MR WARD'S BANKRUPTCY.

Evening Star, Issue 10399, 21 August 1897, Page 2 (Supplement)

MR WARD'S BANKRUPTCY.

An adjourned meeting of the creditors of tho Hon. J. G. Ward was held at Invercargill yesterday afternoon; the D’.putyAssigneo presiding. The debtor submitted statements o£ his receipts and expenditure from July, 1894, to ‘ July. 1897, inclusive. The receipts amounted to £109,307, the principal items being:— Rents, £4,670; salaries for the Ward Company and the Ocean Beach Freezing Works, £1,208; honorarium,-£1,518; dividends, £3,794; sundry sales and emoluments, £1,032; house and travelling allowances as Minister of the Crown, £867 ; Government allowance for trip to England, £300; sale of freezing works at Ocean Beach,f £24,061; Colonial Bank, £55,150; Nelson Bros.’ shares, £16,000. In 1894-95 tho receipts from all sources amounted to £6,403; in 1895-96 to £100,373; and in 1896-97 to £2,529. The expenditure in 1894-95 was £5,312 ; in 1895-96, £101,353; and in 1896 97, £2,641. The principal items were; Travelling expanses, £1,555; properties and repairs to same, £4,438; rents, rates, fire and life insurance, interest on mortgages, £3,380. Colonial Bank (sale of freezing company), £24,061; ditto (freezing and general account), £16,000; J. G. Ward account, £55,150; expenses in London, £Bl5 ; house allowance and travelling allowance, £595; special travelling allowance (English trip), £595; law costs, £649; at credit in the books of the Association, £432. The net deficiency is set down at £62,000. Of this amount depreciation of properties is responsible for £18,312, the Ocean Beach freezing works (irrespective of liability" on Nelsons’ shares) £12,518, lines on grain shipments £7,000, shares in the Ward Farmers’ Association £7,60(, interest duo to the latter and, the Colonial Bank £7 t QOO, book debts and losses in Vinding-up private businesses £3,000, Hokonui Company £I,BOO, Colonial Bank and Carswell’s shares £l,lOO, Bluff Fishing Company £7OO, Southland Rope and Twine Company £SOO. Mr N. Johnson moved “That the debtor’s wife be presented with the furniture.” He said that his object in sodding was to test freely the feeling of the creditors in the matter.

Mr K. Ramsay said that, as one of the liquidators of the Colonial Bank, he had discussed the matter with Mr Cook (the ■liquidator of the Ward Farmers’ Association), who agreed with him that they could not accede to the suggestion at the present stage of the proceedings, as they were simply trustees and mere officials of the Court.

The Bankrupt said that, while he fully appreciated the kindly' feeling which had prompted Mr Johnson’s motion, it had come a3 _ a surprise to him, and had been moved without his consent. He wished to say that neither himself nor his wife would accept any favor at the hands of the two largest creditors present, and even if it had been offered as a matter of goodwill on the part of the liquidators it still would not have been accepted. Whatever he was entitled to on its merits ho would take, but nothing more. The Deputy-Assignee said he valued the furniture at £l40 r irrespective of some pictures and paintings done byf Mrs Ward’s sister and presented to her and a piano which had been a present to her, Mr Johnson said he hoped Mr Ward would not adhere to his decision, or at least that Mrs Ward might be induced to accept the many little knick-knacks which were women’s household gods, as it were, and which they were loth to be dispossessed of. The Bankrupt reiterated his previous statement, that he could not see his wav to accept any such offer. Mr J. M'Alister asked in that case what would be done with the furniture ?. The Deputy-Assignee stated that it would be put up for auction or sold by tender. Mr Ramsay said be understood that the statement was to be handed in by the 6th August, but later it was agreed upon that it should be furnished by the 13th August. He wished to know how far the agreement had been carried out.

The Deputy-Assignee slated that it had only been handed to him on Thursday afternoon, and consequently he had not been able to verify any of the figures. Mr Ramsay said it was 10.30 on Friday before either he or Mr Cook had had an opportunity cf examining the statement, and they could nob get a grasp of the items in the way they would like to do iu so short a time. Before coming to any decision there were, however, one or two questions on which he desired a little explanation. Would Mr Ward explain the amount of £18,313 depreciation of properties against cost V

The Bankrupt said that in his balancesheet of the 3isfc March, 1892, the value was set down at £22,638 14s sd. Since that date other properties had been acquired, up tho total to £38,923. The present bgures wore the estimated depreciation upon those properties. Mr Ramsay said that the statement Wks headed “ Losses.” These were not losses, . The Bankrupt said they were- losses by depreciation in value. If Mr Ramsay re. ferred to his statement he would find that he stated that as against the cost the loss upon the now estimated values was £18,312; but he pointed out .-that if Mr Ramsay objected to the .figures the only alternative was to' put down the full amount. This would improperly swell his assets. Mr Ramsay asked what the £5,000 loss on book debts comprised. The Bankrupt said that .these losses occurred upon accounts due to him which were made in realising them after the Ward Farmers’ Association was formed. One loss was on a sugir account, amounting to about £15,000, and another was over a farmer, upon whom he had lost about £1,200 or £l,4oo,'and there were others upon which losses were made.

Mr Ramsay asked how some £BOO of law expenses, part paid for, were shown under 1896-97, when Mr Ward had stated in the Supreme Court in July, 1896, that he was insolvent.

The Bankrupt said he had been compelled to attend two Banking Committees in Wellington, where he was three months in daily attendance. He employed a solicitor to represent him in the Lower House, but in the Upper House solicitors were not allowed, and his personal attendance was necessary. He engaged Mr Oliver Samuel, and so far had been unable to pay him, bat even if he had been hopelessly insolvent he would still have endeavored, to have obtained the assistance of a solicitor. Since that time he had of necessity been continually, in the hands of solicitors, who had asked for payment beforehand, and he had to find the money from receipts since. Mr Ramsay said that as unfortunately he was the largest creditor no one could blame him for asking these questions. He was asking Mr Ward in a business-like way, and he was getting business-like answers.. Creditors asked if the debthr was in receipt of any allowance from the estate. The Bankrupt replied “ Nothing whatever.”

Mr W. R. Cook said he thought that as the statement had been banded in so late it ought to be verified by an outside accountant.

Mr Ramsay agreed, and said that if Mr Ward had furnished the statement a week earlier it might have been possible to proceed otherwise. Seeing the magnitude of the interests involved he. thought that a thorough investigation was desirable into all these matters. Probably it might take longer than a week, but he thought a fortnight would not hurt anybody. Air Cook moved and Mr Ramsay seconded the two following resolutions :—“ (1) That an outside accountant be employed to look into the account in connection with the statement made by Mr Ward, and report to a meeting of creditors at an early data; (2) that Mr W. Brown, of Dunedin, be the accountant employed to examine the statement, and, failing Mr Brown, that the Assignee consult with Messrs Cook and Ramsay on the selection of some other accountant.”

Mr Lee Smith remarked that he considered it entirely the Deputy-Assignee’s duty to fix his own accountant, and he objected to one creditor doing as he liked. He did not make the remarks in a spirit antagonistic to Mr Brown, whom he' had known for twentyfive years, and whom he considered in every way a high-principled and well-qualified man, but he objected to the high-handedness of this one creditor usurping the Inactions of the Official Assignee. > Mr J. F. M. Fraser said he bad no objec.

tion to Mr Brown, and endorsed Mr Smith’s opinion of him, but he would have liked his nomination to have emanated from the Official Assignee. ■ Mr W. Craig said he hoped that there would be as few obstacles as possible put in the way of-Mr Ward resuming business at an early date. The debtor had now been, subject to abuse and criticism for fifteen months, which in itself was quite sufficient punishment. He thought also that the valuable services which the debtor had rendered to the colony ought to be taken into account. -Sufficient publicity had not been given to the assistance afforded by him to the Bank of New. Zealand, when, had it not been for "Mr Ward, a very grave disaster would have befallen the colony. Had the Bank been allowed to close their doors the. Colonial Bank would have become the Bank of the colony, and by his action Mr Ward had helped thousands of others and practically destroyed 'himself. He believed that, as he had saidy if Mr Ward had sufficient time given : himvhe would recoup all those who had sufferecf through him. He pleaded for consideration to be shown to Mr Ward. He had known him longer than any other man present, and had the highest opinion of his character.

Mr Cook said that Mr Ward had already had every consideration shown to him. . Mr Fraser had had no intention of speaking, but after that remark of Mr Cook’s he could not refrain. With the exception perhaps of Mr M'Donald, he had a larger experience of bankruptcy matters than anyone present, and he desired to state that he considered the objection of the liquidators to gifent Mr Ward .his furniture was cruel in the extreme. ,A grant of furniture was of nob so much-concern to Mr Ward as to those who .’were left-dependent upon him in his misfortunes, and he thought that Jibe liquidators might, if they did not care to the motion, have refrained from voting and have allowed the others to decide the - matter. It would be scarcely credited by the general body of creditors and the colony at large that for the sake of 7-16ths of a penny in the £ those two gentlemen had allowed Mr Ward’s furniture to he sold up, and the very beds to be taken from under his children. It was a painful subject, but these were bare facts, and he would not have spoken had it not been for the very unfeeling remark of Mr Cook. The other creditors appeared to be mere ciphers, and the Assignee was simply told he had got to make investigations, and his opinion was never asked. He felt humiliated at being there at all. Had either Mr Cook or Mr Ramsay been in the same position as Mr Ward, they would, out of self-respecbj have done what he had done —refused anything at their hands. Mr Ramsay said he had already stated his reasons, and ho believed he was acting in a perfectly right way. As official trustees they had no right to deal with the furniture, but after Mr Fraser trying to raise up a spurious sympathy, he would repeat Mr Fraser; Mr Ramsay is about to repeat a private conversation. I hope he will pause first.

Mr Ramsay (continuing) stated that he would repeat what Mr Fraser had said to him in the hotel the previous night, which was that “as far as he could see there was no other course but that which they were following to-day.” Mr Fraser said that he referred only to the adjournment, and not to the question of the furniture at all. He would not quote what Mr Ramsay had said to him. Mr Ramsay : You can’t. Mr Fraser: Oh, yes I could, but I will not descend to your level.' You have lost your temper. The motion was then put and carried.