MEETING OF CREDITORS.

Otago Witness, Issue 2905, 17 November 1909, Page 21

MEETING OF CREDITORS.

HOTJSLKEEPER'S BANKRUPTCY. CFbok Qua Own- CoßassroNDiarr.)

J INVERCARGILI^ November IS. A meeting of creditors of interest to ; some Dunedin people was held here to-day. J It was concerning the bankrupt estate of s Jas. M'Dougall, hotelkeeper, Lumsden, and ■ was attended by Messrs G. Johnson, T. J A. Henry, A. R. Porter, Jno. Moffett, and j A. Moffett (representing W. J. Moffett and i Co.). Mr "John Moffett professionally rei presented bankrupt, while Mr J. S. Neayo I watched proceedings on behalf of Messrs | Moffett and Co. Mr Eustace Russell was present as agent for Mr W. L. Moore, who "was solicitor for Mr Millar (Dunedin). Mr Russell asked if the meeting could not be adjourned, as Mr Moore was on the express, and would have been ab the meeting had the train not been delayed at Mosgiei, bo that it would not reach Invercargill till 4 p.m. He understood that • it .was a matter of great importance to j Mr Moore, as there was some contest between him (on behalf of his client) and Messrs W. J Mofftett and Co. as to whether the lease had been terminated. Mr J. Moffett questioned Mr Russell's status, as Mr Millar was not an unsecured creditor, and had lodged no proof of debt. I The Assignee said that the matter lay with the crcdi'ors, who thereupon intimated that they desired the meeting to go on. *• Mr Russell retired. The statement of assets and liabilities showed that the liabilities amounted to £311 7s 6d. The assets were £148, the deficiency- being £163 7» 6d. The assets comprised : * Stock in- trade, £55 ; furni■turo. £20; property (three horses £50, and an express £10), £60; book - debte, £30 (estimated '-to produce £10) ; and cash m

hand £3. William Millar (Dunedin) was a secured creditor to the amount of £682 The unsecured creditors were Messrs Simpeon, Hart and Ob. (Lawrence), £74 12s 6d ; Thomson and Co., £12; A. Tayjor and Co. (Dunedin), £60; A. R. Porter, £12; W. J. Moffett, £40; John Moffett, £21; Rattray and M'Donald, £15 15s; Neill and Co. (Dunedin), £35; Geo. Johnson, £20; T. A. Henry (Lmnsden), £10; Straohan and I Co. (Dunedin), £8. The bankrupt, having been sworn, stated that he had purchased the good-will of the lease and the furniture from P. J. Rodgers about 18 months ago for £750. He paid £80 cash and gave a bill of sale for the balance. Included in the bill of sale was furniture in the hotel, valued at £225, and his private furniture valued at £175. The latter belonged to his wife, but he had her consent to include it. After buying the furniture from. Mr Taylor (his wife's father). He subsequently gave Taylor a mortgage over it, and this Taylor later gave to his daughter (Mrs M-Dou-gall). The old lease had about 15 months to run, and debtor considered that he had paid *ar too much for the good-will. Hehad paid Rodgers further sums totalling about £60. He afterwards got a new lease from Moffett and Co. for five years. The lease was dated 31st October", 1908. He gave Rodgers a Security over this lease, and the bill of sale was not executed till the new lease came into force. He had found out that on October 4, 1909, Rodgers had transferred his interest in the securities to Wm. Millar (of Dunedin) He had no notice or knowledge of this at the time. The first notice he got was some days afterwards (in October), when a clerk jof , Messrs Moore and Moore (solicitors, Dunediq) called on him at Lumsden, in company with a Mr ColHns, and intimated . that, in default of immediate payment of I a demand, which the clerk handed to him,

the premises were sold to Mr Collins, and that Mr Collins wa» prepared to take possession at once. The clerk said that in order not to be harsh they would give him time, to go out and a cash bonus of £25 if he gave up peaceable possession He refused to do this. The principal moneys had become due to Rodgers before this time, but no written demand for them had* been made. He had put everything into the business, and had had a struggle with it, and was just beginning to make it pay when this demand came, and he had no option but to file. The Assignee mentioned that he had an offer from Mr Moore to take over the plant and stock-in-trade a* & valuation, and to pay all the back rent, provided he got possession. —

Mr J Moffett said that that was the pomt — the possession which affected the unsecured creditors.

Continuing bis statements, debtor said that he thought the goods received from Neill and Co. in the list of liabilities came to hand some four or five days after be had filed.

On the motion of Mr Johnson, it was decided that tenders be called _f or the three horses and the express and trap.

On Mr Porter's motion, the meeting decided to -put bankrupt in oharge of the iotel and stock-in-trade in place of the bailiff (now in oharge) until the assignee relinquished possession, Mr a Johnson to supervise. Debtor intimated' (when the question of remuneration was mentioned) 1 that he would manage the place without remuneration, as- his-deeire was; to have the matter settled and to get his discharge. Mr Johnson moved that the bankrupt be allowed all furniture outside the "bill of sale, and that he be recommended for his immediate discharge.

Mr Henry seconded, and the- motion was carried unanimously. '

The meeting then, adjourned sine die, after it had been^ arranged that Mr Johneon should get from the bailiff in charge a statement of accounts showing the business done since he went in, and forward the statement to the assignee: