THE ELLIOTT BANK. RUPTCY.

Dominion, Volume 1, Issue 193, 9 May 1908, Page 6

THE ELLIOTT BANK. RUPTCY.

CREDITORS MEET AGAIN. POLICE INVESTIGATING THE MATTER. The adjourned meeting of creditors, in tho bankrupt estate of A. C. Elliott Was held yesterday in tho Official Assignee's office, Mr. A. Simpson .presiding. Solicitors representing various creditors wcro present, as follow: —Messrs. H. Richmond (for All-. D. M. Findlay), M. Luckie, T. \oimg, H. Buddie, and I*. Levvey. Other creditors also wero present. "* DEBTOR'S FURNITURE.. The Assignee, speaking in regard to tho motion passed-at the previous meeting,., to hand over the furniture to Mrs. Elliott,in trust for her child, said that the assignment Would liavo to ho mado by special resolution. Replying to a creditor, tho Assigneo said that tho furniture was worth, roughly, £150. 'A bill-of-salo for £'50 was held over it. Mr. .Levvey said that if ho had known that tho handing ovor of'tho furniture would not be effective on tho vote of tho previous meeting, ho would liavo had his client present on this occasion to vote. The Assignee read from the Bankruptcy Act in support of his ruling. Ho had thought they could effect the transfer without a special resolution, but this only applied where tho furniture was under £50 in value. Mr. Richmond proposed tho special resolution as requested, and Mr. S. j. Cotton' seconded ii;, and it was carried. The resolution. wi 11 bo confirmed in a fortnight's time; POLICE MAKING INQUIRIES. " I. am pleased to say," proceeded the Assignee, "that at last some of tho creditors liavo placed tho matter beforo the police, and tho latter aro actively making inquiries as to tho charges put before them, and I anticipate, that reports will bo in to-day. Then tho Commissioner of l'olico will decido what stops will bo taken by the Crown to bring tho debtor back, or whether action will bo left entirely to tho creditors. That is the position so far. The police will not send their report to mo, but "to tho .creditors. Tho creditors will then be able to deal with it as they think fit. There is no law by which I can interfere to bring the debtor back unless I am satisfied that ho has more than £20 worth of tho creditors' property or funds with him. I have done everything to find that out, but without avail, and'there, so far as I am concerned, tho -matter must rest for tho present. I shall loso no chanco of laying an information if I can do sol" Mr. Young: The creditors will ...bo very much better pleased if tho police can bring him back. It is not fair for tho creditors to bear tho expense. ■ • The Assignee: "It is a matter for the Commissioner of Police to settlo when the whole thing is beforo -him. That will be either to-day or to-morrow. I had- a long conversation with-tho Sub-Inspector, and he said it would not bo .necpssary to send in a report to mo, but each creditor who dealt with the, matter would bo advised by him as to -what' action was goiiig to be_ taken. '• Ono creditor informed mo last night that he wanted to lay an information this morning." Tho'Assignee prooceded that another case had come under his notice that morning. It . was a oa-se, howover, in .which tho private individual concerned would have to act. Ho read a memo from.'tho Postmaster of the Wellington South post' office in which that official-stated that ono-of. his olerks had cashed a chequoi for £4 on March.27 for Elliott for "change.", Subsequently, ion tho cheque boing .-banked, it was returned, and they had been unable to f;et a refund. They had consequently. Bent in their claim with other creditors, and suggested that, under tho special circumstances and tho smallness 'of the amount, perhaps it would bo treated as preferential. It-bad been a • transaction across tho. post-offico counter.- \ ? i •< ■ . It was-pointed out that this did not constitute a preferential claim. Mr. Levvey said this was tho opportunity-^—tho passing of . a valueless cheque. '

. The Assignee: I shall hand this letter over to tho polico, and they can take It is a clear caso of issuing a valueless cheque. I am sorry for -the-clerk' that wo cannot treat it n-s preferential. ... ' ■ The Assignee then produced the bankrupt's cash-book, which, he said, was< tile latter's onlv apparent record. Remarks 1 wero made:as to the inadequacy of tho record. BOOKS. Mr. Levvey said, he had seen other books being written up in the offico. It was a farce to say that this was'tho only book in a firm that had been carrying on for years. A Creditor: Is that the firm's book,or his book? Tho Assignee: There'are no books in'the office at all. ■ A creditor said thero were the New Zealand Retailers'. Association's books'"there. The Assignee: That has, nothing to do with' tho bankruptcy. Mr. Levvey contended otherwise, because there , was _ money 'owing there. The - Assignee' said that it would perhaps have to bo fought out. whether tho firm was connccted with debtor's debts ' or not. He had had.Mr. Duncan at his office twico, who had said' there were no moro books. Tlioy had all, been kept by Elliott, and Mr. Duncan had, trusted Elliott implicitly. Ho had understood . debtor kept books, but there wero nono found. Thero may. h'avo. been books kept, but if so they had been destroyed, or done aw'ay with somehow. Mr. Blanchard: What were Mr. Duncan's duties then ?_ . 1 Tho Assignee: Ho was .to do general ofneo workj look after properties, and show people over them. , Mr. Frceth asked if both members of tho firm should not be in the proceedings ? Tho Assignee did not tbink so. This was simply : a bankruptcy of' a member of the firm. . A Creditor: Well, we can realiso 1 on the firm. Can we< not ascertain the position? Tho Assigneo said they would havo -to examine Mr. Duncan on oath, and ascertain tho real position. Be thought, personally, that Mr. Duncan had been "gulled" like tho rest of them. ' ■ Tho Assigneo said he had requested the bank to make up a fresh pass-book. A creditor asked if one of the clerks in the office could not say something about' the matter. The Assigneo: When they got the passbook made up they could see what payments had been made. With tho one book they had before them now they could .do nothing. Mrs. Elliott had said there were no books of any kind at tho houso. Some remarks were made as to the writing in the. book not being in the hand of Elliott, and that only ono or two entries were his. The Assigneo said his private opinion was that the debtor had destroyed his books, or made away' with them. His partner had said he (Elliott) had promised , to' keep' them, and ho had always thought Elliott was doing so. A creditor wanted to know how the partnership accounts were adjusted. ' The' Assignee believed that the partnership deeds had never been signed, and'that there had been no adjustment.: Replying further, ho said it was only right that tho creditors should have a chance of examining Mr. Duncan and ono of the clerks in the offico if only to got some indication as to how tilings were. He was quite willing that Mr. Duncan should bo examined cither by himself or by tho creditors themselves, or by a magistrate. Mr. Young suggested that tho Assignee himself should oxamine_ Mr. Duncan privately. He could obtain all tho information necessary. ' The Assignee said Mr. Duncan was feeling his position very keenly. He was surprised at tho way lie hacl_ evidently allowed Elliott to bamboozle him. ■ • The question of tlic* Goldie's Brae property cropped up. Tho Assignee said lie had not yet had time to go into the matter of the proporties, and there was no great hurry. Ho had been engaged in the matter of getting the bankrupt back. It bad been a very laborious task. !He bad had no idea tho creditors would liavo ' held off as they had.' . . ■A LADY. CREDITOR; Mr. Levvey remarked that there were so many women creditors concerned, and tlioy rcoiild jiflt hua mavfidi

A Lady Creditor: I for one would liavo boon quito willing if some of the larger creditors had not held off. Mr. Levvey stated that most of tho women were tho largest creditors. ' Lady Creditor: Well, we'll, put the women asido for tho present. Tho Assignco remarked that two credi-. tors had now given information. Lady Creditor: -Why had thoy not: done so at tho first meeting of creditors, and not' now, when it seemed too late? Why did they not do it .over a month ago? The Assignee: You could not expcct me to do it. Why.did you not" do so ? Lady Croditor: Thoy knew .at the first meeting what was going to happen. ' They knew he was going away. Air. Lcvvey: You should' not • say that. It- is a broad statement .t-o make,, and it is wrong. Lady Creditor: It is not. It was pointed out, as at the last meeting, that they had .expected 'to get 10s. in "tho pound from ' the bankrupt, and that that was why 110 action had been taken. The Assignee i couid not understand how they had accepted that promise. Mr. Levvey said that debtor had said his brother was going to help him. Tlio matter had como up hurriedly, and they had very little fact to go upon. That was .why tho meeting had been adjourned... The Assignee: He would have beon a very confiding brother if ho had made that promise. - FURTHER, INVESTIGATION'. After further discussion, it was ,decided to adjourn tho meeting to Monday next at , eleven o'clock! On Mr. Luckio's motion, it was decided to summon Mr. Duncan and a lady clerk who had been'in'tho firm's employ for some time to attend to bo, examined by tho Ast signee at 10.30 on Monday morning, prior to tho meeting of tho creditors. . PROPERTIES. '• The Assignee reported regarding a valuation of . three of debtor's properties by Messrs. Macdonald, Wilson, 1 and Co. He said there was a fair surplus in view oyer and above tho mortgages, but to gain tliat surplus they must provide for current interest. It had not yet been ascertained whethor the interest owing was very long ovorduo. The investigation of the matters, under the circumstances, was a very difficult matter.

ELLIOTT/IN SYDNEY. RECOGNISED AT CHURCH SERVICE. A -passenger, who'travelled to Sydney , recently by tho Maheuo states that several Wellington people recognised tho missing bankrupt Elliott (who was travelling by that steamer as steerage passenger) when ho was, attending the 'church held on board. Two of' thoso 011 - board, who knew the circumstances of Elliott's bankruptcy, mado a wager as to whether ho would bo apprehended by tho polico on arrival at Sydney, a.nd - miich interest centred in the arrival 011 that, account. It is not unusual for polico officers to be about, the wharves ,on the arrival of passenger steamers, and there happened to bo two on tho Union Company's wharf when the, Maheno jvas berthed. Elliott, without any luggage, went down the gangway, tho cynosure of many;'eyes, • bumped accidentally into ono 'of the officers ■of tho' law, begged his pardon, a,nd, waving his hand to several of his fellow-passengers - on tlio steerage: end of tho vessel, went off tho wharf. Later in 'tho day ho is known to have met a theatrical manager, well-known in New ' Zealand, • .whom he asked to back his application for a clerkship in the Post' and Telegraph Department. Tho manager acceded'te tho request, but it is understood that Elliott failed to avail himself .of. .the favour.