MEETING OF CREDITORS.

Otago Witness, Issue 2010, 1 September 1892, Page 15

MEETING OF CREDITORS.

Re Porter and Hocking. . The first meeting of creditors in the estate of James Porter and William Hocking, of Barewood, goldminers, was held in the official assignees office on the 24th. Mr Webb was present to advise the assignee ; Mr D. D. Macdonald appeared for Messrs Elliot, Thompson, and Watson, whose claims were for wa b e? ; and Mr J. Mouat for the bankrupts. There were about a dozen creditors present. Bankrupts' statement showed their liabilities to be :— Unsecured creditors, L 872 5s- Id ; secured creditors, L 337 Us 9d (value of securities, L 400.) Assets : Stock-in-trade, L 27 53 ; cash in hand, L 45;4 5; property, L 40 0; surplus from securities, L 62 8s 3d;— total, L 534 15s 3d. The following is a list of the unsecured creditors :-— Barewood Quartz Mining Company, Limited, L 37 0; A. H. Falconer and Co,, L6O 11s 4d; E. Lane, L 35 (wages) ; B. M'lvor, L3l lßs 5d (wages) -.Thomson, Bridger, and Co., L 29 11s 7d; J. Elliot, L2(j (wages) ; J. Harris, L22 13s 2d (wages) ; J. Worth, L2l 4s (wages); Walton Park Coal Company, L2O; Jos. Sparrow, L2O; John M'Leod Murray, Ll9 8s ; G. Winders, ISO 33 (wages) ; J. Storly, Ll9 3s (wages) ; W. Watson, Ll2 17s (wages) ; 1). Polen, Ll2 10s (wages); F. Buchanan, Ll3 153 (wages) ; J. Keating, Ll2 15s (wages) ; Jas. MBnn, Ll2 11s : Findlay, Murdoch, and Co., Lls ; Kincaid, M'Queen, and Co , LlO 17s sd ; J. Barclay, LlO 0s 8d (wages) ; M. Winders, L96s 2d (wages) ; J. Danzet, L 9 6a ; G. Cam, L 9 4s ; P. Winders L 8 (wages) ; J. Clements, L 6 17s (wages) ; P. Riley L 6 9s (wages) ; J. Thompson, f 5103 (wages) ; R. Tuckey, L 5 12s (wages); J. Winders, LI 16s (wages) ; J. Ross, Li 10s (wages) ; Johnson and Robertson, L 8 2s 7d ; Anderson and Morrison, L 6 11s sd ; M. Winders, L 2 5s (wages). The secured creditors are :— Mr Charles M'Queen and Messrs W. and J. Scoular, the amount of whose claim is Ll5O, and the value of the security L 20 0; Mr F. R. Manning, amount of claim LlB7 Us 9d, value of security L2OO. The property consists of 2£ tons of concentrated auriferous pyrites at the Barewood Company's mine, L 10 0; 500 tons of cartings containing pyrites, valued at L3OO. The Assignee stated that there was a large sum ' due for wages. The position of matters, so far as he was concerned, was simply this : He had received L2O on the day of filing, and Mr Vivian subsequently paid L 6 13s 6d. The latter had forwarded accounts both as to the disposal of the first' lot of gold, and also of the second. All the moneys were accounted for with the exception of L6 l9s sd, which seemed to be in the possession of Mr Porter. Mr Porter explained that this sum had all been paid away with the exception of some L 2, which he now possessed. The Assignee went on to state that of course Mr Porter could not retain any money, but it was for the creditors to say whether he should hand this amount over or not. Messrs Quick and Vivian had been acting as bankers as it were for the debtors. They made advances, and when the gold came to hand they deducted from it the amount of these advances. The main thing now to consider was how far the debtors had misrepresented their true position to the men working for them. After consulting the men on Saturday last he had sent Mr Harris and Mr M'lvor up to the claim to look after Borne property there. He did not think he would have sufficient money to deal with the tailings to any great extent, but they might get a ton or a ton and a-half of clean pyrites. The last time the latter were sent to Melbourne they yielded Boz to the ton. Ihere was a bill of sale over the battery, but it having been legally inspected it was declared to be void. Mr Mouat said that if the creditors took -the battery they would simply be taking another man's property to pay for their own losses. They might legally have a claim to it, but morally they had, no 'claim whatever. The battery had never been paid for. He thought the shareholders should pass a resolution agreeing to hand over the battery to the owners. Mr Macdonald said' that such a proposal was a serious matter for the men who had never been paid their wages. No doubt it was nn unfortunate thing for tjhe holders of the bill of sale to find that there was a flaw in it, but as he was there to act in the best interest of his clients he would have to oppose the carrying out of the proposition made by Mr Mouat. Other creditors also stated that they thought the bill of sale should bo contested, and on the motion of Mr Watson, seconded by Mr Elliot, it was resolved— " That the assignee be authorised to get the blanketings cleaned and sent to Melbourne for realisation ; to contest the bill of sale over the battery ; and to sell the battery, tailings, and plant by public auction in Dunedin." Mr Porter, examined, said that they took the Barewood claim on tribute in May 1891. They were to pay 25 per cent, of the gross gold got on tribute. Bankrupt had Ll3O in hand when he started, and Hocking had about L 25, all of which had been spent in the mine. They obtained gold to the value of LI7OO since August 1891, when they started, the first* crushing being in that month. They got advances from Messrs Quick and Vivian from time to time in anticipation of the gold, and the latter were authorised to pay for coal, horsefeed, and other accounts. Neither bankrupt nor his partner had got full wages for the time they were at work. Mr Hocking said that altogether ho had only got L 4 in the way of wages, and that went for expenses. Mr Porter, continuing, said that the first crushing went about lOdwt, and the second about the same amount. They obtained 54Joz from 172 tons. This was the last crushing, and the worst of the lot. In the lOdwt crushing the pyrites— which they afterwards sold— were not included. They sent several lots- of pyrites to Victoria. The first lot yielded -lloz to the ton, the second about 4oz, and the last about Boz. Bankrupt never led any of the men to believe that the 540z referred to would go to pay the men's wages. He told them that he was going to get LIOO, but that was because he expected to borrow LIOO from Messrs Quick and Vivian, who, however, declined. This was on the • 11th August last. In answer to Mr Macdonald, bankrupt stated that of the first two crushings 108oz did not go through Messrs Quick and Vivian's hands. The first cake was sold to the Bank of New Zealand at Dunedi-i for L2OO. Out of this L? 5 was paid for wages, and Ll4l to Mr D. Reid for crushing at Saddle Hill, and quarter of the total for tribute. These amounts were paid out of the two lots. The second cake was impounded by Mr Fraser to settle a claim of L6O for Mr Young's wages for carting, and the rest was divided for other wages aud expenses. After the first cakes everything passed through Messrs Quick and Vivian's hands. In November or thereabouts the shaft was flooded, and there was some delay in consequence. It was about October that bankrupt got the first advance from Messrs Quick and Vivian, and it was before that they got the cake. They (bankrupts) got sundry advances since. There was considerable delay between the first and second crushing, because the shaft got filled with water. No tribute had been paid for about six months. The- meeting adjourned for an hour, and on resuming • Mr Sinclair produced two agreements made between the debtors and Messr3 Quick and Vivian, by which the latter agreed to make advances, which were to be paid out of the yields of the different crushings. In answer to Mr Macdonald, Mr Porter said that he had only signed two documents, which were produced. One of them was dated February 10 and the other June 29. He could not say when the next crushing took place after February 10, but probably it took place two months after- " wards. There was a crushing about the time the second document was signed. He could not remember the exact date. Mr Hocking said there was a crushing every six weeks or so. They always crushed before the ' wages were paid. The cake was always sent to town first/

Mr Macdonald asked whether it was not a fact that the cakd of gold from one of the crushings was in the hands of Messrs Quick and Vivian a week before the June document was signed, but bankrupt vouchsafed no reply. ' In reply to Mr Mouat, bankrupt said that a heavy flood came down in February last and swept the whole of the dams away. It cost L2OO to restore the dams and punip out the mine. This also caused a delay of six weeks. Considerable damage was done to the shaft. All tho drives were filled up with sludge. in answer to a creditor, bankrupt said that he borrowed money from a mate of his named Barclay—some L9o— but it had not been paint back. Barclay did npt put iv a claim for it. This sum was included in the amount bankrupt started with. Barclay was working for some nine or 10 weeks as a miner, but he only claimed for wages. Barclay sometimes looked after the tables, but bankrupt was generally there himself. In answer to other creditors, bankrupt said that the gold sometimes came out of the retorts in pieces. Ho was always there at the retorting. He thought the reef was payable. They had been working under disadvantages, but it would yield some 7oz or Boz to the ton. The reef was not running out, but was making. The Assignee said that there was not the slightest doubt that 25 per cent, of tho gross takings was too much. Bankrupt, continuing, said that if steam-power was available the reef could be much more cheaply worked. After he could not get the advance from Messrs .Quick and "Vivian he went to his solicitors, who advised him to file. The bankrupts, on tho motion of Mr Falconer, were instructed to produce a statement of receipts and expenditure since May 1891. The meeting then adjourned till Thursday week next.