MEETING OF CREDITORS.

Gisborne Times, Volume XXV, Issue 2076, 31 December 1907, Page 1

MEETING OF CREDITORS.

ESTATE OF ENOCH IUCHARJJS.

Tlio first mooting of creditors in the bankrupt estate ot' Enoch .Richards, storekeeper, of Tolaga Bay, w is held at the olliee of the Deptity-Offi-cial Assignee, Ml- John Coleman yesterday afternoon. A large number of creditors were present. The statement of the_ bankrupt showed his assets to be .£SBB-1, liabilities £0139 3s Od, deficiency,- £255 3s tkl. F: 'J'he Assignee said that it was his intention to dispose of the business, and he- would consider any suggestions.

The bankrupt stated that ho had been in business about 4J years and before that he was employed by Common, Shelton and Co. as a clerk on wages. AVhen he commenced business, .hevput £2OO into it and he had also some more money. Subsequently he put in between £-100 and £SOO. Had -no other assets. Was not in debt at the time. He purchased Long’s business at Whatatutu. He bought the stock for £240 and that paid very well. Immediately after purchasing, ho .took Mr. Hawkins in •.us partner; ho put no capital into tlio concern, but he agreed to put in .a similar amount to witness, but this prom never carried out. . Business v.:ts continued until November 1000 and when lie went lie was paid £4OO. In May 1900, he opened the business at Tolaga Bay with Mr T. J. Dickson as partner. This was successful and it was still being carried on up to the date of .bankruptcy. He attributed the bankruptcy principally to tile death of Mr Dickson, as there was an overdraft at the Bank of New Zealand and on his death, credit was stopped. He paid up the overdraft, and then there was not sufficient to carry on business with. Ho paid up about £6OO. During this time, the creditors wore being paid, hut when the overdraft was paid, they roll back. It was understood that all transactions were to be in cash. Wlntatutu business was worked on bills; he met them, but occasionally renewed them. The immediate cause of his filing was that two summonses were issued against him for under £lO each. iHo saiil lie would make no preferential payments. Went to Auckland and saw his principal creditors and was advised by them to make a private assignment, because any creditor might press him at any moinent and tlnis the difficulty might be overcome. Disposed of the AVliatitutu stock to Mr Boole and handed the proceeds to Messrs Sargood, Son and lCwen to hold in trust. It amounted to about £ISOO. He assigned tlio estate in a preliminary way to Mr Garrad. The hank advanced £3OO when he put up the building at Whatatutu; £IOO had been paid off. The £2OO was still unsecured so far as lie knew. He had a lease from Air Long at £BS per annum; he coukl not get it for less and it was worth that now. Gave it in order to secure his business. So far as lie knew lie had no other property. The sale to Mr Poole was completed." except the. lease. About £3OO would become available for the creditors .from stock etc. There was an informal ..meeting in July and from that date ho paid for all supplies and could make no-preferential payments. Mr .Johnston moved: That the bankrupt having nothing his -creditors recognise the impossibility of carrying out certain intentions expressed in reference to payments in full for all supplies obtained after an informal meeting in July last of a few of tlie principal Auckland creditors, but that all liabilities incurred by the debtor between the date of the creditors’ meeting ou 14tli day of November 1997 and the date of the bankruptcy 19th December, must be met in full by the trustee (Mr E. Gerard) out of tile cash received by him. Air T. Alston Coleman said that there had been no assignment legilly. The July meeting could not be called a meeting of creditors. Last month Mr Richards again saw liis Auckland creditors and some informal document was signed, being a preliminary agreement and the only assignment was on filing on December 19tli. The effect of the resolution would be that one or two outside creditors would benefit to tlio exclusion of the others, and without legal assignment it could not be given elfect to unless all agreed with it.

. Mr Hookey said that it was morally asijjgirccl. .ijTlio Assignee said that if the assignment was not a proper one nothing they could do would make it legal. He thought any creditor could appeal to have tlio motion upset. There was a difficulty in tlio. voting as this was a resolution to give preference, and the Bankruptcy Act would not, ho thought, allow any one to votowlio would benefit. He thought that the vote could he taken subject to a leg a 1 decision.

Tho resolution was put, only three voting for it - and eight against, but it was carried by a majority in value and the Assignee declared it carried subject to legal approval.

>Mr Davies moved: That in view of various complications in this estate the appointment of an experienced supervisor is desirable and that tho creditors hereby appoint Mr J 5. Garard tho supervisor hoping that he will accept tho appointment without charging the estate with tho usual commission payable to supervisors for their services.—Seconded by Mr Johnston and carried. Mr Hookey moved : That the meeting requests the Assignee of the cstato to communicate with and be directed by tho supervisor on all questions of importance legal or otherwise arising in tho course of winding up tho estate. —Carried.

Mr J. B. Kells moved as follows: That the Assignee carry on thoTolaga Bay .business as a going concenij employ the bankrupt at such remuneration as he (the Assignee) thinks propel', prepare schedules of stock and plant with all convenient speed and call for tenders for the said business in duo course, advertising mainly .in tho Gisborne district, and that the date of the closing of tenders be tlie date to which tho present meeting shall bo adjourned.-—Carried. The Assignee remarked that the motion covered what he was doing. The meeting then adjourned.