A LIVELY MEETING OF CREDITORS.

Evening Star, Issue 7471, 15 March 1888, Page 3

A LIVELY MEETING OF CREDITORS.

RK PATERSON AND M’LKOD

Some forty creditors in the above estate attended a special meeting at (lie Assignee’s office at tluco o'clock this afternoon. Mr Haggitt appeared for the debtors. Among those present were Messrs Joachim, D. Baxter, AV. Gregg, G. L. Denniston, J. Hazlett, If. Law, Hyland (representing Penfold and Co.), M, Joel, Phillips (representing Lange and Thoneman, of Melbourne), G. H. Campbell (repieseuting AV. and G. Turnbull and Co , of AYellington), 11. Hudson, C. S. Reeves (representing tho Timaru Milling Company), J. R, Sinclair, and H. 8. Jones. The meeting was called in accordance with the following requisition :

The Official Assignee in Bankruptcy Sir, Wc, the umlersiifned creditors, who have proved their debts in the bankruptcy of Paterson and M'Lcod, rcspectfuily request that you will call a meeting of creditors without delay to take into consideration an offer made for the estate. W. Oreoo and Co . Timaru Milling Compant, Limited. U Wilson and Co. M'Leod Bros., Limited. S'COULLAR AND Co. W. and G. Turnbull and Co. W. Lane and Co. Maurice Joel. Neill and Co., Limited. J. Rattray and Son. The Assignee stated that tho r c signing the requisition represented more than one-third of the value of the estate. Since last meeting the supervisors and himself had carried out tho resolution of tho creditors in advertising for tenders, There had been some slight difference cf opinion between them as to the proper mode of calling for tenders. He thought that the lease and goodwill should be put up, but the supervisors bad differed, and after some argument they were not offered. He would not read the names of the tenderers, but would read the amounts. One tender was for L 1,547 for the whole estate ; another was for LI,BOO fer tho whole estate; another was for L 1,750 for the whole estate, with an alternative tender of L 958 for the book debts and Ll2O for the bond, with certain accrued rents. The only tender that they felt could be accepted was that for the bond, which had been accepted. The other tenders weie rejected. There was some discussion as to whether the shop should be kept open. He (the Assignee) was in favor of keeping it open, but the supervisors objected. It was determined to close tho shop on Saturday, and the same night Mr Paterson came up to his house and urged him very strongly to allow the premises to be kept open a little longer, as he felt certain that an offer on his behalf would be made for a larger sum, and expressly staling that he thought -n acceptable offer would be made for the stock, leaving tho Assignee and uuperviaoiu to deal with the book debts an they thought proper. He assured Mr Paterson that it would requite a very large advance, and that keeping the shop open would be against the wish of the supervisors. After a deal of talk he consented to tho shop being kept open till noon of yesterday. Tho supervisors had blamed him for that, but he did not think

ho had gone outside of reasonable discretion. Tho premises were kept open till yesterday afternoon, when he received the following further offer from Mr Joel:—“I hereby offer two thousand and ninety pounds (L 2.090) for the stock, book-debts, and fittings as pet your conditions re adjustment when calling for tenders.” He asked Mr Joel if that was his last offer, ami tho reply was in tho affirmative. Ho then said: ,l Now I must close the shop, for 1 have given ample time, and am perfectly satisfied, from what has passed between myself and tho supervisors, that the amount is far below their estimate,” At this stage the Assignee was about to open a letter enclosing a tender received that afternoon, when . , , , . , Mr M. Joel said he objected to any tender later than his own being read to the meeting. The Assignee: You may object as much an you like. . . ... Mr Joel: But it places me m a very invidious position. The meeting was called by requisition specially to consider a certain tender, and if it is now proposed to consider a further offer 1 shall put it to the vote. Tho Assignee: But your first offer was rejected. ... Mr Joel: Quito so; and this meeting was called to consider a further offer. The Assignee: Gentlemen, I havo received within tho last quarter of an hour a tender from some other party. The supervisors have not opened it, and I have not opened it. Here it is.

Mr R. Hudson: Read it. Mr Joel: It would be moat unfair to me to do 80. , . . ~ Mr Hudson; The creditors undoubtedly desire to know what tenders are in before dealing with tho estate. Mr J. R. Sinclair: Certainly. Mr H. Rose: As a supervisor I wish to say that I presume the meeting is anxious to got the highest possible price for the estate. Mr Joel: But why should advantage be taken of my offer. The amount was improperly disclosed. . Mr Rose: The supervisors knew nothing about it; they were not consulted. Mr Joel: But why should another offer have been placed before the meeting ? The creditors were specially summoned to consider a certain offer that had been made. Mr Sinclair urged that the latest offer made should be placed before the meeting. Mr Hyland supported Mr Joel’s view, but The Assignee said: I will decide the matter at once. I will open the tender on my own responsibility. It is as follows: — Tender A.-We herewith beg to increase our first Offer to the following, viz.: (1, for stock, etc. .Princes street shop; 2, stock in bond jy, book debts), two thousand two hundred and fifty pounds (L 2,250) for tho above. Tender B.—Book debts alone, LI,!!?* ffath offers caah.-Gi.BNDismo and Doiiif. i

Mr Joel: If I had not made an offer, no one wou’d have made an offer, The Assignee wished to make ore rcmaik in the presence of the supervisors. They hod had a tilf, which ho hoped was merely a passing tiff. The amount of the tenders had become known to Mr Paterson, and for this he had been blamed by the supervisors, the implication being that ho had given the information to the debtor Mr Paterson was present, and could answer for himself whether he got the information from his (the Assignee’s) office. Mr Paterson said that he did not get his information from the Assignee nor from anyone in the Assignee’s office. The amounts were told him by tenderers, , _ Mr 11. S. Jones movcl, and Mr Gregg seconded—“ That Mr Joel’s tender be accepted ” Mr Rose, on behalf of the mpervisors, expressed his desire to make a statement of what had occurred since last meeting, but was interrupted by , , , , , Mr Jones, who said that the last tenderers— Messrs Clendining and Dobie were bogus individuals ....... This Mr Hudson denied, and earn that they were bona fide individuals. Mr Jones thought that consideration should be given to Messrs Paterson and M Leod, who were very old residents of Dunedin, and had had to succumb owing to misfortunes. It was in their interest tint Mr Joel s offer was made. Mr Hudson said that sympathy was very well, but there was a great dual too much of it in Dunedin in reference to bankrupts, and that was the reason why so many people went through the court. So soon as the people learned to do away with sentiment, and apply practical common sense to their business relations, bankruptcies would become less frequent. Ho thought they should support those men who paid their w r ay, and that those who could not should seek some other sphere. Mr Gregg said that Mr Joel’s offer panned out 12s fid in the £ on the goods and 10s on the debts. That was more than would be realised by a sale. .... Mr Sinclair : Surely it is idle to suggest that you will accept a tender which is Ll5O less than the other offer. The thing is ridiculous.

In answer to a creditor, The Assignee said that the supervisors and himself agreed that the estate was worth considerably more than the highest offer made. Mr Jones thought it very unfair that on the eve of a meeting like the present any man should bo allowed to put in a further tender. Mr Ashcroft: Mr Joel’s tender is in the same position. Mr Sinclair : When did the time for receiving tenders close ? _ The Assignee: At twelve oclock on luesJ& Mr Sinclair; And this tender of Mr Joel’s was not put in till two o’clock yesterday. The thing ia simply not arguable If the tender of Messrs Glendining and Dobie is too late, so is Mr Joel’s. . The Assignee: I should require a vote of three-fonrths of the meeting to accept a tender of this kind. Mr Sinclair: I contend that the motion cannot be put. I don’t see how you can bind one d'sscntiont creditor to the acceptance of a less offer than is made. It seems to be nothing more nor less than a cut and dried attempt to bind the meeting. Mr Rose : Hear, hear; so it is. The estate is worth more than the highest tender. The Assignee; We differed on several points, but not on that. We all three agreed that the estate was worth considerably more than the highest tender. We formed a very fair estimate of the value of the book-debts and of the Mr Jones urged that his resolution should bo put to a vote with a view of testing the feeling of the meeting and putting an end to the discussion. , Mr Sinclair : It ia idh to test the feeling in that way. The thing is not in order. Tho Assignee (after consu tation with Mr Haggitt) ruled that ho was hound to put tho resolution. Mr Denniston thought that it would be unwise on Mr Joel’s pait to press the resolution dealing with his tender. Had Mr Joel considered the effect that carrying the resolution would have on the trading community ? It would bo unwise on the part of the creditors to deliberately refuse to accept the highest offer made. , _ , Mr Hyland thought that both the offers road that afternoon were, ttrietly speaking, out of order. , . ... Tho Assignee : Yes ; strictly speaking both arc out of order. . Mr Hyland suggested that the meeting should instruct, tho Assignee and supervisors to call for fresh tenders. Why was all this haste shown ? The Assignee said that the only reason for haste was that it was inadvisable to keep the debtors’ place of business closed. Mr Hazlett assured tho meeting that it would be very undesirable to carry on the business in the way it had been of late. A Creditor suggested that tho supervisors should disclose to the meeting their estimate of the value of the stock. Mr Rose said that it would be putting the supervisors in an invidious position to ask them to state at a public meeting what they considered the estate was worth. . Mr Hazlott agreed. As supervisors they wcie bound to get the best they could from the estate for the benefit of the creditors, and the meeting might lest assured that they were endeavoring to do so. Mr Denniston suggested that good-will, lease, stock, and everything should be offered at auction at an upset price of L 2,500. The supervisors’ estimate was considerably above that. Tho Assignee ; That is a very good idea. The suggestion, and it is a very good one, is that the auctioneer, before going into details, should put tho whole estate up in one lot. Mr Denniston: And se'l at once; to-morrow if possible. By keeping the premises closed the business as a going concern must be injured. Mr Joel said that after the expression of opinion by Mr Denniston and others he should withdraw his offer altogether and vote against the acceptance of the other tender. It had been put in in an unfair manner. Mr Sinclair; It is just the same as your own, Mr Joel: I don’t care a button what you say. Mr Sinclair : The tender was no more unfair than your own. Mr Joel said that no one know the amount of his tender except the Assignee, Mr Rose: Not even the supervisors. Mr Joel continued that he did not know how it h»d got about, but it must have been in some underhand way. He did not think any creditor in that room bad been used worse than he; but still he thought they must take into consideration the difficulties the firm labored under. They had under great misfortunes skived to maintain their credit and reputation, and if they deserved any punishment they would get it when they came up to got their ceitifioates. Under the circumstances he did not think the creditors should punish them doubly by preventing them making a livelihood. They

had been living for some years worse than many working men in the city at L2 per week, and he didnot think they should be baulk'd in this way. The harsh manner in which the supervi ors hadaeted in this estate was no credit to them They would not listen to tho proposal to keep open the Iplaoe and maintain the business, but they wanted to crush them with an iron hand. He could only tay this to tho creditors : that if the estate were put up to public auction it would not realise L 2.000 or anything like it. There was over LSOO of book debts, which were doubtful, and L3OO actually bad. Some of those whose names were among the book debts had left the colony, while others were unable to pay their way. The supervisor, it seemed to him, had been Very unfeeling in their conduct throughout; indeed, it seemed that there was a sort of prejudice against the debtors. He (Mr Joel) could not justify the action of the debtors; still, if friends liked to come forward and assist them to get a living in future tho supervisors had no right to act as a tribunal. If the debtors had acted wr. ngly, they would bo called to account when making application for their order of discharge Mr ha. % ;it: Might I ask how much Mr Joel has in this estate ? Mr Joel: L 375,

Mr Hazlett said that when debtors were forced into bankruptcy through misfortune, and came forward in a straightforward manner, sympathy was invariably shown to them; but, as one of the supervisors, he declared that this estate ought to be locked into. It was his own impression that they had not yet got to the cottom of it. Wr Joel aaid that if there was anything doubtful in the matter he should like to see it cleared up, Mr Hazlett: You called for that remark aud I am bound to make it.

Mr Joel; lam sorry to hear it If I thought there was anything underhand in a matter of this sort I should not be found supporting it, even if it were my own brother. Mr Rose said that, apart from tho special pleading of Mr Joel on behalf of the debtors, he questioned whether any such accusation should lie at the doors of the supervisors. They were pledged to realise tho estate as best they could for the benefit of the creditors, and that both Mr Hazlett and he had endeavored to do.

The Assignee: I am sure the Assignee has the same feeling. Mr Rose: lam quite willing to admit that, although there was some slight difference between the Assignee and supervisors over minor matters, I think the inst step for the meeting to take is to strengthen the hands of the supervisors rather than accept any tender made to-day. Mr Joel: I withdraw my offer, and the mooting can do what it likes with the other, which, I take it, is unfairly before tho meeting. Air Gregg: Assuming that there should be a considerable loss after realising by auction on the tenders now received, who would bear the loss?

The Assignee; The creditors would lose it, Mr Rose: And they would reap the gain if there is any. After further expressions of opinion, it was resolved that the matter of receiving further tenders should be lift to the Assignee and supervisors; but that no tender for a less amount than L 2,500 should be accepted. A Creditor: What is the object of closing the shop in the meantime ? The Assignee; The supervisors considered that it would bo exceedingly difficult to take stock and arrange catalogues for an auction sale while the premises were open. So far as I see wo have threshed the matter out, and, though no resolution has been passed, we have come to an understanding. As there is no resolution before us, I adjourn the meeting sine die.