MEETING OF CREDITORS. Re J.Walher.

Otago Witness, Issue 1956, 20 August 1891, Page 11

MEETING OF CREDITORS. Re J. Walher.

A meeting of creditors in the estate of John Walker, of Milton, flax dresser, was held in the official assignee's office on Friday afternoon. Mr D; Reid, of Milton, appeared on behalf of the debtor, and there were about a dozen oreditors present. The statement set forth the following particulars :— Liabilities to unsecured oreditore, £1,543 0b Id. Assets : Book debts, £134 12s 2d ; two iron baildings, £50 ; two scutchers, £40 ; two screw presses, £30 ; two stripping machines, £30; shafting and pulleys, £20; amount paM on 12 horse-power engine, £110; fUx fibre on hand, £40; furniture, £30; and several less amounts, totalling up to £409. Total assets, £543 12s 2d, leaving a deficiency of £999 7s lid. The principal unsecured creditors are:— Neill and Co., £100 2s ; Ro3S and Glendining, £105 7s 6d ; J. Rftttray and Son, £125 ; Sargood, Son, and Bwen, £21 13s lid ; Kearns and Son, £11 29 7d; BuHer worth Bros., £45; J. Edmond and Son, £46 7s 9d ; Mackerras and Hazlett, £10 6d; P. Hnyman and Co., £29; R. Wilson and Co., £16 10s ; A. Briscoe and Co., £23 4s 2d ; Bing, Harris, and Co.. £66 ; Kincaid, M'Queen, and Co , £26 6s 2d ; Kitchen Bros. (Kiifcangata), £26 7s 8d ; John Hollick (Milton), £12 17s lOd ; Hardware Company, £23 89 lid; W. Scoular and Co., £35 6s 9d«, Nelson, Moate, and Co., £29 12s 8d ; Nimmo and Blair, £14 11s 2d ; Peter Jtt'Gill (Milton), £60; wages mill handf, £40; wages mill hands, £40 ; Walter Guthrie and Co. (Invercargill), £26 ; Alexander Walker (Milbon), £360; Isabella Walker (Milton), £200; A. and J. Littlejohn (Milton), £15. Bankrupt, examined on oath, said that the statement marked "A" read by him was a correct statement of fact. He made a statement to Mr Dawson (Rattray and Son), which was written down, and that marked "B" was, so far as he knew, the one. The first three items of stock, amounting to £300, had been sold partly by auction and partly over the pounter- The stock sold by auction amounted to £53 10a 6d, about half coßt price, the reßt realising about £60. All sums received were entered in the cash book produced, which also showed what was done with the money. Bills discounted entered to credit w cash book were for book debts and proceeds from flax, not for new sales of the above-named goods. He told Me Dawson that there were £700 worth of book debts, aud he anticipated they were good. Tbey had been partly collected to the extent of £150. The sums entered as post-due bills with bankrupt's father's endorsement, for which the bank was pressing and he took tbem up with money derived from book debts, was £370. He sold the express for £19, the horse for £11, and the others went to his father as security for part of his debt with two others from the flax mill. He sold the remaining horse for £3 to a butcher in Milton. He produced account sales of all the flax since the sth Maroh. The statement referred to, marked " A," was as follows :— " I commenced business in December 1887 with £300 capital of my own aad £480 of my father, for which I paid him interest at 6 per cent, per annum. My father afterwards purchased the section adjoining the shop I occupied for £100, for which amount I paid him interest at 6 per cent. I built a grain Btore on this section, and used ifc in the course of my business. I continued to pay Mr Alexander Walker interest en £580 daring the time I have been in business. In February or March of 1890 I lost the sum of £479 through Alexander Eraser, who was flaxdres^ing in our district. As he paid me regularly large sums over a period of nearly two years I had every confidence in him. I paid away £40 in tiyir.g to recover from him and in making him a bankrupt. I understood this amount wa9 to be divided pro rata among the creditors of FrasPr, but I have not yet received any portion of it back As afc this time flax was fetching a good pric-^ I purchaied a flax mill plant from auother flasdresser who owed me £50. I paid him anoi-bfr £50 and took over the mill, aa I thought I could make it pay very well. Before I got a start made the price bad dropped very considerably, and I only got from £14 to £15 during last winter for the fibre, the price when I bought the mill being from £20 to £23 per ton for th« Bame quality. Since I bought the mill I have added largely to tb« buildings end machinery. In EVbraary I bought aa engine on which I have been paying S>\ per ton on' all the fibrethat went to Dunedio, and it is now paW up to £110, X was forced to purchase an engine, as when the threshing season commenced I wot unable to hire one, About six months ago I decided to give up the shop, as I was unable to keep both concerns going and make them pay. My losses in bad debts since I started, and including the amount paid away in Eraser's pstate, comes to about £680 ; and a large amount of money, aggregating over £400, has been nnnk in the finx mill in a way in which it ooald not readily be recovered at anything like original cost. I lost about four tons of flax fibre, valued at from £70 to £80, through & very severe gale of wind, which lifted it off the paddock on which it was bleaching and tangled it to fiob aa extent that it was unsaleable. Tbe

Loan and Mercantile Agency Company have sold for me since last February £620 worth of fibre, the amount being distributed in Dunedin among my wholesale merchants, with the except tion of theamount paid on the engine. I have been twice at the expense of shifting the flax mill as the flax ran out and the cost of shifting about such a lot of machinery and buildings has been very heavy. I thought up to a short time ago that I might be able to pull through, but there were a good number of accounts owing, of the amount of which I was not aware, in connection with the flax mill, as the mill was near Kaitangata and we did business in that township. My personal expenses, during the time I have been in business, have never averaged more than 15s per week, and I have never <*rawn any regular sum per week- In the stat* ment which I sent down a fortnight ago to Mr De.nniston, I stated my book debts to be about £300 good. As I then anticipated getting about £60 out of Eraser's estate — that amount was included, and also some which I could have worked out at the flax mill, but would be difficult to collect, and consequently I left them out. I have tried very hard daring the last 12 months to pull up, and it is only latterly that I have seen that it was an almost hopeless case. The reason I could not carry out the arrangement I made with my oreditors about three weeks ago was becauss I found it quite impossible to carry on the flax mill in the winter season and make it pay its way with the present low price of flax. I may be able to make an offer for the mill."

The statement marked "B" referred to showed, on the 16th April last, a credit balance of £314 3s sd.

The Assignee said that bankrupt had received £976 since the Ist April, and had paid it away. Since the 16th April he had received £816, and £435 was from flax and the rest cash for goods sold, &o. It seemed that between £200 and £300 had been collected, and there remained some yet to be got in. No doubt it would take considerable time to investigate all the accounts.

A Creditor : I think they should be investigated. I have great doubts about their correctness.

A Creditor: It seems hardly right that payment should have been made to some favoured creditors.

The Assignee said if he had paid equal rates to everybody there would have been nothing to blame, but as he had taken it into his own hands and had paid one person more and another less, it might be fraudulent preference. It would simply result that if they had received money within three months they would have to disgorge. A Creditor was quite certain that bankrupt had favoured his father and the bank.

The Assignee said the bank was the real creditor, and they could hardly say he favoured the bank in taking bills which were due. The question was whether the bank or the father had been preferentially treated. It might be better for the oreditors to have a test case. A Creditor asked what it would cost. The Assignee : Probably £20, A creditor understood that it would cost about £50.

The Assignee after looking through the papers said on post-due bills £115 bad been paid within the time, apparently. About £200 had been paid to private creditors, so that about £300 would come under the fraudulent preference clause altogether. Mr Denniston did not think these oould be attacked.

The Assignee said he would do anything they liked, but the books should be looked into. Mr D. Reid mentioned that he had asked the father and mothpr if they would consent to withdraw their claims, but they declined, because they thought they had not been treated fairly in getting their share along with others paid. The bank bad got £300 as against £1000 paid to Dunedin creditors. Creditors : No, no. Mr Walker, sen., eaid he would withdraw his claim if it was going to do any good. The Assignee : The stock has evidently been sold at a much less sum than it was valued at. Of the book debts the debtor had stated that he collected between £200 and £300.

The Debtor : Some of the stock went to pay wages. The Assignee; There is not the slightest doubt that it would take a considerable time to investigate the accounts. Mr K>arns: I think the accounts should be investigated. I have very great doubts as to their accuracy. The Assignee : I think the creditors should allow £5 to someone to go through the books and make an investigation.

Mr Joaes (P. Hayman and Co.) moved and Mr Kearns seconded— " That the assignee be authorised to expend £5, if necessary, in an examination of the books of the bankrupt."

The motion was carried.

The Assignee : The next question is that in respeotof the offer of the bankrupt. Are you prepared at this stage to state that if he will guarantee 7a 6d in tbe pound it will be accepted,

provided there is nothing discovered which seriously alters the position of the estate ? Me Reid : How can he make an offer ? The Assignee : Well he says himself he can. Mr Reid : He is relying on his father, and bis father wou't help him. The Assignee : No doubt it would assist the bankrupt if an expression of opinion were given by the creditors. Mr Kearns moved and Mr Finker seconded— " That tbe bankrupt be allowed 10 days to make an offer of 7s 6d in the pound cash, or its equivalent in secured bills." The motion was carried unanimously.

On tbe motion of Mr Denniston, Mr Rattray was appointed supervisor, at the rate fixed by act, on the understanding that Mr Dawson act for him.

The assignee was authorised to expend a few pounds in getting the fibre at the mill scutched and oroteefcing the assets. It was further resolved to allow the bankrupt £3 out of the estate to assist in scutching the flax. The meeting adjourned until Monday, 24bh.

Re Thomas Dowling.

A meeting of creditors in the estate of Thomas Dowling, late farmer, of Milton, was held in the official assignee's office yesterday afternoon, In the absence of the assignee, Mr M'Kegg was voted to the chair, and there were about half a dozen present. Bankrupt's statement set forth that the liabilities amounted to £178 18s sd, and assets nil. The following is a list of unsecured oreditors :— John O'Leary, Otakia, £34 3s lid ; Thomas Christie, Greytown, £20 33; Amos fil'Kegg, Henley, £35; Wm. Charles Palmer, £85 11s 6 ! ; John Fleming, £4; -total, £178 18s 51. The Bankrupt (examined) stated: I have been in business for about five years as a farmer at Otakia, but lately removed to Milton. I commenced business with a quantity of stock, sold to me by Mr W. C. Palmer, in part discharge of a debt of £200, which he owed me. The rest of the £200 was absorbed in rent for the farm, which belonged to him. Two months, or thereabouts, after I started business there was a flood. It took away about 40 acres of wheat crop, newly sown, and washed away the eoilirom a considerable parb of the farm I bad to re-plough and re-sow such land as was fit to sow. The crop after all was very poor. There was no profit on it. The next season I cropped again, still without profit. The third year there was another flood which destroyed all my turnips and other winter feed for my stock. The next two years the crops were very poor, except about four acres of first class oats. During the whole five years I got steadily behind. I left the farm two years before my lease ran out, because I could not go on any longer for want of money. I transferred my stock to my wife. This was not the original stock. Of the original stock about half bad died, and others I had sold. The transfer of stock to my wife was made last February. I had received moneys from her when I took the farm, and this was to secure her. I also transferred to her all my other chattel property. She has possession now of part of it. She has Bold the rest. She got the money for what was sold. I had no money, when I left the farm, except a pound or two. I kept no books. I have received money for crops within the list 12 months. Last season's crops brought in £100 or a little over. I was paid for it in April last, by the N.Z.L. and M.A. Company. I had a mortgage on the crop to the company for £80, and this was taken out of the proceeds of the crop. The £80 was paid away in rent, except a few pounds paid to Mrs Palmer. I bad about £20 or £30 over after settling with the company. I paid small accounts with this money. I left the farm on June 1 last. Sometimes a beast was sold off the farm to meet a small account, but otherwise I received no other money during the last 12 months. I have no money now, and no property. I can make no offer to my creditors. I have filed because my laudlord sued for rent unpaid. The first half-year that I was on the farm Mr Palmpr let me off for my rent, because of the flood. My wife has sold all the stock transferred by me to her, and the implements and other chattels except about £14 due for furniture, and has used the money in keeping the family and paying small debts, There is no money owing to me. I have five children, the eldest being eight years of age. My wife has very poor health, and is often ill. Of the debt now owing by me, part of the debt to Mr Leary, part of it to Mr Christie, and part of tbe rent were owing at tbe time when I assigned property to my wife. The rest of my debts was incurred since the date of assignment. The debt to Mr M'Kegg is for money lent. It was spent in getting ia the harvest. My wife had £70 or £80 when I married nine years and a-taalf ago. She had lent me the money about , fout years and a-half ago. I swear I received this money from her of her own separate money. The stock, &o. assigned did not realise over £70. Three hortes were sold for £50, 18 head of young stock for 10s per head, and implements £14 or £15. \t wag resolved,' on tbe motion of Ur M'Kegg,

seconded by Mr Fleming, that fthe bankrupt be recommended for his discharge, and the meeting then adjourned sine die.