MR LINGARD'S INSOLVENCY.

Wanganui Chronicle, Volume XXV, Issue 10236, 29 June 1883, Page 2

MR LINGARD'S INSOLVENCY.

The first meeting of the creditors of William Lingard, brewer, took place yesterday afternoon at the Courthouse. Present — Messrs C. S. Cross, J. W. Peake, E. P. Wilson (Wellington), J. W. Jackson, Filmer, H. Morrow, R. T. Shield, Drummond, S. H. Drew, A, D. Willis, T. Ferry, W. Barr, E. Brightwell, J. Donovan, T. Moon, J. Russell, J. J. Crawford, J. Brechin, J. G. Sharpe, J. H. Pollock, J. Brennan, J. McLaren, E. Churton, Peter Hogg, George Howe, Cornfoot, T. Harley (Nelson), Charles Sharp (Nelson) McIlhone, D. Ross, G. W. Ormsbee, J. Purnell, Forder, James Duigan, J. P. Watt, W. H. G. Foster, W. Alexander, S. H. Peel, Joseph Chadwick, F. Richards, George McCaul, W. P. Currie, Garrett Wilson (Turakina), R. Lingard, W. C. Watkins, Leslie (baker), J. Strachan, Fitzherbert, Cooke, and Barnicoat.— The debtor also was in attendance.— Mr C. S. Cross was elected chairman;— The following is the sworn statement of assets and liabilities : — Assets : Half-an-acre Guyton - street, with the brewery and plant, subject to first mortgage to the Wanganui Equitable Building Society to secure £2000, second mortgage to W. Wilkie to secure £1000, and third mortgage (collateral to bill of sale) to H. F. Turner, R. T. Shield, and J. W. Peake, to secure £2800— £7500 ; malt, hops, and sugar, £700 ; rolling stock, subject to bill of sale to secure above £2800—£700 ; furniture, subject to above bill of sale, £350 ; book debts, £150 ; section, Castlecliff, £10. Total assets, £9410. — Liabilities : — Secured : Wanganui Equitable, £2000 ; W. Wilkie, £1000 ; H. F. Turner, R. T. Shield, and J. W. Peake, £2500; total secured, £5500. Unsecured: T. Harley, Nelson, £480 ; F. Richards, £400 ; Shield and Peake, £300 ; C. H. Ashforth, £500 ; Sharp and Co., Nelson, £395 18s 1d ; T. R. Hodden an Co., Nelson, £324 10s; Neill and Co., Dunedin. £320 2s 5d ; C. Sutton and Co., Auckland, £221 1s 2d ; Marshall and Copeland, Dunedin, £170 2s 11d ; F. R. Jackson, £100 ; C. Cheymol, Wellington, £102 3s 3d ; F. J. Jones and Co. £75 ; W. Harley, Nelson, £140 ; C. Brodie, £85 ; J. W. Jackson, £60 ; G. Wilson, Turakina, £50 ; H. Morrow, £47 8s ; P. Heyman and Co., Dunedin, £35 6s 9d ; Vincent and Co.,. Christchurch, £15 ; John Anderson, £17 ; J. Bennie, £10; H. B. Williamson, £20 ; Kempthorne and Prosser, £30 ; Levin and Co., £100 ; Smith and Wilson, £82 ; Zohrab and Newman, £80 ; M. Joel, Dunedin, £26 2s ; E. Wright, £20 ; Borlase and Barnicoat, £70 ; W. Handley, £16 ; T. D. Cummins, £30 ; Hugh McIlhone, £60 ; W. Forder, £34 ; J. Notman, £9 ; J. Strachan, wages, £20 ; T. Moon, wages, £11 5s ; J. Donovan, wages, £11 5s; C. H. Ashforth, rent, £8 ; W. Barr, £4 ; Holcroft and Richards, £2 ; Drummond and Alexander, £1 10s ; Mrs Hogg, £5 ; Herald, £2 ; Chronicle, £2 ; Dr Earle, £2 2s ; W. Armstrong, £8 ; Smith and Earl, £4 ; J. G. Sharpe, £5; A. D. Willis, £15; H. I. Jones, £10; J. Kitchen, £1 10s; J. Cresswell £9 ; T. Hamilton, £6 ; Mrs Nance, £4 ; G. Hutchison, £6 ; sundry small accounts, £5 ; total unsecured, £4567 6s 7d ; total liabilities, £10,067 6d 7d. In addition to the foregoing there are the following secured by mortgages of different properties left by the will of the late Mr Joseph Soulby to Mrs Soulby for life, and after her death to Mrs Lingard: Robert Rowat, of Paisley, Scotland (attorney, James Sclanders, of Nelson), secured by mortgage of land at Okoia, £1600; Penelope Durie, of Wanganui, widow, secured by mortgage of house on River Bank, £400; T. H. Harley, of Nelson, maltster, secured by mortgage of house at present occupied by Mrs Morrison, £450; J. Anderson, of Upokongaro, secured by mortgage of house at present occupied by Mrs Soulby (principal and interest guaranteed by Messrs Peake and Shield), £800. Total additional liabilities, £3250. Grand total liabilities, £13,317 6s 7d. Total estimated deficiency, £3907 6s 7d,— Proofs of debt to the amount of £3340 were handed in. —The Chairman opened the proceedings by reading over the assets and liabilities, as sworn. — The meeting decided, before electing a trustee, to hear the debtor's statement. — Mr Lingard then said that he came to Wanganui in 1875, having little or no money. The Bell Brewery was in the market, and he purchased it, after consultation with his friends, at a price something like £4000. He new nothing of the business at that time, and, although the profits were large, it required a proper man to look after it. After twelve months he was persuaded by his then brewer to launch out — though whether he was then making money he was not prepared to say, but his books at any rate looked rosy. He invested and built a great brewery at Palmerston with the intention of making his fortune. After two or three months a man came along and bought it, and with the proceeds he bought another at Masterton — Then that particular man collapsed, and he (the debtor) was in the happy position of having three breweries at once. After a time he disposed of the Palmerston and Masterton business, and then began to launch out a good bit in the Wanganui brewery, under the impression he was making money. He acquired hotels, and in 1878 Mr Thatcher arrived in Wanganui. That gentlemen came to the conclusion to purchase half the Bell-street business, but without taking a share in the interest and risks of the hotels. At that time eleven or twelve houses were bound to him (the debtor), some freehold, some leasehold, and some with the goodwill only. Mr Krull, of Wellington, then wished to extend his business as a wine and spirit merchant into the Wanganui district, and after consultation with his agent, Mr Jackson, Mr Krull said that he expected a large sum of money out from Germany, with which he was prepared to advance his and the debtor's interests mutually, by furnishing a large portion of any good investment, the balance to be made up between them. Mr Krull also agreed to take a half share in the brewery at £3250, he (the debtor) having improved the place by spending £500 upon it. Advances were made to some hotelkeepers who started in business, with the view of their pushing the trade of the brewery, and in anticipation of a considerable increase. Shortly after this, the Glasgow Bank collapsed; the banks put on the screw, the debtor was unable to pay his bills, there were a great many failures, and after a good deal of dispute with Mr Thatcher, the

partnership was dissolved. He (the debtor) had endorsed bills to a considerable amount, and had undertaken other liabilities which he never thought he would have to meet, believing Wanganui to be a thriving place. Mr Krull's position was hampered, too, for when he had been short of coin, he had drawn up the firm (Thatcher and the debtor) demand, they taking the bills at three or four months, putting on the discount till the expected money arrived. It did not arrive, and the bank sent threatening letter, which resulted in the dissolution with Thatcher. Directly after this the failures took place, and he lost money, out of what he had invested in hotels in the district, to the tune of £5100 or £5200. This was four years ago, and he was in great straits what to do. A bailiff was in charge of the brewery, and the debtor had several writs out against him. He conferred with his wife and mother-in-law, and they agreed to sacrifice everything they had rather than that he should seek the protection of the Court. His wife was willing to forego what was her own property so as to stave off the evl day. Everything was mortgaged to the fullest extent, and every penny went to pay off the creditors. His wife's trustees went through his books, which showed a profit of £2100 or £2200 a year, but the money he was then borrowing, and the increased overdraft, brought up the interest he had to pay to £1000 a year. He came then to the conclusion that as he was living economically— about £300 a year— the balance of £700 a year would go to pay off the advances from his wife's estate. For the first two or three years it looked as if this prospect would be realised, but then the Beer duty came on, in respect of which for the last twelve months he had paid no less than £750. His books were carefully kept, he was glad to say, and every month the profits were worked out, especially since the Stamp duty came into force. His profits for the last three years, after paying labour and materials, were £1400 a year. Against this there was the £1000 a year for interest, and his £300 a year for living, so that he sailed very close to the wind. He had been saddled at first with an incubus, never anticipating the Beer duty, but that was the finishing point, and al the breweries must have felt the same. He had hoped either that the Beer duty would have been repealed, or that, as a compensation, Wanganui wouId have gone ahead. For the last three years he had just paid his way, and had, perhaps, been £100 a year to the good. During the last 3 or 4 months certain bills under discount in the Bank came to maturity, and were dishonoured. The Bank required him to pay up, and he could not do so. It was the winter of the yoar, and he was not making money, and wanted further security for his overdraft. A letter was sent by the Bank to the guarantors, who looked through his affairs and advised him to wind up. When they became guarantors it was distinctly stipulated that they should have a bill of sale over everything in the brewery, and a mortgage over the buildings, plant, and rolling stock. This security had been repeated to them several times, as the overdrafts altered from time to time. The other day, when they found things were-coming to an unfortunate climax, they demanded the bill of sale, and he gave it them. The malt, hops, and sugar were not paid for, and he declined therefore to give them security over them, but in its place he gave the guarantors a bill of sale over the furniture in his house which was not half the value of the other stuff. This would give his creditors an idea how he came to his present position.— Mr Thomas Harley asked if the proofs of debt handed in were correct. — The debtorcould not say without going through his books, but he would be sorry to dispute the accuracy of the accounts. — Mr George Howe said that it was about two months since the debtor got some malt from Sutton, when he must have known his own position. The debtor got shipments of malt within the last two or three months of which not a grain was used in the brewery, though it had been offered to other brewers for sale. — Mr Harley asked what quantity of malt had been used in the brewery during the last three months. — The debtor, said about 400 bushels a month, and he had been selling malt besides to other brewers. — Air Harley asked if the debtor had not had more than that amount from Sharp and Little, Mr Harley, and himself in the last three months. — The debtor admitted having from them quite double that amount, but the balance was down at the brewery. —Mr Harley said that Mr Lingard must have known he was going through the Court when he opened his account with William Harley two months ago. — The debtor said that William Harley shipped malt to him at 6d per bushel less than anyone else, and as he sent over 60 bags at that, and it was first class, he (the debtor) thought it was just a nibble, and ordered another shipment at the same figure. But he was then aware he was going to file. — Mr Charles Sharp asked how it was, then that the debtor sent his firm an order for a shipment at seven shillings a bushel at the same time he procured the other malt from W. Harley ? — The debtor said that there was a good deal of difference between the two malts, and it was not at all a funny thing that he should have secured both. The price of barley had been so high this year, that any good malt was good value at 7s. — Mr Sharp asked the debtor if he balanced his books yearly.— The debtor replied in the negative, but said that he showed his profits at the end of each month. — Mr Sharp said that in such case he must have known how he stood for three months past. — The debtor said that all he knew was that he was paying his way. — Mr Harley said that apparently the debtor paid no one during that period. It was impossible that his business wanted shipments of malt from William Harley, Thomas Harley, Sharp, and Sutton. — The debtor said that he certainly did not want it, but he laid it in on the strength of what the Nelson maltsters told him.— Mr Harley said that the debtor did not show what was his stock in hand. — The debtor replied that he had 1500 bushels of malt, and 30 or 40 hogsheads of beer left in the brewery. — Mr Harley asked when the debtor first ascertained his position and felt that he could not carry on ? Was anyone pressing him when he filed?— The debtor said that the cause of the matter was an overdue bill held by the Bank for £300. On or about the 5th or 6th of June he arranged a renewal, provided he got an endorsement. But the guarantors then came, and finding how things were going on, and having themselves endorsed another bill for £300, advised him to file.— Mr Harley asked whether the debtor did not write to him at the end of May that he would pay off a certain sum of money out of other property. What was the object of thus misleading him ? —The debtor replied that he thought the property was going to be sold, but the trustees declined the offer. Had they accepted it, he could have kept his promise.— Mr Harley asked if the £300 bill held by the Bank was not an accommodation bill. — The debtor replied in the affirmative. — Mr Harley asked Mr Cooke (who represented the Herald Company, limited), whether the Bankruptcy Act did not provise for the [...] of a man who got into debt within two or three days of filing,

and when he must certainly have known his position ?— Mr Cooke thought that was a matter to be decided hereafter. — Mr Harley said that the creditors need not be afraid of Mr Lingard, and might just as well discuss the matter then. — Mr George Howe asked why the debtor gave a bill of sale one day and filed the next.— The debtor referred Mr Howe to the explanation already given about his relations to the guarantors. — Mr Fitzherbert said that he appeared on behalf of the guarnators, and was quite prepared to give a full explanation of all the transactions. — The Chairman thought such. explanation was very necessary, as it appeared that a bill of sale had been given over furniture, which was a fraudulent preference, and rendered the security null and void. — Mr McIlhone read certain letters he had received from the Bank of Australasia holding him liable, as the endorser of four bills of the debtor's, to the extent of £220, arid asked why the debtor had put him down in his liabilities for £60 only ? — The debtor entered into explanation on this subject, and admitted that the four bills were accommodation bills, and that all Mr McIlhone owed him was about £25. He admitted also that he endorsed a bill for £50 to enable Mr Aneher to go into the Railway Hotel, but the debtor protested that he did not know his own position then. — Mr Fitzherbert, at the request of the meeting, explained that shortly before filing the guarantors received a letter from the Bank calling on them to pay up the overdraft of £2500, guaranteed by Mrs Soulby, Major Turner, Mr Shield, and Mr Peake, and also by the names of the debtor and his wife— though they were immaterial. The guarantee had been running two years when a fresh security was substituted for a previous one, and it was then distinctly declared that the guarantors could at any time call for a bill of sale over the rolling stock, plant, and material, which were to be kept up to £1500 at the least; and also for a mortgage over the brewery buildings which had been previously mortgaged to the Building Society, and subsequently, without the knowledge of all the guarantors, to Mr Wilkie as a second mortgagee for £1000. Mr Lingard was willing to execute the required security, and valued the rolling stock at £700, and the malt and material at £800. — He (Mr Fitzherbert) asked Mr Lingard if all these were paid for, and found that the rolling stock was, but the other was not. lt was therefore improper for the trustees to take security on the malt and materials, and as they took away half of the guarantors' security, and as a third mortgage over the brewery appeared to be of comparatively insignificant value, Mr Lingard suggested that he should give, quantum valeat, a bill of sale over his personal furniture, which had been paid for. He (Mr Fitzherbert) saw no objection to doing this, quantum valeat, and the bill of sale was executed accordingly. He was, not prepared to say that it stood on the same footing as the other part of the guarantors' security, but that was a matter for the trustee in bankruptcy to consider on behalf of the creditors. The guarantors were entitled to a considerable amount of consideration at the creditors' hands, for while not one of the guarantors had received any benefit whatever, they had had to pay £2500 in cash to relieve Mr Lingard. — Mr Harley asked what Wilkie's second mortgage was for ? — The debtor said for cash lent. — Mr Harley happened to know that Wilkie lived for some time with Mr Lingard. — Mr Charles Sharp said that the whole story about going on five years, paying £1000 a year for interest, and then being compelled suddenly to file, was absurd on the face of it.— Mr Harley said that it seemed as if the debtor knew what was his position within the last six months, and had been making provision to put himself as right as he could. — The Chairman observed that the state of the case was that there was only £850 to pay £11,000, everything except malt, hops, sugar, and book debts bring mortgaged. — Mr Harley asked how it was that the book debts amounted to £150 only ? The debtor must have been collecting pretty close, especially as he had had during the last two months materials enough to keep two breweries going. — Mr J. W. Jackson suggested that perhaps Mr Lingard had made the beer stronger. — Mr Duigan asked if the debtor had kept his ordinary trade bills paid up to the beginning of the present month. — The debtor replied in the affirmative, and added (in reply to Mr Harley), that he had twice as much malt and hops in his possession this time last year —Mr McIlhone asked the debtor if he had allowed any bills, which he knew ought to have been provided for to be dishonoured before the 1st of this month. — The debtor said that he had not done so as to private or trade bills, but some accommodation bills had not been provided for. —Mr Brechin remarked, on the part of Mrs Hogg, that he had always found Mr Lingard meet his trade bills up to the present month. — Mr Charles Sharp asked what was the debtor's position now in regard to bound houses. The debtor said that nearly all the bonds had run out, and he owned no hotels. He had lost £3000 by that class of business. — Mr Charles Sharp asked how much malt the debtor had sold during the last three months. — The debtor could not say, but thought about 60 or 70 bags. — Mr Harley said that what the creditors would like to know was where the proceeds of the malt had gone to. Were last month's accounts collected ? — The debtor said that the whole of them had been got in. — Mr Duigan asked if the debtor had been paid for all the malt he had sold outside of the brewery ?— The debtor replied in the negative. — Mr Harley asked the debtor to explain Mr Forder's claim for £40 in respect of "beer not supplied." — The debtor said that Mr Forder had given him a bill for beer before it was delivered. — Mr Charles Sharp expressed surprise at this being done. — Mr McIlhone said that it was a common practice in Wanganui, though he had never heard of it anywhere else. — Mr Harley said that the affair about the malt recently supplied from Nelson was very crooked. None of it had been paid for, and what had become of it ? — Mr George Howe would like to know distinctly whether the debtor had offered malt in his possession lately for sale to another Wanganui brewer.— The debtor admitted the fact. —Mr Duigan, as proxy for Mr Williamson, moved the appointment of Messrs C. S. Cross and Arthur Filmer, as joint Trustees. — Seconded by Mr J. G. Sharpe. — Mr Cooke, as proxy for the Herald, moved the appointment of Messrs Cross and J. J. Crawford.— Seconded by Mr J. J. Crawford. — Mr George Howe moved the appointment of Messrs Cross and Notman.— Seconded by Mr F. Richards. — Mr Churton stated that Mr Notman had declined to serve.— Mr Howe then substituted. Mr William Dakers in his place —Mr J. W. Jackson proposed Messrs Duigan and George Howe.— Both gentlemen declined the honour. The nominations were put to the vote with the following result :— C. S. Cross, unammously elected ; A. Filmer, 19 votes, £2004; J. J. Crawford, 13 votes, in value, £843; William Dakers, three votes in value £418. -Messrs Cross and Filmer were declared duly elected Trustees. — Mr Havley said that, from what he knew of Wanganui during the last few years, [...] of some sort was needed to prevent people being let in by

such persons as their friend Mr Lingard. He moved, That in the interest of the commercial community, to prevent such reckless trading, the debtor be opposed by the Trustees in endeavouring to effect his discharge, the expense to come out of the estate. If the meeting would not agree to this motion, he would certainly oppose the debtor himself, at his own expense, and on all occasions. — Mr Lingard wished to say that he did not care if the discharge was suspended thirty years instead of three. He recognised his debts as a moral obligation which he would pay back whenever his luck changed. Mr Harley said that he intended his motion to suspend the discharge for the full statutory term of three years. —Mr Charles Sharpe seconded it. — The motion was put, and lost on a show of hands. — A motion by Mr J. P. Watt in favour of allowing the Trustees 5 per cent, commission each, was lost on the voices. — On the motion of Mr Duigan, a hearty vote of thanks was awarded to Mr Cross for his able conduct in the chair, and the meeting terminated.