THE AFFAIRS OF MESSRS MORTON AND CO.

Otago Daily Times, Issue 5276, 18 January 1879, Page 2 (Supplement)

THE AFFAIRS OF MESSRS MORTON AND CO.

(From the Scotsman.)

The meeting of the creditors under this liquidation was held at the office of Messrs Harding, Whinney, and Co., 8 Old Jewry Chambers, London. There was a considerable attendance of creditors and legal gentlemen. Mr Harding was voted into the chair.

Several proofs were handed in, including a proof on behalf of the City of Glasgow Bank for £961,437, which Mr Rawlins stated was in respect to the unsecured indebtedness of the firm to the Bank.

The Chairman said that, as they were no doubt aware, the meeting of the creditors was called for the proof of debt 3, and also for the purpose of ascertaining what course Bhould be adopted in the case. The opinion of the creditors present would really represent the opinion of the general body, because those representing by far the largest amount of the indebtedness were present. Tlie statement which Lad been placed in their hands was tho approximate statement of the firm of Jamea Morton and Co. on the 27th of October. The items were as follow: —The credi tors unsecured, £109,888 28 7d ; and creditors fully secured, amounted to £676,825 12s ; estimated value of securities being £757,513 lis— showim? a surplus to contra of £80,687 19i ; the creditors partly secured, £178,568 18s. Tho estimated value of securities in their hands amounted to £16,-52 13s—deficiency of £105,043 43; creditors for rent, etc., £144 Bs. Other liabilities, £233,103 3s, of which it is expected will rank against the estate for dividend, £105,826 9s. The indebtedness or liability ariaing out of transactions with tho City of Glasgow Bank on open account, £676,566 17s lid ; under credits granted by the bank, on acceptances by the bank in other hands, to drafts of Buchanan aud Co., £1,214,537 ; Holmes, White, and Co., £262,900; Glen, Walker, and Co., £108,500. The total liabilities, deducting security, amounted to £2,493 261 14s 6d ; and tho grand total, £3,461,034 3s 7d. Two notes were appended to the statement, to the following effect :— "There are securities in the hands of the bank, but the title of the bank to them is to a great extent incomplete or in dispute. The value of the securities cannot at present be estimated with any approach to accuracy (nominally, they amount to £800,279 9s 3d), nor cm it be stated to whom Iho items constituting (ho above KfamiWo J'i> )J4 ftU%;jj, 'Jhe

debtors aro advised that the obligations on the bills, so far as they are held by third parties, are valid claims on their estate, but otherwise so far as the beneficial interest of any part of the above amount is sought to be recovered by the City of Glasgow Bank." The assets, in the first place, consisted of the book debts—good, £9622 2s 9d; doubtful, £34,505 18s ; bad, £373,903 4s; cash in hand, £206 3s ; bills of exchange, £1700 ; oflice furniture, &c., £231 8s 6d; property as per list (subject to alleged claim of City of Glasgow Bank to certain Aberdare bonds valued at £56,761), £11,973 10s. Then there was the surplus from securities in the hands of creditors fully secured, £80,687 19s. Surplus from separate estates—James Morton nil, and Afexander Taylor, say £1522 12s. Sundry assets which will be retained against liabilities %nr contra, or by the holders of acceptances on the City of Glasgow Bank, £76,335 8s ; assots in hands of the City of Glasgow Bank, see contra, £800,279 9s. Total, £213,722 163, from which deduct creditors to be paid in full, £144 6s 10s ; leaving a grand total of £213,578 7s 9d. [The reporters who had been present up to this time were requested to withdraw.] What took place subsequently was as follows:—Mr Harding having finished the reading of tha statement of affairs, and explained the various items, a general conversation took place with reference to the expediency of proceeding by way of arrangement or in bankruptcy, and whether it was advisable that proceedings should take place by way of sequestration in Scotland or in England.- No specific resolution was passed on this subject; but the Chairman was asked if there was any possibility of ascertaining the general disposition of the creditors present in that respect, and in reply the Chairman said of course they could only ascertain the wishes of those present by their voluntarily expressing an opinion, and if tho gentlemen who thought it would be expedient to proceed in this country intimated it they might arrive at some understanding. In the course of the conversation that ensued a general desire was expressed that it would be advisable that the proceedings should take place in England, provided they were in bankruptcy (the adjudication having been obtained), and not by way of arrangement. Un the Chairman calling for general expression of opinion on the subject, a show of hands was taken, although not with reference to any specific resolution, and the opinion as then expressed was strongly in favour of proceeding in England, very few hands indeed being held up in favour of the sequestration proceedings in Scotland.

The discussion of tha statement of affairs was then proceeded with, but no resolutions were .passed, Mr Travers Smith stating that tho subject waa one of extreme importance, and that before passing any resolutions lie should, on tlie part ot the creditors whom he represented, aud who were very large creditors, desire to consider the subject by the light thrown upon it by the publication of the approximate statement of affairs, and the expressions of the wishes of the creditors to proceed in bankruptcy in this country. He therefore moved that there should be an adjournment for a week. After some discussion, that course was agreed upon, and the meetiug stood adjourned for a week.

Another report which has been supplied to us says that a long discussion took place on the question whether the estate should be liquidated by arrangement, wound up iv bankruptcy, or by sequestration in Scotland, aud on a vote by show of hands being taken, the creditors present, with two exceptions, were against the removal of the estate from the jurisdiction of the London Bankruptcy Court. The meeting was adjourned.