MEETING OF CREDITORS.

Otago Daily Times, Issue 8557, 27 July 1889, Page 6 (Supplement)

MEETING OF CREDITORS.

Re J. Shand. A meeting of oreditors in the estate of Jamo3 Shand, of West Taieri, farmer, was held at the official assignee's office yesterday afternoon. There wete-'about 35 creditors present. Mr Sim represented Mr Clark (a creditor), Mr J. Macgregor the bankrupt, and 3lr J. A. Cook the New Zealand Trust and Loan Company. Bankrupt's statement was as follows :— Liabilities: Unsecured creditors, £7730 6s 3d; secured ere Htors, £30,715 103, iess estimated value of securities £30,500 (Abbotsford land £25,000, sheep Mid wool secured to National Bank £5500)— surplus to contra, £215 10s ;—total liabilities, £791516s 3d. Asßets: Stock-in-trade and 2000 sheep (less wool) at Abhotsford, £3300; 9500 sheep at Traquair over which the National Bank Las a mortgage of stock and wool lien; wool of 2000 sheep at Abbotsford, over which the National Bank holds a lien, £160;— total asßets, J3.S4SO. Deficiency. £4485 16s 3d. List of unsecured creditors: 0 Gamble (West Taieri), £27 13a ; J Freeman (Green Island), £72175; John Bdmond. £76135; Charles Clark (Grevtown), £285 103 ; J Wilson and Co, £32 Is 4d ; Tap"p»r and Co, £75 23 6d ; Walter Quthrie (Invercareill), £45 10s; F Low (Outram), £33 83 lOd; A Alexander (Outram), £3J 15s 10,1; Wright, Stephenson, and Co, £180 17s 6d; T Ewart (Hindon), £80; J Duthie aud Co, £50 ; D H Cane, £27 19s 6d; Maekerrai aud Hazlett, £118 lls 8d; D JI SpeddiDj;, £S1 7s; National Bank, £165; Duncan and Macgretjor, £54 18s 8d; William Ha*tie (Greytown), £70«; D Heid and Co., £231 3s lOd; Neill and Uo. (Limitej), £i 7 8s; Jamea Fox, £IC6 Is Id: 1) Bhok (Hindon), £53 13s 8d; J Black (Hindon), £55 ISs ; A Jausen (Hindon), £52; A Briscoo and Co., £211 18s ll'f; Brown, Kwiug, and Co., £27; Nimmo and Blair, £2S; John Eeid and Son, £11 13s 6d; Mollisou. Mills, and Co., £22; H Harraway aud Co. (Barnside), £12; Job Wain, £51; Heid and Gray, £175; Held, Maclean, and Co., £220; Mutual Agency Company, £80; Murray, Roberts, and Co., £1021 6s 3d; Farmers' Agency Company, £710; Barbara Shand (Green Island), £700 15s 3d; A Deans (Hindon), £10; G Kutherford (Outram), £43; N 1* A Wales, £70 10s; Trust aud Loan Company, £271; WUbou Brothers (Outram), £ldj X Andrews (Outram), £15; Cossens and Black, £28 18s 6d; J Board (Outram), £3 ; George Thomson (West Taieri), £430 14s 8d ; David Grant (West Taieri), £148 ISs ; Alexander Campbell (North Taieri), £100; W Hicks • (Outram), £34; wages due, £499 7s 9d. Secured creditors:—George Sunn, £23,100; John Duncan and David Thomson Sband, £200910s; West Taieri Elver Board of Conservators, £10ti (estimated value of security, £25,000); National Bank of New Zealand, £5500 (estimated value of security, £5500). There is a further liability to James Mead, J Hugnes, J Kearney, and Joseph Massey, contractors for ploughing on the. Traquair property. The amount of the debt cannot be stated until the work is measured. As against the claims to be made by these contractors is a contra for horse feed supplied and board and lodging, and in the case of Kearnev ft horse sold for £18. Heal estate:—Freehold farm. West Taieri, value £25,000 j aud the right to purchase the Traquair property from the New Zealand Trust and Loan Company for £26,000. The Assignee said they would all regret to see a man like Mr Shand in this position again.— (Hear, hear.) He (the assignee) had Mr Shand's affairs through his hands before, aud was familiar with most of the circumstances connected with the case. He might state that the principal prospects for getting a good dividend lay in whatever chances there might be of obtaining a good price for Abbotsford. Mr Shand, on a previous occasion, got his relatives to come forward and buy iv Abbotsford at a considerable price orer the mortgage. Some improvements had been made to it since, and he was told by two men well able to judge that it was now one of tho finest, if not the finest farm iv New Zealand, and that it was worth £25 an acre. If a purohaser could ha found at that price there would be a very good dividend in the estate. It was an exceedingly difficult property to manage, as the crops had to be attended to, and he had communicated with the agent (the Hon. G. M'-Lean) of the mortgagee on the matter. Then there was the qaestion of the Traquair property which bankrupt had agreed to purchase for £26,000, and the people who sold it said that if it could not be realised at tbe price they would have some claim against the estate. How much thoy would claim could not ba said. The duty of the creditors would be to endeavour to realise if possible upon the properties, and until they did realise to conserve them as much as possible without going to any unnecessary expense. There was a contract pending for 1000 sheep, and he hoped to sell them iv a few days. If ever there was need of a supervisor in au es- . tate there was need of one in this estate, which bristled with questions of great importance, aud the supervisor should be a man in whom the meeting had all confidence that he would take the best step for protecting all parties concerned. Mr.Guw (Briscoe and Co.) said he would like to hear something about the causa of the bankruptcy. The Assignee said he did not want to examine the bankrupt in detail at that meeting, as some matters would come up afterwards. Perhaps Mr Shand would make some statement as to how he came to be in his present position. Bankrupt said it was four years ago since, with the assistance of some friends, he took over Abbotsford at the mortgage. For two years he was carried on by Mr Dooald Reid. He had received £3000 from Mr Reid, and when he was transferred to Mr Roberts in November 1887 that sum was reduced to £2004 7s lid. In 1888 he held his own, and it was in May of that year that he took over the Traquair property. He was to pay under the agreement £1200 a year, and there was a purchasing clause added. His crops at Traquair did not turn out well, aud in the end there was not near the quantity and bulk he had expected. About £7000 worth of grain had been shipped to Sydney, and so far only a Bmall sum had come over for it. It was to these two things—the bad crops and the loss on the shipment to Sydney— that he attributed his unfortunate position. Then he had made a great many improvements on the properties, and had cleared, and fenced in a large portion of Traquair, thinking he would make something out of it. He had been buying grain for shipping to Sydney, and was paying as far as he could, and at the end he found he could not g«fc money, and so landed in his nnfortunate position. Ho was sorry that he was indebted to a few farmers, but he would like to say that as soon as he found himself in difficulties he had o meeting with those of his principal creditors to see what could be done, and they said they could not see anything but for him to file, so that all his creditors wonld fare alike. In answer to Mr Black (Hindon), Bankrupt said he did not know he waa in a bad position ' when ho took his (Black's) crops. An action like that would be the last thing he would think of. The Assignee said that in all matters connected with the previous affair Mr Shand'n character was of a most straightforward character, and after that bankruptcy he paid a considerable portion of the poorer creditors he could not pay in full at tho bankruptcy. Perhaps, as things had now tamed out, he dad done wrong in doing so, because if he had that money now it would bo so much better for the creditors. As to' tho question that had been asked, he did not think Mr Shand would buy anything he never intended to pay for. No one who knew him would think that. He had the folly to go into a mercantile business of shipping oata and grain, from wtichho expected a surplus of £2000. As a matter of fact it was not known what was to come, but at any rate very little was looked for. Of course, bankrupt was greatly to blame for entering into that transaction outside his regular business, but that was a question of judgment. It would be his duty to go into any qnestion of complaint, and he would investigate everything and see that nothing was passed over that ought to be brought nnder the notice of the judge. But to return to another matter, he thought the first thing was the administration of the estate. Ha thought that if only one supervisor was appointed it would be all the better for the estate. Mr Roberts said it might not be out of place for him to give some information to the meeting as to how far his firm was responsible for weighting bankrupt's accounts. They-had never charged him more than 8 per cent, on his current account, and no commission was made on advances. In reference to shipments made to Sydney, Shand made his own arrangements about them; he (Mr Roberts) was not responsible. As goon as Sband came back from Sydney and told him about the shipments he told him ' he had made a mistake. As far as Mr Hastie's purchase of wheat and other purchases of grain aud straw stacks at Hindon were concerned,' ho knew nothing of them till Shaad called three or J four of his creditors together. He would also point out that in the beginning of June he released Shand's securities. He then held everything that Shand possessed, except tho furniture, and on his assurance that there were no outside causes to trouble him ho (Mr Roberts) r«lea3ed the (security he held, simply looking to aDy surplus that might come from Sydney to recoup the £1021 ha was now out If be had known what the real position was he would not have released tho securities. This showed that his firm had dealt with Shand in a very fair anil liberal manner. For the information of tho meeting he would say that ijhaud's overdraft in February was £7090. "So," continued Mr Roberts," you can see I have been a very good and generous friend to Shand—whether it baa been for his good or his detriment is rather doubtful. It seems to me to be rather a calamity than the reverse." Mr Hazlett mdved—"That the two largest creditors, Messrs Roberts and Grindley (Farmers' Agency Company), bo appointed supervisors." Mr Kerr seconded the motion, -which wan carried unanimously. The Assignee said there were two other matters for consideration—one with reference to the allowance, if tiny, to the bankrupt, and this other was the question of the furniture. Mr Campbell moved—" That bankrupt ba allowed £5 a week fnr six weeks, and forlongcr if considerol necessary by the supervisors." Mr Thomson seconded the motion. fbir Dearis moved as an amendment—" Thai bankrupt be albwed £3 a week for six weeks." The amendment was not seconded, and th 3 ta'Mon was carried. Sir Dsuns dissenting. Kr J)uuM Iteid a«.ke<l what the supervisors ptf>\tot*A \m 'Jo \u tne way of preparing and bowjjig ctopn, k'i, and 'J'tw Aeaigffje nplifi that they would not ihiuktit *f/Midii/(j w.'tuty in cropping fliejilare j/ifcSwjt fc'iiuing XttWiW. arrangement v.'itf) tb-j ftyjrlg»g:-j; !;u'. if I tiny loj,c tbo p!ac<; tl-.e.y woul 1 h* rtwju-ti Vu: '.*{}■ ii»ii Tf.fcy wwilcl not ts:yffil '""-«/ !>>■■>'■ -'W'M ..'•' '■'•■'■ <>' 'I'"' 1-"»"J ', cc.d swoio li'/t t-;t-;H<i «'«*-ii uulerfj tliuy c.-iiae hj Hr ftvfc-t's vryti'l li-i jjM if <>:<■ w-i-lUrj . ■jjwUl w.itr>*ti aw) yfihik/i) on tbc maxivt ,/. to j

how it would bo advisable for the supervisors to proceed in tht; reaH.iation of the estate. ' It was a difficult question, and the fact that the second mortgagees were the trustees placed the whole matter in a very strange and awkward position. A little further discussion ensued, during which the opinion, was oxpressed that it would be advisable to leave tho matter in the hands of the assignee and the supervisors. The Assignee: We must consider we have full power, and if we are in a tight place we can call the creditors together. The question of bankrupt's furniture then came up, and the Assignee stated that his bailiff valued it at £220. Mr Campbell moved—" That the bankrupt's furniture, valued at £220, be granted him, on condition that it be made over to his wife." Mr Gow seconded the motion, which was Mr Gow. Mr Shand said he held Traquair with a purchasing clause, and you, Mr Assignee, said he made a contract to pnrchase Traquair— a very different matter. The Assignee: Ho mado a contract to purchase. —(Contract rend.) Mr Harraway : Does his statement ot accounts show what ho has lost in shipping grain ? The Assignee replied that it flid not, for bankrupt did not know himself, as tho account sales had not arrived. The meeting adjourned s'ne de.