MEETING OF CREDITORS.

Nelson Evening Mail, Volume XV, Issue XV, 25 November 1880, Page 2

MEETING OF CREDITORS.

The following is a report of the examination of Mr T. S Wyraond, whose list of liabilities and assets were published yesterday, and of his manager, Mr Clarkson.

T. S.'Wymond deposed ; In 1879 there was a transfer to Mr Fletcher, as Trustee for b Wymond ; he could not say whether it was on the 3rd of January. He did raise £1349. £349 went to pay off the Building Society, and £1000 he paid into the Bank. On 25th October, 1880, there was a conveyance of a small piece of land to Messrs Darby and Clarkson, in trust for Mrs Wymond. £85 was paid for the land. The money came out of the business. There were settlements which he believed covered all the furniture in the house. On the 30th Sept., 1880, he'considered himself solvent. There is a bill of sale dated Ist Sept., 1876, and that included all the furniture in the house, and there was another da'ed 30th September, 1880. The two covered all the furniture, be beliored. All the furniture remained in the house ; it was in Mn Wymcnd's home, and in her possession. He knew nothing abou^ not registering the Bill of Sale ; it was not omitted because he did not want it known. He very seldom looked at the Mercantile Gazette. He had from time to time made arrangements for extension of time in his payments. Tim waa not unusual in business, and trade had been very bad in the Colony. During the last year ho had laid out about £500 on improvement! to the house. Of this amount, £320 came from Mrs Wymond'e house at St. Hilda, which was gold, and £200 from the Building Society on additional mortgage. He had spent £500 or £600 on the house, but not a halfpenny camo out of tho business. The bouse was worlk £1500 and the furniture £800. He was served with a writ, but could not swear to the dates. He could not cay who paid for the laud held in trust by Meisrs Darby and Olarkson. He believed that he kept proper books, and be believed they

showed the whole of his transactions. They took stock in 1878, and also two or three days before lie assigned, and he had tho stocksheets prepared in 1880. The amount shown on these, including stock at the Grey, was, ho believed, £8650 12b. £1799 4s represents that at the Grey. That list was taken at actual price in Nelson. He took it at the selling price and then took 10 per cent off. He had no objection to showing the stocksheets. He had not a private ledger, and had no books but those at the store. He first became aware that he waa not in a very solvent position a few days before lid assigned ; up to that time lie thoroughly believed himself solvent. He did not know what he had drawn for his own private account. He might have drawn £34 a week since the Ist January, but that included travelling and his expenses. Ho had not checked the statement. Mr Adams said he was instructed that that did not include all far there was £300 or £400 for wine merchants' bill, groceries, and household expenses settled by contra* The witness aaid he oould uot account for it, be supposed some of it went to the Building Society, Lil'o Assurance premiums, and all thoio payments. Tbe money went in general expenses end working tha business.' Mr Adams: Are you aware that your trade and private expenses amount to quite a third of the whole takings, the trade oipansea i being some £300 n month, and your own £200, while the takingß wel'o some £1500 a month t The witness said: He had no account of what he drew } he a»ked Mr Olarkson for aoine money, and he ga7e it him. In February, 1879, he. got £1100 in cash from Messrs Patterson, Laing, and Co., and he believed it went into the business, . to meet trade bills. In February, 1879, he submitted to some of his creditors the balance sheet produced, showing a surplus of £9,020 15s Bd. In February, 1880, ho submitted a similar balance sheet, showing a surplus of £9,230, He believed they had the surplus had the stock sold well and not been stolen. Stock was not taken. In reply to tbe question " How do you account for the present deficienov when you showed this surplus so recently ?" be said in various ways. In the first place, when tbe stock was taken two years ago, it was taken at full price, which mode a difference of £2793. He Bince found that the total amount had been taken, and it had been omitted to take off the discount. He only found out the error two or three days ago. Then there was £800 of accommodation bills held by tho National Bank, and afterwards takon up. He did not know it ; it was left to tho eccountant. He could not say whose bills they were: He could not remember whether he accepted the bills. Once when he was away Mr Olarkson had accepted bills j be had a power of attorney for a short tiiro. Mr Olarkaon told him they were accommodation bills. By a Creditor: He used to sign bills placed before him. He had implicit faith in Mr Clarkson.

Examination continued : He first know of these bills a few days ago. He believed they were charged to his account. By Mr Southern : He was not aware that £500 of the money from Patterson, Laing and Co: went to take up a bill of Mr Clarkson's. Altogether the following differences were shown between the balance sheet of March, 1879, and similar though less formal statements made to some of his principal creditors in the early part of this year, and his present statement :— * Difference in value of stock ... 2790 Bills held by National Bank ... 800 Difference in value of lease of Hall of Commerce ... ... ••• 1500 On stores in Bridge-street ... ... 350 Alterations Hadfleld's shop... ... 300 Plate glass ... ... ... 35 Fittings and painting ... ... 118 Advertising ... ••• ••• 150 Expenses to Melbourne ... ... 100 Loss on Blenheim stock ... ... 1700 Interest to Bank ... ... ... 2000 Loss on premises in Bridge-street being empty ... ... ... 40 Loss on sale at Havelock ... ... 250 Ditto. Motueka ... ... 250 Sundry bad debts... ... ... 350 Golden Point Co. £50 ; Pelorus Prospecting Co. £40 ... ... 90 Large art union got up in Dec, 1878, paid as prizes... ... ... 300 Loss on sample sale ... .- 100 Loss ©n four clearing sales, £500 each 2000 Loss on gift sales ... ... ... 300 Total £13523 Mr Lewis (Bing, Harris, & Co.) : When you were in Dunedin in March last you stated you had no lien on any of your property except on the Hal of Commerce to the National Bank. Mr Wymond : That was true ; the others were not my properties. Mr Lewis: Then you stated that your house was your own, and gave it me as worth £2500.

Mr Wymond said_he nevei put it down as an' asset.

Mr P. Adams : Is this your only information? Mr Wymond : This is the way I show the loss.

By Mr Adams : It was only when he took stock the other day that he found he was going wrong. Mr Cock: Have you no supervision over your sales ? Mr Wymond said he could not he in all his shops at once, and he believed he had lost, and he had had to force sales to keep up trade. Mr P. Adams : It is evident then that had all these debts come to your knowledge you must have gone bankrupt at the beginning of this year. Mr Wymond said no; the stock was taken rery low, and had ha received assistance he should have pullod through. Mr Oock : Do you think it was judicious to leave all to Mr Clarkson ? Mr Wyraond said he was not a financier. Mr Southern said he thought he bad proved a very fair one. Mr P. Adams : According to your statement, sinco February last jou ■ have increased your indebtedness £8000, and decreased your stock £5000. In reply to Mr P. Adams, Mr Wymond said this was the first time he had been insolvent ; ho had had to get rid of some min'ng liabilities. He received, under power of attorney from his wife, £93 155, but ho did not know ho w much more. He did not know whether £1500 came out j he knew there were several other amounts. AH the money bad come out. The money was in the business eight months and then drawn out. He thought the books showed the transaction. He did not think £1600 was too much to put down for I book debts. He thought they were more j he was not aware these peopU had large contras against tht) firm. Mr Wjmond was then examined as to several other items in his assets. . In reply to Mr Pitt, he said the value of Mr Wymond's house at St. Kilda was about £500, and he though it realized at auction about £400. Begarding the piece of land purchased from Mr Darby, the agreement was made twelve months ago, and was simply completed last September. He had banked at the National four years. When the property was first purchased it was bought in Mrs Wymond's own name. It was transferred to him and resettled. He had no idea he was spending £34 a week, and although it appeared large there were many items, to come but of it such as travelling and trade expenses. He had paid at least £1000 a year for interest, and he had been in business eight years. By Mr Cock : He was clear he hnd spent nothing out of the business for furniture. By Mr Adams: Mr Olarkson had been accountant at a salary of £6 per week ; he left the entire management to him, and he took for granted that the accounts were kept properly. He was not precisely posted up as to his position. By Mr Cock t He believed he told somo of his principal creditors that the figures (in the balance sheet) were made out for him. Mr Lewis : I can say you made no such statement to mo. W. Clarksoo, examined by Mr P. B. Adams : I have lately had £18 per month and half per cent on the gross annual returns, which kas averaged about £9 per month for about two years. Mr Wymond knew this. I remember his going to Melbourne. About £500 out of the £1100 received from Laing and Co. went to take up two bills of mine. Probably I bad insisted on these bills being met. They were accommodation bills of £250 each, and were given at previous dates to meet bills for which we

were being pressed, and the Bank discounted them. I received no consideration for them. The Ba,nk knew I was Wymond's clerk. I made out the statement of March, 1879, which is in my writing. I account for the deficiency much as Wymond did. He wired me to know bow the stock had been valued, and I told him at Nelson retail prices The Words " stock put down at cost price " in the statement of March, 1879, were an error. We looked up the stock lists, I think since the assignment, and found it out. We lost heatily by the clearing sales, which were made for the purpose of raising money to mest pressing demands, and these are not made without heavy loss. I believe the concern haß been a losing one for eighteen months. I think two years ago we were solvent. I really do. The representations he made to the creditors were on the faith of what I t»ld him. I don't know that I have ever remonstrated with Wymond on account of his private draws. The firm has no Stock in Picton. We sold out to Mouat, and bills ot sale were givpn to secure the amount SargOods were pressing in March, 1880. By Mr Pitt : I don't think Mouat's transact'o'i was a profitable one. By Mr Cock : We have never kept auy kind of prcfit and loss account. We have nevf r really balanced the books so as to show a profit and loss.. Mr Southern then said, I submit the following statement by the trustees : — £ 8 d Stock at Nelson ... 3747 1 5 Stock at Groymouth... 828 111 Fixtures at Nelson ... 387 5 6 Book Debts, Nelson ... 750 0 0 Ditto, Groymouth ... 25 0 0 Freehold, Blenheim ... 350 o o c,a £e, Nelson ... 750 0 0 6 887 8 10 That lßLveg a deficit of JE1 1,669 9s 2d. This calculation shows 6s 8d in the pound, but the stock wont fetch half that. I would take five shillings, and I hope you like the prospect, gentlemen.