THE HON. J. G. WARD'S BANKRUPTCY.

Otago Witness, Issue 2263, 15 July 1897, Page 34

THE HON. J. G. WARD'S BANKRUPTCY.

FIRST MEETING OF CREDITORS. (Feom Ode Own Cokeespoxdent.) Invercargill, July 13. The first meeting in bankruptcy of the creditors in the estate of the Hon. J. G. Ward ttbs held before the deputy assignee here this afternoon. The Deputy Official Assignee read the debtor's Statement, which, was as follows : — Liabilities to unsecured creditors, £31,265 14-s 2d ; liabilities s to secured creditors, £86.926 16s Id, less the estimated value of the securities, £45,510 153 lOd, leaving a deficit of £41,416 0s 3d ;— total debts, £72,681 Us sd. Assets : Cash in hand, £70 ; furniture, £200 ;— total assets, £270 ; deficiency, £72,411 14s sd. The secured creditors are : Bank of New Zealand, Invarcargili, £7211 14s lOd (secured by sundries valued at £7211 14s lOd) ; Bank of New Zealand, £17,000 (secured by the faoe value of Nelson Brothers' shares, £18,000) ; Bank of New Zealand, £55,150 (secured by equities of £3000 and the surrender value of a life policy for £300) ; Scottish and New Zealand Investment Company, £3500 («eoured j hy mortgage over land and buildings, j sections 14 and 19, block I, Dee street, valued ; »t £3500) ; Mantell's executors, Dunedin, £1200 (secured by mortgage over land and buildiugs, part of section 20, block I, Dee street, valued at £1200) ; Maitland's trustees, Dunedin, £2065 (secured by mortgage over land and buildings, lection 1, block LXXVI, Crescent, valued at \ £2065); Bank of New South Wales, Inver- j cargill, £800 Is 3d (secured by mortgage over I fche Tramway Company's stables, inc., valued at ! £800 Is 3d). j The unsecured creditors are: J. Q. Ward ! Farmers' Association (in liquidation), calls for j shares, £30,400 ; Oliver Samuel, New Plymouth, solicitor, £350; J. B. Reid, Christchurch, manager, £100 ; A. Lea Smith, Dunedin, £120 ; Walter Henderson, Inve> c wgill, merchant, £18; Watson and M'N&b, Invercurgill, ', solicitors,' £6 6s; William Craig, Invercargill, i printer, £10 ; W. S. Waters ton, Invercargill, merchant, £5 ; W. Hishon, Lime Hills, farmer, j £5 ; John Looney, Lime Hills,- farmer. £5 ; N. Johnson, Invercargill, hotelkeeper, £5 ; J. F. M. Fiaser, Dunedin, solicitor, £15 153 ; Ward Farmers' Association (in liquidation), Invercargill, £207 14a 2d ; R. J. B. Yule, Invercargill, dentist, £7 7s ;— total, £31,265 14i 2d. • N The Assignee said the best plan would be for j Mr Ward to make a' statement. It would be ; better to le&ve the sentimental and moral aspscb < to be dealt with when Mr Ward was examined before the higher court. The business of that meeting was to see what could be done for the benefit af the creditors, Mr Howes (representing the liquidator of the J. Gt. Ward Farmers' Association) asked if any other 'accounts than those contained in the statement had been filed with regard to the debtor's receipts and expenditure, stock-taking, and profit and loss during the three years prior to the bankruptcy. On the assignee replying in the negative, Mr Howes said it was his duty to propose a resolution. As it was thought in some quarters ' that more particulars should be forthcoming, he moved the following resolution :—": — " That the debtor be requested to prepare and deliver to the assignee at his public offics, before the 3rd day of Augast, 1897, or within such reasonable time as may be fixed by the deputy official assignee, fall, true, and particular "account! and balance sheets showing the particulars' of his receipts and expenditure, of his stock-takings, and of his profits and losses during the period of three years before the commencement of the bankruptcy, and that the deputy official assignee be requested to give the necessary notice, and to take the .necessary steps for carrying out the resolution, and that the meeting be adjourned to the 6th day of August, at 2.30 in the afternoon, to enable the deputy official assignee and the creditors to examine and consider such statements." Mr Keith Ramsay (representing the liquidators of the Colonial Bank) seconded the resolution. Mr Macalister asked if was not an unusual course to propose such a resolution before Mr Ward had made his statement. Mr Ward was there and could furnish information. He asked if such a thing had ever been done before. The Assignee replied that it had not been done until a debtor had made his statement. Mr Howes said that ib was to enable the examination to be conducted on proper lines, otherwise there was no opportunity to examine the particulars. Mr Macalister said such a course was absurd. The debtor had got his balance sheets there to satisfy the meeting. There were a good unmber of creditors there, and perhaps they might not be able to get a third of them on the 6th August. Mr Howes said he had no objection to Mr ( !Ward making a statement, but they were well within their rights in moving the resolution ,that they might have an opportunity of considering the particulars asked for. Mr Ward* said that in view of the unusual ' <course that was being adapted ha did not propose to make any statement until the'resolution bad been dealt with. They had no right to see his private balance sheets. Before* he got into trouble his bankers were regularly furnished with his balance sheets when he was in business. He had his balance sheets with him at the meeting up to the time he gave up business. ' Mr Macalistor said all the act required was that a statement should be filed within three days of the bankruptcy. Mr Keith Ramsay said the liquidators cf the Colonial Bank were acting with

the liquidators of the Ward Farmers' Association in this matter, and it was necessary before they could come to any ; decision that they should have fuller particulars than those already set forbh. They were not furnished with the particulars necessary before dealing with the large liability, whioh to the Colonial Bank alone was £60,000. It was no hardship to Mr Ward to .adjourn for three weeks. This was nothing like the delay which had been caused through Mr Ward's own actions. It was now 13 months since he had filed his affidavit in the Supreme Court, which showed he was insolvent, and he had taken all this time to make up his mind to seek the Bankruptcy Court. Mr Howes and himself repre- '. sented the largest creditors, and it was not asking too much for a delay of three weeks for further information. Mr Ward desired to refute Mr Ramsay's statement that the delay was prolonged through his own actions. The liquidators of the Colonial Bank had twice submitted proposals to the court recommending them for its acceptance. I The last offer for purchase of his private 1 esfcata was only dealt with by the i court within the last six weeks, and pending that decision ha had only done as any other man similarly situated would do — namely, he had done all iv his power to avoid filing. He, therefore, did not think it was fair to throw the onus of the delay upon him. Since he knew that filing wa3 inevitable, he had filed in a reasonable time. Mr Ramsay said he would like to assure Mr Ward that neither himself nor the liquidators of the Colonial Bank had any desire to act unfairly to Mr Ward, bub it was a long time since the refusal to sell to Mr Lee Smith and Mr Reid, and there had been some time since the refusal to dispose of the private estate. The delay asked for now was reasonable. Mr Ward said he was not fault-finding or I blaming the liquidators of the bank in any j way. He had no doubt they did what they I considered their duty. But he did not wish it to go forth that his bankruptcy had been purposely delayed for the mere sake of delay, as that was not the case. la addition to the offer for his private estate segotiations on behalf of the farmers were also going on in the endeavour to rescue the Ward Farmers' Association from final liquidation, aud, as a fact, an offer of £23,000 had beaa made for the estate of the Ward Farmers' Association, and at the same time the payment of its English creditors, which would have relieved the '• Colonial Bank from, two actions now pending, j involving some £14,000. Every effort had been exercised in the interests of the farmers to I extricate' the association, and until complete ! liquidation was inevitable he left no stone un1 turned to do this, and this necessarily involved i delay. Up to the time he ceased business he had complete balance sheets, and he had them now with him, and, whatever the result of this resolution, those balance sheets would be produced when necessary. The books of his firm were complete and carefully acd properly kjpt. In reply to Mr Macalieter, j The Assignee said he had seen the books and ' they had been well kept. He had _gone ' thoroughly into the assets and liabilities, but not into details. He had only gone into the present position. Mr Macaligter asked if Mr Howes had seen all the papers which had been filed with ths assignee. Mr Howes said they had besn all inspected before the resolution was prepared. Mr Ward said that his private balance sheets had always been given to the Colonial Bank, and he presumed the bank was perfectly aware as to his private position up to the time of his forming the Ward Farmers' Association. If the liquidators had not got them that was nob his fault. He would willingly have furnished them. . ! Mr Howes said it was of tha last three years j they wished particulars, while Mr Ward was 1 connected with tha association. ! Mr Ward said he had nob baen in business on his own account sines December, 1892, when the association took his business, and his operations since were kept in the books of the Ward ' Farmers' Association. A business balance sheet as required by the resolution could be furnished covering the tims he was in business. Mr Howes said the debtor could give statements of receipts and expenditure from that period. Mr Ward said he could do that, but the reso- j lntion went further. j Mr Waterston asked if the voting went by j value. The Assignee said the mover and seconder could carry the re&olubion. Vobing was by valne. Mr Harvey said he could not vote, as the bank had had no time to value the securities, ■which were numerous. Mr Ward asked Mr Howes whether any j charge would occur if accountants desired to go ' through the books of the association. He was j willing to give all possible information, but he j could" not, as was the case on a previous , occasion, pay a charge of 5i per hour for in- i speeding the books. Mr Howes said any access that was desired to the books would be accorded. Mr Ward : What I desire to know is will that be granted free of charge ? Mr Howes pointed oub that where necessary the assignee had power to incur expense which would come oub of the estate. Mr Ramsay said all they wanted was a state- j ment of receipts and expenditure for the three i years before bankruptcy — i.e., from July, 1894, to July, 1897. Any assistance that the liquidators of the Colonial Bmk could render would be readily afforded. 'Mr Ward was quite willing to furnish the fullest information he could. He thought he might have been allowed to make the usual statement in the first instance at this meeting. The resolution was then put to the meeting, Messrs Ramsay and Howes voting for it, and Messrs Waterston, Johnson, Looney, Hishon, Yule, Henderson, Craig, Mac&lister, and Lee Smith voting against it. The Deputy-assignee announced the motion carried by value, and the meeting adjourned to August 6»