MEETING OF CREDITORS.

Temuka Leader, Issue 2268, 17 October 1891, Page 2

MEETING OF CREDITORS.

The first meeting of creditors in the estate of Alfred William Ensor, fellmonger, of Winchester, Avas held at Timaru on Wednesday afternoon. There was a large attendance, and Mr D. M. Ross, Deputy Assignee, presided.

The list of unsecured creditors was as follows S.C.F. Society, £137 19s Id; Kempthorne, Prosser, & Co., £53 2s 7d; Gracie, Maclean, & Co., £64 13s 7d; .Mundell & Co., £59 6s sd; Webster & Co., £6219s 4d; Greener & Co., £25 7s 4d; N. Dunlop, £l3 11s 7d; C. W. Gimson, £l6 15s 6d; W. Mason, £32; Milburn Lime Company, £2B 10s ; F. B. Wright, £7 10s; Dr Hayes, £Bl Is; Aspinall & Co., £lO 15s 6d; N.Z. Produce Company, £7 9s ; W. Russell, £25 3s 6d ; W. Philp, £3 ss; P. W. Hutton, £6 ss; W. Carston, £4 8s; Priest & Holdgate, £8 11s 9d; W. Barrett, £6 17s 6d; W. H. Clark, £29 11s sd; W. 0. Roulston, £l7 17s 2d; G. H. Mogridge, £6 3s 7d; T. Rooney, £25 ; Timaru Herald, £7; Temuka Leader, £6 15s; E. C. Dann, £6 4s; J. Jackson, £2 2s 8d; A. W, Gaze, £5 3s; J. Blyth, £4 IQs 8d; J. W. Miles, £6 8s 9d; Opie Bros., £4 15s sd; Taylor and Flatman, £3 3s 6d; Geraldine County Council, 9s lid; Haar Bros., "£l lls; T. Powell, £8 10s; S. Hansen, £lO Is 3d; E. Davey, £2; Press Company, £3 10s; J. Simpson, £7 14s 4d; Berry and Co., £7 10s ; C. Batty, £2 ss; Kitchen & Co., £4 Ws ; T. Pearce, 13s ; Miss H. McDonald, £9. Preferential claims for wages—W. Brinkman, £6; E. Ellis, £10; W. Wakely, £l3; C. Ensor, £6 ; E. Payne, £5; F.’ Wakely, £2 10s; J. garrison, £1 10s; R. Ellis, £7; P. Buckley, 1; M. Mulcahy, £6 ; F. Coppin, £1; A. W, Gaze (commissions), £4 15s ; grand total, £893 15s 3d. List of secured creditors—Bank of New South Wales (mortgage over lots 15 and 16, reserve, 389, at Qrari), estimated value £B,OO, amount of debt, £650; New Zealand Loan and Mercantile Agency Company (security over 456 bales of wool, and 96 casks of pelts in their hands for sale), value of security £3448, amount of debt £9299 ; total value- of securities, £9248; total amount of debts of creditors holding Lie securities, £9949. After reading this over, the assignee said that he had proceeded to the Orari a day or two ago, and found very little indeed of value or assets. He named the articles, and added that he had examined Mr Ensor on Tuesday last. Bankrupt then stated that he had started business as a fellmonger at Orari about nine years ago Avith a capital of £250 of his wife’s Uionoy, He got on very prosperously for i

about six years. He banked three years with the National Bank, Timaru, and on the Batik of New South Wales coming to Temuka they persuaded him to join their branch. Two years after he started as fellmonger he received notice from England that the money which had been sent to his wife, amounting to £250, must be invested in freehold security for the benefit of his wife and children. The money had been sent out by his and her relatives and placed to her credit in the National Bank. After receiving the notice he gradually repaid the £250, and his wife bought the property she now holds at Winchester, for which she paid between £7O and £BO. Two years later he received £SO from England and £IOOO to be used in his business. The latter was left to him by the late Joseph Hoare, of London, and he placed the money in his business, which prospered well until the great inflation in prices here in wool and corresponding drop in England took place in 1890. He at this time transacted the whole of his business through the Loan Company He was right in his affairs prior to 1890, having received over £I9OO in credit balances from London in 1889, In March of that year by request he paid off the mortgage of £350 to the Bank of New South Wales, and a new mortgage for £SOO and further advances. was made by the bank, the difference in amounts being placed to his credit on current account. Owing to the dry seasons and competition in business, he \ had to bring in a water-race to his woaks at a cost of £IOO, and to put up additional buildings, etc,, at a cost of £SOO. The bank then valued his property at £BOO. This valuation was sustained last week on a “ blocked concern,” but had the works been running they would have been worth much more. On the 20th May last the bank told him that he must keep his account down to £SOO. He saw , Mr F. LeCren, who said that as it was so difficult to get at the true state of his position, havjng so much produce floating in London, to try and battle along till his shipments were realised. If his|wool had sold at the same rates as in October, 1890, he should have

cleared the Land Company and had a substantial sum for his creditors. The account sales received in Juty were so encouraging that the bank agreed not to press him, and from 14th July to the 7th September he did not operate on his banking account. On the latter date the bank gave him authority to overdraw to £660 on the understanding that he would keep his interest, the rate of which was reduced 1 per cent, paid up. From 14th July to 7th September he bought wool and skins in his wife’s name, almost entirely from Mr Moss Jonas, and shipped them in Mr Jonas’s name. The proceeds were to go to bankrupt’s credit. The reason for so buying was that Mr Jonas wished it for his own security, toavoid the danger of a large creditor declaring him bankrupt when Mr Jonas’s skins were in work. After the 7th September Ensor extended his operations to keep the works going, and paid for the skins by cheque. On the 23rd September he bought skins at the different auctions, and told Mr Jonas on the Saturday'that he would give him one more shipment ;• after that the bank was to ship if it wished. He concurred, and said he would try and help him in future, asking Ensor at the same time to give him (Mr Jonas) some insurances. On the'2Bth. September he received two summonses—one from Webster & Co. and the other from Kempthome & Co. He did nothing till 3rd October, when he consulted with his other principal creditors, who told him that he must not allow the summonses to be gone on with, and that he must file to save preferences. He accordingly saw his solicitor, Mr Salmond, and in due course filed on the Bth October.

Mr Boss then asked the creditors present if they wished to examine Mr Ensor. The books were on the table, and the bankrupt might be examined on certain entries.

The bankrupt in reply to Messrs Webster, luglis, Grade, Aspinall, Dunlop and others, said that he had kept no cash book. In June of this year he had told Mr Inglia that he was solvent, making this deduction from a statement prepared from his pass book. He produced diaries containing entries of the business, but they were not all posted up. He sent 73 bales of wool, 13 casks pelts, and 12 bales of skins to Mr Jonas, and the creditors were to receive benefit from those shipments. He bought-the first lot in M.rs Ensor’s name. They were not really paid for; as the wool came in it was credited to Mrs Euser’s account with Mr Jonas. He bought the fivsc lot for Mrs Ensor through Mr Jonas and they were not paid for. He bought from Grade and Co. in Mrs Ensor’s name, shipped them through the Loan Company: paid Grade and Go. by his own cheque on 10th September, £5 15s 3d. He did not tell Grade and Co. on baying the last lot of skins that ha was buying for Mr Ensor. He shipped in his wife’s name in order to keep the works going as the bank insisted on this course. The shipments through Mr Jonas wei’e in trust for creditors ; the profits would not ;go to him (Ensor) or to Mrs Ensor. Mrs Elisor declined any profit therefrom. He had once told Mr Grade that he was buying in his wife’s name—did not say that it was for his protection against the Loan Company. Mrs Ensor knew that he was dealing with Mr Jonas but was not aware that he was dealing- with her for anyone else. She. gave him no authority to buy in her nanve from anyone but Mr Jonas. Bankrupt said that he had not tried to raise money lately to pay Grade and Ob. or Mr Mundell. He told Mr Gracie that if Mrs Ensor could she would have paid him and Mr Mundell,' On the shipments through Mr Jonas he had got £6OO in July last. The money went as a debtor and creditor account.

All wages were paid up to the last fortnight, He had told Gracie and Co. that his position was a precarious one; but he did not tell Mr Gracie that the manager of the Loan Company had instructed him to arrange for payment through other purchases. In speaking of the properties he said that the value of the property in his wife’s name Avas about £3OO. (The assignee further explained the position from documents produced). He did not. pay the money on it except on her account by money from Home. He estimated that Mr Jonas should pay in £l2O to £130., which would lie handed over under MrsEnsor’s directions to, tile assignee. He

could make no offer. The skins which he had bought from the N.M; and A. Co

from Grade and Co. a week before hh bankruptcy were nanded over to Mr Jonai on Mrs Ensor’s account. Subsequent!} she agreed to his (Ensor’s) dealing witl: Mundell,Grade and Co. and tjhe Mortgage Co., saying she would try and raise thf money to pay them. This she thoughi it was hopeless to do till the returns oi shipments came from London. It was nol arranged that Mr Jonas should settle these accounts- He will ■' look to Mrs Ensor. He had not a full statement oi how he stood with Mr Jonas. Since July Mrs Ensor had been carrying on the works, and he had been purchasing certain materials for her. The wool he had bought from Webster and Co. had been sent to Christchurch and sold, and he had got the money, £l3 IH, which he applied to wages. The drapery accounts were for his family. Had filed nine years ago and got his discharge. Had he now got time he might have done better, but as he was so handicapped his principal creditors could not advise him to carry on. He had no expectations from Home. The bankrupt was particularly pressed as to the dealings made by him on Mrs Ensor’s behalf with Mr Jonas, several of the creditors expressing their disapproval of it. Mr Aspinall said that there appeared to be some confusion as to the way the business had been carried on, aud it seemed advisable that the profits and losses of the two estates should be ascertained. With this object in view he would move that the assignee should enquire into the matter, and find out how the business stood with respect to Mrs , Ensor. He was satisfied that her creditors should be paid out of the assets in her estate. In reply to a remark to Mr Gaze, Mr Webster said that he was not aware of Mr Ensor’s position—that was in respect of dealings for Mrs Ensor. Mr Gaze said that this circumstance was extraordinary, seeing that the whole bankruptcy was brought about by Mr Webster. Mr Webster said that the bankrupt’s was one of the worst statements he had ever seen, and was proceeding to further comment when the assignee said—there was no motion before the meeting. Mr Webster then moved :—“ That the assignee make all enquiries respecting the separate estate of Mrs Ensor and her transactions, and that he report to a future meeting; the assignee’s expenses to be guaranteed.” The motion was seconded by Mr Inglis and carried. On the motion of Mr Gaze, seconded by Mr Dunlop, the debtor was allowed to retain his furniture,finder the trusteeship of Messrs Aspinall and Hayes for Mrs Ensor and family.