Meeting of Creditors.

Otago Witness, Issue 1777, 12 December 1885, Page 4

Meeting of Creditors.

RE A. DORNWELL.

A meeting of creditors in this estate was held in the Chamber of Commerce on Monday afternoon, the Official Assignee presiding, and about a dozen creditors being present.

The Assignee said that the total receipts from the business since it had been carried on for the .creditors was £3559 19s 3d, and the expenses '£2980 5s 3d, leaving £579 in hand at the present date. He had to pay £378 5s 6d the week before last for purchases of stock, and £262 7s 6A this last week, and had now enough within £60 to pay both these amounts. He would then have £330 worth of stock in hand ; also some meat, value £100, which was to be sent to Hobart ; and some skins, representing about £500 in stock, and only £60 worth to pay for in cash. This therefore showed that they had been carrying on the business without capital and had increased their assets. There had been a careful investigation made into the statements of accounts by gentlemen whom Mr Driver, the supervisor, had appointed, and they had made a lengthy report, the net result of which was this : that for a week's work £138 had been the gross profits ; against working expenses, £86. Then there had been further deducted 5 per cent, on credit sales, which seemed to him a very heavy estimate ; 8 per cent, on capital, when as a matter of fact they had been working without capital ; £10 for a week's rent, whereas they were only paying £7 now ; and also a charge of £6 paid to Mr Dornwell. After all this had been deducted the net profit for a week was £28 15s. He might state that after the first 10 days they had had to pay higher prices for stock, so that the profit had decreased somewhat ; also a few customers hnd been lost, and there had been the holidays. But taking it altogether, he reckoned that the business certainly made £30 or £40 a week profit, and anyone curious upon the subject could go into the accounts for himself. After reading a lengthy statement from the gentleman who had been appointed to investigate the accounts, The Assignee went on to say that he and the supervisor had done all that they could to realise the estato, but had utterly failed in getting any offer. The only chance seemed to be for Mr Dornwell to get his discharge. He (the Assignee) had then an offer of £300 for the loose plant, which he had not yet had time to discuss with Mr Driver, but which, in his own opinion, was too low. It should be £400. If this was sold and Mr Dornwell got his discharge he would not take over the book-debts. These would have to be collected. Their total was £1500, and the speaker thought they should realise £1000. With this and what had been realised on the properties, together with money to come from Hobart and loose stock in hand, &c, he thought the gross total would be about £2700, against which there was a preferential claim of about £ 100. Then there was the. lease, which Mr Donald Reid had valued at £3000, less the amount of his proof, and a lot of the bills proved for by the bank, although dishonoured, would probably be paid. Altogether, he thought the dividend should be payable on about £7000, which would bring it out at 5s or 6s in the pound. There were of course always contingencies to be considered, but this would bo the result as nearly as be could see. A resolution would be put before the meeting, recommending that Mr Dornwell should get his discharge. There was one thing he wished to mention. Some very unfair and untrue statements had been made as to the expense connected with winding-up estates in bankruptcy, and he should like to point out that for all bis trouble in connection with about £3500 that had been received and paid out in cash while carrying on the business not a single penny was charged. The Assignee was only entitled to charge' upon what was really divisible among the creditors. The same was the case with some of the properties sold, although their sale was entirely clue to the supervisor and himself, and was work which any private trustee would expect to bo paid for. He was perfectly satisfied that so far from the expense being excessive, it was remarkably small, especially where the estate was at ail large.

Mr .Lees then moved, and Mr Low seconded: "That the bankrupt be allowed his discharge."

The Assignee said Mr Dornwell had all through shown the utmost desire to assist the creditors in every way. His chief fault seemed to have been putting his arm out farther than he could draw it back again.

The motion was then put, and carried unanimously.

Mr J. A. Cook moved : " That the Assignee be authorised to parry on the business until the bankrupt got his discharge."

Mr Jago thought a little grace should be allowed, and the resolution should name — say, that day month as to date.

The motion was altered to this effect, seconded by Mr Rennie, and carried. The Assignee remarked that the offer made

was understood to be in the interests of Mr Dornwell, who made no secret that he hoped to i get his discharge and carry ou again on as grand a scale as ever. Mr Dornwell had also made assurances to the effect that he was going to pay his creditors 20s in the pound, and he (the Assignee) had told him that if within a twelvemonth he gave them all another 5s in the pound they would no doubt be very well satisfied. He had no doubt Mr Dornwell fully intended to do what he said, and his only fear was lest when he got free he should launch out too heavily asrain.

The meeting then closed.