A HEAVY INSOLVENCY.

Otago Witness, Issue 2209, 2 July 1896, Page 16

A HEAVY INSOLVENCY.

• The statement of afsets aad liabilities. filed 1 lw the> estate of John Ryley, trading. -as R. Anderson- and Co., millers, of Dunedin, showß* that the bankrupt's liabilities to unsecured" creditors are .£3035 ' 7s 9d, and to secured creditor^ £64,528 4s sd, but the estimated value of the l ecuritien is^pt dp.f n a,t.; £33.092 9i 9d, leaving tbe - net liability uuri-rr this head at £26,435 14s .-Bd. .-> There i» a. contingent" liability 6n bills undtx discount pf £2736 12s. Bd,. the.<ota\ debts thus being made up to £32,207 45s Id. The Msets.are started to amount to £30,646 lla sd, wbich.would leave a deficiency of £J-561' 3s 8d; $he items on the nsfe-'s side are : Stock- inIrade, hordes, harner6, waggons,', movable' machinery," mill plant, and office furaifcure atj Dunedin, £5687 j-stook- at Oatrdm, £854 8i 9a ; stock off comsijjnnrents, £1266 16s lOd; book debt», £6725 14a 16 ,(8 st »' Dated to produce" £5700) ; cash inhandV"£23 19s sd; furniture «ftnd i fleets, £220 ;" library, £500; rc»l estate snd other property, £18,193 17s 6J. The following is * list of- the unsecured

creditor^ : — Bank of New Zealand (calls on abarei),' £587 17s fid ; Friedlauder Bro». (A*hbur.ton), £441 9a 4d; J. Dathie and •Co. (Milton), £332 3s §d ; George - Morton (Waihao), £316 12s 8d ; Bruce Ohrißtie and Cgr ?O*maru);'£29ills; J. BUir (Oatraro>.^o9 10a 2d; New Zealand: Loan ap^eroantile Agency Company, £185 lr«Q P - Thomson (Maangatu*). £99 lftuj^"» Steam Company £93 Is- Mori' zso- a™ Hopkin, £84 2s ; Cifcy Corporatio*-,T**s-Iss J Thomas Brown,(ChrisfcIs 7d; Darling and Milne £45 15» 63 ; Freeman's Co*] .Company,^ 6s ; J. S. Allen (Caverßh&m),'£4o lßs Id ; J. Allan (Ontram), £34 la 6d ; T. Brown, * £39 12s 3d ; Otago Harbour Board, £31 9s 8d ; Smith, Chapman, and Sinclair, £8; Cju'Ub, Caning, und Co., £7 8s 6A-, Keilh JEtatnssv, £6 ,19s 9d ; Andrew Lees, £6 3a' BfJ; A. "Briicce aud. Co., £5 16a 3d; R. Hay, £5 ss; North Queensland Insurance Company, £5 2s 8d ; smaller sums, £i 8 9«jßd. v , ;- ;;• ;;• The principal .secured creditor is the Colonial , Bank of New. Ztiiijand!,'/in .liquidation); the*; debt, being -£64v074-' l4s Sd^andltheaecurifciesthe f olFe«ino-(tbe «(-tim*ted value* being -stated .dua-'e&h' cub) :— SfeOoiqd moictgago-oa .freehold. ; -property ■in ■Q^feailfirigißtre^tV.f^ef hold pro*' - peity f> 732,'6s leV; ' * freehold ■ property jn ■ Btoof •.jplaceV:' i w,it;iJi ' th.c 1 " building, known "as- "tKo ■ No*dl*rietr Hotel, '< £1830 *3s Bd;,' freehold farm/ containing] 164 acres, in thtT'Otepopo survey '"district 1 , * £1350 ; freehold farm, containing 270 aore;, in , the Glenomaru disfciict, £4250; 18 freehold sections, each containing sn eighth of .an acre at Muiselbnrgh, £1260 ; house and half-acre section at Littlebourne, £IC(XT; halfmere section' adjoining above (Littlcbourno), £300 ; hfcuso- and half-acre seofcion at Opoho, £450 ; .17 acres, with two houses and valuable urater rights, (Woodhaujjh), £5600; bouse and ' three-quarter-acre section (Oamaru), £800'; two quarter-acre 'sections (Dunoon, Broad Bay), , £120; ICOO thiires in the National Insurance Company, £1350. The other secured creditor is Mr A. C. Bread, whose security for a debt of £453 10« is a freehold property in Great King street', Dunedin, with a building thereon, the 'estimated value being £950. . ' JThe several .((ems which go to make up the total of £18, 193 17s 6d stt down on' the assets side for ljeal estate and other property, are the following:— One quarter-acre section (township of H&jes, North- Bast Valley), £100 ; Barewood gold mino,(Otago Central) l £15,000 ; 1000 shares in the Edina Gold Dredging Company (Ciutha, near Roxburgh), £1000 ; two shares in tho Mount Highla7 Syndicate (Hycle), £300 ; 500 shares, in the •Teviot Sluioiog Compsny (Pomahaka river), £500; 300 shares in the Victoria goldmine '^cklud), £70 ; 285 shares in the Dunedin ftt)9C§Eaikorai Tiam Company, £50 256d;"250 sharei in the Colonial Bank, . £125; 20 shares in the Bunker Hill Company ; (Auckland),, £10 ; one . fourteenths part in the', Bough Ridge 'Syndicate, £500 ; eight shares in • the Marshall-Syndicate (Auckland), £300; .100 "shares in the Newcaitle Shipping Company, £82 '104; 25 share* io tteOluthaFarmirs' Association, £65*; 240 .shires' in , the Rock and Pillar .Dredging, Company (Otago Central), £160. Important amendments were made on Friday afternoon to the statement attached by Mr J. Ryley, miller, to his petition in bankruptcy. Tho effect of these is to show an' increased indebtedness to the Colonial Bank of £12 770 on debtor's private account and share account, \ mad on tho other band the asssta are increased I .by £1100 for stcck on his farms at Calling and \ Otepopo and Port Chalmers gas shares. •

.' MEETING 0? CREDITORS. Re John Ryley. Tho first meeting of creditors in the estate of John Rylty (trading as R. Anderson and Co.). miller, Dunedin, was held at the official assignee's office on Monday afternoon. The following creditors, who had proved their claims, were present or were represented :— "Union Steam Ship Company, £9543 9a; W. Brown and Co., £46 lOs 6d ; A. C. Broad, £450 ; Bruce Christie and. Co., £78 7b 4d j D^Sntherland, £J3 8s Id ; Moritzson and Hopkin, £86 5s ;A. Briacoe and Co,, £5 Ms Id ; New Zealand Loan and Mercantile Agency Company (Oamarii), £183 Is 6d ; J. A. . Duthie and Co., £322 2* 6d : Oeo. Morton, £316 11« 8a ; Brown, Kwing, and Co., £39 12s 3d ; Friedlander Bros., £523 153 9d ; Bank of New Zealand. £5116 lfo 6d : Bank of New- Zealand for the Colonial Bank, £74,484 3s 6d; North Queensland Insurance Company, £5 2s Bd. . Mr Sim appeared on behalf of the bankrupt ; -Mr "Hosting for tj&e Bank of New Zealand; Mr Sinclair for Mes3rs Friedlauder Bros. (Ash- , burton);. Mr- Fraser. for. Messrs Bruce Christie And Co. (Oam'aru) : Mr Solomon for Mr George "Morton : Mr D.^eid for "Messrs J. A. Duthie and ! Co. {Milton); Mr AY. C. MacGregor lor" Messrs , M'Donald, I^urmester, and S win wick (Lawrence) ; . Mr Finch and Mr J. A: D. Adams for other .creditors , and.Mf Eaggitt to advise theassignee. The Assignee (Mr <X C. Graham)," after reading tie abstract of assets and liabilities in the estate, eald Mr Ryley had.taken a very exaggerated idea of the values of the securities, and "he (the assignee) was afraid they were not likely to realise what was' put down for them. The mill property, for example, was valued at £18,732, but

they could not expect to get so much aa that for I it. It was a very valuable property and had coat | a large sum of money, but the amount set down for it represented the hai\l and solid Cxsh tbat has bsen put into the mill, but a considerable deduction would have to be allowed on tbat. Further, the Newmarket Hotel was valued at £19.10, but was not liketyto realise that. The farm properties were all mortgaged to the bank, but ho (the assignee) had not -gone to the trouble of having them valued, and he was not able to say what the value vf those securities was, Then 1 here was the real estate, which was valued at £18,000, but that was purely speculative. The bankrupt put a value of .£15,000 on the Barewood mine, and if the attempt/to float that mine on "the London market snoulu prove successful there might be a very handsome a' set there for the creditors. They could only hope that it might turn out for the be3t. There were » whole lot Of shares included in the assets, and' he had had a valuation made by an expert. He was afraid there was not much value iv ttienir-certainly nothing Hkß what was down in the n ntement;-r"ut all that would have to be carefuJly panned out afterwards. The bankrupt had put in a statement as to the circumstances that had led up to the bankruptcy, aud this he would read : — " " I started business under the stvleof R. Anderson and Co. in the year 1890 with i a wH*g °\ about £7000. I attribute my J^rtnd the fact of my bankruptcy to the^wwing causes :- ««n\ The extr»« d| y high price at which Manor tilapo and woodhaugh mills wei'e purchased from r nfr oS?qnial B*nk-viz., £14,000. A valuation aken of Manor place shortly after iakinz possession put the outside value at £2000. When we commenced to dismantle the mill to prepare it for the roller plant we found the building in an advanced state of decay, and,' as I often told the j bank authorities, it would have been batter for • us if there had not been a stone on the section, for every practical man knows when you bejin to ■ 'alter a dilapidated building the cost i 3 often greater than in the erection, of a new one. "Tho older stone mill on the Woodnaugh property was burned down some years ago. The bank got the insurance (£1100). Since then the property has been bringing in^hothint; with which to pay either pi incipal or interest. , , • " (2) The year we started business I was induced tolease from, tha Colonial B ink the Green Island mill, which had fallen into their hand*. The machinery prov.ed to be bo old and v done that the i flour manufactured was unsaleable, 'and we ware forced to^hip to the other side. The consign- t menta proved very disastrous. . We had heavy Btocks in Brisbane at the time of the great flood, arid Iheiesulf wasialm'os't total loss.". We suffdfe.d, too, by*th<i mißhap whicU .occurred to the schotfiief Laira-to tlic.extetrt'of £SOO. In. addtion 'V-all thiaf, a shipment of oat'B to. London, in which we -yrew interested," tit rried otit;unfaVutieably. ■ "(3) -We 1 were veiy ucforttivato' in tlje year in which we^tiirled'bUßineßS.' ;At i>hat : 'time prices were very-high: ,., WHeat "touched' 5s jjer bushel, -andflotir 'reached £l3'p.ev ton; -" At i,he."eiid of the season we were* left with heavy stocks on hand, and before they ware cleared off, flour receded to £9. -From tbat period down to last season, there was a steady drop in prices, at.d every "miller know* what' that means financially. " From fliese facts it will be seen that we have • been heavily handicapped from the beginning, j On the mill account alone we have paid in interest aud discount over £17,000, or at the rate of between £3000 trid £4000 per annum. Although the business is one of the best of its kind in the colony, and has been doing well for the last year or two, owing to the keen competition of. the trade it is impossible for it to bear the heavy charges to which I have just referred. About the time the UolouiaJ Bank was S)ld the Newmarket^ Hotel was handed over to me. This helped to* Bwell my indebtedness to the bank, and entailed a lots in interest. - " (4) Feelrag the heavy liabilities resting upon me, I was tempted to 'invest largely in mining ventures, hoping thereby to asist the business, but the reverse has proved to be the case. There is one miniog property, however, in the estate which, if life Bink of New Zealand would take up, might be floated on the London market at the present time for £20,003 or £)o.floo. I refer to Barewood. Mr Caiman went down the shaft of this mine, and declared 'it was the best reef he had seen in Otago, 1 and, on behalf of the Government, promised the. sum of £500 to assist in putting a tunnel in from the river. " (5) Unfortunately for me, I have been a large shareholder in the Bank of New Zealand, and al*o in the National Mortgage Company. My connection with these two mHtitutious involved me in a loss of not less than £6000." He (the assignee) might mention that, on \he 35th, two days prior to the bankruptcy, the Bank ' of New Zealand st<ippad Mr Ryley's credit, aud on the 17th they took possession of ,the- mill under, their mortgage. ' ''Prior to 'that, the bank had instructed Messrs William Brown and Co. to go ,' .into the accouuta. and prepare a statement, -aud i they had handed in Mr Brown's report anu the accounts from which it was made out, and it 'showed a very unsatisfactory state of things. It wa» found that the amount of interest to the bank accumulated in the last four years was something over £19,000, or at the rate of £4500 a year. Further than that, there were drawings by Mr Ryley oa his private account, for bis speculations, of about £20,000. They might say that £40,000 had been drawn in the last four years— at tho rate of £10,000 a year. The tnilling buaine&a had been heavily handicapped by drawings extraneous to it, and that had no doubt in great measure led to the present position. The Bank of New Zealand had of course taken over tho account from the > Colonial Bauk— the account having been in list " B "—and they had to realise it to the best advantage. Mr Hosking, interposing, kdH the realisation would not be at thu rule of the Bank of New Zealand, but was really for the Culonial Bank. The Assignee, continuing, said th*t under a mutual arrangement with Mr Michie, of the Bank of New Zealand, he had decided to carry on the mill to the 13th July, and in the meantime he tfas calling for tenders for tho mill as a going concern—he had advertised it thoroughly from Auckland to Invercareill, believiDg tbat that was the best course to adopt in the interests of the creditors. With reference to the stock, he was not attempting to cut down prices in the meantime, but was selling the stuff he was gristing at the prices of the Millers' Association, and he had in stock sufficient to enable him to carry" on the business up to the' date of the acceptance of the tenders. As to the properties in the hand* of the Bank of, New Zealand, Mr Michie had told him that he was willing and anxious to pull with him in every •possible way co tint they could realise everything to the best possible advantage. Sundry claims had been made on the estate which, under advice fiom Mr Huggitt, he had hean obliged to refusa to acknowledge. For iqt-tanc:;, there was a plavm in respect of grain which wns ndld immediately brfcfre the bankruptcy and taken info htock, but of course he could not recognise any special preference there. Another special claim arose out of a sale by Mr Ryley of about 120 tons of flour on delivery terms— cash was paid, and the flour was to be delivered as requird. The warrants ware supposed to have been issued at the time, but they vrexe not— they wore, practically, not issued by Mr Ryley until the 17tb, or two days after his credit bad been stopped by the bank,— and under the circumstances he (the assignee) was advised

I that the creditors had no preferential claim other and above the general credit >rs. Neither had delivery been given nor did ho acknowledge any special liability in-the matter. Then there was a small claim on a, trust account which, Mr Ryley informed him, would be satisfactorily suttled. It was for a small amount which, should have been put into a trust account, but Mr Ryleydid not expect this " burst up," and so it was put into his ordinary account. Mr Solomon, representing the trust, asked if the Bssignee's solicitor advisod that that amount could be appropriated for tho use of the creditor.*, afsuming that Mr Ryley did not liquidate tho claim. ' • 1 The Assignee ivp!ied that he was advised .< N at the claim would not be a preferential one. « was only a small sum. Mi Solomon said the total r«im was £03. The que.tiou was whether „>*, belonged to the estate. The Assignee said Mr rfaKKikt advised that he could not recognise but Mr Kyley had, ashe had' saW.> ri 'a n fied with his friends to "square" tha* clainv . . Mr Solojfcoa Ba W eWM instructed also to ask if the assignee could supply a list of payments p.«Jo fey the- bankrupt within a week or 10 days •of his" bankruptcy. The Assignee : I have a list. I may state that Mr Haggitt and I have discussed the matter and, .as I am at present advned, it is probable that steps will betaken in connection with a numbor of the payments made within that time. The matter is not being lost sight of. - ! Mr Sinclair: With regard to this grain which j you say was in stock at the date of Mr Ryley's bankruptcy, a large portion of it, I understand, is grain which was supplied byjfarniero and others, > and this his been taken into stock and not been ' ptfd for. Do I understand tbat you are gristing that for the benefit of the shareholders of the ' Colonial Bank. I The Assignee : If ihe claims of the farmera are substantiated, I may have to pay. ' Mr Hnsking said the shareholder* of the Colonial Bank were not benefiting. They had nothing to do with it, and 'had not interfered. Mr Sinclair : They are large creditors and are getting the benefit of it. ' The As«ignre *aid there were claims firm the Colonial Bank claiming all the grain in-the place uuder warrauts givon by Mr Ryley some time J previously. That claim he was treating like the 1 other special claims. Mr SincUir said the bank mu3t have known tint the wheat would.not be:paid for unless they supplied the money.' ■ , '' ' The Assignee said, he was > advised that, the ■Coloniiil.Batik had no special claim. . / " Mr W. C. MaqGregor:' The same remark' appljca to "the flour sold tothe unfortunate bakers? The ■ Assignee said he pum advised "by ■Mr Haggitt . that - those , creditors had no special ■ claimf' \-' - /.' ' ' .• . • -Mr Mac&regoV: Aud that £our is to, be sold again after having been sold to these bakers ? The Assigaee : Yes. Mr J. A. I). Adams: Is it a fact that some of those wh,o paid their money had flour appropriateJ to them and delivered and others had not? '■ The Assignee said that at the time of the sale a ' sale note was made, but the warrants ware not ■ made. The warrant* were simp!.- a fagon de parler. Two days after his credit was itoppe.l Mr Ryley made out the warrants and "put the flour aside afcd had it specially branded, but that was a fortaight after the sale. ' ' ' Mr Adams : Is it a fact that some of those who paid forflour h.ave got their flour delivered ? , The Assignea : Not to my knowledge. Noteiace > the petition was filed. Mr Adams : Bafore the petition was filad ? The Assignee : Not that I huve heard of. lam not aware of any. I shall be glad if you will give me any information you have. If any ha* bee*u delivered that will come into the same category as certain payments made wilhin the last few days of bankruptcy, anrt that will be lpoked upon as a fraudulent chum if it can bcestablishcd.

Mr Adams : lam instructed that it nan be established Whether it can be proved or not is another matter. Mr Fruser (to the assignee) : Have you considered the possibility of holding the Colonial Bank liable a 8 carrying on the business in a joint account? Have you taken the advite of your solicitor on the subject ? The Assignee : I have not done bo. I may mention* here, with reference to th« <. oloimhl Bank's name bein^ used in connection with the estate, thai I have before me a copy of a babiice sheet that was prepared by Mr Ryley and bunded over to the Colonial Bank on October 31, 1895. . L may state 'that Mr Ryley has not had his books properly- balanced for the last, four years ; but on October 31, 1895, at the request of the | Colonial • JBank t -he , prepared a balance Bheot. •This showed his liabilities to be us follow :-f ' Bisk overdraft, £29,59:5 ; bank property account, £10,850; building account,- £18,535; grain account, £20 651 4s Ed ;— tot«l liabilities, about £80,01)0. The assets are shown to be :—Stock in'- :- trade, £44,989 ; book debts, £fi3Bi ; Manor place property, £24,088; Woodhaugh property, £5928; bills receivable, £225 ; shares Newcastle Shipping Company, £82; horses, harness, and waggons, £600 ; unexpired premium, £200 ; cash in lund, £B;—total8 ;— total assets, £82,505 There is thus a balance in favour of assets over liabilities of £258.). This balance sheet is certified to by Mr A G Fcowicfe In the following terms : " I beg to certify that I have compared the above statement of assets and liabilities with the books of R. Anderson and Co. and Had them correGtly transcribed. I have -accepted the certificate of the storeman for the stock-in-trade." There waß also a certificate of the storeman showing that the total value of the stock and everything in hand was £44,5)3!). It will be a matter of research now to find out where that stock has gone to in that time, because it is nine months ago. Mr Sim : You have read that balance theet, but you cloa't know the circumstances under which it was prepared. It was prepared by Mr Ryley at the request of the Colonial B*nk. One wants to know the circumstances under which it was prepared before quoting it against Mr Ryley. The Assignee : I have read it out for what it Is worth. It was put into my hands. Mr Fraser : What is the point of it? The Assignee : The point is that there was £15,000 worth of stock nine months agr>, and to all intents and purposes it has absolutely disappeared. It is one of these thiugs that requires investigation ; but if Mr Sim thinks it advisable Mr Ryley can make a statement with regard to it. Mr Ryley : 1 am quite prepared when the oppor. tunity is given me to Explain the whole facts in connection with that balance sheet. I kept nothing back from tha Colonial Bank. 1 was requehtiii to prepare a bahnce sheet to present the thing in the best nspoct I could, as th« bank was goiug over to the Bank of New Zealand, and 1 put in everything I could. Mr Solomon : Who requested that ? Mr Ryley : The manager. Mr Solomon : What gentleman ? Mr Ilyley : The gentleman who was manager of the Colonial Bank at the time. Mr Michie : That was Mr Swing ; and I have hit authority to deny that. Mr Ryley : I am prepared to state on my oath that that is correot, and I am also prepared to

give any evidence and to "go into the whole thing now. Mr Solomon : Do X understand'you to say that the balance sheet put in there is not a true balance sheet? Mr Ryloy : I believed at the time that it fairly represented the state of my account— of my assets and liabilities ; bnt there are assets' not men tioned the c which I offered to put into the balance sheet, but was prevt nted from doing so. Mr Solomon : You say the bank manager asked you to put in a statement of your accounts showing your position in the beat possible manner 1 Mr Ryley : Yes. Mr Solomon : Does it show the position in the best possible manner ? Mr Sim advised Mr Ryley to decline to discuss the matter with Mr Solomon. The Assigaee thought it was a fair question to ask. Mr Solomon .• The whole point is : Is the balance sheet a true balance sheet ? Mr Sim : How can that affect your client? Mr Fraser : If there is to be a public examination would it not be better to postpone the question at present ? < Mr Solomon : I want an answer tomy quepyon. Is that a true statement of your affairs on that day. Mr Ryley? _*' Mr -Sim : 1 have advised M«.v Rj'l«y nofc to answer Mr Solomon's quest'«n- , Mr Solomon said he vauld ask the as3tgnea to ask the question. } . . Tho Assignee' When that balance sheet was made out br you at the request of the Colonial Bank, \v*!f it put i° as a fair and straightforward aci'O»*it of the'state of your affairs, or was it what jp vulgarly termed a bogus balance sheet ? Mr Fraser : Or optimistic? The Assignee said perhaps that was a better, term. Was it optimistic or highly coloured ? Mr Ryley : Well, I shonld think I would look upon it as highly-coloured balance sheet, because I was re questoi to make the best show I coulil. Mr W. C. MnoGregor : You were requested by the bank to keep somsthing out of th« balance sheet? ■ • Mr Ryley :- Yes. - I Mr MacGregor : What was that 7 Mr Uylev : Mining stocks. Mr MacGregor : So your mining speculations do not appear on that? Mr Uyley : No. Mr MacGregor : Was that at the request pf Mr Ewing too ? Mr Ryley : Yes. • / Mr Michie: Mr Ewing requests me to deny that The Assignee : If your mining stock had gone in it would have swelled your assets, would it not? . Mr Solomon : It shows he was speculating recklessly. Mr Adams : I presume, Mr Arsig^ee; this examination would only be relevant if Mr Ryley had got any credit on tbat balance eheet ? Mr MacGregor : Did that show you' mining stocks ? Mr Ryley: The rough balance sheet that was submitted contained certain mining stocks Mr MacGregor : And you say afterwarle, at tho request of Mr Ewing, you made out another balance sheet? Mr Ryley : That balance sbeefc was return 1 , d aDd another balance sheet substituted for it. The Usignee : Have you the balance sheet that yon originally prepared ? Mr Rylny : Yes ; fortunately I have a copy. The Assignee : You will be kind enough to let me have tbat. Mr Ryley: Yea. The Ass : goee : What did you value your mining stock at? --„'■ Mr Byl«y : I don't remember exactly, bu* X told the'maoager that- 1 hud a" lot; of, mining stvek. which I was prepared to put iv, and I put o me : in.' • ' '. "' i • Mr Sim: We will produce 'that to you, ,¥r Graham". ..'.... . : Mr Frsser; T thin}: It is only fair to.ask the bankrupt* whether he got any cifilit ionliisbalanca. Bbeeti*any additional credit.', •-^ „ Mr Uyley : I may say no. The account ha? been reduced £20,000 since thftt balance *heet. Mr Fraser : That is the whole point. Mr Ryley : T think that is correct, Mr Michio. Mr MicniV ; It has beeu reduced considerably. Mi 1 Broir! : ll(l l(i t. me ask if any Colonial B*nk officials cv i eutered into speculations in grain with him.- (Laughter.) It has been said about town thut. some of the gentlemen in th^jiay of the Colonial B*nk profited by speculations in grain with Mr Ryley, and that the profits that' should have gone to the Colonial Bahkw^nt into the pockets of the officials of the Colonial Bank. I think that question should be answered. Mr Rylay : II 11I 1 have the gro te^t pleasure in amweiinij that qua tion, and give it an emphatic denial. In 'justice to the Col jnial Bank, I wish to say that they never entered into any speculations along with me. MrF. Coull moved that the bankrupt have his furniture aud watch returned to h'in. The speaker's firm were small creditors, but they had had a large business with Mr Ryley in the past, and it had beeo of a very satisfactory character. The Awigree siid he had n t had any valuation made of the furniture, but Mr Ilyley put it down as being worth £200, and tbat being so, it was oub of the power of the present meetiDg to vote it, without its being confirmed by a ipecial resolution -which would have to be passed by creditors representing three-fourths iv value at a subsequent meeting. The meetins could, however, grant Mr Ryley his watrli if they chose. \ Mr Hoskms said tho position of the Batik of New ' Zealand wa» that they were trustees of a debt, and they had to abide by, the directiouaof the liquidators of the Colonial Bank The liquidators were notpresent. and itms impossible for the Bank of New. Zealand to do. anything in the meantime without, their concurrence If it camf.therefore, to a question of voting anything beyond what the act authorised, Mr Michie, as representing the Birnlc of New Zealand, would have to vote sigatnit it. The Bank of New Zealand'themselves did not offer any objection to the motion, but, as trustees for the liquidators of the Colonial Bank, they had to act strictly in accordance with instructions. • > Mi 1 Coull thereupon withdrew his motion for the meantime. Mr Adams said there was one matter which he thought it was his duty to present to the creditors. There were some small meu who had paid for flour in advacce. It was a small mat er in such an estate The Assignee observed that it waa not su-h a small matter, for there were over 100 tons of flour at £9. It was a matter of £1000. Mr Sinclair said the purchasers in question were in precisely the same position as the merchants and farmer* who supplied the wheat Mr Adams : It is not a similar case »t all. Mr Solomon said the cases were similar. In one case they gave money to get flour and in the other case they gave wheat to get money. Mr Fraser remarked that the Bank of New Zealand being present at the meeting in a fiduciary capacity, it was impossible for anything to be done in the meantime. Mr Adams : The Bauk of New Zealand might very well put that before the Colonial Bank. v The Assignee said that and any other question could be brought up for consideration before the distribution of assets, which was not likely to be in the next fortnight. The tenders would be rc-\ ceived on that day fortnight, and it would principally be a matter for consideration with the bank whether they should be accepted or not. As he had said before, he was not attempting forced sales, but he was selling merely at current rates. Any stcck on hand the successful tenderer would take over at market Co3t. Mr Finch : Are you including in the tenders the stocks that are marked ?„ The Assignee replied that be was treating all the stock ou hand a 9 one general stock, merely regarding himself as responsible for their value. ITe was doing that without prejudice to the fact that these flours were specially bianded on the day on which he took possession. Mr Darling (Oamaru) : In the meantime, what allowance is to be made to the bankrupt? The Assignee said that was a question for the creditors to consider. Mr Darling thought soma allowance ought to be made. Mr Reid (for Messrs J. A. Duthie and Co.) moved that the bankrupt be allowed £6 a week— the allowance he had been in the habit'of drawing—to the date of the next meeting.

Mr Darling seconded the motion which wu carried unanimously. - „ - ! .„« The meeting was then adjourned until the 14th' July.