Creditors' Meetings. RE FRANK M'CALLUM.

Otago Witness, Issue 1813, 20 August 1886, Page 15

Creditors' Meetings. RE FRANK M'CALLUM.

A meeting of creditors in the estate of Prank M'OaJlum, farmer, of Milburn, was held at the Official Assignee's office on Friday morning. There were about eight creditors present. Mr Reid, of Reid Bros, and Finch, appeared on behalf of the bankrupt; Mr Webb for the Assignee ; Mr D. M. Stuart for three creditors (employes of the brankrupt) ; and Mr P. Duncan for Messrs Beid and Gray. The Bankrupt's statement showed his debts to unsecured creditors to amount to £252 18s ; debts to secured creditors, £100. (value of securities £621); and a liability of £80 to harrow land under an agreement with Messrs Wright, Stephenson, and Co. The assets amount to £221, and consist of the surplus from the securities held by the secured creditors, the estate showing on apparent deficiency •f £91 18s. The following are the unsecured creditors :— Reid and Gray, £120 ; M. Henderson, Milburn, £120 ; A. Watson, Melville street, £24 ; Reid and Maxwell,£l3; Bell, Kaitangata, £12 ; S. H. Trevena, £9 2s ; G. Long, labourer, £8 103 ; T. Robinson and Co., Dunedin, £8 ; D. Muir, labourer, £8 ; Graham and Kinnaird, J35; D. M'Lean, labourer, £4 3s ; John Taylor, Milton, £3 , 10s ; P. Dewar, Milton, £2 ; Junes, Milton, U2. The following are the secured creditors :— Messrs Wright, Stephenson, and Co., debt £200 (secured over crops at Coomb Hay, estimated to realise £371); Donald Reid, solicitor, Miltou, debt £200 (s<3ourity, bill of sale of 14 horses, drays, implemeiSh, &c, estimated to realise £250). The Assignee said this estato was in rather a peculiar position. In the first place, with regard to the bill of sale to Mr Donald Reid, there was one bill of sale givenfor £100. That was not registered till the 22nd day, and as the act required it to be registered within 21 days, it was held to be entirely void. A second bill was given on the 24th April, which included the debt under 'the old bill of sale, but it was made within six months of the bankruptcy, and he held it void on this .account. , But it was also void, ha understood, by the terms of the Chattels Securities Act. Then the next question was as to what advances were paid contemporaneously with the second bill of sale. He had obtained particulars from Mr D. Beid's office as to these payments, and upon that evidence and the construction of the act, the : bill of sale was only good for the amount contemporaneously advanced, a sum of £42 16s (3d. Mr Webb, solicitor, said it was clear that the £100 in the first bill of sale was not secured by the second bill of sale, and the second bill of sale was only good as to the amount contemporaneously advanced. The Assignee said that if the creditors had heard ! 1 enough to lead them to conclude that they had a good prima facie case to oppose this bill of sale, it wa6 for them to pass a resolution as to what he should do. ' Mr Poppelwell, representing Mr Donald Reid, of I Milton, explained in detail the circumstances uuder which the bankrupt got the advances. On the motion of Mr P. Duncan, Beconded by Mr H. B. Watson, it was resolved—" That the Assignee take the advice of his solicitor as to the validity of the bill of sale and mortgage of stock to Mr Donald Reid, and on being favourably advised, take the necessary steps for protecting the general body of oreditora." The Assignee explained as to contracts between Messrs Wright, Stephenson, and Co. and the bankrupt. One provided that in consideration of the bankrupt getting 200 acres on Coomb Hay to crop he was to plough and harrow 550 acres. He had ploughed the whole of the land and harrowed 200 acres, leaving 350 acres still to be harrowed. There was also a second contract with this firm for ploughing at Wangaloa. It was resoived, on the motion of Mr Duncan, seconded by Mr Watson -"That the assignee be authorised to disclaim the second contract with Messrs Wright, Sfcephensou, and Co. for ploughing 540 acres at Wangaloa." With regard to tho other contract it was resolved — " That the assignee ascertain what it would cost to complete the harrowing contract." The Assignee said there was another important feature in the estate. The bankrupt entered into an agreement with Mr George Macdonald, Stirling, to buy 102 acres at Balclutha for £1326. Th 6 Bankrupt stated that he had done nothing to the land but poison the rabbits. Mr D. Reid, jim., said the bankrupt had given Hlls for part of the purchase. There was a mortgage of £900, which he was to take over. The Assignee intimated that he would inquire into the matter, and the meeting was then adjourned for a fortnight.