MEETING OF CREDITORS.

Wanganui Herald, Volume XX, Issue 5743, 13 October 1885, Page 2

MEETING OF CREDITORS.

A meeting of creditors in the estate of A. J. Parsons, hotelkteper, Wanganui, was held to-day at the office of Mr. John Notman, Deputy Official Assignee. The following creditors were present — Messrs McLean (National Bank of New Zealand), J. Paul, Jas. Watt, and T. D. Cummins. Mr Borlase attended on behalf of the bankrupt, who was also present. The statement filed was as under : — Liabilities — T. D. Cummins, £2 11s 6d; Jos Paul, £2 10s 6d ; S. H. Drew, £1 2s; Jas. Watt, £11 7s lid; Borlase and Barnicoat, £32 Is 2d ; and the National Bank of New Zealand, Limited, £1,696 Bs. Assets— l2s shares in Phceaix Brewery, fully paid up, £625; cash in hand, £1 19s 2d ; furniture and wearing apparel, £25; Phoenix Brewery Co., £500; total, £1,151 19s 2d ; deficiency. £594 lid. After the statement had been read, the Deputy Assignee examined the debtor on oath as to the cause of his bankruptcy. Mr Pardons said he had filed in consequence cf an action brought against him by the National Bank to recover £1700, being the whole amount of the overdraft of the Phoenix Brewery Co., Timaru, which he, with seven others jointly and severally, became liable for. He was unable to pay the claim. Frequently requested the Bank to wind up the Brewery Company and to apportion the loss, and he would pay his share of it. The Bank would not listen to anything but a settlement in full. As near as he could tell he had paid the Bank about £1200 on this claim, — In reply to Mr McLean, Mr Parsons said some was for shares. Had been one of the provisional directors. The brewery originally belonged to the Union Bank. He had been one of the original promoters for buying the property, and formed it iuto a joint stock company. The shares did not go off, and the eight promoters had to take up the whole of the shares themselves. There were 1000 shares at £5. £3800 was the price given to the Union Bank. The brewery had been a white elephant to others and had fallen to the Union Bauk. At the time there was £2000 on mortgage, which still remained in force. They paid the Union Bauk by instalments, but the shares not going off, the promoters had to manage the affair. The National Bank took the brewery, etc., and granted a cash credit of £2500 on a joint and several guarantee bonds. Did not remember any arrangement being made for the bond being given at the first start, nor when it was given. When the account ran up, the Bank made demands upon the shareholders for what waa required, and the shareholder would give his separate promissory note for his proportion. Under these demands had paid about £1130. Some of these payments were credited on the back of the I scrip. (On the scrip being produced it was [ found £629 17s 9d had been so credited). i Mnce March, 1882, when sharos were fully paid up, had paid the Bauk £553 Is. The Bank had never made a demand on him for a reasonable sum of money that he had never paid directly. The Bank first made a demand for the £1700 on the 27th or 29th of June this year. Saw MiMcLean, who said that he had nothing to do with it, that he had instructions from Timaru. Promised to go to Timaru by the next boat, but did not go. He had his betth engaged and his things packed up when the writ waa served on him. He did not go then, Had seen Mr McLean since then with a view to settlem-nt, but Mr McLean said that he had no power to act. Advised him to go to Timaru. Bad had friends here and in Christchurch endeavouring to get the Bank to put down in black and white what they would do, but could not get it done. The case was set down for hearing in Wanganui, but the Bank obtained change of Vf nuo to Christchurch. Had the case been tried here he would have defended it, but he could not go to the expense of going to Christchurch to defend it. He had no other property but that specified in the schedule. Had no otter to make to the creditors. He waa prepared to answer any questions as to property he had disposed of. Six months ago he was the lessee of the Rutland Hotel, and owned the stock and furniture contained therein. Parttd with his interest on ,the 30th May to Parsons Bros. & Co , of Melbourne. The consideration was for monies he had owed them, amounting to £1130 53 lid. They served him with a lawyer's letter (letter produced), threatening him with further proceedings if the amount, with interest, was not paid. Went to Melbourne on the 11th May at the express direction of Dr Connolly. Did not know when he got there. Received the letter on the 26th. Went to see the solicitor the next day with a view of making some arrangements with him, and he said, " We are determined to have a settlement before you leave Melbourne." Told him that he would see his brothers about it, and call back in the morning. An appointment was made for eleven next day. Saw his brother, and he would make no arrangemant whatever, leaving it to the solicitor. Called back next day, and was served with a writ. Told them they could go to the devil, and as he left the room the .sheriff's officer stepped forward and arrested him. He endeavored to make a settlement. Told him that he had the Rutland Hotel and would give them a bill of sale over the contents. They refused as they wanted the money, and he sold them his interest in the hotel for£l2s(K Had given £11)00 for the interest in February 1884. They allowed him £1130, and £12 12s costp, and gave him a cheque for £107 2s Id. They made him give immediate possession by signing a telegram to Mrs Parsons instruct* icg her to give possession to Mr Bxoughton, they sending the latter a telegram that they had purchased and he was to take posßtesion on their behalf. Since then the place bad been carried on in their behalf, Mr Broughton holding power of attorney. Debtor had been appointed asj manager on a salary. All money received had been banked to the credit of Parsons Bros. The manner in which be had incurred the debt was as follows :—ln: — In 1881 his brothers bought a station in N.B.W. for abouo £100,000. Previous to this, he had agreed to join them in any speculation, and on purchasing this, they < . Tired him onesixteenth <jhare, which he agreed to take. The terms were one-third cash, His share of this was £2000. He waa unable to pay the cash at the time, and he gave bills for £520 at 4, 6, 9, and 12 months. " The fir&t bill fell due on JNovember the 7.th, 1881. He paid it, and drew on them for £400. The second bill was paid in January, 1882, and he drew for £500. The third bill was paid in April, 1882, and he drew another £500. On the

7th of July, the nexfc bill was met, and on the 10th drew for £500 Praotically, he had only pa-'d £100, excluding interest. They begau to object to thia, and he sent them two hundred sacks of oats, for I which he got £150 credit This made £250 thau Jie had paid off the £200. j During this time his share' of the billa were maturing, and m bad seasons were experienced on the run, -oaueing heavy losses, his brothers wrote him that he must i either pay up or sell out his share. Told them to sell hia share for what it would bring. They sold it fov £1035 7s 6d nettin Dec 1882. That loft him in debt to his brothers £773 6s 9d on the let Jan, 1883, The difference between this amount and the cmount for which the writ was delivered was for interest, cash advanced On his account, and for goods sent to him. During the five years he had been dealing with the National Bank lm account showed that over £50,000 had gone through. The writ served on him by the Bank only named him, the others being left out. All the sureties had signed the joint and several. He could not say whether they had a second mortgage or other security. He believed that if the brewery waa sold there was ample to pay the Bank their claim. Mr McLean here asked that the meeting should be adjourned, as no time had been allowed for him to ascertain what position they would take up. Mr Notmau agreed to the application. In answer to Mr McLean as to money in a Building Society, Mr Parsons said that he had had £1000 in the Wanganui Building Society, and drew it about the 11th May. Idle banked it on that day. It had been paid away to his different creditors. His bank pass-book Bhowed what he bad paid away. He had continued paying his debts until the 22nd September. When he came back from Melbourne he had about £500 to his credit. The whole of it had been paid for debts. He had paid Mrs Parsons £750 od 11th May ia re-payment of monies borrowed from her. Before the 17th October, 1883, she sold a property of her own in Timaru to White and Smithison, for £750. There was a mortgage on it of £500. fche received a- cheque for £250, which she deposited in the Savings Bank. On the 17th Oct. she lent him £200 On the 20th March, 1881-, before coming here she sold another property of her own for £600. The Building Society advanced the money to the purchaser, which was given to her by cheque. She lent him the £600, and he paid it in to his credit. Repaid her £400 when he came to Wanganui, She objected to take the money in that way and he put the money in the Savings Bank till he had enough. The cheques had all been paid to bonafide creditors. This concluded the examination until 11 o clock on the 23rd. It was agreed that the public examination should be fixed for the 30th,