CREDITORS MEETING.

Patea Mail, Volume IX, Issue 1106, 31 October 1883, Page 2

CREDITORS MEETING.

A meeting of creditors in (lie estate of Mr G F Sherwood was held in the Court-house yesterday afternoon at three o’clock. Present: Messrs Bright, Potto, W. Williams, Davis, Smith, Haywood, Nntsford, Doneghno, Arthur, Cowern (on behalf of C. J. Monro), Adams, Taylor, Ensor, and Jemison. Mr Williams was elected chairman. Chairman read a letter from Mr Christie, for the Bank of Now Zealand, slating that in Mr Sherwood’s statement of assets and liabilities the Bank was set down as a creditor for £l5O, and that he had drawn Mr Sherwood’s attention to the fact that this was an error, the Bank having no claim on the estate. Mr G. D. Hamerton, solicitor for the debtor, read the statement of assets and liabilities in the estate as follow

Assets—Freehold properly—Borough of Patoa, section No. 74, with buildings and plant, and part of section N,o. 24, with dwelling house etc. subject to mortgage to C. J. Monro for £2OOO and interest £3OBO ; part of section No. 132, Whenuakura, subject to mortgage to Robert Albert Adams for £llO and interest, £IOO. Leasehold property, Borough of Paten, subdivision No. 1 of section No. 75, annual rent £3 18s, subject with above freehold to

mortgage to Mr Monro, £200; subdivisions Nos 11,12, and 18, of block 40; subsections 11, 15, and 16; section No. 40 and subsections 10 of section 42, School Commissioners, £3O 15s ; section 6of Block 26 Harbour Board ; subdivision 2 of section 75. Personal property —interest in freehold, Morairoa Block of Native land under negotiation, £1000; ( plant (sawmill) Kakaramea and Patea, £100; furniture and clothing in dwelling house, £110; limber, horse and harness, £57. Total, £4677 15s,

Liabilities, secured—o. J. Monro, L 2120; R. A, Adams, L 125. Unsecured —N.Z. L. mid M.A. Company, L 320 ; Bank of N.Z., LISO ; Colonial Bank of N.Z.,. L 55 ; D Murray, Wanganui, L7O 8s; T Furry, do , L 3 ; Lightbnnd, Allen, and Co., L2 14s ; Holcroft & Co., L 3; A Todd, LlO 4s; A. D. Willis, L 3 4s 6d ; T & A Haywood, L 120; D Smith, L7O 14s; R A Ad»m«, L 65 ; F R Doneghne, LSO 16s ; Thos Eylon, L 25 ; A W Williamson, L 26 ; G D Hamerton, Lll4s; Thos Nntsford, LlO 4 ; H I Davis, LlO 5s 6d ; W Odgers, LlO 5 Harbour Board, LlO; Borough Council, LlO; Patea Mail, L 4 10s; Jas Lett, L 4; S Tnplin, L 4 Is ; L Barraclough, LS 10s ; Wm Howitt, L2; E Mercer, Ll 10s; D Dyer, Ll 12s; P 0 Sparks, Ll ss; Williams Bros., L 45; H A Arthur, L 29 3s; W Murray, Ll; Lundborg and Co, Ll 10s ; R Willis, 14s 6d ; W Cowern, Ll ; R Currie, 10s; Mace and Bassett, LSI; T Taylor, L 10; James and Co, Lls ; E W Mills ami Co, L 7 16s 6d ; Ed Tonkin, L 4 10s ; Thos Peppered, L 4 10s; Jas Kenworthy, 1.8 Is Id ; School Commissioners, L3O ; 'Jas Donnelley, L 3 10s. Claims not admitted:—Jemispn and son, L 24 10s; H Ensor, Ll2. Total L 3533 9s Bd.

The debtor examined by Mr .Bright through the chairman said that the causes of his bankruptcy were various but the principal were the lack of knowledge on the part of the men he employed to carry on work at the pottery, and pressure by the Bank of New Zealand. On Saturday last the agent of the Bank of New Zealand drew his attention to the statement of assets and liabilities and said that the Bank had no claim, but on the advice of Mr Hamerton, ho (Mr Sherwood) decided not to alter the statement. Mr Sherwood also stated with reference to the Bank of New Zealand’s claim that he had endorsed some bills for Mr Rhodes and'Mr Rhodes had failed. He fMr Sherwood) paid portion of the bank’s claim, and they had agreed to wait 4 months for the remainder. If it had not been for the pressure by the bank ho would not hive had to seek the protection of the Court.

In reply to Mr Bright as to why a mortgage of £.300 to the New Zealand Loan and Mercantile Agency Co. had not been executed, the debtor said that the arrangement was to execute such deed “ when called upon ” or “ if called upon,” he was not' sure which, but he was not called upon till after he had signed a declaration of insolvency. The general idea was that il he wore called upon he would have given security over stock in trade and plant. He borrowed £2OOO from Mr Monro, because he did not consider the security given to the Company. Some of the property mortgaged to Mr Monro was the same as that to be mortgaged to the Loan Co. There was a valuation made by two gentlemen appointed by Mr Monro, but he did not know the amount of the valuation. Mr Monro afterwards made a valuation himself, the amount of which was £2290. The valuers on the first occasion were Messrs Cowcrn and Tennent. He did not think Mr Monro was induced to go into the transaction by anyone.

Mr Bright then asked Mr Sherwood what he had done with the £2OOO ho had received from Mr Monro. Mr Sherwood referred him to the bank book, and was examined on some of the items.

In reply to Mr Adams as to what made him employ incompetent men, Mr Sherwood said that he had beeri told by several friends that Mr Jamieson and Mr Ensorknow everything about the business, and as far as words were concerned they had given him every proofthat they did, but when it came to actual work they had failed entirely. He had the evidence of practical men that the kiln was utterly unfit for salt glazing, and the purpose for which it was erected.

By Mr Bright : His application to Mr Monro was for £2500 bit i\t the time the negotiations were nearly completed the Bank gave notice of foreclosing and he had to accept £2OOO. He considered taking all the circumstances into consideration he had acted perfectly straightforward and honest throughout. In reply to Mr Coworn as to whether he had any doubts as to success the debtor stated that he was so absolutely certain that the thing would turn out a success that looking back now he was surprised that he did not go even further into it.

By Chairman : He had no reference from his employees beyond what they gave each other. By Mr Adams: Once or twice he was warned that they were not what they professed. In answer to Mr Cowcrn, the debtor said he had no proposal to make. The piece of land bought from the Maoris, set down in the statement as £IOOO, was good bash land, and included several clearings. It comprised over 2000 acres, and Government land close by was valued at £1 per acre. The cost of completing the title would not be very much.

By Mr Adams : The trustee appointed could get possession of the land, ho supposed, without any assistance from him. It was worth far more than what was set down.

The Chairman thought there would bo no difficulty in getting the title completed.

Mr Nntsfonl nslroJ if Mr Bliorwoofl know that his kiln was not a salt glazing kiln at all ?

Mr Sherwood sniil tltat a rough sketch of.the kiln had been forwarded to Mr. White, and he said it was useless and not of the right sort. A round kiln, that was known in the trade as a “ down draught,” was. required. Another gentlemen s-»id ,it would be impossible (o sail glaze in it. He had several practical gentlemen at the works, and one condemned everything; lie said the kiln was a coke oven.

By Mr Coworn : The pipes as far as made wore done in a most unworkmanlike manner. The bricks were passable. He bad several of the clays in the district, but not at the particular part he had taken his supply from analysed, but. the analysis was generally unfavourable.

By Mr Adams: lie thought Mr Ensor Believed I lie day was good. By Mr Bright: All the plant was ordered at the wish of thej men employed. Rop'ying to Mr Ensor Mr Sherwood said that he (Mr Ensor) only provided drawings for two parts of the machinery. There had been no fault found with them. '

Mr Coworn said there was a pipe making machine in the Harbour Bean shed.

Mr Sherwood said he declined Inking possession of tin’s ns it was not what he ordered.

Mr Jamison wanted to know why Mr Sherwood did not object to his chum at the time he offered him a fortnight’s work for nothing. Mr Sherwood replied to the effect that he objected to pay now, because Mr Jeniison had proved himself incompetent.

By the Chairman: I employed Mr Jcmison and his sou as pipe makers. Chairmnn: Are you prepared to state that (hey know nothing about the business ?

Mr Sherwood; was so-ry they had not placed him in the witness box, and allowed him to place them there, when he would have proved out of their own months that they knew nothing. The appointment of trustee was the next business. Mr Arthur proposed Mr Cowern, but that gentleman declined ; Mr Nutsford proposed Mr Adams, and Mr Bright proposed Mr Horner. A ballot was taken, the result being that the number of votes was in favour of Mr Adams, but value in that Of Mr Horner.

A proposal was made that both gentlemen be appointed joint trustees, but Mr Horner declined to act on those conditions.

Mr Adams then proposed Mr Williams as trustee, and Mr Arthur seconded.

Mr Horner was also proposed, but no seconder was forthcoming. The motion appointing Mr Williams was put and carried.

The trustee’s remuneration was fixed at 5 per cent. ' ; Mr Hamerton, speaking on behalf of the debtor, would ask that the furniture in the house be left to Mr Sherwood. It would only be an act of very slight grace, and he would suggest that some one should put the request in the form of a motion.

Mr Adams proposed that Mr Sherwood be allowed his furniture. Mr Arthur seconded tjie motion, which was carried.

v Mr. Sherwood thanked them for the consideration, and said if the assets should not realise so much as ho thought they would, he was not one of those who considered a legal discharge a moral discharge, and he would take care that every pound he owed should be paid. Mr Adams proposed, “ That this meeting recommends the debtor for immediate discharge.” Seconded by Mr Smith, and carried. The meeting then adjourned.