WALLACE’S ESTATE.

New Zealand Mail, Issue 741, 14 May 1886, Page 11

WALLACE’S ESTATE.

LIVELY MEETING OP CREDITORS,

A meeting of creditors in the estate of J. H. Wallace and Co. was held last Friday afternoon. There were present, besides the Official Assignee and Messrs J. H. and R. P>. Wallace Messrs H. Kember, H. S. Fitzherbert, 61 Windsor, Juhl, (Lyon and Blair), Wakeford, Jameson, and Armstrong (Ship Hotel), Many of these gentlemen also held proxies. The Official Assignee made a statement as the result of his investigations into the firm’s affairs, With respect to the payment made to the Bank of New South Wales, he said he iad submitted the whole matter for legal opinion ; and that opinion was not of such a nature as to hold out any hope of recovering the monev paid. With respect to the Petone sections, he had not sold them ; they were not worth taking up. With respect to the saleyards at Ngaliauranga, they had not brought much, and he had a small debit balance as the result of his pales and expenditure, having collected £4l and disbursed .£49. Mr Wakeford : Mr Wallace say 3 he put the saleyards down at £IOO. Mr Graham said they were bought by Messrs Stewart for £B. for the timber. As to the Petone sections, it would be difficult to .get rid of them. Mr Harcourt : There is nothmg paid on them, is there ? Mr Graham : No. Mr Kember said as there appeared to be no businesf, and as tbe estate seemed to be in the usual “satisfactory ” condition, he moved that the debtors have their immediate dis--charge. Mr Fitzherbert seconded the motion. Mr Armstrong thought the affair was most ■unsatisfactory, and he did not think the debtors should be allowed again to commence business. The motion to give them their discharge was disgraceful. {Being called to order, he substituted “ improper ” for “ disgraceful ’’). Mr Wakeford thought they had not started the business yet. He would like tr know on what ground Mr R. B. Wallace was indebted to the°National Insurance Company for the £7OO odd he paid. He . thought it wa3 a strange thing that the liabilities, which were £ISOO when Mr Harcourt made his offer, had now increased to £5424. Mr Graham : £3500 is the total amount of debts proved. Mr Wakeford : Well, £5424 was the amount your clerk told me. He thought Messrs Wallace owed a little explanation as to where the money had gone to. The creditors, if they passed the resolution, would be acting like a 'lot of fools. Time was too valuable 3 to waste where there was nothing to Armstrong : That’s a very sensible remark.

Mr Wakeford : Which ? Mr Armstrong : W bat you just said. We have been made fools of. Mr Wakeford : Of course—been had. Mr B. B. Wallace said he was very glad Mr Wakeford had asked that question about the National Insurance Company, and he was ■quite willing to answer it. Some time ago, aa they knew, he was with the Company, and since he left it he had liquidated a debt to the Company of £7OO. He was pleased to make this statement". because he knew an erroneous impression had got abroad that he personally had to ■make up the sum on account of moneys he had made use of himself. Such was not the case. Possibly he had been wrong in the past in not gratifying public curiosity, which he would not do. But he was prepared to state now that that sum of money he made good to the Company through the defalcations of a clerk he had in the Company’s employ. TJnfortuuately, he overlooked it under promises of payment, which had turned out to be bad. When leaving the Company he was censured, and very properly, through this matter. He resigned his position of his own accord, and left with the most friendly feelings between him and the management. Mr Wakeford asked ivhen the matter took place. .... Mr Wallace did not think it was necessary for him to mention that. It was before he joined the firm. Mr Wakeford pressed his question. He thought it ought to come out if Mr Wallace had dragged himself iuto bankruptcy to condone a felony. Mr Fitzherbert said it was a misdemeanor —not a felony. Mr Graham said it must be borne in mind that Mr Wallace had no debts of his own at that time. He raised £IOOO on mortgage and the balance of the money he lent to his father's estate. Mr Armstrong : But was it not a cause of the bankruptcy ? Mr Graham : No, Mr Armstrong : Nothing to do with it ? Mr Graham : No. Mr Armstrong : Then, what was the cause of bankruptcy ? Mr Graham : That the firm could not pay their debts. . Mr R. B. Wallace : The money was raised on mv own property. Mr Armstrong : On your own property ? You did’nt raise my sixty notes on your own property ?

A rather long discussion followed, explanatory of a transaction made by the firm with Mr Wakeford, who said they had obtained £IBO from him and said it would be all right, when they knew they could not cash a £s_cheque. This was on account of some cattle which they bought with his money, and he wanted to know where that £IBO hsd gone to ? Mr Armstrong repeated bhe question, and said the debtors should not have their discharge if he could stop it. He used very emphatic language as to what they ought to “ get.” He had been *• had,” and he wanted to “ have ” them in return.

Mr Graham said as far as the books were concerned, he could make nothing of them. There was not a single word as to what had becoire of the debts. The amounts owing now came to £3500, according to the proved debts. How the cash had been spent was not accounted for.

Mr Wakeford : Well, they have had ample time to do everything correctly. Now, lam aoing to ask you, do yon think the bankrupts statement is such a clear and judicious one, that we, as business men, should carry this motion ? If you say it is, I’ll say good morning, Mr Graham. . . Mr Graham : I do not know that it is my business to answer that question. Mr Wakeford : Very well, I shall ask my solicitor that question. But what is your opinion ? . Mr Graham : I have alseady said I do not consider the statement satisfac ! ory. Mr. Kember, appealed to for his opinion, said he was Bick of these things.. He did not see any difference between this and other bankruptcies. . Mr Armstroug said the meetings of creditors in this estate had been biassed. .Look at the way he was sat on at one meeting held here. Mr Fitzherbert thought it was no use discussing the question any further. Mr Wakeford : I don’t think so. There s one thing I’m not satisfied about, though—the explanation about that £700.. Mr R. B. Wallace : Wed, sir, I made the statement in answer to Mr Wakeford, and I am very sorry now that I gratified his curiosity. . A small uproar ensued, in the midst of which Mr Wallace appealed to the chair, and asked whether he was to be told that he was not telling the truth. Whereupon Mr Wakeford and Mr Armstrong said “ Oh,” sarcastically. In answer to a question, Mr Graham said the question cf the £7OO would not affect the present position of affairs. Mr Wakeford brought up the question of the rents received by the firm. Mr R. B. Wallace said if the firm had been allowed to go on they would have got on all right. They were just commencing to get on. Eventually the motion was carried, Messrs JamesoD, Wakeford, and Armstrong opposing it. This was all the business, and the meeting terminated.