MEETING OF CREDITORS.

Otago Daily Times, Issue 13945, 3 July 1907, Page 3

MEETING OF CREDITORS.

A meeting ot creditors in the estate of Albert Beny Proud, warehouseman, was held before tha official assignee (Mr C. C. Gralnm) yesterday afternoon, Mr Emslio appeared for tho bankrupt.

TTio statement of the bankrupt's affairs showed total debts (unsecured creditors) to bs £81 Oa 7d, as acainst book debts £7 10s 7d, and furniture £10; leaving a deficiency of JE6G 10s; Among tho unsecured creditors wero Charles Gibbs, fishmonger, Lower Stuart street, £37 7s 8d; and Mrs Amelia Ward, waitress, 120 George street, £18 10s 4d. Croditors present or represented were:—H. Smith and Co., Charles Gibb, Lilian Ward,: Amelia Ward, George King, and D. A. Craig (of the Covcnt Garden Company). In his written statement the bankrupt said that ho went into partnership on November 5 last with Mr Jacob Vivian Bccl t as fish supper room keepers, and .that he paid £20 as a deposit on tho purchase of the business and plant -thereof, the balance of £50 being payable to Mr Perry by instalments of £1 a week. Mr Beel had paid no money into the business, but managed it, while bankrupt made up the cosh and account book from information supplied by Mr Bccl. They drew out of the businiso during the first month the sum of £2 a week each, tbis £8 being all the money received by him out of the business. Early in December lie noticed that the business was not able to Viand this withdrawal, so tbey decided to draw' nothing more out of it until it improved. In April lie saw it was hopeless, and docidcd cither to sell out or to pay the creditors his shore of tho liabilities, being of opinion that he was only liable for his half share. He.did this to a. number of creditors, paying tbem half of the firm's indebtedness, and got from them a clear release. About the middle of May Mr Perry camo down to Dnnedin, and demanded payment of the amount due to him. Bankrupt had tried to sell the business, hut could not do so, and in order to avoid any further loss Mr Beel and he had agreed to sell the business to Mr Perry for £12, On tho sale being cffccttd, creditors began to press him. and ho had held a private meeting at Mr Hanlon's office on May 28. He then made an offer of 7s 6d in the pound.. Ho had been sued by Mr Gibbs, Mr Smith, and Mrs Ward, and had

confessed judgment to their claims. He entertained strong doubts as to the bon fides of Mrs Ward's claim, as all other wages wero paid from week to wosk, while this account waß allowed to run on. Ho had always understood that Mrs Ward was assisting her brother, Mr Beel, in a friendly way for nothing. Ho knew she charged for laundry work, and ho had asked her for time to pay. Ho (bankrupt).,was quito willing to. enter into an agreement with his creditors (with the exception of Jfrs Ward) to pay them his share of the liability, at the rate of 10s in the pound, and to leave their remedy open against Mr Beel. Bankrupt had been heavily handicapped by the sickness of his wifo and family and the number of times ho had broken up his home, and had therefore been unable to accumulate any savings, otherwise he would have paid his creditors in full lather than have sought the protection of tho Bankruptcy Court. The bankrupt finally offered to' pay 30s a week to tne official assignee till the creditors had been paid 15s in the pound. This was put to tho meeting and accepted unanimously. -tlm creditors expressing sympathy with Mr Proud, and recognising that the loss had not been caused by jiim.