MEETING OF I. R. VIALOU'S CREDITORS.

Daily Southern Cross, Volume XXIII, Issue 3219, 9 November 1867, Page 4

MEETING OF I. R. VIALOU'S CREDITORS.

A public meeting of the creditors of Mr. Yialou's estate, convened at the instance of Messrs. D. Nathan and W. J. Young, trustees appointed by the Judge of the Insolvency Court, was held at the Auckland Hotel, at three o'clock yesterday afternoon, to ascertain what course should be adopted by the trustees in reference to the estate. The principal creditors were present. Mr. Wynn attended on behalf of M r. Vialou ; Mr. Beveridge represented Mr. W. J. Young's interest ; and Mr. Jackson appeared on behalf of the Union Bank of Australia. Mr. W. J. Hurst preaided. The Chairman said the meeting was held at the request of Messrs. Nathan and Young, who were appointed trustees by the Judge of the Court. Those gentlemen had appointed an accountant to inspect Mr. Yialou's books, accounts, &c, and to report upon them. The first business would be to receive the report of the trustees. Mr. Nathan said the trustees had appointed Mr. Mabin as aooountant, who had prepared a report which he would read to the meeting. Mr. Thomas H. Mabin then read the following report and statement of accounts :— Auckland, N.Z., November 7, 1867. To the Trustees and Creditor! of the Estate of I. B. Vialou. Gentlemen,— l beg to submit the following report on the affairs of Mr. I. B, Vialou :— Prior to December 31, 1865, Mr. Vialou had no iy»tfcm of bookkeeping ; the only record of transaction! before that date being the bank pass-book and the invoices. On January 1, 1866, Mr. Vialou's affairs appeared to stand m per annexed statement marked A, thus showing an apparent surplus of £4,000. The present position of Mr. Vialou s affairs will be seen on reference to account marked B. The serious difference between tbe two accounts arises almost exclusively fiom the item of property. In the first account it is set down as worth £5,469 in excess of mortgages ; by ths present account it is set down as worth no more than the mortgages. Into the transactions between I. B. Vialou and his son, Alfred Vialou, I have endeavoured, as far as possible, to penetrate. By sundry payments to I. B. Vialou, extending from September, 1866, to December following, tbe aon became a creditor for £560. On December 29, as security for this balance, I. B. Vialou transferred to his son the equity of redemption in both the Highstreet and Queen-street properties. I. B. Vialon in consequence became his t-on'a tenant. In December, 1866, the son took the farm, as tenant, from M/s. Vialou. He continued in that position until 12th October last, when he surrendered possession of the farm. Frcm December, 1866, a continuous account existed between Alfred Vialou and I. B. Vialou, the son being credited with all supplies from the farm, and debited with all payments on account. In addition to farm produce, the son made loans, part of which hare been repaid. On June 1, 1867, the son stood as creditor for £187 55., viz,, open account, about £85, and current bill, £102 10s. The £85 was subsequently paid bj I. B. Vialou, but the bill was renewed, and it remains unpaid. In July, 1867, Alfred Vialou purchased the stock-in-trade and fixtures of the Greyhound for £570 115., which purchase money he paid as follow* : — July 3, £200; July 17, £100; July 29, £270 lls.;— £570 11s. In August, 1867, I. R. Vialou re-purchased the equity of redemption of Queen street and High-street properties from his aon, for £370. Mr. I. B. Vialou has explained that the money advanced to him by his son was derived from time to time by the productions of the farm and sums given to the aon by Mrs. Vialou. Mrs. V., it appears, had kept a distinct bank account. The bank-book has been produred. It was begun November 24, 1865, with a depqsit of £200. About October, 1866 (the time the son came to New Zealand), the account was transferred to the son's name. I have not seen the son's bank-book. In addition, Mrs. Vialou possessed a farm at Point Übevaher, purchased for £1,100, in August, 1863 (prior to i. B. Vialou entering into business), and allotments at Otahuhu and ErookviHe. In November, 1865, the farm was mortgaged for £600 ; and in April, 1866, the allotments were mortgaged for £300. These mortgages remain in force. I have carefully gone through Mr. Vialou's books, and, in so doing, Mr. Vialou has given me every assiatance. The books are as follow ; — Ledger, weekly and daily cash-books, bar books. I can detect no instances of payments having been made out of the receipts from the business, except for the legitimate purposes of that business. I have also gone through every part of Mr. Vialou's establishment, and taken complete inventories : Ist, of stock-in-trade ; 2nd, of furniture, fixture^, and utensils. The detailed statements are appended. The abstracts thereof will be found on credit side of statement B, — Yours, &0., Thos. H. Mabjn.

Auckland, November 7, 1867. Some conversation toot place respecting the statement of accounts, and as to what the eitate would realise. It appeared that there was property to the amount of £1,000 to meet liabilities amounting to £4,000, whioh would be 6s. in the pound if no costs or Court expenses were deducted. Mr. Yiilou said there was also a statement of cash received and disbursements since he filed his petition, and vouchers for any sums ptid. Mr. Wtnn would not say that the valuation of the property was not fairly what Mr. Mabin believed it to be ; but they had only the experience of the previous day to show that, if such property were put into the market now, there would be a very considerable deficiency — that it would not realise £1,000 net. They knew more about such matters than he did. It appeared to him, therefore, that there were only three proposals which he could make on l)ehalf of Mr. Vialou. The first was to let the eitate go through the Court. If that was to be the case the creditors would never see one pezmy. Aftej* the time that would necessarily be taken up, and the coots of creditors who should choose to be represu)' oc!, there would literally be nothing of the eitate left. Then $he next propoials frere that Mr. Yialou should

pay 6a. in the pound, and giro him s certain time to pay ifc, or that they should accept a dividend of 2s. 6d. in cash at once if he was prepared to pay t it. He (Mr. Wyna) irna informed that Mr. Vialou had a friend who would aivance him a sum of money to enable him to pay 2s. 6d. in the pound cash down. Those were the only three proposals the creditors had to select from, if they did not wish to have the estate driven through the Court. Of course, the estate was to a certain extent in Court already. If the creditors desired themselves to realise, they might do so. Mr. Vialou was ready to give them every assistance for a certain time to realise for themselves in suoh a manner as they might think fit. The proposals were before them, and it was for the creditors present to declare what they thought best for the bulk of the creditors', and not what was best for Mr .Vialou. There was one observation he wished to make. One or two of the creditors had spoken to him about Mr Vialou having refused to deliver up the books and papers. On the 23rd of October Mr. Vialou had shown him two letters which had been received from Mr. Beveridge, which he would read to the meeting : — " Wyndham-street, Auckland, October 23, 1867.— Mr.1 E. Vialou.— Sir, — Messrs. D.Nathan and W. J.Younghaving been duly appointed trustees in your estate, I ' have to_ask, on their behalf, that you will cause all your books, together with all papers, documents, and aocounts which may relate in any manner to your estate, to be delivered to me at my office at your eailiest convenience. — Yours, &c, Andrew Beveridge." " Wyndham- ; street, October 23, 1867. — Mr. Henry Vernon, i sequestrator in the estate of I. E>. Vialou, Queen-street. — "Re Vialou, a debtor.— Dear Sir, — I beg to forward you herewith a copy of an order appointing Messrs. D. Nathan and W. J. Young trustees in this matter. May I ask that you will send me all orders, papers, documents, and books, &c, which you may have, as the trustees are desirous of losing no time in winding up the estate. I should, also, be glad to see you respecting the matter at your convenience. — Yours, &c, Andrew Beveridge." There were two letters sent to two separate persons demanding custody of the books, &c. Mr. Vialou consulted him on the matter, and he advised him by no means to deliver custody of the books and papers to either party under those circumstances, but that he should place his books, &c, in a room for the use of the trustees, or any accountant appointed by them, whenever, they might think fit to examine them. Mr. Vialou had expressed his willingness to give the accountant every assistance he possibly could. He (Mr. Wynn) did not see why any man should part with his books and papers to anybody that asked for them. There were two documents demanding them for Mr. Beveridge and the sequestrator. He bad advised Mr. Vialou not to give them ; and if he had done wrong, it was on his (Mr. Wynns) advice. He told him to let the accountant have them in a room where they would be locked up when he chose, so that there could possibly be nothing unfair done respecting them. If any of the creditors thought Mr. Vialou had acted unfairly in refusing to give up the books, he had acted under his advice ; and if he had given him bad advice he was to blame, and not Mr. Vialou. Mr. Beveridge explained that, immediately after Messrs. Nathan and Young had been appointed trustees, he applied to Mr. Vernon for the books and documents in his possession connected with the estate, believing that, as sequestrator, Mr. Vernon would have had them in his possession. Afterwards, when he found they were in Mr. Vialou's possession, he caused the subsequent demand to be made upon Mr. Vialou for them. As to whether Mr. Wynn had given proper advice or not, he had nothing to do with it. Mr. Vialou said he had the books already packed up for the use of the trustees and their accountant. The Chairman said they were satisfied with the explanation. He wished to know if any creditor had a proposition to submit to the meeting, or any remark to make on what had already been stated on behalf of Mr. Vialou. Mr. W. J. Young said the trustees had called the meting together to submit to the creditors what they had done during the time they had had the matter in charge. The report read by Mr. Mabin might be said to be their report. The object of the meeting was to ascertain what was to be done with the estate. The trustees wished to know whether they would accept Mr. Vialou's proposal to pay 2s. 6id. in the pound, with future payments of he did not know how much. He understood the payments would be begun with 2s. 6d. in the pound. Mr. Wynn : Oh no, not at all ; 2s. 6d. cash down, or ss. or 6s. deferred payments. Mr. Young wished to know if the trustees were to accept 23. 6d. in the pound as the first and final dividend. If the creditors said so, he believed Mr. Nathan and himself would be glad to fall into their views ; if not, it was for those present to express what they desired should be done with the estate. The Chairman said it remained with the creditors to make any proposal, but the trustees wished instructions as to what was to be done with the estate, as to how it should be wound up. Mr. Wynn said it was desirable the creditors should bear in mind the enormous expense that would be incurred if the estate went through the Court. To a certain extent the estate was in Court, but if they made arrangements before the sitting of the' Bankruptcy Court, and should no one appear at the Court, the matter simply died away, and there would be no Court expenses except the expenses of Mr. Vernon, sequestrator, which would be about two guineas. Mr. C. Davis said they had heard from Mr. Wynn certain proposals, and it was for the meeting to agree with them or make amendments upon them. He would make an amendment on behalf of Mr. Nathan, which would meet the views of the trustees. Mr. Nathan considered that if Mr. Vialou would pay 2s. 6d. in the pound in the first instance, and pay a further sum of 2s. 6d. (which would be ss. on the whole), within twelve months, on satisfactory security, they might accept those terms. Should they not agree to those terms, there was only another course which Mr. Nathan would consent to — that the property should be kept intact, Mr. Vialou's services to be secured to carry it on, and that the property be advertised for sale. If it were known in the colonies that such a property was for sale, they might dispose of it at such a sum as Mr. Mabin had stated it would realise. He would propose that the ss. in the pound be accepted from Mr. Vialou - 2s. 6d. in the pound cash, and 2s. 6d. at twelve months, guaranteed. Mr. Minetti seconded the motion. Mr. S. Jones proposed an amendment to the effect that the estate should be continued in Court unless Mr. Vialou gave up the Greyhound Hotel and the stock-in-trade, also the farm and the stock thereon. Mr. J. Eobeston seconded the amendment, which was carried by a majority of two votes, there being six in its favour and four against, Mr. Wynn observed that the meeting was not legally constituted under the Court. Mr. Young said the trustees had called the meeting to ascertain the wishes of the creditors aB to what should be done. Mr. Wynn said it was impossible for Mr. Vialou to accept their' alternative. If they did not accept the alternative he had offered, the estate must go through the Court. The trustees were not bound, to accept any proposal that was unreasonable. If that was the decision they arrived at, the debtor would elect to go through the Court. Mr. Nathan : I have not voted for ifc, and ■will not carry ifc out. Mr. Bucholz: If Mr. Nathan has decided' that the resolution is not to be carried out, it is bat a waste of time our attending here.

Mr. Nathan : We will constitute a meeting through the Court, and call the oreditors together if we get a reasonable offer. Mr. Wynn : Unless you agree among yourselves, the estate must go through the Court. Mr. Young: I want to know what the trustees are to do with the estate in the meantime. Mr. S. Jokes proposed, " That the doors of these premises be at once closed, the trustees to be authorised to sell the property — either the whole at one sale or in part^-m such manner as they may think best for the interests of the creditors." Mr. Wykn said if suob a oourse were adopted he felt'bound to say what he should do. It was his opinion that the appointment of trustees or the order made was not worth the paper it was written on. In the first place, Mr. Vernon was appointed sequestrator by the Judge, and the sequestrator had received no notice that he was to be superseded by trustees. The order was made behind his baok, when he was miles away. Mr. Vernon had the whole estate legally vested in him. It was not his wish to nave said anything about the matter, as Mr. Beveridge and himself were willing to accept the trustees ; but after the violent proceedings which had now been taken, he would take such advantage as the law would give him. If the trustees wished to go under that order and take possession, they would do so at their peril. They might freely hare possession, but if they would shut up the house they would do so at their peril. He hoped the trustees would not think he was making any threats. (Laughter.) He had not intended to say anything about it. He had not said anything about it to Mr. Vialou. Mr. Vialou : I have not heard a word of it before. Mr. Wynn s What advantage would it be to the creditors to shut up the house P It would be a positive loss. Mr. J. Eobeeton seconded Mr. Jones's proposition. Mr. Nathan i It would only injure the estate to close up the house ; the property would sell better if the business was continued to be carried on. Mr. C. Davis proposed, as an amendment, " That the proposition of Mr. Jones to close up the house be deferred until after the meeting of the Insolvency Court, on Wednesday next." Mr. Wynn : It would be better to postpone any resolution until after the Court meets. All you do to-day amounts to nothing, as you do not hold any order of the Court. The trustees are not bound by any decision come to by this meeting. Mr. SrBiNGALL seconded the amendment. Mr. C. Davis : A loss would accrue if the house were closed up. Mr. Wynn : If any one closes up the house I would advise Mr, Vialou to open it again. There were five votes for the amendment and n*7e against it. The Chaieman gave his casting vote in favour of the amendment, which was declared to be carried. The meeting then broke up.

Statement op I. &. Yialou's position, Ist or January, 1866. Dr. £ s. d. To liabilities, m per list, £2,910 Is. 4d.; error therein, £15 13a. 2d 2,925 14 6 Balance, burplus 4,028 9 0 £6,954 3 6 Cr. By fijood debta 84 6 3 Property, viz: — Cost of buildings, £6,025 ; furniture and fittings, £2,140 ; premiums f or le*ses,£J, oo4; total, £8,169; lean mortgages »nd interest, £2,700 5,469 0 0 Ee*dy money 331 6 i Stock in hand 1,069 10 11 £6,954 3 6 Thomas H. Mabin.

Schedule A.

Statement of I. R. Vialotj's Position on November 4, 1867. Dr. £ s. d. ?o oreditow, unsecured 3,517 0 0 Creditors, secured by mortgagees ... 1,500 0 0 Preferential claims, for wagw, rate.*, and rout 1, 255 0 0 . £5,272 0 0 Cr. £ b. d. ty stock in bond and on the premises ... £631 3 6 Furniture, fixtures, and utensils 620 13 1 1,251 16 7 Queen-street andHigh»atreet proper* ties estimated as worth the mort« gages as per contra 1,500 0 0 Allotments at Mangonui and land orders „ ... 0 0 0 2,751 16 7 )eficiency ... 2,520 3 5 £6,272 0 0 ThoAas H. Mabin.

Schedule 6.