MEETINGS OF CREDITORS. Re William Gregg

Otago Witness, Issue 2116, 13 September 1894, Page 35

MEETINGS OF CREDITORS. Re William Gregg

The firsb meeting ef oreditors in the estate of "William Gregg, coffee and spice merchant, of Duaedin, was held at the ofiScial assignee'! office on Monday, and was attended by Messrs T. K. Harty, I. Da Beer (Phoenix Company), J. Moloney (W. Scoular and Co.), H. V. Haddock (John Murdoch and Co.), G. Esther, J. Mitchell, G. L. Sise, R. Wilson, T. W. Kempthorne, H. W. Baron, C. M. Hewison (City Sawmills Company), H. S. Fish, D. M. Spedding, C. W. Ratfcray,»J. Stone, A. R. Livingston, J. London (Walton Park Coal Company), W. Ibbotson (city collector), J. W. Jago, C. B. Grierson (Union Bank), W. G. Neill, J. HazlettiT O. Fynmore, J. Roberts, and others. Mr Sim appeared on behalf of the bankrupt, Mr Sinolair on behalf of Messrs Balchin, Johnston, and Co. (Sydney), and Mr J. A. Cook on behalf of the Union Bank.

The Assignee said he did not admit the Phoenix Company's proof, for he considered the company was fully covered. The schedule of assets and liabilities filed by the bankrupt was based on figures taken out by Messrs Harty and Davie, who were appointed by the creditors some time ago to investigate the estate and report upon it. Since the estate had come into his (the assignee's) hands he had done nothing but take proofs and obtain particulars from Mr Gregg, and the business had been going on in the ordinary course, the same parties carrying it on and holding possession for him. He now awaited the instructions of the creditors as to future operations. The following statement by the bankrupt was handed in :—

I commenced business in Dunedin in 1862—32 years ago. Until a short time back I was getting on very well, but a succession of bad debts and dishonoured bills crippled my financial resources, and as a large portion of my assets were iv plant and property they were not available for purposes of finance. Instead of this, I had to pay off JE2UOO of advances against property. I thought to obtain financial relief by floating my starch manufacturing business into a company, and selling the plant and goodwill for £3000 (although it cost more to establish it), but I found that owing to depressed times this could not be done, and ultimately I was induced to reduce the price to £1900, or JEIIOO less than I considered the place worth. I then got the company formed, but before the arrangements for transferring the works were completed, being, pressed by some of my creditors, I had to call a private meeting of my creditors, at which meeting I presented a rough balance sheet showing a surplus of £10.849 as at the Ist of July last. This meeting appointed Messrs Davie and Harty to take a new stock with a valuation of the property up to date of the meeting (August 7), which was done ; and their valuation amounted to so much less, by cutting down the debts, plant, and properties, that the surplus was reduced to £4089. This shrinkage in values surprised me very much, and led me to look seriously into the future in estimating the value I could put upon the estate, which was deteriorating in value so rapidly; nevertheless, in order to try and keep out of the court and pay the creditors as much as possible by keeping the business going, I offered at the adjourned meeting 15s in the pound by equal bills of three, six, nine, and 12 months This offer was accepted by all those present at the meeting, providing that the bank agreed not to realise on its securities. As this arrangement could not be concluded, I was requested to file my schedule, which I did with the greatest reluctance, as after being so many years in business to see my property, which until recently I considered solid value for cost price, dwindle away owing to such extended and extraordinary bad times is most painful to me, as it robs me of the means of paying my liabilities in fulL

The Assignee said the creditors had all the facts before them so far as he was acquainted with them at present. He had the reports and the figures prepared by Messrs Davie and Harty, but he would like some expression of opinion from the creditors as to the course to be followed in the future.

Mr Sim said that Mr Gregg was not in a position that day to make a definite offer for the estate, but with the assistance of his friends he hoped to be able to make an offer of £3000 for the estate. He (Mr Sim) suggested that the assignee should obtain an expression of opinion from the creditors as to whether they would accept an offer like that.

The Bankrupt said that in three days, or something like that, he would be able to make a definite offer.

Mr Sinclair asked what dividend such an offer wqnld enable the assignee to pay P Mr Sim replied that Mr Gregg thought it would pay about 9s in the pound, but that was on the assumption that the bank's proof would be for merely £1500 ; instead of that the bank had put in a proof for £5000.

Mr Cook : There are the current bills against that.

Mr Sim inquired what the net proof of the bank would be.

Mr Cook replied that, subject to adjustment of securities hereafter, the' proof would be for *bout £2000.

The Assignee observed that there was a considerable amount (£600) down for preferential payments. The Bankrupt: That will have to be adjusted, "00. It is an approximate. Mr Grierson asked what Messrs Harty and Davie valued, the estate at. The Assignee said that, reducing the values very considerably, they brought out a surplus of £4083 10s lid.

Mr Grierson : But what did they make the assets in the estate P

The Assignee replied that they made the total assets £11,505. Mr Cook : Including the securities P The Assignee : No, deducting all securities. Mr Wilson said he had stated all along that an offer should be accepted for this estate, for if tenders were called for he did not think it would fetch much.. Who wanted a coffee plant now P Coffee seemed out of date.

Mr Sinclair said there would be a great demand for coffee presently . — (Laughter.) Mr Wilson said he would be inclined to take a reasonable offer.

The Assignee (to the bankrupt) i You don't make a definite offer ?

Mr Sim said that Mr Gregg was not in a position te do so, but he suggested that the opinion of the meeting should bo taken as to whether such an offer as he had indicated would be acceptable. If. the creditors were against it there was no use making it, but if they were willing to accept it Mr Gregg was prepared to make it in a day or two. Mr Fish assumed that any valuation up to the present time, particularly by Mr Harty, had been made from Mr Gregg's point of view — from the point of view of a man who hoped to be able to carry on his business, — and any valuation now -to be made should be made from the point of view of one who was about to realise the estate. Apart from the necessary soreness which anyone felt in making a bad debt, he believed that ninetenths of the gentlemen present felt very con» uderable sympathy for Mr Gregg in bis position. It was a lamentable thing that a man who had been in business here for 32 years, who had been guilty of no extravagance, who had beea a hard-working man, sticking close to his business, should be compelled to appear before them in the position that Mr Gregg that dai_coouDied* and bo Jh<Hiihfc jfafr thoaa

| considerations would induce the oreditors to do everything they could, compatible with the protection of their own interests, to assist Mr Gregg to start again. This estate was peculiarly one which was valuable only as a going "concern. If the creditors realised the manufactures Mr Gregg was carrying on they would undoubtedly make a very bad lossj and it was only by such a proposition as Mr Gregg had made tbat the oreditors had any hope of getting a satisfactory dividend at all. He was not prepared to say that the sum mentioned by Mr Gregg was a proper sum, but he had no hesitation in saying that the acceptance of an offer was the proper way for the creditors to realise the estate. He would suggest that two merchants present in the room should be appointed supervisors and make a report upon their investigations from a mercantile point of view as to what the estate was likely to realise under forced sales, and the creditors would thus get a fair idea of what Mr Gregg ought to offer. He would suggest the names of Messrs Robert Wilson and James Hazlett. He thought a report from them would be one which the majority of the creditors would be prepared to accept. He moved the appointment of those gentlemen as supervisors.

Mr Kempthorue would be prepared to second' the motion, but he thought that as the bank was a heavy creditor Mr Grierson should be appointed a third supervisor. Mr Fish had no objection to accept the suggestion, and amended his motion accordingly.

It was resolved—" That Messrs R. Wilson, J. Hazlett, and O. B. Grierson be appointed supervisors of the estate, and report to an adjourned meeting at an early date." The Assignee mentioned that Messrs Davie and Harty had not yet received any remuneration for the report they had drawn up. They had sent in~a bill claiming 20gs for their services.

On the motion of Mr Spedding, the assignee was authorised to pay the amount. Mr Jngo suggested that an allowance should be made to the bankrupt, but It was agreed that this question should stand

over until the report from the supervisors was received.

The meeting was then adjourned until Friday afternoon.

Rb James Wilson.

A meeting of Creditors in the estate of James Wilson, of Kelso, meat preserver, was held in the Official Assignee's office yesterday afternoon. Mr Sim appeared for the bankrupt, and Mr Calvert for several creditors. There were about a dozen others present; Bankrupt's statement showed his liabilities to be £686 19s 6d ; assets stock-in-trade, plant and machinery at meat preserving works, Kelso, estimated at £950 ; 21 oases of preserved rabbits stored with W. W. Cameron and Co., £25 4s ; book debts, including returns from meat consigned to London for sale estimated at £350, furniture £30), £1355 4s ; surplus, £668 4s 6d. The principal unsecnred creditors are : — Castle Hill Coal Company, £2 18s lOd ; F. Lischner (Waipahi), £14 6s ; Stevenson and Co., £43 12s ; Anderson and Co., £2 15 1 ; W Guthrie and Co. (Invercargill), £2 9s 3d; Reliance Chemical Manure Company, £33 ; W. ScouKr and Co., £5 8s lOd ; Milburn Lime and Cement Company, £4 8s 3d; Thomas Moir (Kelso), £10 ; Colonial Hardware and Implement Company (Invercargill), £6 12s 3d ; Thomas Sapwell (Kelso), £9 15s; William Quinn (Tapanui), £2 ; Kempthorne, Prosser, and Co. (Limited), £14 Is 4d ; M'Callum and Co. (Invercargill), £103 8s 8d ; New Zealand Land Association, £17 ; Murdoch and Co., £4 7s 9d; Smith and Smith. £36 3s sd; G T. Dawson (Tapanui), £7 16b 2d; John M'Farlane (Tapanui), £20 ; George Partridge (Rae's Junction), £7 8s 2d ; A. D. Benfell (Kelso), £5 7s 3d ; John Milne (Rae's Junction), £3 7s lOd ; Robert Balmer (Rae's Junction), £2 23"; D. Bishop (Kelso), £15 19s lid ; F. Benfell (Kelso), £9 15» lOd ; J. Paterson (Pomahaka), £21 16s 8d ; R. M'Gregor (Kelso), £2 2s 9d ; D. Jolly (Kelso), £5 7s 7d ; Wm. Whitefield (Tapanui), £6 0s 3d ; L. and T. Shaw (Kelso), £2 19b 4d ; John Spencer (Dunrobin), £23 3s lOd ; John M'Rae (Kelso). £16 16s lOd ; Wm. Potts (Tapatni (£9 17s 7d; Wm. Tweedie (Kelso), £3 7a d ; John Ross (Kelso), £4 17s 8d ; W. Blewitt (Tapanui), £3 3s 4d;,Alex. Campbell (Dunrobin), £2 8s 2d ; John A. Kirke (Kelso), £16 9s 4d ; Colin 'M'Donald (Tapanui), £7 0s lOd ; Alexander Brophy, £4 16s 8d ; H. Hancock (Tapanui), £♦ 15s 4d ; D. M'Kenzie (Heriot), £6 3s 4d ; J. Dooherty (Heriot), £3 13s 6d ; Alexander Barron (Dunrobin), £7 6s 8d; J. EobiosoQ (Koleo), £13 U» 6dj Wm. gattia

(Waipahi), £2 6s 7d; S. Houston (Kelso), £9 2s 8d ; D. M'Rae (Kelso), £2 3s 2d ; John M 'Donald (Kelso), £7 ; A M'Ewan (Mataura), £7 0s lid ; W. M'Ewan (Balclutha), £7 Is 8d ; John Anderson (Kelso), £5 0s lid ; William Hamilton (Mataura), £8 5s 4d; Wm. Ellis (South Ounedin), £7 13s 9d; Thomaß Ellis (South Dunedin), £20; T. and O. Quayle (Tapanui), £3 ss ; D. B. M'Donald (Tapanui), £3 ; Scoullar and Chisholm, £4 8s lOd ; Duthie Bros., £14 4s Bd.

The following written statement was also attached : —

I have been carrying on tbe meat preserving works at Kelso for about three years. I started business with. a capital of about £350. Owinf to losses made on shipments of preserved meat to London I got into financial difficulties about two years ago, and I then arranged a compromise with my creditors, which was duly carried out. After this I staged business again, and carried on up to the middle of July last, when I closed operations. I attribute my present position to the following causes : — (a) The great fall in the price of rabbitskins ; (6) the depression in business generally ; (c) losses sustained by reason of the works being submerged by a flood during the early part of the season.

Bankrupt, being further examined, said that he had previously made a compromise, which embraced all claims except preferential. He was not sure what the dividend was.

Mr Kempthorne : 3s 4d in the pound.

Bankrupt (further examined) : I am now pressed by various oreditors. I am unable to make any offer. The valuation of my plant is cost price. I have the right of removal at the end of my lease, which is up in about 18 mouths.

It was resolved after a slight disoupsion that the estate be left in the hands of the assignee to be wound up, and the bankrupt was allowed £3 a week for a month for his services in assisting the assignee to dispose of the estate.'