Meeting of Creditors

Taranaki Daily News, Volume XLVII, Issue 7945, 7 October 1905, Page 2

Meeting of Creditors

HE WATT AND LENNOX. The adjourned meeting of creditors in Uio estate ; of Watt and Lennoji was held in the Council Chambers, on Friday evening. The P.O.A. presided, and there were also' present: -Messrs W. L, Filzherbert, C. 11. Weston, J. Hoy, I).. Ilutchwt, W. Kerr (solicitor to th« P.0.A.), I>. Merry, H. F. Callaghan, 'J'. O. Ivel-

scy, J. Avery, V. "Hellringer, F. Watts,-and W. Ellerm. The H.O.A, read (he statement, of assets and liabilities filed by Edgar Watt, who explained thai the accounts of Watt and Lennon, and Hichmoud, Waft and l.enuon were included, as t-liis was thy correct procedure. He (Watt) had taken into Hccotint tint debts of both partnerships as well as 'of his own private trans-actions. That was the reason for the large total.

Edgar Wait (sivurn) put in a vriltuii statement of his Affairs diice ■he utai'tcd business in Xcw riymoulli tm years ay'o as land lgiMl in partnership with Harold Uulilis. The capital uf the firm wus MO. lie purchased Suil|i>s' interest, Ad was aftcrwijrds ill 'business with arious partners at different times, le had never made any capital out if any partner in Uuj way of lukng money from him as goodwill, then in partnership «ith Walter lew Icy the, business prospered, and vitnuss sueac-eded in reducing his lebts to £1.")0, but. unfortunately ivas; later on 1 compelled to assist >ne of his own relatives with a fuuranteo of £2BO. Fur this sum 10 was sued, and being: unable to >ay tlio amount ho obtained Hewcy's permission to retire from the ir»i. WitijesS then started on bis >wn acooujit, 'aird finanoial pressure lad never since ceased. lie opened « irniich ofllce at Stratford for 12 Months, with a manager, and this •esultt-d In a "dead loss of £3OO. I'h'eti followed a partnership with tlcssrs D. Laing and Cecil Wright, iml on this being dissolved witness ontiniied the business in his own lame. Ho opened branch offices at ~irU and Hamilton with two nanagers and staffs. These offices irero unprofrtabl», and the, WnlWato nwiness alone must have cost him :>ver £100(4 "dead 'loss. The same i-ear he built a house at Stratford it a cost of Jt'l2."). This he had le, pay out of the business, ami as at that time (iiwiicing on freehold at Stratford I was impossible ' witress lost Hie property a Itogether. He lost

£4OO commissions ill Hie KMnflJoai'., anil further bad to compromise a debt, of £84") for £75. Tlis position became acute, ami hn had lo pay o.xivssiv* intercsl| and bonuses to liimnclors| foe accommeidatieyn. H© conducted the 'iiusiiie.iN himself for about t'iirei! months, 'and then LeuHon. joined him. l 'Phis partnership paid expenses only, l)iit during il.\ currency the symlienKi of Wall, Jjennon, and Richmond was formed for the purpose; of spe'CiilaHnn. Ilankrupt. then -gave details of the syndicate's speculations. Mr Ilulehen theiught, the holding

of meetings weus -geitting wearisome. What the creditors wanted to know was the exact posiujon erf Hue estate. The P.O.A. said that the various assets were hare) to estimate', as the properties would have to bo sold publicly. The 'Only estate .of largo value was the Mure! Mere'. The position was thai if the 'assignment was upset, as ho fancied it eoulel lie, he would have to tat*> it over. The pre)pert,v was mortgaged lo the extent e>f about £9OOO, and 'Metres he weiiiWi take ili -over, he would require an indemnity from the creditors. He had hail no valuation 'be>yond that made previously for the purpose -erf mortgag*. That made iiv Messrs Harry (iooif. and Walter Veiling was £l-1,500. Mr I'it/.hirbeit asked if there! was any e'ipiity in the I'miui property, Thv 11.(1.A. said there may tut an equity, but llivre was also » large mortgage.

The P.O. A.., further fpiestioiU'd. did not. think, the Moturoa and Fitzroy sections wotlel i;e*ali.se.at miction any surplus ov*r the TiKirlgagv. Walt ■was their ex-amim'd on si-veral inatii'i's, Mr Kit,l'm epiestieining him with regard te> the heavy interest, or bemuse* he bud bail lo pay for nume'tary neeeiminodatiein. In reply te> Mr Ke'iT. wilnvss said his irule-lited-Ui'SK 10 Richmond wai £'.ITO. Witness bent iii'ver heard liruiuley's name inient e,nid in conne'»ti,em with a second mortgage' of £."iOH em rilzroy sections. 11. A. I.e'iiiion was also examimid. and put in a statement of his personal exiwirdittire. previously asked for, The disposal of Lemwn's interusl in the Veale estate was left in the hanels of the; P.O.A. The P.O.A. nimounivil that he had

received a.let lit from Messrs oiMalonc. Mc.Veagh, ami AiKlursoii. on behalf of Messrs Po|H! ami Darling, suggesting that a meting bo callrd of creditors in the. three estates in op tier to consider the question of as-s-jgninolU and the ownership of the property, flu hud replied that- if they made a proposition lo put bw fore th<-. creditors'he was willing 1 to call a meeting. In discussion -Hi* creditors wore, iavourab-lo to live pr«posal, lml the majority thought the only compromise that coukl be accept<-d was on live batis of '■•■hitcd cash." The matter wan left to the D.O.A. to convene a meeting.