DISTRICT COURT, REEFTON.

Grey River Argus, Volume XV, Issue 1906, 15 September 1874, Page 2

DISTRICT COURT, REEFTON.

(Before his Honor Judge Harvey.) [keefton coubikr.] in re the golden bell company, (in liquidation. ) Lords Davies, liquidator, applied for a final order to settle the plan of distribution. He said that he should have made the application at the previous sitting of the Court, but was requested by some of the contributories to allow the matter to stand over, in order that greater lime might be allowed to collect the unpaid accounts. Since the last sitting of the Court several amounts have been collected and there was sufficient iv hand to close the winding-up. His Honor : I have been deluged with letters and telegrams about this case and I think it very improper conduct on the part of the senders. You apply for a final order? Mr Davies : Yes, your Honor. There is still LSO or L6O outstanding, which may be got in. (Looking over the lists.) His Honor : I thought you said you had not been charging your salary for a long time past. Mr Davies : Since the last sitting of the Court, your Honor. His Honor : Oh, no ; a long time before then. Give me the Act, Mr Lucas.

Are there auy of the contributories present ? : Mr Smith : Yes, your Honor. His Honor : What are you 1 Mr Smith : I am contributor, your Honor. His Honor : Have you seen the plan of distribution, and what have you to say to it -1 Mr Smith : I am not at all satisfied with it. I labor under a great disadvantage your Honor, as I was uuable to get counsel to appear for me. Mr Pitt : I may explain your Honor that I was applied to, to appear, but the retainer was only made yesterday, and there was no time to get over the case. His Honor : What is this amount, law charges, L 45 ? Mr Davies : That sum includes an amount of L3B 10s 2d, a bill of costs which your Honor taxed some ago. His Honor : (Searching for some document ) Yes, I remember taxing that bill. This has certainly been a most unsatisfactory company winding-up altogether. Mr Davis : Did your Honor say the windins:-up had been unsatisfactory 1 His Honor: Yes, in so far as the cost of the proceedings are concerned. Mr Davies : The cost has certainly been large considering ihe value of the estate, . but had the estate been many times more valuable, the cost would have been no more. His Honor : Yes ; I only wonder that the shareholders did not at the outset put their hands into their pockets and pay up at once. Mr Davies : The winding-up order was applied for at the request of the biggest contributor. His Honor : I see I allowed L3B los 2d. How is it you have charged L4B 14s 10d 1 Mr Davies : The extra has occurred since. His Honor: (Addressing one of the contributories) Are you the Smith who made an application some time ago to be struck off the list of contributories to the Company? Mr Smith : Yes your Honor ; on that occasion costs were given against me, and I paid L 7 odd into Court. His Honor : And how does it come that you charge the estate with the amount Mr Davies 1 Mr Davies : The amount is debited on one sMe of the statement and credited on the other. His Honor : Where is the last bill of costs? Oh, this is it. I find that there is 21s too much charged. Mr Haselden, in your former bill you have charged only L 2 2s, and in this L 3 3s for appearing to an application. Mr Haselden : In the first case the application was unopposed, but in the latter case there was a strong opposition. His Honor : I think L 2 2s a fair charge. Mr Haselden : Very weli, your Honor. His Honor : What is this amountCourt fees, L 25 14a ; this sum appears very large. Have you got a list showing how this amount was disbursed. Mr Davies : No, your Honor. I have only the entry in ray cash-book. In that sum is included mileage to the bailiff and all such expenses. - His Honor : Fees for executing fifas. Is the amount verified ici any way ?. Mr Davies : No, your Honor. There were no vouchers issued. His Honor: Advertising, L 29 7s! I must see the vouchers for these charges. They appear very exorbitant. Mr Davies : I have the accounts here. His Hoi»or : " Advertising Judge's order " 30in at os an inch, L 7 10s. Ditto, "Creditors to appear" 28in at 5s per inch, and so on. Really this is astonishing. ; ■"•• . Mr Davis : Your Honor will recollect that some of the items in the bill were brought up at a former sitting of the court. His Honor: L7.10s for advertising a Judge's order ! It appears an enormous sum, and four insertions too. I see that Potts only charges 3s an inch, while these people charge ss. Can you explain how it is jthat the advertising comes to such an enormous sum? Mr Davies : I really can't say your Honor, they are the usual charges I presume. His Honor : Well, I think that a certain sum should be .fixed iti all advertisements, say 10s each all round large or small, the same as is done in bankruptcy cases; this is quasi bankruptcy, and if one paper won't accept the offer the other will, and the Gazette will be changed. No wonder the contributors complain of the cost when a small advertisement is apun out to 30in and charged at the rate of 5s per inch. I don't think the Act requires that the advertisement should be inserted four times, and therefore I shall not allow more than one insertion. Mr Davies : Your Honor will recollect that is one of the items which I brought under your notice some time ago ; you advised me to pay it. The amount was Ll7 3s. His Honor : Well, I shall require some further explanation of the items, and will therefore pass them over now. Mr Davies :' Very well, your Honor, I will refer the bill back to Mirfin and Tilbrook. His Honor : Liquidator's salary L 132. How long has that been running ? Mr Davies: From the 28th of May, 1873, to the 9th September, 1874. His Honor: Have you charged your salary for the whole time 1 Mr Davies : I made an allowance of Ll9 14s. - ■ ■- . His Honor : On the amount due since the last sitting of the Court ? Mr Davies : Yes. His Honor : Well, Smith, what have you to say to this charge ? Mr Smith I consider it exorbitant. Mr Kenrick only received L7O as liquidator of the Band of Hope Company. Your Hiaior will see that Mr Davies was the principal creditor, and that he has charged L 132 for collecting his own debt. His Honor: Yes, I know very well, but I cannot see how I am to help you. Mr Smith : If your Honor will refer to section 81 of the Act, the Court has power to either withhold or disallow the remuneration of the liquidator, j His Honor : Yes, I am fully aware of that, but the Court cannot make any such order unless it i 3 shown that the liquidator has been guilty of improper conduct. The cost has certainly been very. large, but I cannot yet see that the liquidator has been guilty of any impropriety. Are you prepared to urge any direct charge against him ? Mr Smith ; I should like your Honor to put the liquidator in the box, and find out something about the.list of contiibutorips. His own ' name was down on the eharo list for 880 shares,; uud I should

like him to state how his name was omitted from the list of contributories. fclis Honor : The liquidator was ap ■ pointed by the creditors, and by them hia salary was fixed, and I think that the shareholders acted very foolishly in not at once paying the paltry sum due by the company, and. thereby have avoided all those proceedings. Mr Davies : I mSy state, your Honor, that I was the principal creditor of the , company. A sum of L6O was due to me for salary and cash, and before the winding up, I offered to take L3O and give a •clean receipt, but the shareholders would not agree. I even agreed that if a call were made sufficient to pay the debts of. the company, i would be willing to accept ■ whatever I could collect over and above '• the other debts of the company, and th 9 ; shareholders refused, so a meeting was ; held, and the company was placed in ; liquidation. • ; Mr Pitt: The meeting consisted of Messrs Haselden, Davies, and Mirfin. . Mr Haselden : It is false. ; , His Honor : Well, Mr Smith, lam afraid I cannot help you in this matter. Mr Smith : Would your Honor ask the liquidator what has become of his shares, and whether the fifty held by Mirfin form any part of them ? • His Honor : Yes, I will go through the list. (The list of contributbrie3 was then gone over seriatim, and satisfactory explanations given). Mr Smith :. Will your Honor ask the liquidator what has become of his shares, and whether he "dummied" any of them. His Honor :. Does your name appear on the list as a shareholder ? Mr Davies : No, your Honor. Mr Smith : I have a copy of the sharelist which 1 made myself, and Mr Davie9's name is down for 330 shares. His Honor : Well, how do you explain that? Mr Davies : Smith: has copied the rames regardless of transfers^ ' His Honor : I shall not make any order,/ in this matter until I learn more about the advertising charges, and I will adjourn the Court until two o'clock in order that the accounts may be gone over in the interval The Court then adjourned. At two o'clock the Court resumed, and •**» the liquidator stated that he had received . 1 amended accounts from Mirfin and Til--brook, which he handed in. • • His Honor : I see that a deduction of L 3 has been made from one account and LI from another. I consider the charges are still very high. However, I will deduct the amount, and together with a sum of LI Is froni the law charges, and make the order to settle the plan of distribution. . If any fresh amounts come in they will be put towards a dividend fund. Mr Davies : Less the cost of adverr tising? , , '.. £V His Honor: No, I think Mirfin and: Tilbrook should advertise any further . notices free. They should be able to afford' ; that. I will also order that the names of '. Donald and Michelde be placed oh the list of contributors. Will that entail any fresh advertising 1 (Laughter.) Mr Davies : Oh no, your Honor. His Honor : Very well, you can;take: ; [ the order. ; ; ,7:: ; ff