CREDITORS' MEETING.

Otago Daily Times, Issue 8210, 15 June 1888, Page 4

CREDITORS' MEETING.

A first meeting of creditors in the estate of H. P. J. Davies, nnrseryman, Mosgiel, was held in the official assignee's office yesterday afternoon. Mr Webb represented the assignee, who was absent, and Mr Farnie (instructed by Mr D. M. Stuart) appeared for the debtor. Mr Fargie was voted to the chair. The bankrupt's statement showed: Liabilities. £436 5s 6d; assets (consisting of furniture), £7; deficiency, £429 5s 6d. The following are the principal creditors: Hurst and Son (London), £45; J.Fargie, £37; W. Thomson, £34; Law, Somner, and Co. (Melbourne), £34; J. A. Hislop, £25; Stanford and Milne, £25; W. Cameron (Mosgiel), £28; Craig and Gillies, £19; Rev. H. J. Davies (Naseby), £16; S. Tumbull (Mosgiel), £16 ; M. O'Connor (Hosgiel), £18; C. Bills,£ls; J. Kirby, £10; Milton Pottery Works, £10; A. C. Glass (Waimate), £17 10s; A. F. Leary (Mosgiel), £9; Harper (Mosgiel), £9; F.Hyams,£lo; Dr Hocken, £6 6s; Jngo (Mosgiel), £6; Dr M'Caw (Mosgiel), £5 ss; W. Carncross (Mosgiel), £5; Wilkie and Thomson (Mosgiel), £5. The Bankrupt, examined, said that he started business at Dunedin and Mosgiel six years ago as junior partner in the firm of Law, Somner, and Co., into which business he paid £1400. Finding the business was not paying he agreed

to take over the Mosgiel Nursery with liabilities of £160 upon it for the asset he had paid into the firm. He had then a freehold property valued at £400 or £500, but no cash.' He carried on the business for about three years at a loss. He raised £100 more on the house, and the mortgagee sold the property for £260, which was swallowed up by the advance and interest. He borrowed a further £200 on the lease of the nursery and stock, and. raised £100 by a bill of sale over his furniture. These amounts had gone into the business. He was always in the expectation of getting money from the old country, but he had never got it. He also ex-, pected money from, Law, Somner, and Co., against whom he had a claim of £200 which they disputed. He never proved on their estate for this claim. His earnings he supposed did not amount to a ten pound note for the last six

months. There were no book debts owing to him. The nursery at Mosgiel had now passed into the hands of Mr Henry Benjamin,, Bankrupt was supposed to get £2. a week for. managing it. He had borrowed money from Mr Benjamin, whose account was about £300 or £400. Bankrupt supposed he had received about £130 in cash for this or perhaps more.

As security he assigned to Mr Benjamin an

annuity of £80 a year, payable to him by the trustees of an aunt. The arrangement was that

he was to get £500 for the annuity, with a 'condition that he could buy it back at a bonus, but there was no written undertaking as to bankrupt receiving £500. The fact was that he had not read the document he signed, but was told

was all right.

Mr Fargie said it would be necessary to see the arrangements regarding this annuity, and to examine Mr Benjamin.

Mr Webb said there was full power to do this. The Debtor in reply to further questions said he had no offer to make. He had no memorandum of the money he had received from Mr Benjamin, but thought it was about £130. He could not check any statements by Mr Benjamin except by the assistance of Mr Morris, who had acted as agent for bankrupt in the transactions. He had kept a day book and ledger, but no cash book. There was a legacy of £500 which he should have got under his grandfather's will, but did not. This was assigned to Mr Benjamin, who had written Home about it, but the claim was disputed. • ... . •■■ . . .

Mr M'lndoe said he would move that the assignee be requsted to make rigid inquiry into this case. . : /

Mr Webb said the.assignee would certainly do that on reading the statement over.

Mr Farnie said the debtor would give every assistance to the creditors, and would be only too glad if they could make Mr Benjamin disgorge. '■ Mr Webb. remarked that unless there was anything'coming from the securities held by Mr Benjamin there would be nothing in the estate.

Mr Carey moved and Mr Jago seconded— " That the bankrupt be recommended for his discharge." ■ . '

: Mr Fargie and Mr M'lndoe opposed the passing of such a resolution at present, and it was withdrawn. ..-.,,. :.

; Mr Farnie observed that in this case the bankrupt had merely, like so many others, experienced a run of ill-fortune. He had money iwhen he started business, and had lost it.

Mr Wilkinson, who had not proved, read a telegram received' from Mr A. C. Glass, for whom he was to hold a proxy, asking him to get the meeting adjourned, and to. have the bankrupt publically examined. He was informed that there would be some singular revelations at an adjourned meeting.

, Mr M'lndoe'a motion requesting the assignee to make rigid inquiry into the estate-and the assignments to Mr Benjamin was then carried, and tho meeting adjourned for a week.