MEETING OF CREDITORS.

Temuka Leader, Issue 2156, 29 January 1891, Page 4

MEETING OF CREDITORS.

A meeting of the creditors of Byrne Bayley, of Mcann, Geraldine, farmer, a bankrupt, wsb he'd at the Deputy Assignee's office on Tuesday. Mr 1). M. Robs, the deputy official assignee, presided, and there were present Mr G. T. H. Perry, legal adviser to the assignee ; Mr J. W. White, solicitor for the bankrupt; Mr J. Wilßon Smith, solicitor.for Mr J. Mundell ; an! Messrs F. LeCren, James Hay, C. H. Inglis (J.F.0.A.), R. H. Tearpoint, J. Mundell, A. E. Hawkins (Bank of New South Wales), H. B. Webster, and Postlethwaite.

Before examining the bankrupt the assignee gave an account of his visit to Moana to give Messrs Mundell and Co. notice to stop a sale of certain effects by them under bill of sale. He had made it his business in the interests of the creditors to do this, first of all consulting Messrs Perry and Perry, solicitors for the Loan company, and the bankrupt's legal adviser. At first Mr Mundell would not stop his sale, goiog so far as to get his men to break into the premises, which were in possession of the assignee's bailiffs, but subsequently an arrangement was come to stopping the sale. Mr Robs produced a copy of the injunction gran'ed by the Court stopping the sale, and also a copy of the notice which he had served on Mr Mundell. The ass : gnee added that an inventory had been taken of the effects at Moana, and he had possession of certain books, etc. He then read over the lists as follows :

A. Or. To amount of unsecured creditors as per list 13, £12,671 6i lid. Or. To surplus from secured creditors as per list C, £2112 ; to assets as per list E, £75 ; amount owing by Mr W. L. Byrne, Stephen's Green Olub, Dublin, Ireland (cash lent), £I7OO ; deficiency, £8784 6s lid. B.—List of unsecured creditor? : Geraldine and Tiimru creditors—H. B Webster, £9516a 6d ; N.Z.L. and M.A. Co., £74 17s 4<t ; Timaru Harbor Board, £5 17« ; Geraldine Road Board, £lll4s ; Tbmuka Leader, £2; R. R. Taylor, £7 8s; R. T. Button, £3 5s Id ; J. J ckson, £5 15b 4d ; Geraldine Cheeee Factory, 17a 9d ; Bank of New South Wa'ep, £46 9s 9d ; M. Kennedy (wagef), £6O ; Ellen McSherry (wages), £3 ; C.F.C. Association, £46 6s 9d. Chris'church creditors—J. Lukey, £5 14s; Booth and Macdonald, £6 ; P. »nd D. Duncan, £2 5s ; Chisnall and Stewar', £3 16s ; A. J. White, £26 4s 8d , Wallace and Co., 19i 3d ; Wardull Bros., £7 6s Id ; D 1.C., £S 18< 61; C, P. Hulbert, £8 lis 6i ; R. G. Thornae, £1 Is ; G. T. Whiie, £1 J4s 6i i Frozen Ment and Export Company, £62 ; Scott Bros., £6 lis 6ri; Auisebrook and Co., £2'l2s 6i ; George Fletcher, £1; O. Warner, £7 19s 6d ; Matson «Dd Co., £42. Dunedin creditors —Brown, Ewieg and Co., £5 10* ; J. S. Bannister, £1 10i 6'. J. Munro, Mayfield, shepherd, £77. Mrs Baylev, MoBDa, about £12,000. Total, £12,671 6j lid.

U.—List of secur D d creditore—Bank of New South Wales, Geraldiiie, debt £5600, secured by mortgage over Moana estate, 560 acres, estimated value, £7OOG. Ditto, debt, £440, security, biM of sale over certain live end dead ttcck, es'im&ted value £450. J. W. White, debt £SO. security, bill of sale over furniture and effects not secured to B>Dk N.S.W., estimated value £6OO. John Mundell, debt, £34, security, bill of sale over furniture and effvc'a mortgaged to Mr Whtte, value £250. John Mundell, debt, £3OO, security, mortgage over 150 acres property near Woodbury, leased from Mr Holmes, estimated va'ue of security £IOO. Toial of debts, £6290 ; estimated value of securities, £8402 ; surplus, £2112. E. —Property—225 acres leasehold in Waihi Goige, leased from Wm. Gordon, WaimatP, value £75. Associated with the debtor's lists were copies of documents relating to the claim of J. Mundell. A (1) copy of the instrument giviog Mr Mundell security over household effects, for a past debt of about £l2O. a present advance of £32, and "further advances" to be made ; (2) copy of affidavit of D. M. Ross, Deputy Assignee, impeaching the validity of the aforesaid instrument on several grounds ; and (3) copy of an injunction issued by Mr Thomas Howley, as officer of the District Court, restraining Mr Muadell from exercising his poners of sale under the security until its validity has been inquired into by the Court, the Deputy Assignee undertaking to pay Mr Mundell whatever sums he may be found entitled to under that instrument.

The bankrupt, examined on oath, said : 1 came to the colony in 1882, and parched Mnana in April at £lO per acre, equal to £SBOO. I hs»d no money, but from Homo securities Mrs Bayley realised about £6BOO, and out of tliii, with her oonFent for the money on loan, I paid cash fnr Moana. I built a house and made grea'fimprovements, mv overdraft for cost thereof being about £6300 at the Bunk of New Zealand. The deeds of thp property were lodged by rain as secii'ity for the overdraw. On the Bank of New South Wales offering the money at 1 per cent, less than the Bank of New Zealand I accepted the offer, and, according to promise, 1 reduced the overdraft by £SOO, and left £6OOO on mortgage with the Bank of New Smith Wales at 7 per cent. Mrs Bayley loaned me sums from lime to time, the total being between £6OOO and £7OOO. I got from her sums of £1650, £2OOO and £ll2O, through the bank named, and also other eumf, which my bank-book shows. I gave her no security, nor paid her any interest. I cannot tell what was my income from the estate. I got £IOOO from Matson and Co. on my sheep, and this sum, with £SOO borrowed from Mrs Bayley, I paid into the bank to reduce the overdraft, the bank undertaking to give me further accommodation, but later on they would not carry out thia agreement. 1 hid dealings with Mr Jonas, but on his pressing me 1 got £BOO from Mesatß Smitlnon & Raymond on stock securi y, and £3OO from Mr Postlethwaite. To s>»ve registration of bill of sale to Smithaon & Raymond I borrowed £3OO from Mr Warren, giving h m a like security. To p'ty this, a'so Post'etliwaite'e £306, Mundell hbout £3OO, and Webster about £l3 ft , 1 borrowed from the B>nk of New South Wales, at interest, £llß7. This was in March, 1890, and the security was aver live and dead stock. The bunk Ims realised about £703, getting about £l4O for the clip of woo'. The b*nk still own the stock—72o sheep, 8 horses, 12 head oatt e, and some implements J went in fur 1100 aoius of leasehold land

aod lost money thereby. I made a little out of Hugh Campbell's land; but J greatly improved it. The oats on it this year will thresh out about 60 bushels an acre, aod the grazing will carry 450 cheep. On thin leaee and crop 1 borrowed £IOO from Mr Mnslin in September, 1890; but before the bill became due in November 1 asked Mr Mut dell if be could protect this bill if Mr Maelin wanked the money. Be agreed to do so; and loan transactions with him resulted in my giving him a bill of sa'e ou 26th November for £l2O 2a 8d then owing to him, an immediate advance of £3O 4 J , £25 of which 1 received on endorsing cheque, leaving a balance of £5 43 for charges. The bill of sale provided for further advances he was to pay into my bank, as I required, up to, any, £IOO. I advised Mr Mundell to provide for three cheques ; one wis dishonored, the other had to go a second time, Later on two other cheques were dishonored, Hnd 1 complained bitterly to Mr Mundell for allowing this. He asked to have the cheques re-presented and he would place the money there. 1 did so; they were nguin dishonored. Mr Mundell explained to ma that the money was there ; 1 found this was so, but for socne reason the banker handed his cheque back and dishonored mine. Mr Mundell has since paid one cheque. As to the lease of Campbell's land, and protection of Mr Maslin's promissory note by Mr Mundell, the latter weot over the land with me Bnd valued the crop aod lease at £3OO. He was to ask £350 for it, but if £3OO were offered to negotiate, aa the sum would meet pressing c'aims. Mr Mundell wrote roe that he had sold to Mr MoDonald. He did not name a price in his letter, but next day told me that he had sold for £IOO. 1 protested, and said, "you might as well tike £2OO out of my pocket." Next day Mr Hawkins and Mr Mundell called at Moana, but I again refused to recognise the sale. After this Mr Mundell wanted possession given to Mr McDonald, but I «gain declined, and after refusing to sign a document produced by Mr Mundell, he said, "If ycu don't I'll take the bull by the hornp. I will put bailiffs in on yo« to-day under my bill of sale. I will advertise it in to-morrow's piperß, aod sell it on Monday the 11th." I still would not agree, unlesa advised by my solicitors, and added, "if you da sell or act, you will do so at your own risk, and against your pledge not to act on the bill of aale until the freehold was firfcfc offered." Mr Mundell then said to Mr McDonald, "1 gife you permission to take possession." 1 protested, aod told Mr McDonald that he would be treated as a trespasser if he did eo ; the pale was illegal. Mr Mundell never nude a demand on me for £.IOO due Mr Maelio. He lifted the bill, but 1 neVir understood that he was to tike the property ever. He had ample security, and had so oco«aion to force the sale. He did not advertise, but Bold the property piivately. On the 10th January I got a let'er threatening to sell, but he subsequently consented to wait till the 17ih. On this date Moana did; not sell, and 1 wiis trying to effect a sale privately when Mr Mundell put the bailiffs in and advertised n sale for ths 23rd instant. Consequently 1 filed ; the assignee put a man in possession,- and locked up my house. Notwithstanding this Mr Mundell's men broke open the doors, smashed in windows with an axe, took out the furniture, and much damage was done. The breaking in was principally done by Mr Suerrutt, under Mr Mundell's authority, after being cautioned by the assignee's bailiff. I subsequently found that the goods were put b«ck in a reckless manner some destroyed. I have not removed any goods. Mr White's bil! of sale for £l4 8a was to pay Mr Flatm>»n's judgment, and he also guarantees Mr Poefciethwaile £3O. This has been settled by paying about £2O to £2l. He paid an order for another small amount. On Saturday last I came to Timaru, bringing a hand-bag containing papers, etc.

The assignee aaid that he had this bag, and opportunity was now offared for any creditor to aßk ques'ions. To Mr Hawkins the bankrupt repeated what he had said about the dishonored cheques. Mr Hawkins desired to explain that Mr Mundell had withdrawn hia cheque; consequently Mr Bayley could not be pud. He (Mr Hawkins) had not dishonored them.

Mr Mundeil said it was not necessary for him to ask any questions. What the bankrupt had eaid was partly correct, but other matter was a mass of misstatements from beginning to end.

In reply to Mr F. leGren the assignee aaid that there was no proof of Mrs Bayley's claim. Bankrupt to Mr Wi'son Smiih : 1 did not tell Mundell that I could clear myself with the amount I wished to borrow from him. I m*de a statement of my affairs to the bmk. (Letter produced.) I svear that I never represented to Hawkins or Mundell that £l5O would clear me ; £4OO would have been required then to relieve me of pressing claims. Mr F. LeCren asked about certain properties that bankrupt had in Ireland, but biDkmptslid th-it his conversation must have been misunderstood. "I have not an acre of property at Home, but I expected money from another source. I had a property in Ireland, tinremunerative, which I made a deed of gift to my nephew, W. J. Byrne. I received no consideration." He added that the property wns Ballyneuna Estate, 426 acres, County Tyrone, Ireland, and he had got no income from it since 1878.

To Mr Webster the bonkrupt said that ha slopped money coming from Home becauis he thought he had quite enough out. He recollected nothing abont mentioning a special sum of £SOO to Mr Webster.

To Mr log in : I may have told you that £2OOO was expected by me from Home nbout two months ago—a debt due by my cousin, Mr Byrne. I offered to give you on order on my cou-in. £3900 has been owing to ma by him for a number of yeat?. I have no security for it: but au obligation for repayment. On my coming to this co'ooy he undertook to pay me ibout £l3O per annum under a pension, and fiinoa 1882 that sum has been pretty reguhrly ptid. A great part of the pruicpil is still owing, and the'pens'on still available and payable. Mr Hay then examined bankrupt at length, and in reply he said that ha did not, think the principal asset of £I7OO by Byrne was available. He got no interest from Byrne. The remittances were iu liquidation of the principal. He wrote qnite recently stopping the remitancea fur the reason that being indebted to the/ Bitk of New South Wales and having

asked for £3O against the remittance, they declined. The Assignee can get those remittances from Cox & Co., Stephen's Green Club, Dnblin. There were two joiut tenants on the Irish .property, at 15s f per acre of 340 acres, tqaal to about £255 per annum. The tenants left in 1887 and the farm was boycotted. His nephew got this property by deed of gift. Mr F. LeCren moved, and Mr Inglis seconded "That the Deputy Official Assignee investigate the securities over, the property of the bankrupt, and take such steps in respect of them as may be necessary in the interests of the creditors, and that he be paid any ooata he has been at, or be put to, in the protection of the estate." Mr LnOren enid that there were several things to look into, the question of the Irish proporty, the securities to the bank, to Mr Mundell, and others. Mr Hay raised the question aa to at once dealing with Mr Mundell's security, but Mr White thought it-would be better to let things take their usual course. The Assignee agreed, aod added that Mr White's socnrity would also have to be enquired into. The resolution was then carried ; Mr H. B. Webster was appointed supervisor, hie remuneratipn to be 2$ per cant on the net amouDt realised ; and the question of adjourning the meeting to Geraldine was discussed. Finally the matter was left to the assignee to decide, and at 6.20 p.m. the meeticg closed.