MEETING OF CREDITORS.

Otago Witness, Issue 2240, 4 February 1897, Page 12

MEETING OF CREDITORS.

Re S. R. Stedman. A meeting of creditors in the estate of Samuel Richard Stedman, cycle expert, of Dunedin, was "held at tho official assignee's office on Saturday morning. Mr Solomon appeared for the bankrupt, Mr Fraser for Messrs Duthie Bro». and J. M'Donald, Mr Thornton for the National Bank, Mr Sim for the Austral Cycle Agency. Mr B. C. Haggitf was in attendance to watch the proceedings on behalf of the official assignee. There were also six creditors present. j The bankrupt's statement showed his liabilities to be £1271 84 9d, and his assets £450, ' there being an apparent deficiency in the estate ' of £821 8s 9d. | The following are the unsecured creditors : National Bank of New Zealand, £66 ; George Esther, £107 12s; Austral Cycle Agency, £210 ; Duthie Bros , £32 ; Standard Insurance Company, £24 8s; Dr Jtffcoat, £15 ; J. Duthie and Co., £11 16s 6d ; J. M'Donald, £9 6i9d ; Smith and Smith, lls ; E. Towceend, £1 2g ; J.Hogg>, £1 2i ; N. Sievwright, £1 ; Sievwright and James, £2 9s 6d ; Ceylon and Indian Te* Association, £2 ; F. L. Jones, £1 17s ; Mrs Stedman, £775 8». The .assets consist of furniture, £30 ; an electric light plant, £400 ; and a third share in a pn«umatic billiard cushion patent, £20. The following written statement of the bankrupt was read by the Assignee :—": — " I started business in Dunedin as a cycle importer and repairer in July, 1892 I had no money of my own, but borrowed £275, for whioh my wife became security. In June, 1893. I had a com-

munication from Mr E. W. Rudd with reference to opening an account with his company —the Austral Cycle Agency. In • October, 1893, I started fo receive goods from the Austral Cycle Agency, and did about £1000 worth of business with them. About this d»te I borrowed £170 from R. M'Kenzte, and about £500 8s from my wife. In January, 1894, I had .some difficulty in ; meeting the Austral's bills, and about February, 1894, Mr Rudd came over from .Melbourne and mude arrangements to take over my business .on behalf of his company. Tho amount paid for stock, plaut, &'-., was £270 15s Bd. From this had to be deducted amounts owing by me to tha Austral to the extent of £162 15a Id. I came out of this business with about £450, consisting of cash in hand, book debts, and second-hand machines. The money borrowed by It. M'J£er.zio was repaid, but my wife received nothing, so that I lost about £300 during the time I was in business. la October, 1894, I 'started erecting an electric light plant for the purpose of lighting the premises oocupied by Duthie Bros., Joho M'Donald, and the Austral Cycle Agency. This proved to be an unprofitable investment, as I was greatly misled by the electrician who first had charge of the work, with the result that my oontenct wi^h Duthie Bros, was for considerably less than half of what it really should have been." In reply to questions with reference to an.amount of £80 that had been paid to the credit of the bankrupt's" private account, bank- - rnpt said the amount waa a payment made out of the Austral Company's account by the manager of the bank; It was done without his (Sfcedman's) authority. Mr Solomon : That is hardly fair to the bank. Mr Stedman was personally indebted to., the bank, and, as manager of the Cycle Company, had, an, account at the bank in credit. The bank induced Stedman to sign a promissory note, and the bank got that amount debited to the Austral Cycle Company, and credited; to Stedman'a private account. Me Stedman t»as not awara of what the legal effeofc of that was. ' ' ', The Assignee : Was this signed by Mr Stedman in his private capacity P .Mr Solomon: No; as manager of the Cycle Company. . The transaction has really been j most advantageous to the present creditors. But for it the bank would have proved for £80 mote than they have. v ■ Mr Sim : The Cycle Company will see to that, and will fight the bank for it. The Bankrupt, on being examined by Mr Eraser, said that he had been working for the Austral Cycle Agenoy as manager since February, 1894. For 12 months he was paid a salary of £2 15s a week and got a commission of H- per cent, ou all sales. Then he was paid £3 with 5 per cent, commission on the net profits. He made £84 in commission with the former, but nothing with t the latter arrangement. The machines wera sent over to bankrupt, and were charged to the Duneiin branch. Remittances by draft were made every month to Melbourne. The expenses of the agenoy, including salary, swallowed up all the profit made on the machines. The books of the Austral Cycle Company were properly kept, aud were in the hands of th°. company. A cheque drawn on November 6, 1895, for £90 16 1 lOd was money taken from his private account and transferred to the business account, the money beiog borrowed from the business account Ib was done by the clerk. He (bankrupt) was no bookkeeper, and knew nothing about fluanca. Up till 15 months ago be had been paying 15s a week rent for a private dwelling housa. Since then he paid half the -rent of a house, which cost £91 a year, his mother-in-law paying the other halF. He gave all his wages to bis wife to keep house with. He could not say what his expenditure was. He was geltiog £40 a year for lighting Dufchio Bcos.'s premises by electricity. The .electric light plant cost £406. and it had all beea paid for. He had also paid back R/ M'Kenzie £170. The £198 owing to the Cycle Agency was for gooda and cash not paid over. He had not kept books, and when he 'paid R. M'Keczie he had no other debts. Tho debts were incurred in 1894. Hi» hope of being able to pay off hta debts wan the electric light plant. Tae plant paid 10 per cent, interest on the outlay, but he had no chance of getting his money out of ib. He was not in a position to make any off dr. Mr Solomon said Mr Stedman had no wish to file, but ho was forced to by some of his creditors pressing him. Mr M'Donald said he and Mr Duthie wished Mr Stedman to cill a private meeting of creditor*, bub he would not do it. He gave them "cheek," and said he would rather protect the Austral Company than his 1 creditors. The Bankrupt, in reply to further questions, stated that the Cycle Company claimed agftinst the electtic lighting plant. He (bankrupt) had written to the company telling them that the plant was there for security against what he owed them. He had done that within the last 12 months. The £250 he hud gob from Mr Qeo<-ge Esther had been paid into the business account. Ho gave a bill to Mr Esther for the amount, which was endorsed by Mr B. Dathie. He paid Mr Esther £LO7 10a, and got back the first bill and gave a second, which was not endorsed. He was able to pay the money to Mr Esther out of £120 he -got from the-Maori Tyre Company. He had a 6hare in 1 the Tyre Company, aud after the payment of \ £100 odd it still owed-him £50, and (his portion he sold to Mr B. Dubbie for £50. That £50 went to reduce the overdraft at the j National Bank. Mr Edge, the Cyolo Com- . pany's representative, was at present "in Inver- ! cargill, and would be in Dunedin that night. i The Cyole Company had in a letter accepted ; the electric plant as a security. > Mr Sim : This in the first I have heard i of ■ ' this security, but it will be looked into, and

i the Aiutral Cycle Company will, if necofliary, ; au?»'iid their claim. i Mi- Solomon : I alwsj.-, uurstood that the . electrieti plant was a I'ree asset available for tho creditors. Tho meating waa then adjourned until Tuesday at 2.30 p m. in order to admit of Mr Edge being examined.