MEETING OF CREDITORS.

South Canterbury Times, Issue 5028, 8 June 1889, Page 2

MEETING OF CREDITORS.

0. WALLER AND CO. Ti e first meeting of creditors in tho estate of O. Waller and Go, was held at the Deputy Assignee’s office, Timaru, yesterday morning. The assignee (Mr Beswiek) presided, and there were nine creditors present. Mr Raymond attended as counsel for the assignee, Mr J. W. White for Martha Waller, and Mr James Hay represented a number of creditors. The list of unsecured creditors was:—Timaru: G. Turner, £lf'3los 6d ; Peacock and Qeaney, £l3; J. H. Qlasson, £5 ;M. Jonas, £6 ; T. Wagstaff, £2O; W. J. Hughes, £l2; O. W. Waller, £56. Dunedin; Wiikie and Co., £37 Is 2d ; Benjamin and Co., £24; Ashfield Bros., £l6 17s; Mataura Paper Mills, £6; Daily Times, £5 ; Dresden Piano Co., £52105. Chris’cluirch: Whitcombe and Tombs, £6l 18s; Duff, £7117s ss; Ward and Co, £lO9 I7s 10s; Olney and Co., £2O 8s lid j Spensly and Co., £133 9s; Press Company, £l2 3s 9d ; Times Company, £5 Os lOd; s'ommers, £219 2s 2d ; total, £1022 16s 7d. List of secured creditors—Timaru: P. W, Kiby, bills of sale over stock and furniture, £340 ; C. C. Sommers, Christchurch, £2OOO, and E. LeCren, Timaru, £42 Os lOd (both secured over stock in shop). List of properly—Furniture, etc., £120; stock at shop, £2000; bookstall, £62. Mrs Waller was called, but as she knew nothing at all about the business was allowed to retire. J, W. Waller was then examined, and said; I have been managing the business of Waller and Co., and tho reaeon of tho firm filing was that 0. C. Sommers took possession under two bills of sale. This bad the effect of closing the premises. The firm was unable to meet its liabilities.

, A creditor then said (hat be would like the short history of the firm brought out. He would like Waller to state why he bad told him (a creditor) some weeks ago that be (Waller) had bought the business and paid cash for it. Waller then continued : I am an undischarged bankrupt at the present time. I was made bankrupt in February last at Auckland, and no dividend has been paid in my bankruptcy. I have never applied for my discharge. I was a shipping agent at Auckland. Sommers first approached me in relation to buying the business at Timaru in September, 185:8. I bad not up to that time seen Sommers for twenty years previously, when I knew him on the West Coast. When Sommers first approached mo it was in Christchurch. He asked me what I was doing. 1 said “nothing, looking for something to do.” Sommers said " why not try my Timaru branch of the business,” and offered to pay my expenses to go down and see the business. I came down, saw the business and Hughes the manager. I did not take stock, nor was a stock list held by Hughes. Sommers said the business was bringing in £IOO a month, and produced a stock list, the date of which was about a month previous to this time - about August, 1888. Ibis list is now at the shop. The . only proof I had of the tat logs was Sommers’ statement. The stock list showed goods to the value of about £I6OO, represented by Sommers as tho cost of landing at the shop. Had no idea how Sommers had acquired the stock. After I had purchased the stock I was made aware that it Lad previously belonged to Farley. At an interview with Sommers I made an offer for the stock of £1227, and the £l6oorepresented £lOl of book debts as well as the stock. I made no verification of Sommers’ figures, but it was arranged in writing that whatever the stock was deficient in, Sommers should replace by new goods % No cash was paid, the terms being 36 bills, payable monthly. Mrs Waller, being at Auckland, was not present at our interview. I made a proposition to Sommers that he should take properties of Mrs Waller’s in Auckland as part of the purchase money. Sommers agreed to this, but afterwards found that the properties were so heavily mortgaged that neither was worth anything. He then declined to take them. Neither I nor any of my family had any money when I started business. I did not consult Mrs Waller about it. Sommers knew 1 was an undischarged bankrupt, and suggested that the business should be put in Mrs Waller’s name. This was subsequent to my taking stock. The suggestion to name the bu iness “0. Waller and Co.” came from Sommers. I objected to my wife’s name appearing and it was then suggested that my son’s name should be added. He was a minor. This suggestion was made by Sommers. Bills of sale were given to Sommers, but notice was given that they would not be registered. The effect of nonregistration was explained to Sommers, but be would not have them registered on the ground that it would damage (he business. I took possession on 20tb September. Stock was taken and there was found to be a deficiency of £220 to £240 in quantity. A great many of tho prices put on the stock were very fictitious. I had a row with Sommers about it, but Sommers replied that the transaction was completed, and it could not be altered. Subsequently I found discrepancies in the prices - many of the values were above the retail selling prices. I took steps to render Sommers liable for the misrepresentation. Up to my bankruptcy I bought now stock from Sommers, but it would not amount to more than £250. Altogether about £4GO worth of stock, including the shortage, had been got from Sommers. I paid the first seven bills and about £2O on account of new purchases. The eighth bill was dishonoured on May 23rd, and Sommers took possession. A bill of sale was given by Mrs Waller for £75 to Sommers, this amount having been paid to P. Hayman and Co, Another bill of sale was given to P. W. Eiby, one for £220 over certain stock and further advances, and another over household furniture for £IOO. Had received £3O or £4O from Mr Eiby, and had borrowed £l6O from Mr Ziesler to pay certain debts. An unregistered bill of sale was given for this, and had never been satisfied. Had paid away £155 for various debts, including £4O to Salek, £55 to Perry and Perry, £6O to Moss Jonas, £6 to Eadcliffe, £lO to Robertson, £lO to Warner, of Christchurch, £lO to Spensley, of Christchurch, and £lO to Wagstaff. I went to see Sommers on the 12thApril, to sign a bill of sale for £3OO. [Here Waller made a statement which it would not be safe to publish as it is doubtful if a report of it would be privileged.] At this stage the enquiry was adjourned for an hour, and on resuming Mr Raymond, in reply to questions, said that at present Sommers was in absolute possession. He had charge of the original bills of sale, and the question whether they were valid or not would have to be decided in a court of law. It would then depend as to whether or not they had a remedy against Sommers. At the present time the creditors could not interfere with the stock, but the assignee could give Sommers notice and then take possession.

In reply to a question Waller said that there were no “minor assets." He had sold his watch and pawned other things to raise mon?y. Mr Olney then said that he was sure the creditors would not consent to let Sommers remain in possession. 1 hoy wore determined to have everything thoroughly investigated, and speaking move particularly on behalf of the Christchurch creditors, who had held a meeting last week, were prepared to take the whole thing to the superior court at Christchurch. Ho then moved—“ That it will bo more convenient that the proceedings in the bankruptcy of Martha Waller, trading at Timaru as 0. Waller and Co., should bo transferred to the superior court of bankruptcy at Christchurch, and that such proceedings be transferred accordingly.” This was seconded by Mr E. J. Paul, and carried unanimously. A conversation then followed as to getting, porsossion, and in reply to questions Mr Raymond said that he had advised that Sommers’ bills of sale did not cover stock other than that scheduled at tbo time ; and ho (Mr Raymond) thought that possession of the premises could be gained under a leaeb he held as given in by Waller. Mr Moss Jonas, who had been holding's sale under bill of sale to Mr Eiby, then said that this sale had been stopped by Sotcmers, under an injunction ftwtUo Supremo Couffy

Christchurch. Ho (Mr Jonas) thought this ■was to say tho least irregular, but in face of the document named had p ’stponed the sale.

Mr Kaymond said he had advised the assignee that Sommers’ bills of sale were invalid, and he thought that they could be set aside on other grounds than that a bill of sale, though unregistered, was good provided the holder entered into possession before bankruptcy proceedings were commenced. Mr VP bite said he held letters, which would be produced when the proper time came, that would throw a good deal of light on Sommers’ actions. It was then resolved, on tho motion of Mr Olney, seconded by Mr QlasaonThat the assignee be requested to enter into possession at once, and take an immediate inventory of the stock, such inventory to bo made by Messrs Wagstaff and Hughes, and that the assignee be indemnified by the creditors for suoh action.” In reply to Mr Jonas, Mr Hay said that the law respecting bills of sale was very bad, and certainly wanted amending. Mr Jonas said that he would write to the Bankruptcy Q-wzette, and have an interview with Mr Turnbull, M.H.R, on tho subject, with a view of the law being amended. The question of appointing supervisors, and the date of further examination of Waller was adjourned, and the meeting closed.