MEETING OF CREDITORS.

Evening Star, Issue 7161, 15 March 1887, Page 1

MEETING OF CREDITORS.

BE ALFBED HEKBT SMITH.

A meeting of creditors in the estate of Alfred Henry iSmitb, of St. Hilda, hawker, held yesterday, was attended by Messrs T. Brown (Brown, Ewing, and Co.), J, Jones (Hayman and Co.), Collier (Sargood and Sons), A. Walker and A. Anderson (Butterworth Bros. Mr Hodge appeared for the bankrupt, and Mr Woodhouse was also present for Messrs Sargood. The bankrupt’s statement showed unsecured creditors L 246 I2s, and secured creditors L 370 (holding securities valued at 1440). The assets amount to Ll7O, and consisted of book debts LIOO (gross amount L 566 5s ,9d), surplus from securities L7O. Deficiency, L 76 12s. The statement further showed that stock-in-trade at-Milton and furniturej were covered by a bill of sale for L9O, and sections at Dunedin and St. Hilda , were mortgaged for 1350. The unsecured creditors; were as follow:—Sargood, Son, and Ewen, Ll5B 9s; Butterworth Bros., L 33 5a 7d; P. Hayman and Co., LI4 12s 2d; Brown, Ewing, and Co.J 140 5s 3d. The secured creditors were :—Owen James Hodge, idebt 170, security 190; Henry Andersop. ' debt 1100. kecurity Hunt, Dunedin, debt 1200, security L2w. ■' The Bankrupt stated, on oath, that he had ' been carrying on business for six years as a hawker/ About three years ago he began to' - get; into difficulties, and had since lost a good deal by bad debts. About two-years ago he mortgaged a property to Mr Anderson for 1100. "He paid the money away: to his creditors. The other property he bought about ten years ago for IKK). He paid interest regularly on it. There was a tworoomed house on it, and rather more than three-quarters of an acre of land, just below the St. Hilda Hotel, An old lady and gentleman were living in it free of rent. They were not relatives, and had no claim, on him ; but they were old friends, and he' V, had assisted them for a long time. The Assignee: It is very good of you to provide for these people, but yon should not. do it at the expense of the creditors. The Bankrupt explained that of the debts due to him several were bad. 'He gave a ' - - bill of sale to Mr Hodge for anadvaacexff-T----170, paid to him in cash. He raised this for the 1 purpose of releasing his life policy, held by Sargoods. He had to pay 160 to them, ’ and 16 13s 6d to Macassey .and Kettle, for costs. He intended to realise on the policy, the surrender value of which was ' ! / about 175, and to get some additional money . , from Mr Hodge to pay the creditors 6s in the £. He proposed to give Mils at six months for another ss. He did hot know whether be could get these endorsed. He had had no intimation that Sargoods in- > tended realising On the policy. - The Assignee explained tha't the effect of 1 the bill of sale was to burden the free estate with a debt,of 170 a few days before the- - insolvency, merely to release a policy which would not becopie part of the estate. Had the bankrupt any offer to make. Mr Hodge would not advise him to make ; any offer. The Assignee said that while the bill of sale remained on the register he could not do anything in the way of taking-possession - of the goods, but he was advised that the Court would probably order this bill of sale to be set aside on the ground of fraud. He could| not see that the Court would allow it, as it was an unfair transaction, and one that justified them in assailing the bill of sale. He thought Mr Hodge had been badly advised in allowing his client to do this. Mr! Hodge: That is a matter for the Court. I advise myself. The Assignee had no hesitation in saying it was an improper transaction. For a solicitor to advise a client in that way was very wrong. Mr Hodge protested against being libelled in that way. . , The Assignee: There is no libel. Mr Hodge: I think there is a libel,ot ; „ slander perhaps. % * * Mr Brown said he would not assent to a dividend of 10s in the £ when a swindle WWI being perpetrated. ‘ ‘ ,J i ' Mr Hodge warned Mr Brown to be care-,, .. ful in making such statements for his own ' interest.

Mr Brown was prepared to take theoonsequences. The whole thing had been an attempt to. “do” the creditors, according to Mr Hodge’s own showing, Mr Hodge: I deny that altogether. { . The Assignee: There is a fraud in a technical sense, and I am advised that l ean go to the Coart and get the bill'upset. : ’, '' After further discussion it was resolyfed: —“That the Assignee tekahis! solicitor 1 * advice as to whether the bill of sale can tie \ attacked, and to act accordingly,'and also to ascertain whether the policy can in any way be made available for the creditors.” The Assignee; There Is a.qnestion arises as to what you will take for yonr security. Mr Hodge : It will be about LBO. The meeting then adjourned sine die.