BANKRUPTCY.

New Zealand Herald, Volume XXIV, Issue 7844, 13 January 1887, Page 3

BANKRUPTCY.

Meeting of Creditors. An adjourned meeting of creditors In the estate of M. H. Roe was held at the Official Assignee's office yesterday morning. The Official Assignee presided, and there were present: Messrs. Shepherd, W. L. Mitchell, Patterson, Watt (Gas Company J. Buchanan, S. Vaile, Molntyre, A. Porter, W. S. Laurie, J, Lamb, J. £. Bander* son, J. B. Graham, E, Ellingham, and Mr. R. Laishley (solicitor for the bank* rupt), and Mr. C. W. Care (for the Official Assignee), The business was to consider whether any action was to be taken in regard to the recovery of alleged preferential payments upon goods supplied since the as* signment in April, and whioh were paid for in timber. A very lengthy discussion then ensued, as to whether the claims oould be recognised legally, or whether the whole of the creditors were not morally bound to do so. Mr. Buohanan said the goods had beea supplied on the distinct condition that they were made a set-off, and he moved accordingly. Mr. Patterson seconded the motion, In reply to the chairman, Mr. Cave stated that no doubt they would be doing what was right, but it would not be according to law. Mr. J. Lamb, who represented Foster Bros,, objected, a« they had supplied goods since the assignment, and had not been paid in timber. The chairman then ascertained that the value of goods supplied was £44.9, and the timber as a set-off £940, leaving a credit balance of £491, Mr. Vaile (lid nob think it was fair and right to allow men who had been fortunate to get timber to ocoupy a different position to those who had not. He took it that the timber be* longed to the whole estate, bat at the same time he thought the men who had supplied new goods to carry on the business should participate in the timber. Mr. Laishley drew attention to the announcement made, when the assignment took place, that all oreditors could take out their first promissory notes in timber. Mr. Laurie said there was no offer of a composition in timber then. Mr. Buchanan considered it was their duty to do what was morally right, although it might not be atriotly legal. Mr. Lamb said he was of the same opinion. Mr. Cave held that there was a difference between the New Zealand and English Acts upon the point. Under the former the proposal of the creditors would not be according to the statute. Mr. Buchanan: Then the Official Assignee is placed in a dilemma by the creditors holding that it is a set off. Mr. Graham thought the point should be snuffed out, as it would be a great hardship if it was not recognised as a Bet off. Mr. Buchanan, as one of the trustees, said they hid taken the timber for goods, although they had no desire to do so. There really had been no assignment, and the trustees had no control over the property, so they had been advised by Mr. Button. Mr. Lamb replied they (the trustees) had a right to correct themselves, as it was not business for a man to do so. Whenever a man got possession of an estate he should be oertain that an assignment had been made. Mr. Buchanan said they forgot it was not an assignment. At this stage Mr. Lamb then left the room to attend a meeting, although several pressed him to stop to have the matter settled. Mr. Buohanan was then permstted to amend his motion as follows:— "That those creditors who have obtained timber of Mr. Roe since April 2 receive credit for the timber from their claims." Mr. Laishley said that would alter the matter very materially. Mr. Cave held that they could not carry it out legally. Mr. Vaile : These legal gentlemen are so exact. Mr. Cave replied that if a difficulty cropped up afterwards they would Bay that a legal gentleman had framed the resolution illegally. Mr. Laishley then framed & number of motions, but the meeting de« lined to accept them, and then Mr. Vaila moved as an amendment, " That the creditors since April 2 be allowed a set-off, and that the other oreditors since April 2 be placed in the same position, and that' the balance of the timber bo divided among the rest of the creditors." A lengthy discussion ensued,' during whioh it was proposed, "That the action of the bankrupt should be validated by the meeting. Mr. Vaile said, although he thought the claims were not sitriotly legal he thought they were equitable ones. Mr. Laishley spoke at length, and held that if the motion was carried out the creditors should be protected by a bond. Mr. Laurie considered that the meeting had been exceedingly liberal to those who had received timber. The amend* ment was then put and lost on a value being taken of the voting. The motion was then pot and carried unanimously. Mr. Laishley then read a document stating the claim of F, W. Dawson upon the estate for a promissory note for £141 10s, whioh had been given to Mr. Roe prior to his bankruptcy, and whioh the latter had obtained on setting out; that he would lose the bushes if he did not obtain the money. The matter had been purely a mistake on the part of Mr. Roe, and Mr. Dawson sought the estate to return the bill, whioh had become the property of Messrs. Morrin and Co. After some discussion, in which several oreditors expressed sympathy with Mr. Dawson, it was agreed " That the meeting authorises the Official Assignee to! pay £35 to the holders of the bill in full satisfaction of Mr. Dawson'a claim against the estate." The meeting then ended.