ELLERSLIE LAND SYNDICATE.

New Zealand Herald, Volume XXV, Issue 9106, 14 July 1888, Page 6

ELLERSLIE LAND SYNDICATE.

CREDITORS' MEETING.

Graves Aickin.—A meeting of the creditors in this bankruptcy, private, was fixed to have been held yesterday morning, at the office of the Official Assignee, at ten o'clock, but lapsed for want of a quorum. Notwithstanding that there was no quorum Mr. Coleaian (instructed by Mr. Ivey, manager of the Bank of New South Wales), desired that the examination of Mr. Aickiu should proceed. To this Mr. Aickin said he was prepared to answer any questions privately, but a public examination could not go on unless a quorum was present; to which Mr. Ivey retorted they were not going to have any private examination, as a consideaable amount of mud had been thrown at the Bank, and they wanted it wiped off by a public examination. Mr. Aickin replied he also wished for a public examination in preference to a private one, and as to the mud-throwing there had been no intention to throw any mud at the bank. The Official Assignee suggested that the examination could be made both as to the syndicate's bankruptcy and the private estates. Mr. Aickin desired it to be understood that he was not shirking a public examination, to which Mr. Coleman replied he had not suggested that Mr. Aickin was doing so. He, however, still expressed his desire to go on, adding that the absence of other creditors looked as though this was a sort of plan of the campaign, that they wero not to be present. Mr. Aickin offered to go and hunt some up. He expected his creditors would have been present, and he thought such allegations ought not to be made. Mr. Ivey said he wished to have certain statements disproved, particularly allegations made in the papers on Saturday last, and let the examination have as wide publicity as possible. Mr. Aickin said he would wait till Mr. Fraser's meeting at eleven, and give them a chance to examine him at that time if ib was desired. It was ultimately agreed to make the syndicate examination the meeting at which each bankrupt's private estate should be inquired into, as well as his affairs in relation to the syndicate shares. George Fraser.—A meeting of the creditors in the private bankruptcy of George Fraser (engineer) was fixed for eleven o'clock yesterday morning, but lapsed for want of a quorum. Alfred Kidd.—A meeting of the creditors, private, of Alfred Kidd was fixed for noon yesterday, but no creditors turned up, and the meeting lapsed for want of a quorum.

HuGii Campbell.—This bankrupt made his sworn statement before the Official Assignee yesterday morning, as follows: — I nave been practising as a solicitor over five years in this city. In the early part of 1885 my financial position was undoubted. At that time I joined the Ellerslie Land Syndicate. I have read the sworn statement made by Mr. Graves Aickin before the Official Assignee on the 11th instant; and, so far as it relates to the Ellerslie Syndicate, I believe it to be correct in every particular. As regards ray separate estate, I have only two private debts, amounting to £233 Is 7d. My assets consist of the equity of redemption of my house in Symonds-street, sundry allotments of land at Remuera, as shown by my schedule, and 100 shares, £5 paid-up, in the Auckland Freezing Company. I have been jointly interested with my brother for many years in the Waltoa estate, and certain properties at Cambridge. Until the end of 1886 we sank in the Waitoa property nearly every shilling we could, in the nope of making it remunerative, but, so far, it has made no return. In 1885 we estimated these properties to be worth £12,000, and then subject to mortgage charges of about £5000. At the end of 1886 we leased the Waitoa property at £80 a year, out of which we have to pay the rates and taxes, and are still saddled with the mortgage interest. The Cambridge properties have become reduced to almost nominal value, from an estimated value in 1885 of £1200. My brother and I live together, and the household furniture is owned jointly. I have now no pecuniary interest in my late partnership. The schedule of assets, and the foregoing statement, disclose the whole of my interest.

A meeting of the creditors of the Ellerslie Land Syndicate was held at the office of the Official Assignee yesterday afternoon. There were present the svndicate. Messrs. Graves Aickin, chemist; Hugh Campbell, solicitor; George Fraser, engineer; George Fraser, land agent; and Alfred Kidd, hotelkeeper. Mr, J. B. Russell appeared to watch the proceedings for Mr. Aickiii, Mr. Theo. Cooper for Mr. Robert Isaacs, Mr. T. Cotter for Mr. Alfred Kidd, and Mr. C. Buddie for Mr. Fraser ; Mr. Cave for the Official Assignee ; Mr. Coleman for Mr. Ivey, who was also present, on behalf of the only creditor, the Bank of New South Wales : and Mr. D. B. McDonald, secretary of syndicate. The statements were talcen as read.

Mr. Graves Aickin waa sworn and examined by Mr. Coleman, and said: My bankruptcy is owing to land speculations. Had it not been for this I would have been solvent. I have been in business about 14 years. lam not pressed by trade creditors, and the trade would meet any demands on it from my own creditors. "The turn-over is about £3000 a-year, and Ido as good a business as any chemist in town. My expenses are considerable. My average profits are about £1000 or £1200 a - year. This, I think, a fair average in average times. The value of the stock-in-trade would be about £;WOO actual value. My book debts amount to about £750, at a lull estimate. There-would be deductions from that amount for' doubtful debts, of course. Fixtures and fittings I included in the stock estimate, and am altogether doing a good business. When I went into business, Icommenced with £200. It is some .15 years ago. I have a lease of the premises in Queen-street. The lease has about 90 years to run. Mr. William Goodfellow is the landlord. The rent is £6 per week, and I pay rates and taxes, and insurance fees. The lease was given to the Building Society as collateral security to secure a margin and assist Mr. Bell. This was three years ago. The goodwill of the business is worth nothing so long as I stay here. I have returned my property in the Government property tax returns. I cannot remember, but 1 paid something like £26 last time. I have not represented to the bank or others that I was worth £8000. I may have said my property tax returns was £6000. I have no other assets except as shown in the schedule. To the best of my knowledge and belief I put everything in the statement. As to my shares, the statement ia correct, I believe. The Bank of New Zealand holds a bill of sale given them on March 5, 1887, I also sold my book debts, given to the Drug Company. All I have is £195 unencumbered. I gave the Bank of New Zealand a bill of sale over the stock as security for £2800. The bill of sale covered all the stock-in-trade and fixtures. I gave it on March 5,1887, a year ago. It has not been registered, because I think it would have been injurious to me in business, and it was not intended to injure me in business. There was an arrangement to this effect. The consideration for bill of sale was past advances. Mr. Russell said this could be got from the document itself, and if this could not be had, then they would take secondary evidenceMr. Coleman said he only wanted it briefly. Mr. Aickin said : The consideration was to secure -past and some future advances, I believe. I really do not know. Mr. Russell protested against Mr. Aickin being pressed to answer questions ; but the document should be got, and until it could be got it was not time to ask such questions. Mr. Aickin continued : The past advances when he gave the bill of sale in March, 1887, were £237'). Mr. Aickin read this from a paper, which he said was a demand. When I signed the bill of sale I do not remember that they gave me money, and have dono so since. My bank-book wiflshow this. There was a fresh account opened altogether, and I was allowed to draw on it. When I signed the bill I owed the bank £237' r >, and since then I have got some £T>oo. I gave the security not exactly voluntarily. At that time there was not the same confidence as there is now, and on account of writs being issued by Messrs. Isaacs, and also in consequence of rumours of my beinjj involved in syndicate matters. The Bank ot New South Wales was scarcely mentioned. I explained my position to the Bank of New Zealand. I did not owe the Bank of New South Wales large sums of money at that time. I was only liable under the bonds. I explained this to the Bank of New Zealand. At this time, March, 1887, I did owe the National Bank monev, about £600. That was the Napier affair. 1 did not conceal my affairs at all. I did not tell Mr. Ivey about the bill of sale, but I ottered repeatedly to disclose my affairs. I was never asked ; I would have done so if asked. 1 had nothing to conceal. The Isaacs were threatening me with an action for the interest on £1200, for which I was liable or for the deficiency in case the land had been sold at auction. Mr. Coleman continued his examination as follows; — In March, 188", you were able to meet your liabilities ?—What do you mean ? I was able to pay my trade debts, and my share of what was then due of the other liabilities. Not if they had come down for the £121)0, but I was only liable tor my share. It was under mortgage.

You were not liable for it. Were you able to pay what was not due ?—Not due. I was not liable for what was not due. Had the Bank, in March, 1887, called for the £3375, could you have paid it ?—I think so; my balance-sheet, I believe, showed it. Why did you give the bill of sale ?—To give confidence to my banker, in order that my current account should be free to pay liabilities of all kinds. Has the bill of sale been enforced against you ?—Yes. On June 16. Why was it enforced ?—You know the position. You can answer the question as well as I. What next?— The Bank of New Zealand took possession, and have it now. Have they sold it?— Not so far as I know. I have not asked them. They may have sold

it. Does it cover the stock now?— There is very little if any new stock, if thatis what you mean. You could not pick out £50 of new stock. Is there no margin in the stock ?—I could not tell till the stock was taken. I believe they are taking stock now, but I am not in possession. Are you not the owner ?—I cannot be the owner if I am not in possession. When I walked out of the shop, I had no more to do with it.

How ? —The bank made a demand on June 15, that for £2881, and a man came to take possession, and being just I gave up. Have you asked the bank what they are doing ?—1 have not asked them for any details.

About the lease ?—The lease was given to the Building Society for collateral accounts made to Mr. J. B. Bell. They wanted some margin, and as they did not want personal security I gave them the lease. I owned the house in Park Road, and I sold it to Mr. Bell. He mortgaged it to the Building Society, and I cave the lease as margin for £250. The lease is mortgaged for £250?— Yes, that is the effect.

Did you put the Building Society down an a creditor of yours?— Certainly not. I am owner of the Queen-street lease, subject t<) the lien of the Building Society, but the bankruptcy terminates it. Mr. Russell: The lease may be sold for the benefit of the creditors ?—The Official Assignee : Subject to the lien. What about the book debts? —They were assigned to the Drug Company in January as defined. The deeds state it. It was to secure £600.

How did you come to do it?— You can easily understand the position. The Drug Company became uneasy about their account, like the Bank of New Zealand. These syndicate matters led them to think their account might not be as safe as they thought it to be. For similar reasons to those I gave ( as to the Bank. The security was given for past debt (£600) and current account. I explained my position to them. They knew of my liability to the Bank of New South Wales. I gave the National Bank of New Zealand security for the debt of £600 on March 9th, 1887. I have signed a transfer over the shares ; the National Bank has as security. This was also to secure a past debt I explained it all to them and mv liabilities to the Bank of New South Wales. This was for an overdraft to a Napier bank for moneys advanced. What is this item of £250?—1t is cash advanced on property mortgaged to Dr. Philson. They made advances to me. This was given November 22,1886. Dr. Philson lent me £150, and Mr. Russell certain advances and money I owed him. There was a current account. I have no furniture. It has belonged to my wife since we were married, 16 years ago. It was my wife's own at the time —most of it —and the marriage settlements cover it. I cannot say whether they have been registered. During the last sixteen years I cannot reinem'ber that I have got any new furniture, but the marriage settlements secures it. I expect there have been additions to it in sixteen years, but the value I cannot tell. It muet have been slightcarpets, and things of this sort. I went into Park Road about 1882, and I think there have been some carpets bought since then. I have always lived in Park Road, but I went into my present house then. The Bank of New Zealand held the securities in March, 1888, but they did not take possession until recently. The business was capable of making £1000 a year to pay the bans. I had not divested myself of that. When you were trying to make arrangements with the Bank of New South Wales in March, 1888, you had given the security to the Bank of New Zealand, the National Bank, and the Drug Company ?—Yes. Mr. Aickin continued : On March 13th Mr. Ivev, manager of the Bank of New South Wales, demanded from us the interest and £100 of the principal as to the Ellerslie property. We don't wish to conceal anything. The facts are as follows : —On 7th March this letter was received ; on the 13th Mr. McDonald tendered the whole of the demand , , except £30. Mr. Ivey said it was too late, instructions had been issued.

Mr. Ivev ; Why did he not pay the money? —Mr. Aickin :He had the money. I saw it. Mr. Ivey : I say it is not correct. (To Mr. McDonald) You did not tender the money. Why was it not paid into the bank in the usual way ? oi to the bank's solicitor? I believe it is a lie.—Mr. Aickin : Don't- talk in that way. I can swear I saw the cheques, one of which was mine. Mr. McDonala told me what he had done.

Mr. Cooper suggested Mr. McDonald be questioned. Mr. Aickin protested against his- word being doubted, and said he could show the stub of his cheque. Mr. McDonald here said it was agreed by the syndicate that these cheques should be tendered, but the cheques were only to be used in case the others were got. Mr. Aickin : Were you prepared to nay that money in, Mr. McDonald McDonald : Yes, I was. Mr. Campbell: I gave a cheque upon the understanding that it was not to Be used unless the others were got, but we afterwards withdrew that condition, and agreed to tender our individual cheques to the bank, which tender Mr. McDonald says he made.

Mr. Ivey: The writs were not issued for two months afterwards.

Mr. Aickin: There need be no feeling. We want to pay it all off as well as we can. Mr. Ivey : ? Mr. Aickir : Yes.

Mr. Ivey : I am glad to hear it. Mr. Aickin: We have no desire to do anything unpleasant. So far as you are concerned you have treated us very' fairly. Mr. Ivey : Are you talking to the Press ?— Mr. Aickin : I forgot the Press were present. This concluded Mr. Aickin's examination. MR. ALFRED KIDDS EXAMINATION.

Mr. Alfred Kidd was next examined by Mr. Coleman and said : The statement shows all my assets. I have no interest in the Arcade except the debt owing me by Mr. Wildman. 1 was a partner with him. The partnership ceased February '25 of this year. I went out with £800 owing to me. The National Bank has a collateral security over this £800 asset. I gave it because the National Bank wanted security from Mr. Wildman. He was a customer of theirs to about £250, and he came to me and I gave this security on May 2nd of this year. I did it out of friendship, and to secure the business. They wanted money, and there were certain liabilities in which I was interested in having met. The present owner of the lease of the Commercial Hotel is my wife. I have furniture.

Why do you not put it down in the assets? —It is down. I hold the furniture, subject to a bill of sale to Mr. Neumegen for £350. Is there no margin ? —Not more than £50. Could I have got more I should. How did your wife got the lease?— She got it from Mrs. Stitchbury. Have you ever been down as owner of the lease ?—No.

Did you ever own it ?—Not that lease; but prior to 1886 I owned a lease. How did it vest in your wife ? —Because the lease was expiring, and a new lease was given to my wife. There was no concealment, because you hold the papers the Hank did. There was a small bonus, about£loo, l think, paid for this renewal. I don't think it has all been paid. Who found the money ? —Mrs Kidd. Has she a separate estate? —Yes, to that extent.

What became of the stock-in-trade ?—At the time Mrs. Kidd got the lease, the stock went over to Mrs. Kidd in the usual course. The value?—At that time I think about £50 or £60. It was low, living, as I did, so near Brown and Campbell, I kept it low. What was the largest amount you ever owed Brown and Campbell ?—I have paid them £200.

Was it worth £200 when Mrs. Kidd took it over ?—I will swear it was not. The rule was not to keep a large stock in. Have you property in Parnell ? —No. Has it been sold "'—Yes; it was sold by order of the mortgagee by public auction about six weeks or two months ago. Who were the mortgagees?— The church trustees.

Who was the purchaser?— Mrs. Kidd. I was not there at all.

How much did she pay?— That I could not tell you. I know there was a considerable amount due for ground rent and mortgage. Where did she get the money ?—I cannot say. Mr. Cotter: It is not paid yet. I am trying to arrange to borrow the money to pay for it.

The National Bank holds security ?—£loo. When did you give it?— Not so long ago — between three and six months. It was money I got when Kidd and Wildman was in Co.

Where did it go?— 1 used it in business. It was cash advanced at the time.

The meeting then adjourned till Wednesday, at half-pas'; two o'clock.