MEETINGS OF CREDITORS.

New Zealand Mail, Issue 423, 20 March 1880, Page 17

MEETINGS OF CREDITORS.

*■ > ■ A meeting of the creditors of Mr. W. Berry was held at the Supreme Court, at 3 o'clock on Tuesday afternoon, for the purpose of an examination of the bankrupt. There was a good attendance of creditors, and the chair was occupied by Mr. Dimant, the trustee, on behalf of whom Mr. Quick appeared. Mr. Fitz Gerald again appeared for the bankrupt, and asked if the meeting was a public one. Mr. Dimant said it was a meeting of the creditors. Mr. Fitz Gerald said it was not stated so in the notice. It was an examination of the debtor by the trustee. The question now was, was it a public meeting. Mr. Quick said that would be for the trustee to say. For his own part he would say, Yes, decidedly. The Chairman said he had considered it necessary to call upon the debtor to be examined. He had looked into the papers filed by Mr. Berry, and from them he had drawn np the following report : "Wellington, 16th March, 1880. "In re William Berry. The_ trustee in this estate begs to report for the information of the creditors that since his taking office he has examined the affidavits and papers filed in the Supreme Court by the bankrupt, from which it appeared that in a statement dated 3rd instant, bankrupt's indebtedness is

" The first question which occurs is—Why is the value of the furniture not stated in the amended schedule as it is in the first schedule ? " With reference to a number of sections of land, represented as of £387 value, the debtor may be able to contradict a prevailing opinion among some of the creditors, viz., that they are worthless to the estate to realise upon. " Among the other assets representing £422, the trustee, from enquiry made, believes them, in the main, not to be worth naming since he (trustee) found since bankrupt's filing a good asset of £42 has been claimed and paid by and to Mr. Ollivier. "The item of £I2OO set down as the valuation of the brickyard at Kaitoke needs no comment from the trustee. " As the bankrupt will be under examination of the creditors present, I would recommend that information be elicited on the following questions : « i What has become of the supposed £6OO secured by mortgage to Mr. Ollivier ? "2 How bankrupt can account for £334 obtained from the various secured creditors as named in accompanying list ? " Bankrupt's statement at the first meeting of his creditors that the Crofton Estate being

worth as an asset £l2O, the trustee having been permitted by Messrs. Izard and Bell to examine the title of the Crofton land and house, as far as value is concerned, and the trustee found that this property was leased to bankrupt in December, 1877. by Messrs. Kemp and Stowe, for a period of seven years, at £BS per annum, with a purchasing clause at £I3OO within the term of lease. Bankrupt took possession under a memorandum of agreement, but no lease has since been executed, and bankrupt is now indebted two quarters rent to the agents for the owners. " The trustee regrets, in conclusion, that he is unable to report more favorably upon the aspect of this estate, and leaves, therefore, matters as they are for the creditors' consideration." jMr. Fitz Gerald asked the creditors not to be misled by statements of the trustee, as they must remember that he was animated by strong personal feelings against the bankrupt. The statement just read was altogether onesided. Mr. Dimant had done all he could in the way of making the thing public by locals in the papers and otherwise. And then that day they had reporters from all the papers present. All this was exceedingly unfair. They could not prevent the meeting being a public one, at the same time he hoped that in the future such meetings would be conducted in a reasonable way, and not in the way they had been conducted in this case.

Mr. Quick, who appeared for the trustee, would remind the meeting that Mr. Dimant had only undertaken his present office when everybody else had declined to accept it. He considered he was a public benefactor. With regard to the report just read, it was founded upon the statements of Mr. Berry himself. Mr. Berry was, according to Mr. Fitz Gerald, a very ill used man. They would remember that the bankrupt had filed two statements. In one of these it was shown that he had received £ll7O in 17 bankrupt estates, to which money he had stuck. Since Mr. Berry had been in Wellington, something like two years, he had incurred debts to the tune of £2858, £llOO of which were misappropriations out of bankrupt estates, while the assets were absolutely worse than nothing. It was only right that the proceedings of the bankrupt for the last two years should be known by the public. He hoped they would not be misled by any assertions that might be made by Mr. FitzGerald. Mr. Dimant would like to tell the meeting that he had no ill-feeling whatever against the bankrupt. Before proceeding further he would ask Mr. Berry to produce his books, &c. Mr. Fitz Gerald said that on his advice Mr. Berry would not produce books which contained trust accounts as well as his own private accounts. The trustee could see anything connected with his private accounts. Mr. Ladd said the debtor was bound by the Act to produce his books. Mr. Fitzgerald would take the responsibility, but would give no reasons. He advised Mr. Berry not to hand the books over to Mr. Dimant, but Mr. Dimant could examine them it he chose. The bankrupt then examined on oath by Mr. Quick, on behalf of the trustee, stated :—The account I filed in the Court goes back from the day I entered New Zealand in November, 1877. I did not enter into business immediately, but two or three months afterwards. I did not bring any funds with me. I had some things with me rather than money. I had no actual cash, but the things were as good as money, such as the furniture of my house. I did not sell any of these things. I started without money, but my sonswere earning something. They arrived with_ me. I became an accountant in bankruptcy in about three months. I can hardly say what my income has been. There are many commissions yet to come in. I can hardly say what I earned in the two years. When I found myself in a corner I ceased taking business. During the time mentioned my earnings were between £I3OO and £I4OO. If that sum is added to the gross amount of my liabilities it will not show my expenditure or what I have been through in the two years. You forget all the losses I have had. I do not include any of the amounts set down in my schedule as my earnings. I do not know what you mean by making away with money. I have spent it certainly. I should say, at the same time, that I have had the earnings of eighteen months to cover the expenditure of two years and three months. I refuse to answer the question whether the £llOO are moneys that I kept as a trustee in bankrupt estates. Mr. Fitz Gerald : He refuses to answer the question on my advice. The Bankrupt : I have not received and spent the money put down against the Colonial Bank. It went in payment of the brickyard. I did not receive it. A bill was held for the brickyard, but I never received the money. I received from Mr. Ollivier more than £6OO altogether. I can hardly say whether I actually received the money—l should think I have received more. The £6OO and £2OO are jointly together, but I only owe him £6OO. Great part of it was for cash and a part of it was for law costs in the estates in which I was engaged. I cannot tell at the moment how much cash I got from him. I should think £6OO as cash advances ; but then I paid him back a part. I borrowed the money to make advances to various estates. Mr. Gardner said he did not think the creditors had come there to hear the trustee's examination. The bankrupt should have been examined before, and not the creditors' time wasted. Besides, the creditors ought to have the chance of examining the bankrupt. Mr. Quick said they could do so at once if any of them wanted to go. He (Mr. Quick) would waive his right of asking questions for the present. Mr. Gardner not asking any questions, the examination of the bankrupt was proceeded with by Mr. Quick, on behalf of the trustee : I can give you a string of 50 estates upon which I advanced money. I debited the estates with those costs, and I deducted them

before declaring a dividend. I did not pay Mr. Ollivier costs, but I gave him security. I don't know how Mr. Hiilop can put in a proof for a gold watch when he has got an order for the delivery of it back again. In February 7 twelvemonth I wanted a watch and thought I was in a position to buy a good one. If Mr. Hislop had sent in the account he would have been paid. I afterwards accepted a four months' bill for Mr. Hislop, which, he said, would do as well as the cash. The bill was for £35. I subsequently gave the watch as security to Mr. Bethune, on the occasion of a sale at my house, when the landlord put in a distraint for rent. When the bill became due I did not meet it, but I subsequently gave Mr. Hislop an order on Mr. Bethune for the watch.

Mr. Hislop explained to the meeting that the watch had been bought of his assistant when he (Mr. Hislop) was in Dunedin. Subsequently a bill was given, which was dishonored. He had not got the watch, and had never seen the order mentioned.

Examination continued : The watch bought of Kohn and Co. was returned.

Mr. Quick : Then that is another case where the debt has been proved, and the watch said to be returned. Examination continued : There were instalments paid on the sections at Petone. I could not say if they would fetch back their deposits. I gave Mr. Ollivier authority to receive money from Mr. Cheymol, and he had £42 from him. Mr. Quick : Well, then, that amount ought not to have been put down here among your assets.

Examination continued : The money from Tafner's estate is owing to me. I told Mr. Ollivier he should have thi3 money, but whether he received it or not I cannot say. W. Cole owes me £53 —that is to say, it is the estate. I shall never get that ; that's one of my losses. I have not put down £350 as assets due from Farrnll Bros. The amount is £SO. That is how you have made misstatements. The report was false and wrong. As a trustee he has no right to make such statements. Mr. Quick : It does not lie in your mouth to make such statements, considering the moneys which you confess you took out of bankrupt estates. It will make your assets all the less if the sum is only £SO instead of £350. Examination continued : My furniture and the brickyards are secured to Mr. Ollivier. Mr. Quick : You stated just now that the report was false. Will you tell us one false statement in it. Examined by the Trustee : The amount of £lO to Kempthorne, Prosser, and Co., is for chemicals. I used to dabble in photography. Lang's claim in Melbourne was for a case of cigars. I never kept a tobacconist's shop, and I never imported cigars. They were to have belonged to a bankrupt estate. I gave security for them. They were not for my own smoking. I never smoked a cigar in my life. The Trustee said he should take action to obtain possession of the bankrupt's books. Mr. Fitz Gerald said that the trustee could see the books at his office, but he would not give them up. The proceedings then terminated.

as follows :— "Dr. £ s. d. *' To bankruptcy estates in liqudation ... 1170 0 0 " Sundry creditors 1688 0 0 "Total £2858 0 0 " Assets. "Cr. " Furniture, land, shares, &c. ... 1917 0 0 "Deficit ... ;•• £941 0 0 " The above statement was i replaced by another affidavit filed on the 5th instant, in which bankrupt expunged all his liabilities to the several bankrupt estates i in his hands under liquidation, and merely confined his indebtedness to his private affairs, which he enumerates as follows :— "Dr. £ s. d. " To sundry creditors ... 843 13 6 " To F. M. Ollivier ... 600 0 0 " Other creditors holding securities ... 934 0 0 "Total £2377 13 6 "Assets. "Cr. " Land in various places 387 0 0 "Sundry claims... 422 0 0 " Brickyard 1200 0 0 "Total £2009 0 0 "Deficiency £368 13 6