WAIHI CO-OPERATIVE SOCIETY

Auckland Star, Volume XXXVIII, Issue 151, 26 June 1907, Page 2

WAIHI CO-OPERATIVE SOCIETY

I.i . » ..;. . 1 i (By Telegraph.—Own Correspondent.) • V "..-. ' ' ''*••' '""... ■-,j'. ,-: . WATHT, -this any. . _& case of' great importance. to Auckland tradesmen, as well as local citizens, was before Mr. E. S. Bush, S__L, in the MaigisfcEafces' Court to-day, when thecreditors in the estate of the Waihi Workers' Co-operative Society -made application for an order to wind up the affairs of the society in accordance with the Joint Stock Companies' Act. Mr. Jackson appeared for the applicant creditors, and Mr.- Mueller for 1 the defendant society;. Mir. Gerard was among those joeseni. -- Mr.. Jackson, in opening his remarks, was proceeding to quote legal authorities on the, mattearj when Mr. Bush expressed the opinion thai the society's own a_idavit proved that the society j *wae hot able .to pay 20/ in- the pound.. | Tbe Act, dearly defined his position, and that was to adjudicate on the point j whether the society was able to pay its I debts ornot. He could not deal with other extraneous matters. Mr. Jackson said that in view of that, opinion he would ; not further discuss the legal position, but an application for adjournment might be asked for, and thai he opposed mi the ground that the position of affairs had advanced tocntical stage on account of miR-management, and the falsifying of book debts, giving credit ■when contecry to the rules of the society, and that the society had lost all its capital, being £500 behind. According to the Official Assignee the "business was now being carried on at a loss. An- : other argument agaiitst an adjournment! was that other judgments might be obtained in the meantime and put into J execution. There would then he prefer- | eartial payments- He.; represented creditors to the extent of £3600, and possibly some of these creditors might sue. Hue resohrtion at the public meeting had shown that they could not- satisfy all tile demands of the creditors, and ordy JB2OOO had been subscribed in new capital. Mr, Bush said he had only -to confine *riTn_.df to one point, and that was, could-the society pay its debts? *Mt_ Mueller appealed - very' strongly for an adjournment, and contended that no creditor would .be prejudiced by granting a little time. The Society's" business, Mr Mueller said, -had. been of great benefit, to the town, and some consideration should be shown. If time were granted he believed that a satisfactory .aaxangement could be jnade. The liabilities were £4400, and, after the values of assets had been written down considerably, the deficiency really ' only amounted to r£2so. The Society was not hopelessly insolvent, as had been suggested. He thought ian adjotrrnment could be given wdthput detriment to anyone., He asked for two months, to cover the next two big pays, and offeired a guarantee to the Official Assignee'to cover loss if any were'occasioned during that period. The defalcations of the late secretary were very smaD, and the. amount from the fidelity guarantee more, than covered tbat amount. The Magistrate said that as an outsider his sympthy was with tbe . promoters, but he could not deat with the matter on sentimental grounds, and, according, to the Act, he had no,alternative but to grant ti-application for an order. He thought ihe best-course for the Society was to let everything go and make a fresh start. The order was then made accordingly. " • '