MEETING OF CREDITORS.

Otago Daily Times, Issue 10619, 14 March 1896, Page 2

MEETING OF CREDITORS.

A meeting of the creditors of George Findlay (decenssd) was held at the office of the official assignee yesterday afternoon. Mr Graham (official assignee) presided. Mr Sim appeared for the executors, Mr IMatts, Mr James, Mr D. D. Macdonald for creditors, and soms 3) creditors attended the meeting personally. Mr B. C. Haggitt was present to advise tho offisiril assignee.

This Official Assignee, in op9ning the proceedings, paid : As yoa are aware, we are here to investigate the affairs of the late George Findlay. Under tha will of the deceased t.wo exnciitors were appointed—Mr D. M. Diadlny (of Fidmerston) and Me Bl.icdona.ld. Mr Eindlay found the affairs in such a complicated state that it was not likely that the assets wouid meet the liabilities. Tha executory made application to the court to have the eatato administered by the Official Assignee in Bankruptcy, and the result is that the matter has been placed in my bauds. I have bean trying to investigate matlern and to find oat the true state of affairs to ths utmost of my power, but I am sorry to say that, unfortunately, no boobs whatever have bean kept by the deceased, and conucqaently I have been grouping very ranch in the dark. I have bad to fish cut information from every direction, principally from creditors who have come forward to stats their claims, the nature of which, of course, I have to investigate. I have called in Mr Haggitt to assist me in doing this. With regard to the timber busiuesfl, carried on iv Camburland street, I find it in absolutely bare. It seems that when the unfortunate man was on his death-bed a rush was made by certain creditors who. thought ifc well to save what they could, and who cleared out almost the whole stock of timber with fcha exemption of some timber belonging to the National Mortgage Company. The premises themselves are held under an agreement to purchase, and ara mortgaged to the owners of the property. The sum of £4-00 or £500 has: been epsot on machinery there, but it is a question whether I, as representing the estate, shall be able to take posrvssion of that machinery. That is a matter I have to go into fully with Mr Haggitt. With regard to the landed property, that is mortgaged to various partie?, and there are farther agreements to mortgage to secure sundry advances to be made by different peopls. The book debts, I am afraid, will only realise something like £100 or thereabouts, and a small amount of personal property up at the house seems to me to be the only available asset there will be. There is a garden at the house, but oven the fruit nrop there has been, mortgaged to Messrs T. Paterson and Co. for advances made by them. With the exception of the furniture, three cows, a couple of horsas, a buggy, and a dray or so, I do not think there is.anything for the creditors to realise, bo that on tho whole it is about as bad an estate as I couid have to administer, and the prospect of a dividend, I am Borry to say, is almost infinitesimal. I am sorry to have to make such a report, but these appear to be the facts.

Mr Thornton would like to know the meaning of the statemcut that some creditors appeared to have made a rush to clear the timber yard.

The Official Assignee: I am only stating what has been told to me—that when Findlay was dying in the hospital orders came pouring in from people, and so the timber yard h»8 been cleared.

Mr Thornton : Does that mean that creditors gave orders for timber for the purpose of liquidating their own liabilities, and so get a preference over other creditors ?

The OfScial Assignee: You must draw your swn conclusions. lam merely stating the facts.

Mr Thornton: If that is so I shall desire aa investigation.

The Official Assignee: It is one of the matters tbat must b« investigated.

Me H. S. Fish said ho had no doubt the statement was absolutely correct. He knew nf more than one person wbo had got £60 or £70 worth of timber immediately before this unfortunate man di d. He believed others had done the same thiog. The question was, how came these peopls to be allowed to do thia ?

Mr Thornton seid if it had been done it was the duty of tha creditors to sea the matter threshed out.

■ The Official Assignee said it was certainly stated to hrm that the timber hid been carried away while Mr Fiudlay lay ou hia de3th-bed at the hospital.

Hr Fish said another matter mentioned was the absence of books. It was ridiculous to snppase that a man of Mr Findlay's capacity had kept no books. Where wore tlie books ? The Official Assignee said there were uookt marked " ledger " and " cash book " ; bub these books wero absolutely blank.

Mr Owen: It acorns strange that a business should be carried on ia that way.

The Official Assignee said that Mr Findlay's clerk (Mr Bleckie) had said that the day hook was kopfc by him, and thai; that was the only book thst had bsen kept.

0t Blackie said the only books kept were the ticket book, the order book, the day book, and the potty cash book. Mr Fiudlay was to keep the ledger, the cash book, and the hill book, and he kept them looked up but made no entries in them.

Mr D. M. Findiay (one of the executors) said that ha had coma to town the morning after Mr FindUy's death, and had at once looked for books nod papers. Oa going through what he could find he could not m&ka head or toil of them. He had found only the books mentioned by Mr Blackie. There were books named "cash book" nml "ledger," bat they were absolutely blank The oDly records of transactions were in tho dsy book and in a number of slips of p*>p3~, on which were recorded " debts due" and " accounts rendered." Tile speaker fchra made out the accounts as well as ha could, demanded payment, and some £80 had come in. Mr Fish asked if thsre wss any record of cash taken at the yard and orders Eeut ont during the time Mr Fiudlay was ill in the hospital. : Mr Blackie said the "day book" showed what had been taksn out.

The Official Assignee said the largest amount taken out was £68 worth, by Mr Robert Hardie. It Eeemed that Mr Hardie had been endorsing or giving accommodation bills to Mr Findiay, and he took the timber to sava himself from the consequences of having given Mr Findiay those bills.

The Official Assignee: Was this timber delivered to Mr Findlay's order or to Mr Hsrdia's ?

Mr Blackie: There was no written order. Mr Hardie came himself and- asked for it, and I gsve it. Mr Owen: Do you think yon were justified in doing that ? Mr Blaokie: I was in this position: I bad to (supply orders as they came in. I know Mr Hsrdic's position. I knew ho had been signing accommodation bills foe Mr Findlsy, and when he asked for the timber I did not see how I could step him taking it out. The wholo of tb« timber taken oat during the last week does not amojrat'to £100, and other people besides Mr Hardie came and took timber. Murdoch and Co., A. and T. Bnrfc, and several others took email lots.

Mr Haddock said that what he had taken was to fill a special order, and he had only taken it after he had Jjeen told t-.liaitibn timber

wao being taken wholesale. He had also ro- i commended Mr Blackie to take advice as to ! what should bo done. j

Mr C. T. Paterson said that Ml Hardis wns in the timber yard every time he went to it, and towards the end there was very littio timber lef fc. *

Mr Blac&ie said that, as Mr Findlay's friend, Mr Hurdie was wanted there, and ha did nol know whrtu ho might ba wanted to sign mi accommodation bill.

Mr Haddock said it was difficult to understand where the money had gone, for none appeared to have beon pitid for anything. Mr Fish was convinced that Mr Fiudlay had kept other books than those which had beeu discovered; It was not likely that he did nob keep his transactions posted from mouth to month.

Mr Haddock concurred in the opinion expressed by Mr Fish.

In reply to a question, Mr Blackie jaid his own claim was for. £181 7« 6d. Mr Findlay believed himself to be solvent, bat could not realise on his properties, and then began giving bills, a'cd finally wrote Home to his mother for assistance. In addition to the books mentioned, Mr Findlay kept a pocket book whicu Mr David Findlay now had. ,

Mr Thornton thought a fall investigation ought to be made into these matters, and moved that two supervisors be appointed to assist the assignee , ,

Mr Fish seconded and supported the mot'on which on beiDg put to the meeting was unaai roously adopted. •

On the motion of Mr Fish, seconded by Mr Owen, Messrs Thornton and Haddock wore appointed supervisors. .

• Mr Fish said that as Mr Findlay's children were left in an impoverished state, and as tho furniture would not be of much benefit to the creditors, he would move—"That the official assignee do not realise on the furniture and the three cows, but that this property be handed over for the benefit of the children."

Mr Thornton asked about the insurance policies ou the deceased's life.

Blr Findlay (the esecator) said be had looked carefully into this matter, and there was nothing to come from the policies. Two w'ero absolutely assigned and one had lapsed. The motion moved by Mr Fish w*i put and carried unanimously, and the meeting then terminated. ; . ~