MEETING OF CREDITORS.

Waikato Argus, Volume V, Issue 350, 6 October 1898, Page 4

MEETING OF CREDITORS.

McLEAN AND DOBSON. A meeting of the creditors of McLea n and Dobson, of Cambridge West, was held in the Cambridge Public Hall, on Tuesday afternoon, at 2.30 p.m. Mr 1. Wells represented the Official Assignee, and Mr W. F. Buckland, the bankrupts. There were also present :-Messrs J. w. Souter (voted to the chair), Jus Hally, W. Sturges, S. Hall, H. Kerr, T. Hall, G W. Sare, \V. Escott, P. Fogarty, A. Karl. J. Rivera, G. Craig, J. K.ngdon, F. W. Browning, J. Russell, R. Morse, J. Bailey, Jno. Fisher, A. Potts, 1. Cowley, <V. Hobbs and W. Smith. The Chairman said the meeting was for the purpose of examining the bankrupts, and then the evidence would be sent ou to the Official Assignee. . John McLean was then examined by Mr Hally, and he sUted : He entered into partnership last March with H.. A. Dobson. He had no money then, but he had a lease of a Domain section for years, and on it he had built a shed, stable and a house at a cost of about £225. He also had a working plant.of a fellmonger worth about £l4O. Mr Dobson broueht in £6OO. It was paid into the firm's bank account. A cheque drawn on March 21st of £BO was to pay for wool. £225 was paid to McNieol for sheep. He got £2 of change from Buxton to pay for wool. He gave H. Kerr a cheque for £6O for money he owed him previous to entering into partnership with Mr Dobson, but it was paid out of partnership money He paid the Loan and Mercantile £ll3 3s 7d. £IOO of it was an old private debt, incurred before the partnership. £IOO paid to the Loan and Mercantile ou dOth April was also a private account .paid out of the firm's moneys. £2oo* paid to Stubbs on August sth was for bones. He did not know then that he was insolvent. He did not make out any estimate as to how the firm stood before making this payment. They borrowed the £2OO from the Loan Company to pay Stubbs for which they gave security by a bill of sale over bonedust and other chattels. ±nat practically swept off all the assets. Several payments to McCrea of the Waverley Hotel, Auckland, were for his private expenses when he was in town. Be did not pay the Loan and Mercantile Company any other moneys for his private debts. His wife, Emily McLean, had proved for £79. On June 11th, he got £7O from her. He paid it away, but he did not know who to. He did not tell his partner he had borrowed it. He had no receipts for the payments mado out of the £7O, and could not give any particulars about it. A portion of it was for his own private debts. His wife paid him the £7O in £1 notes, at his house. He did not pay this £7O to any one person, or to the Loan Company. He considered he was at liberty to take the firm's money to pay his private debts with, notwithstanding that there was a clause forbidding him doing so in the deed of partnership which he had signed. His partner knew nothing of his having paid two sums of £IOO each to the Loan and Mercantile Company. He did not tell his wife the £7O was for the firm. She lent it to him. The book marked No. 3 by the Official Assignee was made up by Mr Sare. He assisted Mr Sare to make up the book about the beginning of August. The £l3O credited to him in that account was borrowed from Mr Kerr. The account shows him to have had £3BO of the firm's money, and it is probably correct. Examined by Mr Dobson : He did not remember telling Mr Sare that the deed of partnership prevented him paying part of his old account out of the firm s money. He never sent the deed of partnership to Mr Sare, but he might have sent him a copy. Mr Sare did not tell him he was doing wrong when he paid the old debt out of the firm's money, and that the deed forbad it. He took the lease to the Loan Company, but could not say if it was before or after the partnership. He told Messrs Sare and Dobson that he obtained the £l3O from Mr Kerr and £SO from Mr Park, on his own credit. The day after receiving the £l3O from Mr Kerr he paid £IOO of it to the Loan Company off his old private account. When Mr Sare and his partner were balancing the books he did not tell them he had borrowed £79 from his wife. He consulted the Loan Company when his partner wished him to file, and Mr Sare advised him it would be unfair to his creditors. By the Chairman: When Mr Dobson joined him he told him nothing of his liabilities, but referred him to the Loan Company. He had no idea what amount he owed the Loan Company when he took Dobson into partnership. When trading on his own account he kept books showing the woo! and skins passing through his hands, which books he would produce. He did not remember getting an account from the Loan Company in January last showing a debit balance of £I,OOO. The letter addressed to 11. A. Dobson of 3rd August last was signed by him. By Mr Buckland: He remembered telling Mr Sare that he paid some money into the bank that he got from his wife. When he went into partnership with Dobson he did not have any conversation with Mr Sare about his old debt, but afterwards he asked for money on account of the old account. On each occasion he paid Mr Sare the £IOO he had to do so. Mr Sare met him and told, him he must pay. He had had the statement of account from the Loan and Mercantile Company, dated 30th July last (produced), showing a debit balance of £534 15s 2d. He was not aware it was incorrect. , _. Henry Arthur Dobson deposed : lhe Loan Company wrote him about McLean before he entered into partnership, giving a schedule of the works and the property McLean would bring into such a partnership. The tenor of the communication was most favourable. The deed of partnership was read aloud by the solicitor to botk McLean and himself before they signed the document. He became aware about July 27th last that McLeanowed the Loan Company £IOOO about January Ist, 1898, by seeing it on the Loan Company's statements at McLean's house. He produced a letter from McLean of 3rd August, in which he undertook to refund all moneys advanced by the firm, toge'ther with interest. The book opened by Mr Sare, showing McLean's indebtedness to the firm for money's taken to pay his private debts to be £3BO, is correct. McLean and lie assented to this when Mr Sare made up the statement. By the Chairman : He had disclosed the whole of his assets. That was all the evidence. Mr Wells stated that on behalf of the Official Assignee he had taken an inventory of all upon the premises, and he had arranged with McLean to take care of the premises up to that time at 6s per day. He asked the creditors what further steps should be taken. He thought the business should be sold aa a whole and as a going concern, if the creditors were to get anything out of the estate. He moved that in the interests of all concerned the Official Assignee be advised to sell the property and plant as a uoing concern. This was seconded by Mr Souter and carried.' . It was resolved that everything outside the plant, such as horses, cart, etc., be Bold at Mr Hunter's next Cambridge McLean undertook to take care of the premises till the 15th for £1 and the use of the house.