THE ELLERSLIE LAND SYNDICATE.

New Zealand Herald, Volume XXV, Issue 9140, 23 August 1888, Page 6

THE ELLERSLIE LAND SYNDICATE.

ADJOURNED MEETING.

A STORMY SCENE.

A meeting of the creditors of the bankrupt Ellerelie land syndicate was held yesterday afternoon at the office of the Official Assignee. There were present: Messrs. Ivey (Bank of New South Wales), G. Fraser, H. Campbell, G. Aickin, A. Kidd, D. B. McDonald, and the following solicitors : Messrs. W. Coleman (for Bank of New South Wales), T. Cotter (for Mr. Kidd), and C. F. Buddie (for Mr. Fraser).

Mr. Coleraan stated that owing to the accounts having been furnished only during the last few days, they had not had time to examine them.

Mr. G. Fraser, in reply to Mr. Coleman, deposed that the accounts produced of his affairs were true and correct, and showed the transactions of his firm as well as his own private transactions from July, 1885, to June, 1888. Mr. G. Aickin, when examined by Mr. Coleman, also deposed that the statement of affairs produced in accordance with the instructions of the Official Assignee, was substantially correct as far as he knew from his books. This statement showed hi? transactions from July 1885 to July 1888, and in this account and the statement already filed he had disclosed all his assets. The premises in Queen-street included in his. lease were his chemist's shop, the rooms upstairs and over the tobacconist's, and the cellar. His lease had been mortgaged to the Building Society ; the £250 was only a collateral security for the payment of the whole sum. The value of the len.se at the time of the loan would be about £f>()0. Properties had decreased in value since then, and he would now require a reduction of rent to carry on business. He did not derive any income from lands in Park Road mortgaged to the Land Mortgage Company. He had a second mortgage over property which he sold some 18 months or two years ago; that second mortgage was conveyed to Mr. Buddie. The income from this mortgage was paid over to Mr. Buddie, and witness did not ?et any of it. Witness did not own any shares in the Building Society ; the shares which he had held were transferred to Mr. Buddie in the year 1886 by a mortgage over them, but "they were not registered until some time ago. He never had any property in them since the year 1888, although they were in his name. He had been a director of the Building Society, but had ceased to act as a director about three months ago, so that the shares which gave him his qualification as a director were not his own ; they were held by him in trust. Mr. Coleman : What were your qualifications for the City Council ?—Mr. Aickin : I don't understand the question. You sat in the City Council. What were your qualifications ?—As a ratepayer. [n respect of what '! — The premises in Queen-street. This very lease. Was that your only qualification ?—I paid rates on three or four places. Mr. Aickin objected that these questions wore unnecessary. He did not see what hi.'» qualifications as a city councillor had to do with his bankruptcy. Eventually, however, he stated he had paid rates on the Queen-street property, on property in Park Avenue (that mortgaged to the Land Mort f age Co. ),on the house where he resided, and e had a lease in Grey-street, and paid rates on that. He was not sure that he had not paid rates on something else. He had paid rates to the extent of £40. He had sat in a great many things ; he had been a chairman of the Harbour Board : would he (Mr. Colenian) want his qualifications for that ? Mr. Aickin was examined as to an interest which he had held in the Mount Cambria property, but a statement of hi* transactions in this direction has already been published as the result of a previous examination.

Mr. Hugh Campbell certified to the substantial correctness of the accounts which he had submitted. The accounts were made up from receipts, accounts, butts of cheque*, and otherwise. He had not kept any private books; his private dealings were so small that no books were necessary. Mr. A. Kidd also deposed that the account of his transactions which he had furnished was correct. The account which he had furnished was dated from the 31st July, 1885, and Mr. Kidd said he would give an account of his transactions for the month of July in that year. Some argument took place between Messrs. Cotter and Ivey as to the balance on the 31st July, 18S5, and Mr. Cotter said that Mr. Kidd's balance to credit on that date was £2394 Us 3d.

The Heraij) reporter who was present wa'B speaking with Mr. 0. Aickin respecting a matter which had cropped up during the latter'e examination, when Mr. Coleman ejaculated, " Your report will be all right, Mr. Reporter, if you allow Mr. Aickin to alter it."

The reporter took no notice of this remark, wnen Mr. Cotter replied: Surely you can leave the reporter alone, Mr. Coleman.

The Official Assignee did not think the meeting was concerned with anything that the reporter might do. Mr. Ivey : I tnink it is highly improper. The Herald Reporter : Your opinion was not asked. I think the reporter can be trusted to know his own business, Mr. Ivey. After a further examination of Mr. Kidd, Mr. Ivey said : I have a resolution to propose. Mr. Cotter hero put in three proofs of debt against the joint estate —oiie from W. E. Payne, on behalf of the Auckland City Council and two others from H. Naschelski (for P. Hayman and Co.) and he asked the Official Assignee : Now, will you kindly show me Mr. Ivey's proof of debt? Mr. Ivey's uroof was accordingly produced.

Mr. Cotter: Is this the only proof sent by Mr. Ivey ? because, if so, it is informal, seeing that there is nothing said about security. The Official Assignee pointed out that the proof could be amended. Mr. Cotter remarked that the proof might certainly bo amended, but it bad not yet been amended ; and lie read a portion of the Act to show that no creditor could vote at a meeting of creditors unless he had previously in the prescribed manner proved his claim. Mr. Coleman : I object to you hearing my friend Mr. Cotter. Mr. Cotter : And I object to your hearing my friend Mr. Coleman. Mr. Lawson (to Mr. Cotter) : I am afraid I must rule against you. Mr. Cotter : Well, in that case I shall ask you to take a note of my objection, because I will take further steps. Mir. Cotter said he had another objection—there was no meeting. Mr. Lawson : Oh, I don't know. Mr. Cotter : There are four proofs of debt in—four, including Mr. Ivev's. Mr. Coleman : I am a creditor, too. I am putting in my proof. Mr. Coleman wrote out a proof of debt against G. Frasei , , but headed as against the syndicate, and handed it to the chairman.

The Official Assignee pointed out that there were only two creditors present. Mr. Coleman said it was well known that there was only ono creditor in the joint estate.

Mr. Lawson suggested that the motion be brought forward at an adjourned meetingMr. Coleman : I shall ask that it be put to-day. Mr. Cotter : Yes ; and I shall ask that it be nob put to-day ; there i.« no meeting. Mr. Lawson : These things have been put before now. Mr. Cotter : If, after the way we have been subjected to examination, and after we have given all information, the Bank now wish to take up this position, then I shall, simply say " Gloves on, and fight the Bank to the bitter end "

Mr. Aickin (warmly) : The persecutors, you mean—it is nothing but persecution. Mr. Lawson said that there certainly was not a quorum present. The meeting, however, was one of the joint estate. Mr. Cotter : We have just as much right to now appear in the joint estate as Mr. Ivey or the Bank of New South Wale 3 had to appear in the separate estates, and make an examination as to the separate estates. Mr. Cotter went on to support this contention at greater length. Mr. Coleman retorted that fche 'bank had a claim upon the separate estates as well upon the joint estate. He pointed out that several meetings had been called in the separate estates, and do creditors had ap-

peared. These meetings therefore lapsed. At the joint meeting Mr. Ivey appeared, representing the bank, the only joint creditor, and the Official Assignee then distinctly ruled that Mr. Ivey's presence constituted a meeting—in fact, it did so, of necessity, seeing that he was the only creditor. They were now asked to stultify all that they had done. There was only one creditor, and they could nob help that there were not three or four. The presence of Mr. Ivey constituted a meeting, and Mr. Ivey had now put a motion to the meeting. After some discussion, Mr. Cotter said he was quite willing to consent to an adjournment until Mr. Lawson could have an opportunity of consulting Mr. Cave (his solicitor) on the subject. Mr. Coleman pressed the motion. He would not consent to an adjournment. Mr. Cotter contended that there was no meeting. The Assignee said that there was no meeting. He had been under the impression that there was only one creditor. Mr. Ivey : So there is. Mr. Cotter asked what about those whose proofs were now in ? Mr. Ivey claimed that they were not creditors in the joint estate. The Official Assignee (to Mr. Cotter): I will put this resolution, and you can enter an objection to it. Mr. Cotter protested against this course. Mr. Coleman : I insist upon the motion being put. Mr. Cotter : Well, you can insist. Mr. H. Campbell : I object, as oue of the persons interested. Mr. Coleman : He has nothing to ao with it.

Mr. Cotter : He has nothing to do with it ? Well, if he, lie one of the debtors, has nothing to do with it, 1 don't know who has. Mr. Cotter submitted that Mr. Coleman had no right to examine Messrs. Campbell, Fraser, and Kidd that day in respect of the separate estates when the meetings in the separate estates had lapsed. Mr. Lawson (to Mr. Cotter): I shall put this to the meeting, and you can put a protest against it. I shall afterwards ascertain whether it is a proper resolution or not.

Mr. Cotter : And if your solicitor advises you that it is incorrect you will call another meeting? Mr. Lawson : Yes.

Mr. Cotter again referred to the proof of debt submitted by Mr. Ivey, and pointed out that the Bank had not stated the value of their security. Mr. Ivey : We have no security. Mr. Cotter : They have a security. As I understand it, the Bunk have as security Williamson's property at Renmcra. Mr. Ivey : " Well, you are wrong." Mr. Ivey said the Bank had made a claim against those who were interested in the Remuera property. Mr. Cotter objected to the putting of the motion. He suggested an adjournment, and pointed out that the Bank had had pie vious meetings adjourned for their own conveyance. He would take proceedings with regard to this proof that the Bank had put in. Mr. Lawson suggested that the proof should be amended for the next meeting. Mr. Ivey said he would not amend the proof. Mr. Aickin asked if the Bank were not going to value the Remuera property, for which he was a debtor to them ? Mr. Coleman thought they had better attend to the business in hand.

Mr. Aickin persisted that the question should be answered.

After further discussion, Mr. Cotter asked whether Mr. Ivey would give him the names of those who were interested with Messrs. Aickin, Fraser, and Kidd in respect to the Remuera property. Mr. Ivey : Oh, I'll do nothing of the sort.

Mr. Cotter : Then if he refuse? to give us the names, it will appear that there is something wrong. The Assignee said he must confess that lie had a little grievance in being kept in the dark as to tnure being other creditors beside the Bank.

Mr. Cotter pointed out that Mr. Coleman hud only now put in his claim. Mr. Coleman asked that the Assignee would disregard his claim. Mr. Campbell obectsd to the motion. They had come there time after time, and submitted to examination and to insult; and now, when a resolution was proposed which was of infinite importance to all of them

Mr. Coleman asked that Mr. Campbell be ruled out of order. He had no say in the matter.

Mr. Campbell (warmly): I have no say in the matter, when a resolution is proposed which affects me? I have a say, and I intend to have my say. Mr. Campbell went on to speak in objection to the motion. Mr. Coleman protested against this grave irregularity—against a bankrupt getting up and making speeches at a meeting of creditors.

Mr. Ivey again drew attention to the fact that he proposed a motion, as, he believed, the only creditor who had proved against thj joint estate. Mr. Cotter pointed out that he had put in some proofs, and that he had be.en told they were on the joint estate. Mr. Coleman : 1 say they are not. Mr. Lawson : It seems to me precious little difference as to whether the resolution is passed now and protested against, or whether the meeting is adjourned. Mr. Cotter said that if the resolution was passed, it would bo communicated to the Supreme Court, and taken ad a resolution. The Assignee : Not if it is informal. Mr. Cotter ; Oh, yes ; because the Court looks to you to regulate your proceedings. Mr. Lawson : Do I understand you to say that this resolution would prejudice the debtors ?

Mr. Cotter: Yes, it would prejudice the debtors.

A short discussion ensued, and Mr. Ivey, who had been walking up and down the room, exclaimed : Mr. Lawson, will you put the resolution to the meeting 1 We've been here an hour, and I'm sick of it.

Mr. Lawson : I say there is no meeting. Chorus by Mr. Cotter and some of the debtors : That's right. Mr. Ivey (exasperated) : I say it is a perfoet farce to keep us hero two or three hours over an adjourned meeting, and then say there is no meeting. Mr. Coleman : It is a very great injustice to us.

Mr. Ivey : I shall certainly take steps to report it. The usual record of the proceedings was token amidst some sharp discussion, and tho meeting terminated.