13,000 which had been called in connected with Mr Holland's claim, and he could get no information regarding it. Now he could not prove at all until he got that information. It would be necessary to have an accountant on so as to show about these amounts being called in. These had been called in during the past twelve months, and there was also some £7000 of Mr Jeficoate's which had been called in but no information was available.

Mr Harley suggested that the creditors might prove for the amounts they knew of and then allow a supplementary proof to be put in. The Official Assignee said this might be done.

Mr A. E. G. Rhodes said that what was wanted was that the accounts as to the money and investment should be made np fully, so that the creditors might see actually what was the state of matters.

The Official Assignee said that all the correspondence, which had been kept in the most orderly way, was in their* hands, so that everything having reference to any matter could be traced. Mr Miller as he had stated, had been engaged, and would be available to give any information which might be required. He (Mr Greenwood) would also, if necessary, hold any enquiry on oath which might be necessary to get at the fullest information with respect to the matters.

Mr Spackman then withdrew his resolution.

Mr Cowlishaw said that in tbe printed statement there were two items of assets,' one £54,000 representing one class stated to be owing to the firm, and -216,000 representing another class. He desired to know what steps it was intended to take to test the value of those two classes of assets. Observations had been marked against some of them. The creditors would like to know if any were debarred by statute, or disputed, and if so, on what ground-. The Official Assignee said that they would go carefully into the matter with the assistance of the accountants, and see how the books balanced when finally made .up. What they would do afterwards it was impossible for him then to state. They would, he presumed, consider each case on its merits. Where there was any possibility of recovering any of the amounts they would take tbe necessary steps to recover. As far as he had been able to examine tbe majority of the amounts in the £54,000 odd list were as hopelessly bad as the majority in the larger list.

The Hon. E. C. J. Stevens said that on Friday afternoon Mr Parker and himself came to the understanding with the Official Assignee that a circular should be issued with regard to schedule of debtors (schedule 11) calling upon the debtors therein named to pay the amounts forthwith. The Official Assignee said the matter was one of an uncompleted nature, and he did not think he ought to act upon it. The Hon. E. C. J. Stevens said Mr Cowlishaw had asked what had been done, and this had been done—that the Official Assignee should demand the money asserted to be due by each individuaL Mr Cowlishaw said that not only should a demand be made, but proceedings should be taken to recover them.

The Hon. E. C. J. Stevens said the first course was to make the demand. He might say that upon investigation he found that in schedule 11 amounts appeared there that ought not to, the liability supported by security having been transferred. It was no use making demands in such cases as those. In respect of all the others demands should be made first, and then proceedings taken to recover.

The Official Assignee said that some of the statements were incomplete, for instance the £2000 law costs had not been included, and he believed some other lists would have to be modified in various ways. He would try and have the lists corrected, and made as reliable as possible, and take the steps Mr Cowlishaw desired and Mr Stevens had indicated.

A similar resolution to that carried in Mr Maude's estate was passed, and the meeting closed.