PARTNERS NO LONGER

Dominion, Volume 5, Issue 1440, 15 May 1912, Page 4

PARTNERS NO LONGER

A BANKRUPTCY QUESTION, At the first meeting of the creditors of Tasman John Chamberlain Gurr, merchant, of Wellington, trading as J. A. Smyth and Co., it was alleged by certain, creditors that Mr. John Andrew Smyth, of Wanganui, was a partner in the business. Mr. Smyth's position has since been elucidated by means of a sworn statement and a legal opinion, mid in order to make the matter clear to those interested nriil to put Mr. Smyth right with the public an adjourned meeting of the creditors was held yesterday at tho Official Assignee's office. Only three creditors wero present or represented. Mr. A. .Simpson, Official Assignee, presided. Mr. A. Gray appeared for Smyth. . John Andrew Smyth, in' a statement which was read by tho Official Assignee, described himself as a settler living at Wanganui. Hβ was at cue time a partner in tho firm of Smyth and Co., of Wellington, which was founded by Mr. Gurr and 'himself, in- 1010, when he advanced about X'loo to enable Gurr to buy tho business formerly carried on by J. A. Symonds and Co., who were agents for the Atlas Biscuit Company. Ho Izno.w that Gurr was a clever and active salesman. Tho deed of partnership was signed on December 13, 1909, and the business was in tho name of J. E. Smyth and Co. Ho (Smyth) did not take an aetiyo part in the business, but Gurr kept him informed about the .agencies lie was taking and tho tonus. As far as he know, Gurr was not incurring debts and the books showed that at tho time of tiie dissolution of partnership ho had not incurred debts. They dissolved partnership on June 21, 1910, and a deed of dissolution was drawn up and executed. Gurr took-over the-business, with the exception of tho Wilson's Malt Extract Agency. Gurr was to have the right to use the name of J. A. Smyth and Co. for five years. Smyth was to get .£6OO for his share in tho partnership— J-GO in cash and 18 promissory notes of .£3O each nt from ono to 18 months without interest. Hβ got tho £S0 in cash and all the promissory notes had been paid out one on tho duo dates. He got out of tho business with about JilOO more than ho put in. Tho partnership was dissolved at his (Smyth's) suggestion. They had been drawing £6 per week each all tho time they had been in partnership. They took stock and found that tho business was paying well. Gurr put no capital into the business up to the time-of dissolution. The notice of dissolution was published in the "Mercantile and Bankruptcy Gazette." He could not say whether it was also published in the "New Zealand Gazette." Gurr told him ho would communicate with all the people the firm had been doing business with, and this was left to Smyth to do. Hβ heard from the Wanganui customers that they had received notice. Ho had also seen correspondence between Gurr and some of tho people with whom ho had been doing business, shoving that notice of the dissolution had been given to Frimley Company, and others. The Assignee said ho had every reason to believe that Smyth's statement was correct. From what he knew of Mr. Smyth ho was a very reliable and trustworthy man. He was in business in Wanganui. It had been stated that Smyth was in partnership with tho bankrupt, and it was only fair to lot him state his position. The Official Assignee also read a legal opinion by Mr. 51. Myers to the effect that Smyth had ceased to be in partnership with Gurr and was not in any way liable. The Official Assignee emphasised ,thc fact that tho notice of dissolution of partnership had been advertised in the "Mercantile Gazette," whereas it ought to have been advertised in the "New Zealand Gazette."

It was resolved: "That the opinion of Mr. Myers be accepted and that no action be taken in regard to Mr. Smyth." Mr. Gray, on behalf of Smyth, claim; od .£lO for travelling expenses and legal costs.

The Official Assignee admitted the claim for expenses in coming down to Wellington to make his statement, but opposed the claim for legal costs. The question of costs was adjourned. In reply to a. creditor the Official Assignee said that the book debts of the assigned estate were £%b 7s, Gd., being £SU 12s. i<\. at the Wellington branch and .£l3O 15s. 2d. at the Wangnnui branch. The amount received from these was MU 3s. 5d., being Jim ss. 10d. from (lie Wellington branch and «£""> 17s. 7d. from Wnnganui. Ho intended to sue for the rest. Creditors had proved for .£.'1005, exclusive of tho Frimley Company's claim which was estimated at about .£IOOO, but including tho Atlas Company's claim, which ho (the Assignee) hnd not yet hud time to go into.

A creditor: There will be about Is. in the pound.