IN BANKRUPTCY.

Taranaki Daily News, Volume LIII, Issue 312, 27 May 1911, Page 2

IN BANKRUPTCY.

ESTATE OF WOOD AND ZEMBA. The adjourned meeting of creditors ii the esta.o of Wood and Zemba, boot' makers, was held at the office of D.O.A. -Mr. J. S. S. Medley, yesterday. The bankrupts, with their solicitor* Mr. A R. Standish, were present, and there , were seven representatives of creditors After the reading of correspondence , by the D.O.A. re insurance, it was de , tided to accept the payment of £2Bl 2s 8d by the Norwich Insurance Com pany, which was the amount agreec upon by arbitration, less an amount se r cured to Jaeger and Co. by an attach I ment order. Mr. H. Goodacre wrote in reference t< his account for valuation. This hac been objected to by some of the credi tors as being excessive. He was now prepared to confer with the D.O.A. 01 the matter, or to refer it to an outside accountant. Mr. Ramson considered this was noi an account that should be treated in this way, but the creditors should abide bj the usual practice of warehousemen ii such matters, by whom such work was always done willingly. Mr. Baily hat already been paid for the work for whicl Mr. Goodacre was making this claim. Mr. Goodacre read two letters fron local firms, whose names were withheld stating that the customary charge ir such valuations was 5 per cent, on the first £IOO and 1% per cent, after that He could bring any amount of evidence to contradict the assertions made thai warehouses were in the Habit of render ing such services gratis. Mr. Hamill said that these percentage charges were charged when work was done by an outside; professional valuer but when such valuation was done by a creditor in the estate, it was usual to charge only out-of-pocket expenses. Mr. Goodacre said he was making no charge for the first valuation. Mr. Ramson: In this case you only ' checked the stock already taken. Mr. Goodacre: No, I went right through it. Mr. Ramson said that Mr. Baily had been paid £7 7s. Then, before the stock was offered for sale, Mr. Goodacre was employed to take stock again, and he chafged £27 for the job. Mr. Gooelacre: After the first valuation tile business was run for three weeks, you know, and a fyesh valuation was necessary. Mr. Hamill at this stage suggested that Mr. Goodacre should retire, and allow the other creditors to discuss tie position. Mr. Goodacre thought there was no neeessity for such a course? for, he said, no one would be likely to say behind his back other than what could be said to his face. There was no necessity for I him to leave the room, but he was willing that the meeting should go into committee. He moved accordingly, but there was no seconder. Mr. Ramson contended that the charges made by Mr. Goodacre would be excessive, even if made by a firm of commission agents. But in the case of a creditor, the amount must be regardeel as exorbitant. Mr. Nicholson said it was quite apparent that there was a disagreement between Mr. Goodacre and the other creditors, and he agreed with Mr. Hiimill's suggestion. Mr. Goodacre said he was content to retire, as he did not wish to baulk business. But, he explained, he had put in a large quantity of work, and he was not to be lookeel on as a sort of charitable aid board for the rest of the creditors. Before the bankruptcy he had made a definite contract with the bankrupts for the valuation of the stock and for acting as arbitrator in the insurance dispute. Later, when an assignment was spoken of, Mr. Baily was asked to value the stock, but had said he was not an expert and would need expert assistance. That assistance he had given, and he had a right to be paid. Then the firm was declared bank- ' rupt, and it became necessary to make a I fresh valuation before tenders were called, and he had been instructed by the D.O.A. to do this, entailing much hard work and the employment of assistants. Duplicate stock-sheets had been prepared and sent to the creditors in various towns. He took exception to the proposition that one merchant should do this work for the benefit of others, who would thus enjoy the benefit of his experience. Mr. Ramson: It is my opinion against yours. I've never heard of anyone being employed to value a bankrupt stock. The intending purchaser values it for himself when he tenders. Mr. Goodacre retired. Mr. Hamill traversed the account, taking particular exception to the item where £9 was charged for nine days at £1 a day over and above travelling expenses. If Mr. Goodacre's claims were paid, he said, that creditor would be receiving more than 20s in the £ oul of the estate. It was decided to offer £2O in full settlement of the two accounts of £44 and £27, which would pay the actual out-of-pocket expenses changed and allow £7 las lOd for the work done. The D.O.A. was instructed to "sit tight," and that Mr. Goodacre. should have to sua if he wanted more. Mr. Goodacre, when he returned subsequently, said he could not think ol accepting this amount. At a prior meeting it had been decided that the bankrupts' books should be examined by a New Plymouth accountant, and a statement prepared. Mr. A. E. Watkins presented a statement compiled from the records available, but he stated that it was quite impossible to make a full statement. Many of the amounts shown were only approximate. Mr. Stanelish said that some credit should be given for book debts £122, and for £l.l cash in hand. Again, the payments shown were based on the cheejue-book, whereas many of the payments recently had been maele in cash. The item of £lO allowed for freights was far too small. They had also lost by pilfering from their cases at the Hawcra railway station. The shelving and fittings, which the statement showed as costing £3O, cost over £6O, and there was no record of bankrupts travelling expenses when they went to the centres to buy stock. Mr. Watkins said the statement was based on the books, and there was no record of the cash payments. Mr. Standish further pointed out that a bankrupt stock purchased by the firm had resulted in a loss of £IOO or more, and there was no record of that. Mr. Hamill asked if any payments had been made off old accounts after 31st January, when banking ceased. It was explained that at about that time Mr. Goodacre, after conferring with other creditors, had insisted that no creditor must be paid old accounts except payments were pro rata. Mr. Zemba said that after that time Messrs. George and Doughty had received £OO or £7O. That was before he received his instructions from Mr. Goodacre. He said that Mr. Goodacre had instructed him to pay Arch. Clark .and Sons in preference to his own account. Mr. Ilamill asked a series of questions concerning a credit note given by the Eginont Boot and Shoe Co. for some £37, the bankrupts stating it was for boots obtained on approval and returned to the company as unsuitable, Mr. Goodacre was asked a question by Mr. Hamill concerning this transaction,

. and exhorted by Mr. Hamill to v ; "out with it," added, "If you're try- | ing to get at the Egmont Boot and Shoe Company you're up against a snng. My books are here, but I'm not here to be cross-examined by you." Mr. Nicholson moved, and Mr. Hamill '/ seconded, that a copy of Mr. Watkins' statement be handed to bankrupts, and 1 that they be asked to hand to tlvc D.O.A. a written explanation with regard to the discrepancy disclosed ol £4Bl.—This was carried, Mr. Standish protesting that it was quite unnecessary a»d savored of harassing the bankrupts The meeting then adjourned.