CREDITORS' MEETING.

Otago Daily Times, Issue 14499, 16 April 1909, Page 6

CREDITORS' MEETING.

io 1!k J. X. Mehrv. 'I ho first meeting of creditors in the estate of .lohn Xecklin .Merry, of Dunedin. . wool-buyer, was held yesterday afternoon, Mr Wiodliouae appearing fur the banklnpt, Mr Hosking, K.C., for t,he Bank of - Xew Zealand, Mr Alex. 8. Adams for the petitioning creditor (ticoige Turner), Mr •° Muuro for Mr Lyng, Mr hiving for Mr K. \\. .Murray, and Air T. Jv. Harly for .Messrs y De Lissa ami Sons, Loudon. .Several 10 creditors attended the meeting in person. Bankrupt's statement showed that he had ~ unsecured creditors, £,571 3s; and secured '1 creditors, £1875 19s lid: the securities >' being estimated to produce £1825, which - was £50 i9s lid under the sum owing. 1' Bankrupt's total liability was therefore £4?2 • 2s lid. there wen? no as.-eis. Tho prin- ], cipal tinsf.ciiroil creditors were: Edward Merry, £100; Ceorge Turner, £186 12s - 6d; T. K. Harty, £21; James Brown, £10 Its; and lioiheaif and Woodhouse, £33 " 1.55. I'lie secured creditors were: 11. T. * Andrews, security over stock and plant, £75: Hank of Xew Zealand, mortgage over y leasehold properly, sections 20 and 21, i- block LfX, and agreement to mortgage freehold sections 40 and 41. subdivision'of section 5. block XXXIII, Dunedin, £800 " 18s lid, estimated value of security £1750; and Do lik-.a ami Sons, London, second , mortgage, over the leasehold proper!v. s 'thoul £1000. i- lhe following written statement was put ill by bankrupt:—"! have boon in business for a long time as a wool and sk'n exporter, and was doing well and making money up to April. 1906, and most of the money which I made I expended in building 1 my present store in the Harbour Hoard lease. Jn ISO 7 I was ill, and unable to attend to my business as 1 usually did, and it was conducted by .Mr (ieorge Turner, whom 1 employed as buyer, and who, in ' conjunction with .his brother (Mr .Joseph ! TiiriKM'), did all tho buying. Tho transactions of 1907 and 1903 resulted in largo losses. 1 did my London business through De Lissa, Sons, and Co., and these losses i left me largely indebted to them." I ]xiid them what money I could—about £100,— ' "I'd at the 31st ot December I owed them over £500 on realised losses, and was operatmi; under a credit with 'them. Their agent, l Mr Ilarty, tlireataiMl to stop my credit unlesi I gave them security, arid I gave them a second mortgage over my store, , which I had previously mortgaged to the : bank, and I continued to operate under . my credit, shipping as before. Tho bank also held the deeds of my house in Swan ftrect. This house I had agreed some time i a»o to sell to my daughter, Mrs Lyng, for £400, 10 be paid by degrees, and "she has ■ paid me £210 on account, leaving about £180 owing, which is claimed by the bank. . Mr (li'orge Turner sued me under an agreement made, with him for giving him a . share of profits each year, and as my Ixioks showed that during the two years in respect of which he sued—namelv, the years , ending April, 1805, and April, *1907-1' had made profits, although for the latter year the profits were not realised but only estimated, 1 had to submit to judgment. The profits estimated for the year ending in Apr'l. 1907, were never realised, but large losses were made on the shipments for that i«rio:l. Mr Turner issued execution on his judgment, and then had me adjudicated a bankrupt.'' Bankrupt, being sworn, said he had had shares in ihn Mtic-lerlon Gold Dredging Company, which, on Iwing pushed bv a Dunedin firm, he bud sold to pay 'the lialan/.f of the account. Ho had also soid some Starr-liowkett shares, and some sections in drove street, St. Ivilda. The sections were told three or four years ago. About 12 mont,lis ago ho had about £iCO in the I'ost Office Savings Hank, wliiih went into his busing account in the liank of Xew Zealand. Bo had also a fixed j deposit of £600, which had gone into bis 1 general account, | Mr Adams said Mr Merry in bis state- i "lent suggested that, until "the period at wiiioh .Mr Turner ceascd to be interested in the profits he was doing very well. After that Iho business went to the dogs, A ; sufficient answer to that was found in the ' fact that the judgment of the Supreme Court was only two years old, under which Mr Marry was duo JJr Turner for • profits up to 3907. Mr Turner bad been with Mr Merry from 1901. With leforencc to Mr Turner he had made every effort to come to some with Mr Merry before ho issued the writ, and at the trial had to accept a smalk'r sunt with tho object of giving- Mr Merry an opportunity of carrying on. After that he endeavoured to get a settlement without avail. It was only afterwards, when it was discovered that Mr Merry had hail dealings with his property, that proceedings in bankluptcy were taken. Mr Merry bad never suggested that t.hero had been'anv absence of profits until his defence was filed in the action. Mr Turner had offered to take £100 before the issue of the writ, anil had also offered to accept any reasonable terms. Mr Merry had hail tin auction sale, and be (ilr Adams) did not know if anything was sold, but if there had l>ecn, what hud become of the proceeds' There were two or three matters that would have to be inquired into. Tho question of Mr Andrews s bill of sale would have to be inquired into, including the consideration, then there was the question of De Lissa and Sons, who were put, in as secured ■ creditors. That should be rigidly inquired mio. There was no registered security; the only thing registered being a caveat. Mr \Voodhouse:: The reason it was not registered was that we had not time to get the consent of the Harbour Board. Mr Adams said it. must, be inquired into. I hen there was the alleged sale to Mr Merry's daughter. When proceedings were taken under judgment a gentleman had called on him (Mr Adams), and had said he was Mr Lvug, Mr Merry's son-in-lnw. Tills gentleman had said he had bought tho property from Mr Merry. He said the books showed all about it,-and -lie (Mr Adnnis) asked the assignee to carefully examine the books and see if that were so or not. Mr Lyng bad said that Mr lurner knew all about it, but Mr Turner knew nothing about; it, and thought the alleged sale wa? bogus. lie (Mr Adams) suggested that inquiry as to what rent or interest was paid in addition to tho £210 should be made. There was no title in writing; nothing at all. so far as he knew, except the word of the parties as to the alleged sale, lie understood that certain things had been done that might, give a co:our as to the proprietary of matters and he suggested that rigid 'inquiry shouiii be made. Then if Mr Merry had been insolvent since 1907 it would be pertinent to iitul out why be carricd on. The Assignee to bankrupt: Where are your books? Down at the oflice. The Assignee: Well. I want you to briti" llieni here. ° Mr Ilarty ob.vrv.nl that the entries had not been kept up. and that Mr Turner was just as responsible for I hat as the bankrupt was. Mr Turner: That is not true. Mr ilarty: I suggest that the two of them are liable for the keeping of the books. Mr Adams: Mr Turner was the wool-, buyer, and knew nothing about books. MiMerry is a bookkeeper. The Assignee said he proposed In investigate these various matters, and would call the creditors together again when he had something delinile to lay before litem. Mr Andrews said that some three months ago Mr Merry had approached him and I asked him to assist him. He had replied j that he would do anything he could, and asked what security Mr Merry could give him. Afterwards Mr Lyng came to him 1 and asked if he would lake security over the plant, and he replied that he was satisI (ipil so long as lie was not going io loso 'anvthing. They wrote out a 'document which be bad said did not please him, and Mr Ewing then drafted a bill of sale. Mr llosking, speaking on behalf of the bank, said the people in that institution hail the highest respect for Mr Merrv, ami bad always found him a straightforward customer. They had not. the least complaint about him. The meeting then terminated.