In Bankruptcy.

Manawatu Herald, 8 February 1894, Page 2

In Bankruptcy.

A meeting of creditors in the estate of Thompson & Co., flaxmillers, was held on Tuesday. Present—. The D.O.A. (in the chair), and the following creditors :— Messrs F. Buchan, F. Balcufct, S. Hooper, D. Keir, J. McKee, D. McPhun, E. Newth, W. L. Luxford, J. Jones, J. J. AJoulden, W. K. Simpson, F. Hirsch, J. H. Hankins and G. F. Hawkins. Mr Hirsch held proxies for the following : — J. Kennedy, J. McKay, P. Williams, A. Smart and F. Whittaker. Mr J. H. Hankins appeared for the D.0.A. ; Mr G. Hawkins for the debtors; and Mr Cooke for Mr Simpson. The D.O.A. said there were preferential claims amounting to about £240, and assets estimated at £293. In answer to questions each of the three debtors said they had no separate estates and no property. Thompson said he bad some personal creditors which he said were not included in the partnerships liability. The D.G.A. farther said that the partners had only drawn an average of 10s per week each since the partnership was entered into. In answer to question from Mr Hankins, Charles Hooper on behalf of the firm said they commenced business with a capital of £71 in cash. A few months after they commenced business they found themselves in difficulties. They lost over five tons of fibre by the floods and a large quantity was spoiled. To add to their misfortune the price of flax went down and did not rise again. They employed about 14 hands in June, 1893. Some were on wages and some on piece work. Up to the date of the flood wages ! had been fairly paid. In June, 1893, the only assets the firm had wore about three tons of dressed fibre, three horses and drays, etc. At that time they shipped to New York 30 bales of flax through Levin & Co., who advanced £10 per ton not. The account sales had not yet boon received. The money advanced was used to pay wages, but it was not quite sufficient. The wages were fully paid up at the end of November last, but since that the firm have been unable to pay. In November the firm owed McMi'lan Rhodes, & Co., about £30 or £40 Berry, Orr & Co., were creditors for £18 for clothing made up for some of the men. The firm owed W. L. Luxford £15 odd. The firm were not pressed until January when they were compelled to file. At the end of December they owed one month's wages to each of the men, and since that they had worked another month for which they had not been paid. The debt to Mr Simpson was for meat supplied. It was about £43. The firm executed a deed in favor of Mr Simpson to cover his debt. They gave him security over five tons of flax because they had not money to meet the account. The proposition came from the firm and not from Mr Simpson. When the security was given the firm had not money to pay the wages men, or any of the' other creditors to whom money was due in November. They expected the price of flax to rise to enable them to continue operations. They knew that if flax did not rise they would have to go bankrupt. They had no intention of giving Mr Simpson a preferential claim to the injury of other creditors. Mr Simpson had supplied the firm with £10 worth of meat since the 30th December. Mr Simpson had not received the five tons of flax over which he held security. He might have got it if the wage3 men had not seized it in payment of their overdue wages. In answer to questions from Mr Cooke debtors said the five tons over which Mr Simpson held security was not marked in any way. In answer to Mr Hawkins, debtors said Mr Simpson had rendered his account monthly, and they were satisfied that £43 was owing to him. In the first week of January last 3 tons of flax were sent to McMillan, Rhodes and Co. on account of stores. Their account was then £60. In answer to a question from the D.0.A., debtors said that 80 bales of flax seized by the men had been forwarded to Wellington in the name of the firm, but 15 bales, afterwards seized, had been consigned by the men in their joint names. The D.O.A. said the 15 bales referred to were held in Wellington to hid order and were accounted part of the assets. The meeting adjourned without passing any resolutions. — Times.