BANKRUPTCY OF W. WARING TAYLOR.

Daily Telegraph (Napier), Issue 4090, 30 August 1884, Page 4

BANKRUPTCY OF W. WARING TAYLOR.

[by telegraph. 1 Wellington", This day.

A meeting of the creditors of William Waring Taylor was held in the Supremo Court-house yesterday. Tho Official Assignee occupied tho chair, and there wero"about half-a-dozen creditors present.

The Assignee explained that ho had called tho creditors together for the purpose of bringing under their notice the fact that under the Bankruptcy Act ho had discharged his duties by submitting to the Court a report relative to the affairs of the debtor. The Act said that the Official Assignee Avas to take such action in tho matter as might bo considered necessary. As tho gentlemen present Averc aware, the bankrupt would again come up for examination on Monday next, and he had decided not to take stops unless he Ava.s specially directed to do so. That Avas the reason he had called the creditors together.-

Mr Travers, counsel for the Assignee, said that the Official Assignee at a public examination Avas supposed to have imposed upon him the duty of taking some part in invititm, but it Avas pointed out to him that under the 37th section of the Act his duty avus simply to give information to tho Court, aud that he Avas not required to take any further part in the examination, except the creditors specially directed him to take certain steps, but no special directions wero given to him prior to the public examination. Probably the point Avas overlooked, and tho Assignee had called the creditors together to ask Avhcther they were desirous that ho should move any further in the matter. He (Mr Travers) did not profess to quite understand the particular clause mentioned, but tho construction Avhieh he had suggested to tho Official Assignee was that it might be the hitter's duty, after the debtor had been examined by his own legal adviser, to cross-examine him Avith reference to matters contained in the official report, so as to determine Avhether the statements therein made could bo supported by the evidenco of the bankrupt himself, lie (Mr Travers) did not loioav what else that clause could mean. Tho Official Assignee now soiurht instructions as to Avhat part he Avas to take at the adjourned examination on Monday. The only tiling he (Mr Travers) thought Mr Graham could do on that occasion Avas to submit the debtor to crossexamination.

Tho Official Assignee said that unless the creditors present agreed upon some course of action he should consider it is his duty to take whatever steps he considered necessary. Mr Glegg, on behalf of tho National Bank, asked Avho would have to bear tho expenses of a prosecution should one be considered advisable r

Tho Official Assignee said ho hardly knew, but he thought the estate Avould have to boar tho expenses. The estato would certainly havo to pay the fee of any lawyer Avho might be engaged to crossexamine the bankrupt. Mr Glegg said ho thought it avus the duty of the Government to defray the costs of such a prosecution. Mr Travers remarked that the Government looked upon prosecutions of that sort iv tho light of private undertakings, and accordingly declined to bear tho expenses. Tho Official Assignee remarked that ho hardly knew who would have to pay the expenses iv the event of the Judge ordering tho debtor to bo prosecuted. Mr Shaw, the bankrupt's solicitor, said that iv his opinion the estate Avouklhave to bear the expense. Replying to a question, Mr Shaw said that if the Judge ordered a prosecution the CroAvn would undertake the task, but the estate would be culled upon to defray the expenses incurred. Mr Edwards disagreed Avith this statement Avhieh ho maintained Avas not altogether correct. He quoted from the Act to show that the Judge had discretionary power as to an order for costs. Mr Shaw instanced the recent prosecution of M'Rao at Christchurch, as ono in Avliich, ho said, tho firm avlio prosecuted had been obliged to bear the costs. Mr Edwards contended that tho prosecution Avas a private and not a public one. Mr ShaAV said it was for a breach of the Bankruptcy Act. He thought tho question Avhieh had just arisen avus ono Avhieh Avas hardly worth discussing, because tho Judge had not yet ordered a prosecution, and Avas, he (Mr Shaw) believed, not likely to do so. Mr Krull asked whether he avus to understand that the creditors could not institute proceedings against the debtor for alleged lhi'-rant breaches of the Act Avithout in-

curring expense ? Mr Travers replied in the affirmative, and remarked that he had no doubt his Honor Avould do his duty if occasion arose. In reply to a question from Mr Krull, Mr Travers explained that it Avas Avithin the proA'iucc of the meeting to take steps ou Monday next to find out from the debtor on oath the correctness of the statements in the official report.

Mr Shaw said his learned friend really meant that poAver should be given _to the Official Assignee to cross - examine the debtor.

Mr Krull thought the creditors Avould fail iv their duty if they did not direct that the debtor should bo cross-examined. Tho Official Assignee had made a report, aud he considered that it Avould be only right to cross-examine tho bankrupt relative to the matters therein contained. He would therefore move "That this meeting empowers tho Official Assignee to engage counsel to cro.-s-examine tho debtor.

The motion avus agreed to. Mr Graham then made a statement to tho inretiu" with relerei-uo to the disposal of tho bankrupt's stock. He reported that he had now iv baud in cash and bills the sum of £3070. Tho sales of stock amounted to £3037, but it Avas likely that this sum would bo increased, as several large orders wore uoav coming up from the South. He had inserted a notice in the local papers that it Ava.s his intention to take proceedings against all those people avlio Averc indebted to tho estate. A largo order was on its Avay from Timaru, and £500 Avorth of goods had been sold iv Christchurch. The meeting then terminated.