IA LIVELY CREDITORS' MEETING.

Otago Daily Times, Issue 6093, 20 August 1881, Page 2

I A LIVELY CREDITORS' MEETING.

MR S. CLAYTON EXAMINED.

A meeting of creditors in the estate of Mr 8. Clayon was yesterday held in tho office of Mejsrs Bastings, Lear}-, and Co., to hear the examination of the debtor' About 20 gentlemen were present, »nd the debtor wai represented by Messrs Fitchett and MacDermott, .but the business of the meeting had advanced considerably before the latter arrived. Mr W. Conyere tho cotrustee, was not in attendance. ■•'.-■ thelme leting T "P"***-** Clayton «* object <* Mr FircußTr objected to the proceedings on tb« ground of the absence of Mr Conyers, and added that tho proceeding were consequently informal bol TLf d V*' h9, had "o'hadKcssatohia books, and had only received shcrt notice of the journnSnt '" '° g"Uit hlm "» **• Mr Leaky : Did not I ask you when It would be cons^neft.^bcW *Dd «" *i Mr Clayton: Yes, m* r^ KY L°v y0? "? a rk0 "■"? obJ<«tion to Friday ? books Dd " difficult t0 K«' "/ Ji E p ar^uhr°JaTonT nt "—' Clayton said that he wanted us much l^ieney Mr Leauy:' There may be B omo matters that yon wo^r^uirSein^e^^S. "iyl" °mt*Li Mr Fiiciiktt: I. think that it would be far bettor 'Of the examination to take place before the proper Mr Claytoni asked that a reasonable time be granted tohm to enable him to become conversant with hia boSsS srsr 1-™-^ th° of my^OTkB 0""1: ' haVe DOt bCe" abl e '°?et tho whola Mr Lkary : There must So some queitions which you can answer without referenco to these books, and you may do so; but there may also be evidence which we cannot take to-day. I want to see how it is that your affairs are in the gtato in which they now are? Mr FiTOireir affain objected to the examination proceedlng before one trustee. v Mr Leahy then mentioned that he had Mr Cooye'rs* authority to do bo and he questioned Mr Fitchetf. right to be present, and added that he could hare taken Mr Clayton's examination in th« offlca. No one credftor/ present, as It was not a meeting of Mr IV~ 3. Douglas thought that if tho bankrupt was to be examined both trustees eh'ould be present Mr Fiiohbtt asßlsjied the strong eipression ef opinion given on tho occasion of the eltction of. trustees as.a reason why Mr Loary ihould not, In debt" Conyers; proceed to examine the rl "t ifbTheiY* CmaOi K° 'nt° that- Show your IhhCIAT.IOK1 hhCIAT.I OK "aid that at tho e"«ilnation of the creditors they were represented by solicitors. He wanted the trustee to be as lenient as possible over- V: ' 5 mJ' dU'y to proUc' you M wdl M S£&S n 5 rr teh'tt' ad™e Hr CUytoa Mr FiTonm.; Ye ß ; 1 maintain thit tho presence of ono trustee only, when two wore appointed, is sufflclont ground for so advising him Lhart naked Mr Clayton if he refused to bo Mr Clayton said that only one of his Bolloitors was present, and he (Mr Clayton) was not In a position to 'P'n the case as well as he could.-On the raggestlon of Mr Fitchett he then refused to be examined, on the ground that only ono trustee was present, and therefore the proceedings were Informal. After some delay, Mr Leary said :Do you still adhero to that ? In my - opinion, 1 may tell you that that will be regarded ag rather a suspicious circumstance. What have you got to fear, and why do you .ctuse that your evidence be taken down now ? M- Chytos replied that he had nothing to fear. Mr Lbary : I am only pointing out what will bo the probable effect upon people's minds Mr Clayton: I feel a difficulty in coming hore, my books beinc s attorcd, • J Mr Lkart: That is no irround for refusal. Ido not consider the reasons sufficient, but I cannot make you be sworn. Mr flcoii MaoNkil (to Mr Clayton): You aro makinir a thundering mistake in refusing to bo examined, lou can only be examined as far as your knowledge goes. * Mr Fitoiiett: If he wishes to go Into hta affaire he must do ao exhaustively, but I take ad/antago of tho technical point. MriUcViu.: Perhaps Mr Lcary will overrule the objection.

MrLiARY : I have no power. If Mr Clayton does not wish to be examined, I cannot make him. Mr Clayton: I am anxious to bo thoroughly examined. . " * books LBiRV !J' li tha' h° had BhoWn Ur Clft J'tal tho Mr Cuytos replied that previously he had a comfortable office, and know whero his correspondence letter" 8 Wete' bUt h° had °"ly Been tWO Or three Mr Lsarv : Where aro they 1\ Mr Cmyton : What have you done with them f Mr Lsary : I have somo of your things down In my oflico. You do not expect mo to run about after you.

Mr FjTciiErr requested that the meeting should be adjourned for three days, and gave as an additional reason that Mr Clayton hod not sufficient notice given to him, and had not seen his books. Mr Leary held that the reasons for refusal wore insufficient. • Mr MACJfEiL (to Mr Clayton): You are making & thundering mistake in not being sworn. ¥ou should do so, and get an adjournment. I think that your solicitor is advising you wrongly. Mr Leary : If you aro willing to bo sworn, that is something. Mr Clayton was then sworn, and In answer to Mr Leary said : I received notice to attend hero at tho Coffee Palace at 030 last evening. Tho letter was given to me by tho waiter there. He did not say how long tho letter hod been there, butj was on the lookout for the letter durincr tho day. and did not sco it. I did not notice the datc^ Mr Leary : Tho lettor was delivered at the Soffeo Palace on Wednesday early. Mr Clayton : 1 kopt looking for It. Mr Clayton, examined, said: On May 23th last I left Duuedin. I did not run away. I loft for Christ t church to arrange about 70 acres of land at Invercargill, and I took young Mr Smythies, tho solicitor, with me. He had been acting as my agent for about a y ear. After somo negotiations, I concluded an arrangement with tho solicitors for tho mortgagees of the property wheroby I was to pay £300 to satisfy their claim. That arrangement was subject to the consent o[ tn'« mortgagees, who wore in Europe. Tho negotiations word conducted by Mr Sinyfhioa, acting undei raj instructions. The negotiations lasted threo or four days after I arrived in Christchurch. I remained ia Christchurch for a week, more or leii, »nd left by {he Penguin for Wellington. I sent Mr Smythios back' and instructed him to call on my bookkeepo'r, Mr Smitti, and tell him what 1 had done, and also to SCO Messrs Haworth and Seavey, whom I appointed my attorneys. 1 forwarded them tho power of attoraoy through' Kosars Bathgato and Buchanan. I remained In Christchurch for the purpose of making sales,, and waa ■attondintr to my business'when 1 was there.' Earing appointed attorneys to look after my business during my absonce, I determined to go through Now Zeaiaud to solicit business, and Jo go for a trip. My engagements for tho month wsro light with the exception of Guthrle and Larimch, who for »U or part I had every confidence would renew my bills aa usual. I remained in Wellington.somo cbnsiderablo timo, and then went on In .the ToAnau to the ports on tho East Coast of the North Island, and on to Sydnei. In Christchurch 1 arranged to dispose of a steam-engine and some belting, to bo delivered two or three weots aftoiwards. I can give tho name on roforenco to my books. I nlsj sold a tenonuigmachi><e mid can to iir James Wood. I did no business in Walling ton. While In Kapler I obtained a commission from a brewer to make purchases, of hopa and other brewing material in Sydney. When I arrived at Syhoy I found my business w»s at an end, so I handed ths order to a broker. Between the time of my departure from Dunedlnand my arrival in Sydney 1 did not communicate in writing with any person ia Duuedin, lam not quit* positive, hut I opealc to tb.

stof my belief. Although I did not in writing; mmunicato my intention to go to Sydney, I nstruckd Mr Smvthles to tell my bookkeeper and my attorneys that 1 intended to t-ke at' Ip. On ray arrival in S.vdnt>.y, or a (ow days afterwards, 1 received a nwnbor "of tel-grams Mid letters acquainting me with tho fact that I hat bean made a bankrupt. S hey wero from my wife, Messrs Leary, Injflla, and others. I tore them up an soon as 1 got tbem. 1 received nono from Quthrio and Larnach. The eflect of these was to Advise rue to return, as my business was being mined, and 1 was in bankruptcy. One letter said that it was. rumoured that I had runaway to Africa, Japan, or San Francisco, and that Clayton knew what he was about. 1 was in Sydney four or five weeks. I was there enjoying myself. Having received the information which 1 did, 1 consulted with a firm of solicitors as to what'] should do under the circumstances. They advised me | that 1 could do nothing by returning, as 1 had been i made bankrupt, and there was no need for my returning: immediately, and I determined to wait for the , next steamer. I did not attempt to come by way of ' ilelbourno, owing to the smallpox scare. When I left Dunedin I took with mo £103 119 4d, but left a ! memo, of it. The mon jy was to defray my own and Mr ] Smythles' expensos. Besides this I had nwiiey In my ( poss«»*ion to the amount of £2-i or £30. ' 'ut of tho , sum mentioned I paid law expenses in Christchimh, and also in Sydney. I had one of those halfand • half confidential fellows with me nearly , all the time, and paid for his board and living;.— ' ( (Laughter.) 1 brought no money back with me, nor ( did I take any Jewellery away with mo. I was at one time in partnership with Mr Gibbs, but that was dis- , solved.' My next partner was Mr Asher, and we s never have dissolved. I cannot at present answer the i; question whether or not I have been in partnership with anyone else, except Mr Ashor, since 1 was a j partner of Mr Gibba. I cannot answer whether or not j I have arranged or negotiated with anyone else for a „ partnership. Mr Lxijiy : I say that you can answer it. Mr CIiATTO.I: 1 found when 1 cams back that I had twice as many creditors as when I went away. c Mr Least objected to Mr Fitchett prompting Mr Clayton, and laid he objected to lawyers' answers. a Lawyers sometimes wished a witness to say something „ different from what be meant. v Mr Clayton declined to answer whether or not he | 0 was in partnership with anyone except Mr GibbsL or Mr Asher. * Mr Least said: I will have to put tho question direct. Wore you ever In partnership with Walter Qutbrie, managing director for Messrs Cluthrie and Larnach?

Mi CiiATTON: I cannot answer that. I may or may not.

Mr Gbthrib : There is no difficulty In answering that question straight. Mr Lkary : I have been told you were. Mr Clayton- : I do not wUh to answer tho question to-day, as I wish to refresh my memory by certain documonta.

Mr Lba&y : I want your present opinion od tho subject. What la you- present opinion ? Mr Huoh MacNeil (to Mr .Clayton): Decline to give It; refuse to amwer at all, and tak« the consequences. Mr Xjsaby: That li an extraordinary thins: for one of the creditors te interfere in that way when Jj am acting; In tho interest of oil. | Mr MaoNkil intimated that he was not satisfied with Mr l.cary's assertion; ho. considered the trustee I was not acting' in the interest* of the creditors. {

Some angry words passed, and Mr Lear}" ordered Mr MacNcil out of his office aod touk hold of him for thopurpo oof removing him. Mr MacNeil said ho wUhed to explain, but Mr Leary declined to hear anything more from him, and ordered him to leave, which he did, remarklug that Mr Leary would hear more concerning what had taken place. The Inquiry was adjourned till Monday next.