MEETING OF CUEDITORS IN HE H. BROWN.

Manawatu Herald, Volume II, Issue 45, 30 January 1880, Page 2

MEETING OF CREDITORS IN RE H. BROWN.

A meeting of creditors in the estate of Henry Brown, of Foxton, was held on Tuesday morning last. There was a .good attendance, end Mr Gray occupied the chnir. Mr Crowther said that as trustee of the estate he had called tbo meeting under sections 112 and 118 of "The Bankruptcy Act, 1876," which provided that the trustee had power to make a report. Iv accordance with those clauses ho bad pre> pared a balance sheet, which ho presented. Ths estate had b^en dragging on so long, that ho thought there was no chance of getting any more from tho assets, and it would bo better to wind it up, or have a new trustee. Mr Loudon would refer the meeting to an advertisement in the Manawatu Herald, signed by the Cleric of tho District Court, calling a meeting at Palmerston for the 30th instant, to elect a now trustee. He ( Mr Loudon) had requested Mr Forster to call thf meeting under clause 52 of the Act, which authorised '»ny creditor to demand a meeting for the election of a new trustee if the first became bankrupt. It would be the duty of the creditors to attend that meeting, and appoint some other gentleman to act as trustee of tho estate. The chief Hssots were at present held by Messrs Thjnne, Linton & Co., and the creditors must compel them to part with them. Action hud been taken in the Supreme Court, ond though the demurrer had been over ruled, the question remained to be tried how much of the property the firm mentioned held legally, and how much belonged to the trustee of the estate. Ho (Mr Loudon) had go.' d reasons to believe that everything they held would he taken from tliem — both the Avenue and Tramway properties—except a small moiety of about £12 He himself was the principal creditor, and he hoped the other creditors would assist him in fighting to the last. Mr Thynn« said he attended the meet'ng, not to represent the firm of Thynne, Linton & Co.. but on behalf of the estate of Mr F. K. Crowther, of which he (Mr Thynne) was trustee. Ho advised the creditors to abstain from further law proceedings, and have the matter settled by a legal arbitrator. Ho could assure the creditors they were fighting 1 a losing battle. Clause 09 said that any attempt to upset securities or leases must be made within two months after the bankruptcy. This had not been done, and even supposing theif case against Thynne, Linton & Co. were a good one, they could not possibly bring it to a successful issue, having by their own neglect put themselves out of Court. His fir.n were perfectly willing to submit the whole mutter to the opinion of any unprejudiced legal gentleman, but they would not accept Mr Thos. llntehison, as he was not one of the highest in the legal circle at Wellington. They wished the (natter settled at once, as they could not now toach the property, nor could any one else. Mr Loudon said he was surprised at the present meeting being called, as ii appeared to be in opposition to the meeting called by the Clerk of the District Court. Mr Rupsell thought matters were in an unsatisfactory state. Tho balance sheet showed that £22 had already beej paid to Mr Hutchison for legal expenses, and what I was there to show for it ? Absolutely nothing. It appeared a fight was going on between Mr Loudon and Messrs Thynne Linton and Co. It happened the former was an unsecured creditor, whilst the latter were secured. This happened with reg.ird to almost every estate that went into the Bankruptcy Court — some were' secured, others were not. He thought that instead of handing everything over to lawyers, a dividend should sometime ago have been paid to the creditors. It was quite probable iliat instead of gutting anything -from the estate, th'^y wouid have to contribute some:hing more to pay legal expenses. Although Mr Hutehisnn had receiver! £22, he had never presented any bill to the trustee, and what the full amount of his account would be uo oue seemed to know. It might be another £50. Being only a small creditor, | he was prepared to wash his hands of tlie whole nffair, preferring his original loss to j a levy for lawyers' fees. The trustee said they had realised on almost everything, and a balance remained of only a few shilling*. The debtor said that his lawyer had a bill j of £28, which the estate would have to pay, aud that Mr W. Robinson had a claim of over £30 for clerical assistance ! Such being die case he (Mr Russell) wa3 disposed to let Mr Loudon fight the matter out if he liked to pay the expense, but not to eat up the whole of the assets in lcg-il expenses. Mr Louiion said he did not take so gloomy a view as the last speaker. There was the properly on the Tramway which would realise something, and the cattle which Brown had would yield — Brown— When you can get them, my boy ; they'll make your eye wink when you do, I know. Mr Loudon continued the cattle would yield a considerable amount, and lie thought the estate would in the end yield a good return to the creditors, &s he felt confident, the law proceedings would resnlt in the oecurities referred to being handed back by Messrs Thynne, Linton & Co. Mr Thynne said if the creditors thought the securities wero more valuable than the amount the debtor owed his firm, he would be quite pleased to hand them over the properties on receipt of a cheque for the amount owing to his firm. Mr Loutlou also remarked that if the othor creditors would surrender their claims to him, he would single-handed fight the matter out with Thynne, Linton & Co.,Jand indemnify the other creditors from any further loss. Neither of theso proposals found favor with the meeting. It was resolved to transact no business until after the election or appointment of a rew trustee, anfl the meeting closed with a vote of thanks to the Chairman.