MEETING OF CREDITORS.

Timaru Herald, Volume XLVIII, Issue 4560, 8 June 1889, Page 3

MEETING OF CREDITORS.

0. WALLKR AND CO. Tl c first meeting of creditor." m the eßtate of G. Waller and Co , wna held at the Deputy Assignee's office, Timiru, yesterday morning. The assignee (Mr Be»w ck) presided, and tliero were nine creditors present Mr Eajmond. attended 03 counsel for the assignee, Mr J. W. White for Martha Waller, and llr James iiay represented a number of creditors. The list of unsecured creditors wa» •— Timaru: (i. Turner, £K3 los Gd ; Peacock and Geaney, £13; J. H. OUiton, £5 ; M. Jontu, £3; T. Wagstaff, £20 ; W. J. Hughes, £12 ; C. W. Waller, £58. Dunedin : Wiikie and Co., £37 Is 2d ; Benjamin and Co., £21; Ashfield Bros., £16 17s; Mataiirn Paper Milk £G; Daily Times, £5 ; Dresden Piano Co., £52 10a. C'liris'cliurcli : Whitcombe and Tombf, £01 ISs ; Duff, £71 17a ss ; Ward and Co , £100 17s 103 ; Olney and Co.. £20 8) lid j Sponsly and Co., £133 9s ; Press Company, £12 3s <Jd ; Times Company, £5 0s lOd ; s'ommcrs, £219 2s 2d ; total, £1022 16s 7d. Liat of secured creditors — Timaru : P. W. K iby, bills of sale over etock snd furniture, £34*0; C. C. Somtners, Christchurch, £2000, and F. I,eCren. Timaru, £42 0s lOd (both secured over stock m shop). List of property — Furniture, etc., £120 ; stock at shop, £2000; bookstall, £62. Xln Waller was called, but as she know nothing at all about tho business was allowed to retire. J. W. Waller was then examined, atd said : I Imva been managing the business of Waller and Co., and tho reiton of the firm fili.ig was that C. C. Soinmers took possession under tiro hills of sile. This had the effect of closing the premises. The firm was unable to most its liabilities. A creditor then said that ho would like tho ihort historr of tho flrm brought out. He would like "Waller to state why ho had told him (ft cradifnr) somo weeks ago that ho (Waller) had bought tho business and paid cash for it Waller then continued : I hex all undischarged bankrupt ot t'e present time. I was made, bankrupt m February lust at Auckland, and no dividend has been pnid m my bankruptcy. I havu never applied for my disahargo. I was a shipping agent at Auckland. Sommero first approached mo m relation 'o buying pin busineM at Timaru m September, 18i8. I had nof up to that timo seen Sommorj for twenty jeara prpv^ously, when I k,.0» him on llin West Coast. WJjon Sornmer* first approached mo it wan m Chridtchurch. lie askod mo what I wan doing. J »uid 'nothing, looking for something to do." fiommers snid " why not try my Timaru branch of tho business," and offered to | ay my expenses to go down and see the buniness. 1 came down, saw tho business and Hughes tho manager. I did not fnko stock, nor wns a stock list hold by Hughes. Sommers said the business was bringing m £1013 a month, uiid produced a stock list, the date of which wns about a month provious to this time— about August, 1888. 'Jhi9 list i» now nt the shop. The only proof I had of tho takings was Bonimor»' statement. Tho ptock lint showed goods lo the Talus of about £1000, represented by Sommorn as tho bogtof lauding nt tho shop. Had no idea how Sommers had acquired tho stock. Aftor I had ynn.-!iM3c:l tho stock 1 was mado awuro that it lik'i prpvioualy belonged to Furloy. At an interview wi(!) .'ommers I made an odor for tho stock of £1 227, prf the £1000 represented £101 of book debts as well'^i (hoqtock. I made no verification of Sommors' figu.-ij, ljuj it was arranged m writing that whatever the »tocic »ns deficient m, Sommera should roI lico by iaiy (jo'ids. No rash wn« paid, tho forms being 3(5 I;(1U, Piiyahlo monthly. Mrs Wiillor, being at Aiuihiirul, was not present at our interview. I made a proposition to I Sommprn that be should take properties of | Mrs Waller's m Auckland as port of the pur-

cliatc monoy. Sommers agreed to this, but afterwards found that tho properties wore «n heavily raoitgagod that neither was worth nnrtnmg. Ho then declined to toko them. Neither I nor any ot" mj family had any money when I sUrtel business. I did not consult lira Waller about it. Sommers knew I wns an undischarged bankrupt, nnd suegested that the business should ba put m Mrs Waller's camo. This was subsequent to my taking stock. The suggestion to name tho bu'iness "C. Waller and Co." camo from Sotnmers. I objected (o my wife'a name appearing and it was then suggested that my son's name should bo added. Ho was a minor. This suggestion wns nude by Sonimcrs. Hills of sale, were given to Sommcrs, but notice- was givun that they would not be registered. The effect of nonregistration was explained to Sotumers, but ho would not havo them registered on the ground that it would damage tho business. I took poa'e3sion on 20th September. Stock was tiken and thcro was found to be a deficiency of £220 to £H't m quantity. A groat many of the prices put on the stock were very fictitious. I had a row with Sommers about it, but Somruora rcpl'.ed that the transaction wa? completed, and it could not be altered. Subsequently 1 found discrepancies m the prices - many of the. valccs wore above the ret.nl sel 'ing prices. I took steps to render Somtnors liable for the misrepresentation. Up to my bankruptcy I bought new stock from Sotnmers, but it would not amount to more than £250. Altogether about dB-iCO worth of stock, including tho shortage, had been got from Summers. I paid the first seven bills and about £20 on account of new purchases. The eighth bill was dishonoured on liny 23rd. and bommors took possession. A bill of sale wns givon by Mrs Waller for £75 to Sommers, this amount bavin* been paid to P. Uaynmn and Co. Another bi'l of sale was given to P. W. Eiby. one for £220 over certain stock and fuithc advance?, and another ovor household furniture for £1(0. Had recoived £30 or £10 from Mr Kiby, and had borrowed £150 from Mr Ziesler to par certain debts. An unregistered bill of silo was given for this, and had never been satisfied. Had paid away £155 for various debts, including £40 to Silek. £55 to Perry and Perry, £G0 t> Moss Jonas, £6 to Kadcliffe, £10 to Robertson, £10 to Warner, of Christchurch, .£lO to Spenslcy, of Christchurch, and £10 to Waget:iff. I went to see Sommers on tho 12th April, to sign a bill of sale for £300. [Here Waller made a statement which it would not be safe to publish as it is doubtful if a report uf it would bo privileged.] At l.his stago the enquiry was adjourned for an hour, nnd on resuming Mr Raymond, m reply to questions, Eaid that, at present Sommers was m absolute possession. Ho had charge of tho original bills of sale, and the question whether they were valid or not would havo to be decided m a court of law. It would then depend as to whether or not they bad a remedy against Sommers. At the present time the creditors could not interfere with the stock, but tho assignee could givo Soinmers notice and then take possession. In reply to a question Waller said that thero were no " minor assets." He had sold his watch and pawned other things to raise mcn.'y. Mr Oluey then said that ho was pure tho creditors would nit consent to let Sommcrs remain m posfc^sion. They wcro determined to have everything thoroughly investigated, and fpeakiii'' more particularly on behalf of tho Christcluuch creditors, who had held a meetine last week, were prepared to take the whole thins lo the superior court at Christchurch. Ho then moved—" That it will be morn convenient that the proceedings m tho bankruptcy of Martha Waller, trading at i limaru as O. Waller and Co., should be transferred to tho superior court of bankruptcy at Chrislchureh, and that each proceedings be transferred accordinglr." This was seconded by Mr E. j. Faul, and carried unanimously. A ennversation then followed as to setting possession, and m rr-ply to questions Mr Raymond eaid Ilia', he bad advised thnt Sommers' bills of sale did not covor stock other than that scheduled at tho time ; and he (Mr Raymond) thought that possession of the premises could be gained under a lease ho held as given m by Waller. Mr Moss Jor.m, who had been holding a sale under bill of sale to Mr Eiby, then said that this sals had been stopped by Sommers, under an injunction from the Supreme Court, Christchurch He (Mr Jonas) thought this was to say the least irregular, but m faco of tlio document named had p;stponed the sale. Mr Raymond p a id he had advised the assignee that Sotninerß* bills of sale were invalid, and he thought that they could be set aside on other grounds than that a bill of tale, though unregistered, was good provided the holder entered into possession before bankruptcy proceedings -were commenced. Mr White said he held letters, which would be produced when the proper timo came, that would throw a good deal of light on Bommer»' actions. It was then resolved, on tho motion of Mr Olney, seconded by Mr Qlns9on —'• That tho assignee bs requested to enter into possession at once, and take an immediate inventory of tho stock, such inventory to be made by Messrs Wagstaff and Hughes, and that the assignee be indemnified by the creditors for such action." In reply to Mr Jonas, Mr Hay said that tho law respecting hills of salo was very bad, and certainly wanted amending. Mr Jonas mid that ho would write to tho Bankruptcy Ouze/tn, and havo an interview with Mr Turnbull, M.U.It, on the subject, with a view of tho law being amended. 'ihc question of appointing supervisors, and the data of further examination of Waller was adjourned, and tho meeting closed.