MEETING OF CREDITORS.

Ashburton Guardian, Volume V, Issue 1042, 5 January 1884, Page 2

MEETING OF CREDITORS.

The first meeting of the creditors of Messrs Loudon Bros, farmers, of Kyle and Methven was held in the Courthouse to-day. There was a large attendance, representing in all seventy-four creditors, Mr R. Alcorn occupied the chair. MrC. W. Purnell watched the proceedings on behalf of the New Zealand Loan and Mercantile Company and Messrs McKerrow and Co., and Mr Branson appeared for the bankrupts. The statement of assets and liabilities put in showed that the liabilities amounted to a little over L 10.030, and the assets were, in round numbers, L 13.000. The New Zealand Loan and M u-cantile Company and Messrs McKerrow and Co. were the largest creditors, the former being L 4.000 and the latter L 3.000, both being secured. After some dis 'Psion is to whether a trustee should be chosen previous to the examination of the bankrup s, and the chairman ruled that the latter course should be taken.

Mr John Loudon, being sworn, said in answer to Mr Purnell, the item L 1,435 Is represented bills in hand for the sale of sheep, horses, and threshing machine, disposed of to various persons. The sheep and horses were sold for L 1,200 to Mr J. Bell. The bills were not endorsed. The sheep were sold about Dec. 18th, and the firm at that time were not contemplating bankruptcy. Did not make the sale to Mr Bell in consequence of an interview witness had with Mr McKerrow, Jbuton v _ account of being pressed at the time for money, and he cons : dered he had a perfect right to sell the stick. Had not a’ked the Bank to discount the bills. The stock was saleable in the onen market, but the reason witness did not sell it in that way was because the firm was afraid Messrs MoKerrow and Co. would seize. The stock was sold with the view of coming to terms with Messrs McKer-; row and Co. Witness thought they would' be in a better position by selling .the , ,tock to Mr Bell on bills than by. placing it .'in the open market. The threshing machine was sold to Messrs H; ■, Roe and T. Arnold on bills. Roe's bill l , was not endorsed, and witness owed him for over two years’ wages. Roe’s name did not appear on the list of moneys required to meet engagements, which was submitted to Messrs McKerrow and 00. Remembered getting a 1 irge sum of money from McKerrow and Co. about Septom- ■ ■ ber last, but it was not on the faith of the list referred to that L 2,000 was advanced. The reason of Ro ;’s name not appearing ' was that witness considered he would not ‘ press for payment. Arnold’s bill was also endorsed; The price obtained for the-, threshing machine was L2OO, and witness did not think its present value was more than Ll7O. The equity of redemption of the farm at Kyle was sold to Mr Bell . about the middle of December. At that time there was Ll6O coming due for interest, and Mr Ball became respsnsibl* for that sum, and gave witness LSO in . cash. The farm consisted of l,oooJacre« on which there was a mortgage of L 4 per acre, and witness considered that that was the full value of' the propetty. Did think the equity of redemption was sold at the time the list was handed to McKerrow and Co. Witness paid LI6O for the entire Dick Turpin, and afterwards sold it to Mr Bell for L6O. This was at the end of the season. Did not know whether Mr Bell had paid what was due on the mortgage on the farm. By Mr D. Thomas: 2,000 sheep were sold and some 30 horses and an entire, together with 1,000 acres of land, for LI ,200. The horses averaged Ll 5 a head, and the sheep (oartly ewes and partly hoggets) averaged about 8s per head. The sheep were in a very poor condition. The bills received from Mr Ball are not guaranteed. Witness attributed the bankruptcy of the firm to the action taken by McKerrow and Co. Witness had wages -

and other aoc mats to meet, and Mr Mann (of the fir n of McKerrow and Oo.) promised :o provide a certain sum of money to meet these payments, but failed to do so, and instead made

a demand on witness for money due to McKerrow and Go. The latter also dis-

honored orders given by witness to the workmen as wages, and sent down men to seize the stock and plant on the farm. McKerrow and C > afterwards wanted to compromise the matter and asked witness to give a fresh bill of sale. On this being refused McKerrow and Co stepped in and aeizid eveiy thing, and this was the reason of the bankruptcy. Witness owed Me Bell Lll3, and at the time of the seizure the sale of the farm and stock already mentioned was being negotiated with that gentleman. McKerrow and Co hai two reapers from witness, and others were seized by the bailiff of the Court. By Mr John Orr ; Witness obtained several sums o f money from McKerrow and Go. to pay rents, bat the money was drawn out in orders. A lien of L 2,500 was obtained from the New Zealand Loan and Mercantile Agency Company, and this w?s handed over to McKerrow and Co.

By Mr Cookson ; Some of the horses sold cost from LlO to Ll2, and witness did not think they would have realised more at public auction than the sums for which they were sold, as they were in very poor condition. The following letters were then put in: Rakaia, 24th December, 1883. To Mr William Loudon, Kyle.—Dear Sir,—l hereby authorise you to hold on account of Messrs K. McKerrow and Co the goods and chattels seized by me this day on Messrs Loudon Bros.* farm, as per inventory.—Yours truly, Lawrence Oxley, bailiff. Rakaia, 24th December, 1883. Messrs Loudon Bros, Kyle.—Dear Sirs, —We have sent down Messrs Oxley and Murray to take an inventory of your stock. We wish to con- , duct the inventory as privately as possible. Mr Murray will count your sheep and lambs ; if the lambs are not branded please brand them to-day with yovr own brand. The implements you need not number, as it might lead someone to suspect something was wrong. After taking the inventory you will please sign the document enclosed to hold the stock and implnnents on our account. —Obediently yours, R. McKerrow and Co.

£y a creditor: The amount owing to the New Zealand Loan and Mercantile Agency Company less wool account would . be about L 3,700. By another creditor: Witness paid LOQ . for the entire Duke of Edinburgh, and at . the end of the season sold him for aboqt L3O. The season would represent to tl}e estate about L9Q. The horses sold were not classified, bqt were qn different parts of tl)e estate. There are no horses oq the estate but what have been sold or seized by McKerrow and Co. Mr Ball and McKerrow and Co are the only persons. . who have got horses from witness siqce - the middle of December. After Mr Loudon had answered some ■ questions of minor importance, the meeting proceeded to the election of trustees. Messrs D. Thomas and J. Lambie were appointed.