LARGE BANKRUPTCY.

Press, Volume LXIII, Issue 18903, 19 January 1927, Page 15

LARGE BANKRUPTCY.

G. S. MEREDITH AND CO. A meeline of creditors in the estate of G. S. Meredith and S. J. HiU-lnns, trading as G. S. Meredith and Co., grain and produce merchants, was held ■it Waimate before the Official Assignee, Mr A. E. Reynolds. There were some twelve proved creditors included in the large attendance. Bankrupts were represented by Mr Emslie, of Timaru. , The following were the secured cieditors:—Bank of Ne«' S ?"V' Wales. £7054 9s; H. H. Mej-«litli. £300; .1. Meehan. £S2G ss: MuWletou and Tweedv, £(jllj 13s; I.eyhuid Mo or Co., l:ml making a total ol *.J*o' 7s. The security "was estimated to produce tKS.OIO' Ms lid, leaving a surplus of £3-553 7s lid. The list of unsecured creditors comprised firms from towns all o\ei New Zealand, the total amount shown to he owing being £3502 Is lOd. In addition. £"259 18s" was owing m wages to preferential unsecured creditors and i's7 Ids 9d owing to the V, annate Borough Council for rates.

Bankrupts' Statement. Bankrupts, in their sworn statement, which was read by Mr Einslie, said:—''We commenced business in Waimate as grain and produce meichants in 1900 with a capital of about £I2OO, and from that date until 19-d we continued to make good progress. During the season 1923-2-1. we lost nearly £I2OO on shipments ot peas to London. From the year 1923 until tlit vear 1D24 inclusive, business was bad, and the continued slump in tlu prices of produce resulted in continual loss to our firm; but in spito of these losses we hoped that business would improve, and that we should s'jou make up all that wo 1m« lost. In 1925, wo had a further setback through our store and contents being destroyed by fire. We lost mti £SOO on this account, as the store and contents were not fully covered by insurance. The continued tightness of money and the difficulty m financing buyers of produce was a serious handicap to our business. iJurin<r the season 1920, the long illness of Mr G. S. Meredith caused the hrm a further heavy loss, owing to our null re to secure a lot of business winch would have shown a profit. It was due in a great measure to the tact that Mr Meredith's recovery was only partial, and that he was not able to give the business his usual attention and supervision, and owing also to the shortage of working capital, that wo reluctantly decided to discontinue in business and to call our creditors together to consider our position. "We called a private meeting ot creditors on November 11th, 192b, at which it was resolved that three trustees, Messrs H. H. Meredith, 11. F. Algie, and J. A. Lash be appointed to act for the creditors, with a view to ascertaining the financial position of the firm, and to report to a further meeting of creditors to be held on November 29th. At the later meeting a motion was carried to the effect that we should assign all our joint and private estates for the benefit of our creditors, and that the same trustees be appointed. A deed giyi'.i effect to this resolution was duly effected by us, but although the deed was executed by more than a majority of our creditor's, Messrs Pyne, Gould, Guinness, Ltd., filed a creditors' petition against us, and -on this we were adjudged bankrupts. Owing to the large amount owing to unsecured creditors, we are not in a position to make any offer to our creditors." In the statement of assets and liabilities, stock was set down to produce £504 Is 6d, book debts £834 2s 4d, plant £2190, shares in various companies £606, lease of mine? cottages and machinery £3OOO, and registered securities £2609 14s lid, making with real estate of £9IOO, a total ot £18,834 18s 9d. The amount unsecured creditors was £3819 16s 7d, making, with £9457 7s owing to secured creditors, a total indebtedness of £13,277 3s 7d, which left a total surplus of £5566 15s 9d. In the private estate of G. S. Meredith, his statement showed debts to be £137 19s and assets £2205, leaving a surplus of £1554 Is. The list of secured creditors was as follows:—Estate M. J. Harris £550, Union Bank of Australia £63, making a total of of £613. The estimated securities amounted to £lOl3. The following is the list of unsecured creditors:—Dr. Wylie £lO 10s; Waimate Hospital £9, T. Mitchell £2 7s, Hamilton and Fitch £6 15s, J. Bryan £5 7s. The real estate amounted to £IBOS.

Meredith Examined. The Assignee questioned one of the partners, G. S. Meredith, in regard to the value of registered securities held by the firm, in the course of which it was ascertained that in several cases the estimates had been much higher than the securities would bring. Bankrupt was questioned regarding cheques endorsed by Meredith and Co. since the bankruptcy, bankrupt replying that the cheques were cashed by a firm of Meredith and Co. (the principal of which was his wife), which was trading in fruit, and the cheques were for C. E. Meredith.

Regarding the lease of the Allanholme Coal Mine, bankrupt, Meredith, said the lease was fo r 25 years, to which the Assignee said the Commissioner had only granted a license for 14 vears, and that the Commissioner of Crown Lands could not find any record of a promise to Meredith and Co. of any extension. Bankrupt's connexion with Fni* ! shops in Queen street was referred to by the Assignee. Meredith stated in reply that he had no financial infpin the shops and no partnership existed. "What he had done for the proprietor of the shops had been done from a desire to help her along after her long service with the firm of G. ? Meredith and Co.

S. J. Hitchins, the other partner, corroborated the evidence of Meredith.

The meeting decided to ask Meredith and Co. to produce a statement of proiii and loss.

Tt was also decided that the accountant's (Mr Alkie's) services be retain?'' by the Assignee and that Mr Algiers fee, plus a fair remuneration to life trustees, who have carried on on behalf of the creditors, should be. a fi'charge on any surplus after the payment of wages, and that any reasonable expenses bo paid. Messrs A. Hume and H. H. Meredith, on the motion of Messrs Fit-fl-and Boland, were appointed to act with the Assignee as an Advisory Committee.

On the motion of Messrs Tiash r Boland the meeting was adjounic until 10.30 a.m. on Monday, Jann". 24th. for which bankrupts were instructed to produce a profit and loss statement for the last twelve month.--

Mr Hume moved that further exination be left in the hands of w Assignee, with three trustees, which was seconded bv Mr S. Grut.