MEETINGS OF CREDITORS.

New Zealand Times, Volume XXXIV, Issue 5794, 24 October 1879, Page 2

MEETINGS OF CREDITORS.

A meeting of the creditors of Lewis Moss, of Lambton-quay, draper and hosier, was held on Wednesday afternoon, at the office of Mr. Jos.-nh Joseph, who himself occupied the chair. Present— Messrs, Lipman Levy, Whittem (Whittem, Nicholson and Co.), J. B. Harcourt (A. P. Stewart and Co.), Thompson (Thompson, Shannon and Co.), and Norry (Bank of New Zealand). The minutes of a private meeting, held a week ago, were read, and, in accordance with a resolution passed at that meeting, Messrs. Joseph Joseph and Harcourt presented a report embodying the results of their investigation of the estate. This was read ; it stated that the debtor’s stock had been found to represent value for £IBO4, instead of £4OOO. Mr. Lipman Levy had been interviewed by them, and after careful consideration they had arrived at the following values of the undermentioned properties :—Shop in Lamh-ton-quay, £3OOO ; life policy, £750 ; house in Christchurch, £IOOO ; and they recommend that Mr. Levy’s offer to purchase at these prices should bo accepted. They had carefully gone over the accounts, the result being shown in the amended balance-shet-t attached. The report commented on the fact that the debtor had no system of book-keeping, kept no cash-hook, and had apparently mver balanced his accounts. It concluded by recommending that the debtorshould assign his estate. The new balance-sheet showed the following as the true state of assets and liabilities ; Unsecured creditors —Mr. Lipman Levy, £6052 ; Jacob Joseph, £452 ; A. P. Stuart, £3SS ; Turnbull, Smith, and Co., £179 ; Thompson, Shannon, and Co., £402 ; Joseph Nathan and Co., £174 ; Whittem, Nicholson, and Co., £251 ; Bank of New Zealand, £3OO ; Peter Laing, £250 ; Goldberg Brothers, £141; and several others under £IOO ; total, £9261 3s. Secured creditors —Trust and Loan Company, £ISOO ; Mr. lipman Levy, £3250 ; total, £4750. Total liabilities, £14,011 3s. Unencumbered assets—Stock, £IBO4 ; good book debts, £265 ; doubtful book debts, £l7 ; household furniture, £250 ; total, £2333 15s. 6d. Assets held by secured creditors—Shop in Lambton-quay, £3OOO ; house in Christchurch, £IOOO ; life policy, £750 ; total, £4750. Total assets, £7OBB 15s. sd. Deficiency, £6922 7s. 6d. The reading of these figures was received with marks of disapprobation, and some of the gentlemen present expressed their opinion that they were very unsatisfactory. A creditor remarked that it meant Is. 6d. in the pound instead of 10s., which Mr. Moss'-had led them to expect. Mr. Whittem wished Mr. Moss to explain how it was that he had understated his indebtedness to Mr. Levy by something like £3OOO.

Mr. Moss said he had not reckoned £2OSC for interest.

Mr. Whittem asked if ho could show any proof that he was indebted to Mr. Levy such a large amount. It was opposed to common sense to expect them to believe an unsupported statement of such a nature.

Mr. Levy said he could show all the advances in his books.

Mr. Harcourt presumed it was the duty of the trustee to investigate that. What he wanted to know was—Where had the money

gone f Mr. Moss : Gone in losses in businc "

Mr. Harcourt ; But you cannot sh. / that. You have never kept any account of your annual sales; in fact, I don’t suppose you could tell ua what you have been doing a month ?

In reply to Mr. Thompson, the debtor explained that he had not paid any money into the bank for some months, as he was afraid of it being attached for his overdraft. Mr. Joseph said the bank-book showed that when any bill became due the debtor had paid in a few pounds more than the actual amount. Mr. Moss was examined as to the cash payments made by him since the Ist June. Mr. Harcourt thought £3OO for private expenses for three months very heavy. Mr. Moss explained that the money was paid during that time, but represented the expenditure over a longer period. Mr. Whittem asked how it was that Mr. Moss had not produced any books J Mr. Moss: The books were all on the table. Mr. Harcourt ; We asked for books, and you told us there were none. Mr. Moss : I said there was no cash book. I did not keep one. Mr. Harcourt said he should suggest that Mr. Moss be requested to file a declaration of insolvency. Mr. Whittem said it seemed to him so extraordinary that a man who had been in business for twenty-one years, selling principally for cash, should not have made a good profit.

Mr. Moss said his books woald show he had incurred losses to the extent of over £3OOO. He was sure that his valuation of the stock was more correct than that put upon it by Messrs. Joseph and Harcourt, who must have allowed a very large margin for depreciation. Mr. Joseph sent for the gentleman who valued the stock, who, on being questioned on the subject, said that they had allowed next to nothing for depreciation. The things were nearly all valued by Mr. Moss’s own marks upon them. Mr. Moss still considered the stock undervalued. He had acted honestly throughout, and had not only lost his own money hut his wife’s.

Mr. Whittem said he did not impute dishonesty, but it was evident there held been otoss carelessness. The fact that he had never bad any settlement with Mr. Levy was very extraordinary.

Mr. Levy said he had spoken to Mr. Moss several times, and advised him that it waa very foolish to keep on borrowing. Mr. Whittem : But you must have known Mr. Moss’s position all along. Mr. Levy : And so did others. If lam fool enough to lose my money, is that anybody’s business but my own ?

Mr. Whittem : But why did you keep on . You have advanced him money quite lately. Mr. Levy : Because I chose. Mr. Whittem : And you ask us to accept this statement ? ... Mr. Levy: I don’t care a bit about your believing it or not. You can do as you like about that. I have lost my money. After some further discussion as to whether the estate should be assigned or wound up in the Bankruptcy Court, it was agreed to adjourn the meeting until 3 o clock next day, for the attendance of the other creditors.

The adjourned meeting was held yesterday afternoon. There v/as a full attendance of creditor.", including Messrs. Jacob Joseph, (who occupied the chair), J. S. M. Thompson (Thompson, Shannon, and Co.), W. Whittem (Whittem, Nicholson, and Co.), Joseph Nathan, James Smith (Turnbull, Smith, and Co.), Lipraan Levy, J. B. Harcourt, J. Barber, J. McDowell, &c. After some discussion, Mr. Nathan proposed that the estate be assigned to Messrs. Jacob Joseph and Co., for the benefit of the creditors. Mr. Harcourt proposed an amendment, that the debtor should be forced to go through the Bankruptcy Court. The amendment was, however, lost, ,and the motion carried. It was then proposed that Mr. D. T. Stuart should also be appointed trustee, but the motion was lost.