MEETINGS OF CREDITORS.

New Zealand Times, Volume XXXIV, Issue 5843, 20 December 1879, Page 2

MEETINGS OF CREDITORS.

ESTATE OF ROBERT PORT. Probably the largest meeting of creditors ever held in this city assembled yesterday to hear the statement of Messrs. T. W. Young and B. Reeves, the trustees in the estate of Robert Port. The meeting was to have been held at Mr. Fnrwood’s chambers, at the New Zealand Insurance Company’s buildings, but the room was inadequate, and an adjournment was made to the large hall of the Supreme Court. There were nearly eighty persona present, including a very large sprinkling of legal gentlemen, most of whom appeared for the unsecured creditors. Mr Forwood appeared on behalf of the debtor, Mr Travers on behalf of the trustees, and Mr. Brandon on behalf of the Colonial Bank. There was a generally expressed desire that Mr. E. W. Mills, who had occupied the chair at the previous meeting, should preside over the present one. A messenger was accordingly despatched for that gentleman, and after Mr. Forwood had read the principal portion of the deed of assignment—which set forth that it was proposed to leave the debtor his household furniture and effects to the value of £IOO, and to give him not less than £2O per month for the support of his wife and family, in consideration of the assistance to be given by him to the trustees, for such time as they might think fit, Mr. Ladd proposed, and Mr. Dawson seconded, —That the chair should be taken by Mr. Mills. The Chairman said he was only a small creditor in the estate, as compared with some gentlemen present, but as it appeared to be the wish of the meeting, he would consent to take the chair.

Mr. Travers said the trustees felt that they should lay as clear a statement as possible before the meeting as to the position of the estate, and they had looked into the liabilities and assets as carefully as possible. They had not placed fictitious valuations upon any properties belonging to the estate, but had merely fixed the prices which they considered the different properties would fetch if they were placed in the market at the present time. There was a large number of secured creditors long anterior to Mr. Port having been placed in his present unfortunate position, and there was one very large secured creditor, namely, the Colonial Bank. After some further remarks, Mr. Travers proceeded to read a rough balance-sheet, showing the position of the estate. The liabilities were as follows: Creditors, other than the Colonial Bank, secured by mortgages and liens over the properties, £19,289 16s. lOd.; contingent liabilities, £9669 Os. Id. ; creditors unsecured, £IO,OOO ; Colonial Bank, as per statement, £23,157 Is. lOd.; do,, amount of specific mortgages, £1025 ; total liabilities, £66,140 18s. 9d. The assets were : Land, as per valuation —sundry mortgages, £19,289 16s. lOd.; mortgaged to bank, £4025 ; as per letter to bank, £11,659 ; Island Bay, £3250 ; other properties, £llOO ; equal to £39,323 16s. lOd. Contingent liabilities, estimated amount recoverable, £7669 os. Id. ; stock, as per inventory, £BOO ; shares in public companies, £290 ; Colonial Bank, estimated amounts recoverable from other parties, irrespective of mortgages and agreements to mortgage, included in valuation of land, £4500 ; total assets, £61,704 3s. lOd.; deficiency; £4436 14s. lid. The total amount set down for the value of shares was £5 18s., but from this had to be deducted £228, the value of shares held by the debtor in the Colonial Bank. Mr. Travers said the most important question arising between the creditors and the Colonial Bank was as to the securities held by the latter. In addition to the specific mortgage given to the bank, Mr. Port had, in a letter, conferred upon it a right to recover the whole amount due to it. It might be a question for a higher tribunal to decide whether the letter gave the bank a prior right, and it would prove an interesting question for lawyers in more senses than one. (Laughter.) The bank intended to insist upon its rights for the recovery of the whole amount, so far as he could gather from a nod from his friend Mr. Brandon, who represented it. As there would probably be a conflict between the bank and the general body of creditors on the question, he would suggest to the latter that anything in the nature of squabbling over the assets should be avoided, and he considered it would be unwise to force the properties into the market at the present time. The question between the unsecured creditors and the Colonial Bank might be brought to an issue in a very simple manner, if the creditors agreed among themselves. If the securities held by the bank could be maintained, then , the amount to be realised by the unsecured creditors would be very small indeed. He thought that they would all lament that circumstances had forced Mr. Port into his present position. His inability to meet his debts was not due to any extravagance, either on his part or that of his family, but was principally attributable to his having dealt in lands to a very large extent. Mr. Edwards, who was an unsecured creditor himself, and also appeared on behalf of five or six other creditors, said he had listened very attentively to both Mr. Forwood and Mr. Travers, but he failed to find out one single reason from what they had said as to why he should consent to the deed of assignment. On the contrary, he thought he could show some reasons as to why it should not be assented to. In the first place, he would call their attention to the framework of the deed itself. In the assignment Mr. Port did not convey all his properties to the creditors, but only certain properties specified in the schedule. He had reason to complain of Mr. Port’s dealings with himself, and it was a most unusual thing to ask them to accept such a deed as that they had heard read. Mr. Port might be worth £50,000, for all they knew; but they could not compel him to deliver tip anything more than was specified in the deed. The term conveying “ divers lands” amounted to nothing whatever, and he thought all the legal gentlemen present would back him up in that opinion. Then there was another part i. 1 1 which gave Mr. Port £240 a year, f ■ r'.tuse amounted to anything, it was him an annuity for life. Captain 'Williams suggested that they should cut the whole affair short, as he believed there was a majority of creditors iu the room who would reject the deed.

Mr. Quick, n:i behalf "f the unsecured cnditPM he represented, objected to the deed from beginning to end. In the whole course of hie legal experience he never had such a document place 1 before him as the deed they had heard read that day. The deed assigned the estate to two of the smallest creditors. On behalf of Captain Williams, he moved that the deed be not assented to. Mr. Liddie, who represented the firm of Messrs. .C. and T. Meek and Co., flour-millers, Oamarn, seconded the motion. Mr. Forwood said that, with regard to the properties not particularly specified, it was quite oompe'ent for the trustees to examine the debtor as to whether he had leas-d or otherwise disposed of any properties not specified in the schedule. The amount set down as payment to Mr. Port would be altogether at the discretion of the trustees, and was only to be given to him for his exertions on behalf of the trust estate. If the trustees did anything wrong in connection with the estate, it would be easy to remove them. The deed was not made for the benefit of Mr. Port, and he (Mr. Forwood) would ask the twenty or thirty gentlemen who who were present at the former meeting as to whether the deed was not drawn up in accordance with their wishes. Several of the creditors remarked that they were not present at the meeting referred to by Mr. Forwood, and Mr. Brandon stated that the Colonial Bank was not represented at that rae.ting, neither had it received any notification as to the meeting being held. Mr. Forwood remarked that if the estate remained in its present position the whole of the properties would be seized by one creditor, and it was to prevent this that the deed had to be drawn up. The Chairman said at the last meeting they were led to believe that there would be a large surplus, and they now found that quite the contrary would be the case. Mr. Capper (of Messrs. W. and G. Turnbull and Co.) stated that he felt grossly misled by what had been said at the previous meeting by Mr. Forwood. They were then told that the securities held by the bank were of quite a different nature from that which they had learnt at the present meeting. Mr. Forwood said the creditors at the previous meeting were asked to give Mr. Port advice under certain circumstances. The large security claimed by the Colonial Bank hid been put forward the day after the deed had been filed, and the existence of it was quite unknown to him, as Mr. Port’s solicitor. Mr. Capper : But Mr. Port averred at the previous meeting that he had not signed anything else. Mr. Forwood said that when ho saw the document which had been tiled by the Colonial Bank, ho ■■d-a‘e!y console. .q with Mr. Port, and the latter informed him tluu ho h d no recollection of having signed the second document. For his own part, he (Mr. Forwood) never heard of it until he saw a copy of it in the Registrar’s book. He had stated at the previous meeting exactly what he knew of the whole matter, Mr. Brandon remarked that the document referred to by Mr. Forwood was not registered at the special request of Mr. Port, because he wished to sell some properties. Whose duty was it to tell his solicitor about that document but Mr. Port's himself ?

Mr. Liddle said there were claims put iu by several of the’debtor’s relatives and friends, and he considered that, as one of the trustees was a brother-in-law to Mr. Port, it behoved them to appoint some other gentleman to liquidate the estate. During the four months that he had been in Wellington Mr. Port had constantly been telling him of the large amount of money he nis worth. First, it was jf/u,OUu ; tiltu it gradually came down to £30,000. He thought the proper course was to put the estate into the Bankruptcy Court, and let the whole affair be dug up. That was the only way they could prevent the frequent repetition of creditors’ meetings which had disgraced Wellington. In reply to Captain Williams, Mr. Port stated that he had not made over a single penny to anybody. His brother had backed bills for him for over £2OOO, and as the latter owed him £9OO, he only put in a claim to the estate for the balance due after that amount was paid. The Chairman then put the question as to whether the deed should be assented to, but there was not a single “aye” in response. Mr. Quick, on behalf of Captain Williams, moved that Mr. Port should tile a declaration of insolvency immediately. Mr. Edwards, on behalf of Robertson and Co., Phoenix Foundry, seconded the motion. Mr. Port wished to make a statement, but was ruled out of order. The motion was then put and carried unanimously. Meetings of creditors in the estates of Orlando Winnie and N. O’Brien were called for yesterday, but both lapsed, as there was not a quorum present at either meeting.