MEETING OF CREDITORS.

Evening Star, Issue 8811, 28 April 1892, Page 2

MEETING OF CREDITORS.

fafe m. tH&ktoK. .:.„:' A meeting of creditors la the 'estate of Miohael Bernston, of Dunedin, tlflor, mi helcl this morning, There were ate creditors present. Mr 3, Solomon, solicitor for thfc debtor) was balled away jjjiit as tile meeting commenced; The debtor's statement showed that there are liabilities to unsecured oreditors amounting to L 637; the assets be'na- Stook intrade in Dunedio estimated atlafOand stock-in-trade at C&riaitihurbh estimated at L 75, total tl4d | leaving a defioienoy of L 492, The oreditors are: Bing, Harris, and Co., L 106; fiutterworth Bros., L 145; Maoarthur and Co, L 65; Edmund Aokroyd, L 33; Oodgshunand Co. (Wellington), Lls9> 'Lyttelton Times,' Ll4| ChristohUroh •Press,' Ll*; 'dtago tially Times,' Ll2; A. and T. Burt, L 5 ; Edward Smith (Christchurch), L6O; Henry Dodd, L2O; Weaten (Christohuroh), L 4. The Assignee said that he had had an Inventory made here with the assistance of bankrupt, and the estimate was LI 18 Os sd, inoluding shop fittings (L 7). Something had been said about shop fittings that were nailed not being claimable, but be thought that shop fixtures put in by a tenant could be taken away if the damage Were made good, unless there was an agreement to the contrary. It appeared that a Short time jfridr to the bankruptcy a Mr Thomson, acting at the request of Bing, Harris, and Co., made an inventory in whioh he valued the Dunedin stook at Ll3O, but he put down the fittings at L3O. Mr Thomson had charged LR for taking that inventory; He (the Assignee) was not aware that the inventory was necessary, but he supposed the claim would have to be met.

Two oreditors replied that the inventory waß taken at the wish of the oreditors the day before the bankruptoy. The Assignee remarked that that would be all right then. He Was a Way at Lawrence aft tho time and did not know of it. He had a letter from the Christohuroh Assignee to the effeot that the bailiff had taken possession of the shop there, The rent due on that shop at the time was L 56, and the expenses of the seizure were L 4. His own impression was that they had better hand over the stook there to the landlord if his claim was good. The amount of rent due on tho Dunedin shop seemed to be LI 8. In answer to a question, Mr Dodd (the landlord) said that the creditors might take the fixtures if they made good the damage; but there were two glass partitions, and the cost of moving them would be three times the value of the lot. The gai fittings were there when Bernston went in.

The Assignee observed that he would have to see whether there was any value in the fixtures.

Replying to the Assignee, debtor said that he had not a penny wherewith to make an offer, but if the creditors would give him a show be might find a person willing to make some arrangement by taking a bill of sale or something of that sort—-someone to lend him money to make an offer. His solioitor being away he did not know what to say. Debtor, examined on oath, said.that he had been in business in Dunedin about twenty months, and he opened in Christchurch about nine months ago, When he started in Dunedin he had L4O cash free of debt, and could have borrowed more. The cost of fitting the Dunodin shop up was oloso on L3O altogether, and the Christohuroh shop cost about LIOO. He gave very little credit. His books produced showed that the amount of trade done in Dunedin was L.2,176, and in Chriatchurch L 1.077. Wages had to be taken oUt of those sums. Reckoning all the Work at third class, so as not to rob the creditors, he estimated that he had paid LI 19s bi wages for every suit made. His board and lodgings at Chriatchurch came to L 3 a week, and while in Dunedin to L 5 a week. The difference was for the support of his mother and child when he was living away frtim them. The Assignee noted that the advertising came to L 95 in Dunedin and to L 54 in Christohuroh. The cost of wages to assistants and salesmen appeared to be L 292 10-', and tho total visible expenditure, apart from the expense of making c'otfies, was L 1,465 The total turn-over was L 3.200, but wages had to be taken out of that. With an apparent expenditure of 40 per cent, he (the Assignee) did not see how there could be any profit, Mr Fincker remarked that the statements produced must have been made up quite recently. When debtor was spoken to by the creditors he Bail he did not know anything at all. Mr Broad (to debtor): Where are your books to show where this money has gone to?

Debtor: I have none. I reckoned up what my expenses were. Out of your head ?— Y es; I kept no bank book.

You did not know your position when you went to Christohuroh ?—No. How, then, was it that when you came to me you said you had made LSOO at Christchurch ?—I guessed. Mr Broad remarked that it was evident that bankrupt had made a false statement to him.

Mr Aokroyd said there was no doubt of tbat, and bankrupt had also done the Bame to him. He (bankrupt) told the speaker that he would be able to pay him if he would wait till Christmas.

The Assignee said that he could not understand how it was that business men gave credit without seeing that the person getting oredit kept books. Mr Ackroyd: He bad paid me regularly for months, and that was quite good enough for me, until at last he got credit to this extent,

The Assignee said that he did not see any good in going further with the examination. Debtor had kept no books, and there were a number of items that tho creditors could never satisfy themselves about, such as living expenses and railway fares. In answer to the Assignee, debtor said that he sometimes made a profit of 5a and sometimes 10a on a suit, and sometimes nothing. -Y Mr Fincker wonld like debtor to say bow he expected to succeed by going on in that way. He bad been Bimply going on at the expense of the creditors. Debtor replied that when trade was slack he often took orders at a low rate to get the Btuff out of hand and to pay expenses.

Mr Fincker said that when debtor came to him he represented that he had L3OO. Debtor replied that what he had said was that he could get money. Mr Fincker: That is an untruth,

Mr Ackroyd said he would like debtor to state where he came from, and what he waß doing before he came here. Debtor said that be declined to answer.

Mr Broad thought that he should make reply, He might have property somewhere else.

The Assignee: I can ask him that. (To debtor): You are bound to answer vhis question—Have you any money or property elsewhere ? Debtor: I have not. The Assignee : Nor expectations of getting any? Debtor: No, Mr Fincker would like to know whether debtor had any of his firm's stuff left. Debtor: Yes, in stock here and in Christchurch.

Mr Fincker: Our Mr Thomson says he has not recognised any of our stock anywhere.

The Assignee: Have you put any away ? Debtor: No ; I can show it to you on the shelves.

la answer to further questions, debtor said that he had borrowed L4O from Mr Phillips, and Mr Myers backed the bill, taking debtor's watch as security. With that money he paid L'2o to Mr Dodgshun and L2O to Butterwortbs. That bill was met, and since then he had sold his watch for Llo* or Lll to pay another creditor. He was not aware till a fortnight ago that he was insolvent. He knew that he waß doing badly in Chriatchurch. Mr Finoker: Why did you volunteer to me the statement that you were doing well there?

Debtor replied that he was not aware that he had made such a statemtnt.

Mr Finoker said that he had, about two months ago. Mr Broad: Did yon pay your mother L 5 every week. Debtor: Every week.

Mr Broad: Do you reckon that it cost you three L 5 a week tQ live, without rent ?

Debtor: Yes. Mr Broad: You mart have Jived rati ebonoml||!lft then I ' ' At this stage Mr Solomon came in. The Assignee; The has been asked. Mr Solomon, a| to where bankrupt came what hfrwas dopfcJMore he came to Donedin; Mr Solomon: I advise him not to answer, The Assignee: On what ground ? Mr Solomon : That it has nothing to do with you. Mr Broad: How if he has any property there ? Mr Soiomon: Yon must find that out for yourselves. Theße are private affairs, and nothing to do with the bankruptcy. Yon oan of course ask him if he has any property) and he must answer. Mr Broad! We are not particular to know where he came from, but it is annoying to have no answer.

Mr Solomon: I only speak as a lawyer. I don't know anything. After discussion,

Mr Solomon aeked whether, if he oould make an offer of 5s in the £, the creditors would accept It. Mr Finokeri If it is a reasonable offer I would be inclined to aocept. Mr Solomon I What do you oall a reasonable offer t

Mr Finoker t Say 6s or ?s in the £. That is so fat at we ate concerned. Mr Broad: 1 would not accept lOa on prinoiple. Mr Ackroyd: I would not accept any composition at all. I have been deceived, and will see the end of it. lam fighting for the trade, And feel strongly abbUt the matter.

Further dlsonssion resulted in an adjournment till tomorrow being resolved upon; in order to give Mr Solomon time to see what offer he could make. BE J. J. PBYOR. The following is the statement of assets and labilities in the estate of James John Pryor, fruiterer, Dunedin l Unseoured creditors: Rattray, and Son, L 16 0; J. Horsburgh, L 5 19a Ud; Thomson and Co., L 6; S. N. Brown, LI 12s 6d; S. Solomon, L2 2a; Cuddle Brothers, L 23« 6d j Crown Printing Company, L2 ss; J, Feltham, LS?; Patewon and Barr, LI 15a 7d ;' White, Robinson, and Co., L2 2a lOd; Mollison, Mills, and Co., LI 12s 3d; W. Gimblet (Christchurob), L 6 2s; B. Looking (Nelson), Ll2 14s 7d; Caxton Printing Company, L 6 17s fid ; Greigand Co., L2 lis 4d ; F. H. Liing, Lll 4a lid; Patcrson and Co , L6O Is lid; C. Bates, L 2 3; P. Sudden, L2l; Waughand Brown, L 4 10s; O'Donnell Bros, and M'Mullin, L6los ;J. Ings, L 3 9s; Thomas Pettitt (Nelson), L 22 19j : F. J. Sullivan, LI; Hordern and White, L 5 17s 6i ; ' Prohibitionist' newspaper, L 3 3*; R. Bell, L 3 3) 61; J. Gibson and Co., L 3 6a sd; Otago Harbor Board, L 3 19a lOd; Nimmo and Blair, L 4 Is Id; Wilkie and Co., L2; J. Duthie and Co., L2 14a 1 Id; Mataura Paper Mills Company, L 29 17s 3d ; Coulls, Culling, and Co., L 6; Tomlinson and Co., L 7 2s; G. Caiman (Wanganui), Ll4 15a; R. Hudson and Co., L 24 15a; E. Banks (Christchurob), L 27 18s 9d; J. H. Lambert, Ll2; Fulton, Stanley, and Co,, L 6 ; Joseph Tamblyn, L2l; J. Davis and Co. (Melbourne), L 52 10s; F. A. Thomas (Fiji), Lllß 14s 2d ; R. M'Donald (Opoho), L 3 9;« Daily Times 'Company, L 1 8;' Globe' Company, L2 10a; J. Dean (Waihemo), L 3; WilsoD Bros. (Chiiatohnroh), LBO 15s; Nairn and Sons (Cbristchurcb), L 4 17s lOd ;' Thomas Pettitt (Nelson), L 26 2a 41; Karston and Co, (Nelson), L 8 14s sd; Lode and Co. (bills), LU7 3} 51; F. Moenan, L 26 15a; J. Gavin, Ll9 4s 6d; Bank of New Zealand, L 140; total, L 1.247 19a Id. Secured oreditors: G. E. A. Green, amount of debt L5lO 12a fid, estimated value of security LI,200; A. P. Graham, amount of debt L 826, estimated value of security L 1.200. Assets : Stock-in-trade (estimated value), L 650 ; book debts, L 330 (estimated to produce L 300); furniture, L 10 0; property (consis tit g of a freehold at Anderson Bay and a leasehold in George street), L 1,836 7b 6d; total value of assets, L 2,913 7s 6J.