MEETINGS OF CREDITORS.

Otago Daily Times, Issue 9195, 15 August 1891, Page 6 (Supplement)

MEETINGS OF CREDITORS.

Re J. Walker,

A meeting of creditors in the estate of John Walker, of Milton, flax drelser, wa9 held in the official assignee's office yesterday afternoon. Mr D. Reid, of Milton, appeared on behalf of the debtor, and there ware about a dozen creditors

present. The statement set forth the following particulars :—Liabilities to unsecured creditors, £1,543 0s Id. Assets: Book debts, £134 12s 2d; two iron buildings, £50; two scutchers, £40; two screw pressee, £30; two stripping machines, £30; shafting and pulleys, £20; amount paid on 12 horse-power engine, £110; fl»x fibre on hand, £40; furniture, £30; and several less amounts, totalling up to £409. Total assets, £543 12s 2d, leaving a deficiency of £999 7* lid. The principal unsecured creditors are:—Neill and Co., £100 2s; Ro3S and Glendining, £105 7s 6d; J. Rattray and Son, £125; Sargood, San, and Bwen, £21 13s lid ; Kearns and Sod, £11 2s 7d; BuHerworth Bros., £45; J. Edmond and Son, £46 7s 9d; Mackerras and Hazlett, £10 6a; "P. Hay man and Co., £29; R. Wilson and Co., £16 10a; A. Biiscoe and Co., £23 4i 2d ; Biog, Harris, and Co., £6(3; Kincaid, M'Quten, and Co., £26 6s 2a ; Kitchen Bros. (Kaitangatn), £26 7s 8d; John Hollick (Milton), £12 17s lOd; Hardware Company, £23 8s lid; W. Scoular and Co., £35 6s 9d; Nelson, Moate, and Co., £2912s 8a ; Nimmo and Blair, £1411s 2d; Peter M'Gill (Milton), £60; wages mill hands, £40; wages mill hands, £40; Walter Guthrie and Co. (Invercargill), £26; Alexander Walker (Milton), £360; Isibella Walker (Milton), £200; A. and J. Littlejohn (MiltoD), £15. Bankrupt, examined on oath, said that the statement marked "A" read by him was a correct statement of fact. He made a statement to Mr Dawson (Rattray and Son), which was written down, and that marked " B " was, so far as he knew, the one. The first three items of stock, amounting to £300, had been sold partly by auction and partly over the counter. The stock sold by auction amounted to £53 103 6d, about half cost price, the rest realising about £60. All sums received were entered in the CRsh book produced, which blbo showed what was done with the money. Bills discounted entered to credit in cash book were for book debts and proceeds from flax, not for new sales of the above-named goods. He told Mr Dawson that there were £700 worth of book debts, and he anticipated they were good. They had bean partly collected to the extent of £150. The sums entered a3 post-due bills with bankrupt's father's endorsement, for which the bank was pressing and ho took them up with money derived from book debts, was £370. He sold the express for £19, the horse for £11, and the others went to his father as security for part of his debt with two others from the flax mil). He sold the remaining horse for £3 to a butcher ia Milton. He produced account sales of all the flax since the sth March. The statement referred to, marked " A," was as follows:—" I commenced business in December 1887 with £300 capital of my own and £480 of my father, for which I paid him interest at 6 per cent, per annum. My father afterwards purchased the section adjoining the shop I occupied for £100, for which amount I paid him interest at 6 per cant. I built a grain store on this section, and ÜBed it in the course of my business. I continued to pay Mr Alexander Walker interest on £580 during the time I have baen in business. In February or March of 1890 I loat the sum of £479 through Alexander Fraser, who was flaxdressing in our district. As he paid me regularly large sums over a period of nearly two years I had every confidence in him. I paid away £40 in trying to recover from him and in making him a bankrupt. I understood this amount was to be divided pro rata amoug the creditors of Fraser, but I have not yet received any portion of it back. As at this time flax was fetching a good price I purchased a flax mill plaut from another flsxdresser who owed me £50. I paid him another £50 and took over the mill, as I thought I could make it pay very well. Before I got a start made the price had dropped very considerably, and I only got from £14 to £15 during last winter for the fibre, the price when I bought the mill being from £20 to £23 per ton for the same quality. Since I bought the mill I have added largely to the buildings and machinery, In February I bought an engine on which I have been paying £1 per ton on all the fibre that went to Dnnedin, and it is now paid up to £110, I was forced to purchase an engine, as when the threshing season commenced I was unable to hire one. About six months ago I decided to give up the shop, as I was unable to keep both concerns going and make them pay. My losses in bad debts since I started, and including the amount paid away in Fraser's estate, comes to about £680; and a large amount of money, aggregating over £400, has been sunk in the flax mill in a way in which it could not readily be recovered at anything like original cost. I lost abont four tons of fl*x fibre, valued at from £70 to £80, through a very severe gale of wind, which lifted it off the piddock on which it was bleaching and tangled it to such an extent that it was unsaleable. The Loan and Mercantile Agency Company have sold for me since last February £820 worth of fibre, the amount being distributed in Dunediu among my wholesale merchants, with the excaption of theamonnt paid on the engine. I have been twice at the expense of shifting the flax mill as the flax ran out and the co3t of shifting about such a lot of machinery and buildings has been very heavy. I thought up to a short time ago that I might be able to pull through, but there were a good number of accounts owing, of the amount of which I was not aware, in connection with the flax mill, as the mill was near Kaitmgata and we did business in that township. Hy personal expenses, during the time I have been in business, have never averaged more than 15s per week, and I have never drawn any regular sum per week. In the statement which I sent down a fortnight ago to Mr Denniston, I stated my book debts to be about £300 good. As I then anticipated getting about £60 out of Fraser's estate—that amount was included, and also some which I could have worked out at tbe flax mill, but would be difficult to collect, and consequently I left them out. I have tried very hard during the last 12 months to pull up, and it is only latterly that I have seen that it was an almost hopeless case. The reason I could not carry out the arrangement I made with my creditors about three weeks ago was becauss I f otmri it quite impossible to carry on the flax mill in the winter season and make it pay its way with the present low price of flux. I may be able to make an offer for the mill.'' The statement marked "B" referred to showed, on the 16th April last, a credit balance of £314 3s sd. The Assignee said that bankrupt had received £976 since the Ist April, and had paid it away. Since the 16th April bo had received £816, and £435 was from flax aud the rest cash for goods sold, &c. It seemed that between £200 and £300 had been collected, and there remained some yet to be got in. No doubt it would take considerable time to investigate all the accounts. A Creditor: I think they should be investigated. I have great doubts about their correctr ness. A Creditor; It seems hardly right that payment should have been made to some favoured creditors. The Assignee said if he had paid equal rates to everybody there would have been nothing to blame, but as he had taken it into his own hands and had paid one person more and another less, it might be fraudulent preference. It would simply result that if they had received money within three months they would have to disgorge. A Creditor was quite certain that bankrupt had favoured his father and the bank. The Assignee said the bank was the real creditor, and they could hardly say he favoured the bank in taking bills which were due. The question was whether the bank or the father had been preferentially treated. It might be better for the creditors to have a test case. A Creditor asked what it would cost. The Assignee: Probably £20, A creditor understood that it would cost about £50. The Assignee after looking through the papers said on post-due bills £115 had been paid within the time, apparently. About £200 bad been paid to private creditors, so that about £300 would come under the fraudulent preference clause altogether, Mr Denuiston did not think these could be attacked. The Assignee said be would do anything they liked, but the books should be looked into. Mr D, Reid mentioned that he had asked the father and mother if they would consent to withdraw their claims, but they declined, because they thought they had not been treated fairly in getting their share along with others paid. The bank had got £300 as against £1000 paid to Dunedin creditors. Creditors: No, no. Mr Walker, sen., said ho would withdraw his claim if it was going to do any good. The Assignee : The stock has evidently been sold at a much less sum than it was valued at. Of the book debts the debtor had stated that ho collected between £200 and £300. The Debtor i Some of the stock went to pay wages. The Assigneo: There is not the slightest doubt that it would take a considerable time to investigate the accounts. Mr Ktarns: I think the accounts should bo investigated. I have very great doubts aa to their accuracy. The Assignee: I think the creditors should allow £5 to someone to go through the books and make an investigation. Mr Jones (P. Hayman and Co.) moved and Mr Kearns seconded—" That the assignee be authorised to expend £5, if necessary, in an examination of the books of the bankrupt." The motion was carried. The Assignee: The next question is that in respect of the offer of the bankrupt. Are you prepared nt this stage to state that if he will guarautee 7s 6d in the pound it will be accepted, provided there is nothing discovered which seriously alters the position of the estate ? Mr Keid : How can he make au offer? I The Assigneo: Woll he says himself he can ? Mr Reid: He is relying on his father, and his j father wou'fc help him. J The Assignee: No doubt it would assist the j bankrupt if an expression of opinion were given I by the creditors. Mr Kearns moved and Mr Finker seconded — " That the bankrupt be allowed 10 days to make an offer of 7s 6d in the pound cash, or its equivalent in secured bills."

The motion was carried unanimously. On the motion of Mr Denniaton, Mr Rattray was appointed supervisor, at the rate fixed by act, on the understanding th&t Mr Dawson act for The assignee was authorised to expend a few pounds in getting the fibre at the mill scutched and protecting the assets. It wa ß further resolved to allow the bankrupt £3 out of the estate to assist in scutching the flax The meeting adjourned until Monday, 24tu. Re Thomas JJowling.

A meeting of creditors in the estate of Thorn&3 Dowling.late farmer, of Milton, was held in the official assignee's office yesterday afternoon. In the absenceof the aa3igneo, Mr M'Kegg was voted to the chair, and there were about halt a dozen present. .. Bankrupt's statement set forth that the liabilities amounted to £178 18a 53, and assets nil. The following is a list of unsecured creditors :— John O'Leary, Otakia, £34 3j lid; Thomas Christie, Greytown, £20 3i; Amos M'Kegg, Henley £35- Wo?. Charles Palmer, £85 11s 6J ; John Fleming, £4; -total, £178 18s 51. The Bankrupt (examined) stated: I nave been in business for about five years as a farmer at Otakia, but lately removed to Milton. I commenced business with a quantity of stock, Bold to me by Mr W. 0. Palmer, in part discharge of a debt of £200, which he owed me. The rest of the £200 was absorbed in rent for the farm, which belonged to him. Two months, or thereabouts, after I started business there was a flood. It took away about 40 acr^s of wheat crop, newly sown, and washed away the soil from a considerable part of the farm I hod to re-plough and re-sow such land as was fit to sow. The crop after all was very poor. There was no profit on it. The next season I cropped again, still without profit. The third year there was another flood which destroyed all my turnips and other winter feed for my Btock. The next two years the crops were very poor, except about four acres of first class oats. During the whole five years I got steadily behind. I left the farm two years before my lease ran out, because I could not go on any longer for want of money. I transferred my stock to my wife. This was not the original stock. Of the original stock about half had died, and others I had sold. The transfer of Btock to my wife was made last February. I had received moneys from her when I took the farm, and this was to secure her. I also transferred to her all my other chattel property. She has possession now of part of it. She has sold the rest, She got the money for what was sold. I had no money, when I left the farm, except a pound or two. I kept no books. I have received money for crops within ths last 12 months. Last season's crops brought in £100 or a little over. I was paid for it in April last, by tho N.Z.L. and M.A. Company. I had a mortgage on the crop to the company for £80, and this was taken out of the proceeds of the crop. The £80 was paid away in rent, except a few pounds paid .to Mrs Palmer. I had about £20 or £30 over after settling with the company. I paid small accounts with this money. I left the farm ou June 1 last. Sometimes a beast was sold off the farm to meet a small account, but otherwise I received no other money during the last 12 months. I have no money now, and no property. I can make no offer to my creditors. I have filad because my landlord sued for rent unpaid. The first half-year that I was on the farm Mr Palmer let me off for my rent, because of ihe flood. My wifo has sold all the stock transferred by me to her, and the implements and other chattels except abont £14 due for furniture, and has used the money in keeping the family and paying small debts. There is no money owing to me. I have five children, the eldest being eight years of age. My wife has very poor health, and is often ill. Of the debt now owing by me, part of the debt to Mr Leary, part of it to Mr Christie, and part of the rent were owing at the time when I assigned property to my wifo. The rest of my debts was incurred Bince the date of assignment. The debt to Mr M'Kegg is for money lent. It was spent in getting in the harvest. My wife had £70 or £80 when I married nine years and a-half ago. She had lent me the money about four years and a-half ago. I swoar I received this moDey from her of her own separate money. The stock, &c. assigned did not realise over £70. Three horses were sold for £50,18 head of young stock for 10s per head, and implements £14 or £15.

It was resolved, on the motion of Mr M'Kegg, seconded by Mr Fleming, that jthe bankrupt be recommended for his discharge, and the meeting then adjourned sine die.