Meeting of H. C. Haselden's Creditors.

Evening Post, Volume XXXIX, Issue 61, 14 March 1890, Page 2

Meeting of H. C. Haselden's Creditors.

♦ The flrßt meeting of creditora in the estato of Henry Charles Haselden, bookseller, stationer, and fanoy goods dealer, was held this morning, the Official Assignee in the ohair. The debtor submitted a statement to the effeofc thai; h& commenood business in January, 1887, with a oapital of £500. In Juno of that year he noticod that something was wrong with his left arm, and ha became seriously ill after a while, and extremely weak. Drs. Cahill and Kemp performed several operations, but he reoeived no real relief nntil Febrnary of last year, when Drs. Kemp and Collins amputated the arm. It was not until the following May that he was able to attend to business again. Ho then found himeolf in rather a shaky position, having lost bo much timo and monoy, his expenses having been heavior than under ordinary oiroumstunces In order to roduuo expenses he romoved in August, 1888, from the premises he was then occupying to others, in which ho remained up to the time he failed. By diufc of hard work, in which his wife rendered valnatle assistance, ho had managed to make both ends meet, although he had not succeeded very much in reducing the amount of his indebtedness. In January last finding he could not pick up lost ground, he deoided to give up business, And on the let February he started a relinquishing sale. Ultimately he found that that was not good enough, and with the oonsent of his largest creditor (P. Hayman & Co.) he oomraonced to auotion the stook, and he wa* fatiafiod that had he been allowed to continue it bo should havo been able to pay bin creditors 20a in the £. Early in 1889 he became in- | tereßted in a patent gold-Baring machine, which ho expeoted would havo retrieved his fallen fortnnei, bat for laok of oapital the affair had been at a standstill, and was a financial failure, although an undoubted suooesß as a gold-saver. This oost him .£SO, and he was further liable for £35 10b, being the amount of a dishonoured promissory note given by A. Williams. Since he commenced business three other shops for the sale of books, stationery, &0., opened in Cubastreet, thus increasing the competition. In addition to this drawback several of tho leading drapers have added fanoy goods to their stocks, and in one instance books also have been added. Ho attributed his present position to various causes, to the falling off of business, to the inability to got a Living profit on many lines owing to excessive competition, to the fact of having lost bo much time and money through illnees. The primary cause was, however, the prensure brought to bear upon him by Mr. Salmon, of Messrs. Chapman andFitzGerald, acting on the instructions, as he bad reason to believe, of Mr. W. C. Watson, contractor, Adelaide-road, on account of tho dishonoured promissory note of A. Williams before referred to. In concluding his statement the debtor regretted exceedingly that he had been foroed into his present position, as his desire and intention hod always boea to pay his debta honestly. The debtor also submitted a list of creditors whom, he stated, he had accidentally omitted from the statement previously filed. The creditors referred to were as follows :— W. J. Gandy, £2 10s lOd; Wilkins and Field, J34 0s 4d ; Hudson and Co. (Christchurch), £3 6s 3d; Wellington Gas Company, £1 5s 8d ; Joßeph Eitohen, about £3. Mr. Quick appeared for the debtor. Replying to Mr. J. Lacbman (P. Hayman and Co.), the Official Assignee stated that the assets included the proceeds of tho three days' anotion sale. Mr. W, F. Boydhouse asked the debtor whether be thought it was right or fair to order £Z 15s worth of goods from him a few days before he filed. Ho (Mr. Boydhonse) did not think, it was. The debtor said tbat ho then had no real reason to suppose that he would be forced into bankruptcy. It was not until last Thursday night that ho thought he would be pushed so far. He had then advertised a sale which, if continued, would hare brought him in sufficient money to pay 20s in the pound. Beplying to Mr. Quick, tho debtor explained that the writ issued by Mr. Salmon was based on the bill in connection with the gold gleaner. The members of the syndicate, with the exception of JAr. W. C. Watson, agreed to give him time to pay, but Mr. W. C. Watson refused to sign. The thing could not thareforo be delayed, and the bailiffs wore to Lave been put in, and ha was only able to file in time to save the other creditors. Mr. Quick said ths creditors would Fee that the debtor was compelled to take the step he had done. The debtor was subjected to a somewhat severe examination by Mr. Lachman. In reply to a question, Mr. Haselden said that the whole of the £500 with which he had commenced business was pat in by himself, with the exception of about £20. Mr. Lachman— How long is it sinoe you were in my office and I told yon yon would either have to file or assign ? Debtor— About a month, I think. Mr. Lachman— l think it was a little longer. Mr. Lachman— Was this writ out at that time, or were you obliged to file because itwas taken out? Debtor— The writ was oat before I fil'd. Mr. Loohman— Did you ever tell us that there was a writ out for tbe amount of a dishonoured promissory note i Debtor— No. Mr. Lachman— Did you not come to me and say, "I have not taken stock, but I have a good idea of what there is, and am certain that I am worth 40s in the pound ? Dcbtor-I don't think I told you that. I said I thought I was worth 40a in the pound. Mr. Laohman— Did I not tell you that ycu must take stock ? Debtor— l think you did. Ton certainly told me to take Btock, but you then gave me anothor way of settling, whioh withdrew the necessity of taking stool:. Mr. Laohman— Tea, I shall speak about that presently. Now, didn't I tell you wo i must see your stock or you must file ?

Debtor— You oortainly did. The Offloial Asiignee-Did you take itook i Debtor— No. Mr. Laohman— ln spito of my asking you, and my book-keeper asking you to take •took, you did not do so P Debtor— No. < Mr. Lachman— Did I not say that if you signed oertain bills and your father would back thorn, that I would give you throe, six, and nine months P Debtor— Yes. Mr. Laohman— And did not you come back and toll mo that it was illegal for yonr father or any gentleman holding an exalted Government position to back bills ? Debtor— Yes, words to that effeot ; but I fonnd that I waß mistaken about that. Mr. Laohman— Did you owe Jackson, of Walker A Co., London, anything 'i Debtor— Yes; £283h1(1. Mr. Laohman— What did tho socurity amount to! 1 Was it in bilk ? Debtor— Yes. Mr. Laohman — Endorsed by your father? Debtor-Yes. Mr. Lachman— Did you not como to our iplaoe a few days ago and ask my permission, boing yonr largest oreditor, to hold an auction sale P Dobtor— Yes. Mr. Lachman— Did I not toll yon you could do so ? Dobtor— You told mo that I might do so. Mr. linchman — Did you not then toll me that the monoy you would get from tho pale you would übo in paying off your creditors pro rata ? Dobtor— No; I said I would pay them off in full. _ Mr. Laohman— When I gave you permission what did you do f Debtor— l started the sale. Mr. Lachman — Did you not infer from what I said that none of tbo money should bo given to some oroditors in preference to others— that, in fact, no preferential claims should bo paid ? You are on your oath now. Debtor— No. Mr. Lachman— Well, I will bring a witnoßS to prove that what you aro now Eaying is not true. Mr. Lachman — Did you pay any money to Bakor Bros, on account of that auction gale '( Dobtor— No. Mr. Lachman— Did they advanco you any money boforo the sale cornmencod ? Dobtor-Yes. Mr. Lachman— How muoh ? JDebtor— They gave mo .£2O. Tho dobtor, replying to a further question by Mr. Lachman, said that tho je2o which ho borrowod from Bakor Bros, was got boforo ho went to Hayman and Co.'s to ask permission to auction the things. Mr. Laohman hero took hold of the cashbook and opening it ho pointed out that neveral pages had beon burnt, and asked tho dobtor for an explanation. The dobtor— Oh, you know all about it, Mr. Lachman. Mr. Quick thought it was not right for Mr. Laohman to go in for thoatrical effeot. Tho Official Assigneo explained that tho debtor had stated that the book had boon accidentally bnrnt. A memorandum from the debtor was hero read to tbo mooting. Tho bankrupt stated that ho had beon making entrios in the cash book at tho timo, and laid down a cigarette he was Bmoking on the counter in ordor to answor tho door. He was eugaged in conversation at the time, and on returning to tho shop ho found papers on tho counter in a blaze. He seised a mat to boat oat tho firo, and accidentally capsized a bottle of turpentine ovor the flames, which spread and ignited the cash book. Tho debtor, replying to further questions by Mr. Laohman, said that whonhe told that gontloman that his father could not ondorse tho bills, ho spoke what ho considered was true. Mr. Laohman declined to accept tho statements of witness. In replying to Mr. Laohman, debtor said that tho bills woro addressed to Mr. Jaokson ou tho spur of tha moment, and his father said ho would not enderso any moro. His father explained that if ho had endorsed the othor bills and ho was called upon to pay ho would have had to go bankrupt, a step whioh would result in his losing his situation in the Government. ' Mr. Laobman explained to the meeting that he had been trying foe some days to ignite pieces of tissuo paper with a lighted oigarotts, but although ho had aotually fannod the burning tobacco, ho had not succeeded in getting a flame. He expressed a disbeliof in the debtor's statomont that the enshbook had beon burnt through a lighted oigarotto setting firo to soino paper on the counter, and said ho would give •fiso to tho Hospital if tho debtor or anyono else could burn a book in the raannor dosoribed. Mr. Lachman said ho could prove on oath, and also by tho testimony of the firm's bookkeeper, Mr. Kellow, who was a thoroughly reliable man, that debtor promised to pay his creditors pro rata, and that permission to hold the auationsalo was only granted on that oondition. When he (Mr. Lachman) saw that things wero getting to a pretty pitch ho off erod to tako baok from tho debtor all the goods whioh the firm had delivered, less 15 per cent. Debtor asserted that during the time ho held tho sale good prices were realised, but as soon as the Official Assignee Btopped in the articles were sacrificed, as tho auctioneer put them up wholesale. The Offioial Assignee explained that during tho four dayß tho sale was under the dobtor's dirootion JJS4 was reoeived, whereas .£2O was obtained durinc one half day that the auctioneor was selling under his (tho Offioial Assignee's) direotion. Mr. Graham denied that the interests of the creditors had boen negleoted during the sale. Mr. Laohman thought that Mossrs. Baker Broß. should be compelled to return tho JB2O which, they had stopped out of the prooeeds of the sale. The Offioial Assignee thought that Messrs. Baker Bros, wero within their rights in stopping monoy which they had advanced to the debtor on account of the sale. The Official Assignee explained that the Btook remaining after the Hale was valued at .£350, and the library about .£SO. Mr. Laohman said he did not consider the library was worth muoh. Mr. Laohman moved that the Official Assigneo ehould wind up tho estate, that tenders be called tit the stook, and that failing a satisfactory tender the goods be put np in small lots at auotion. Mr, Koydhouso seconded. Mr. Qniok snggosted that Mr Lachman should also move reoommending the immediate discharge of the debtor. Mr. Lachman deolinod, remarking that the debtor had brought himself into trouble through keeping baok information from his oreditora. Mr. Lachman then put tho following question to the debtor— Did you not toll me that you oxpeoted J2150 from your uncle, and that you would pay it away to your creditors? Debtor— Yes ; I said I expected it. I may posßibly get it in a few years, but not now. The debtor explained that ho would have got tho money from his unolo but for the faot that his relative had been put to a lot of oipenso over his eyes. The resolution was agreed to. Mr. Roydhouso thought that although Mr. Haselden had beon a little weak in his statements, his intentions had beon good, and he thereforo moved that the debtor be allowed his f nrnitnre, and that tho meeting recommends his immediate disoharcro. The motion was seconded by Mr. Quick on behalf of the debtor's father. Mr. Laobman did not oppose tbo motion, but suggested that the latter part, recommending debtor's diaoharge should bo withdrawn until another meeting, as some creditors bad not yet proved. The first portion of the motion was agreed to, the question of discharge boing deferred until an adjourned meeting this day weok.