THE ASSIGNEE AGAIN.

Dominion, Volume 2, Issue 470, 31 March 1909, Page 9

THE ASSIGNEE AGAIN.

TROUBLE WITH CREDITORS. SCENE AT. A BANKRUPTCY MEETING. A bankruptcy of a somewhat complicated liaturo engaged tho attention of tlio Official Assignee- (Mr. A. Simpson) yesterday morning, when the creditors in the estate of Matthew and Mary Alice Adams, grocers, of Kilbimic, met to consider the position raised by tho insolvency. . A Sharp Altercation. Just as the Assignee, Mr. Simpson, took his seat, tho representative of the New Zealand Farmers' Distributing Company presented his proof of debt. Tho assignee rc- . fused to admit it, stating that it should have been filed before tho commencement of tho proceedings. "But tiiis meeting has not commenced," objected tho creditor. Tho Assignee: "It has. I havo taken my seat. You must take it to tho.office." Tho creditor thereupon put on his hat and left tho room, slamming tho door behind him. • • The Assignee then turned to those present. "Whom do you represent?" ho inquired'of ono of them. Mr. Port, the gentleman addressed, replied that he appeared for Messrs. J. Nathan and Co. What are you?—An accountant.' "That won't do; you must bo either a secretary or a momber of tho firm."—"J am tho secretary." "Why didn't you say so before?" commented the Assignee, and he turned his attention to tho others, going around tho tnblc until ho arrived.at Messrs. Levin and Co.'s representative (Mr. Nation), who handed over his proxy form, duly signed, in sup-, port of his bona fides. Mr. Simpson glanced at it, and throw it,down on tho table with the remark: Surely your firm ought to know, Mr. Nation, that you cannot vote on a prosy of this kind?' Mr. Nation observed that ho had represented his firm for 25 years, and had always dono so. •■ Mr. Simpson:' "Undor tho Act you cannot vote under a proxy unless your place of business is ten miles from the place of meeting." Mr. Nation remarked that it was a most extraordinary ruling. , N ( Mr. Port (Nathan and Co.) looked round. "I suggest that tho creditors leavo tho meeting," ho said, and tho representatives of Messrs. Levin and Co. and the Fanners' Distributing Company immediately acted upon the suggestion. Mr.'Simpson now focussed his attention on Mr. Port, and demanded to know why ho had questioned his authority; Mr. Port replied by asking tho Assignee to' read tho clauses of tho Act relating to proxies. The Act was produced, and the particular clauses read as follows: — ■ Section 7, Sub-section 96: 1. Every instrument of proxy shall bo in the proscribed form, or to tho effect thereof, and shall be signed by tho creditor before a Justice of the Peace, solicitor, or postmaster, and must bo produced to assignee beforo or at tho meotin™ to entitle the holder thereof to vote, and may borevoked at any timo by notice to the Assignee. 2. A creditor residing or being absent more than ten miles from tho place of meeting may givo.a general proxy to any ' person, and any creditor may give a general proxy to his manager'or clerk, or any other person in his regular employment; in this latter case tho instrument of proxy shall state tho relation to which tho person to act thereunder stands' to ■ the creditor. ■ Mr. Port: Tho Act is clear enough; I question your objection. •Tho Assignee adhered to his interpretation. ! '/All right," said Mr. Port; "You have your solicitor; wo'havo ours. ■:•- At this stage, Mr. Moran, who appeared on behalf of the bankrupts, announced that he. had no objection to tho status of tho creditors' representatives.' . . Mr. Simpson then turned his attention to ttio business of the. meeting, and tho matter dropped. " ',"'"-. .

The Ordinary Business. The statement of assets arid . liabilities showed that 'the- liabilities to unsecured creditors amounted to £461 13s. 7d.; against these were assets totalling, .in estimated value, £231 Bs. 6il. Tho stock-in-trade was set down at £85 lis. lOd.; book-debts, £120; cash-in-hand, £3 16s. Bd.; furniture, £22. The largest creditors were: —

: Levin and Co., Ltd., £158 7s. sd.j J. Nathan and Co., £53 Is. Bd.; W. and G. Turnbull and Co., £41 195.; New Zealand Farmers' Distributing Co., Ltd., £40. The statement submitted by the bankrupts, set forth that prior to commencing as grocers at Kilbirnio a similar establishment had been set up in l'etone, in July, 1905,' and the latter concern was mainly responsible for tho liabilities contributing to the insolvency. Tho Petono business was established with a capital of £145, £10 of which was borrowed. For the first six months the husband continued in employment at the Petono Woollen Mills, drawing '£2 10s

weekly, and various instalments were paid on such articles as had been purchased on deposit. In February, 1007, the business was clear of liabilities, and for about ten months was in "a paying condition; an assistant -was taken on at a salary, of £1 16s. (subsequently raised to £2 Bs.). Later, the business became involved; in Juno, 1908, £157 was owing- to Levin and Co., Ltd., and an arrangement was arrived at whereby £57 was paid off, the balance to bo paid by instalments of £25 monthly. It was subsequently found impossible to pay current accounts, and adhere to the arrangement

with Levin and Co., Ltd., and the business at Petone was then sold (November 1908), for £175, which sum, after deductions for commission and incidental expenses, was distributed amongst tho creditors. Among these disbursements was an amount of £35 to Mrs. Adams, refund of cash advanced. With this sum, Mrs. Adams commenced business at Kilbirnio, but _ pressure from creditors in the Petone business interfered with the progress of the new business, which showed a deficiency of £25 at the dato of tiling. Tho husband, with £20 of borrowed money, started a milk round at Kilbirnio; on that concern there was shown a surplus of £30, which, however, included the estimated valuo of tho horse, cart, and harness, used at Petone, but not sold in the realisation of the business there. Altogether the husband estimated his losses on tho Petono business at £250. The main contributory factors in tho insolvency were, (a) inexperience in the grocery trade, and (b) ill-health of both tho bankrupts, spread over a period of 18 months, making regular attention to tho business difficult. Mr. Turnbull raised the question of tho conjunction of the parties in tho estate. AVas Mrs. Adams a partner? Ho thought sho was. Mr. Mriran, for the bankrupts, contended that Mrs. Adams's interest had been definitely settled by certain judgments which had been given in favour of Mrs. Adams when sued in the Magistrate's Court for debts incurred by tho estate. Some discussion arose on this point, it being generally agreed that the insolvency was complicated by tho indefinite nature of Mrs. Adams's interest, and it was finally agreed that the services of an accountant bo requisitioned for an examination of the estate, at a cost not to exceed £10. On the motion of Mr. Port (for Messrs. Turnbull and Co.), it was decided to call for tenders for tho stock, plant, etc., acceptance of the samo to lie left in the bandit of the Assignee. Tho matter of returning tho. furniture to the bankrupts was held over until the assets wero realised.