Meeting of Creditors.

Wairarapa Daily Times, Volume IX, Issue 2980, 18 August 1888, Page 2

Meeting of Creditors.

A first meeting of creditors ia the estate of Brown, Bodgera'and Neea was held on Friday afternoon, Mr W, Sellar,* Deputy Assignee, presided, Mr' Bunny appeared for the Assignee, Mr E. 6. Jellicoe for the Wellington creditors, Mr Beard for the Mastertpn creditors, arid Mr Pownall for the debtors, About twenty creditors attended in person.- The statement of assets and liabilities iu the' estate (as published iu our yesterday's issue) was read by Mr Pownall. In this tlie debtor, stated that up to tho time of taking the contract from Macdougall, at' Wellington, the firm was perfectly solvent. They took the contract at £4550. Alterations were afterwards made in the specifications with his consent, but they lost, by the alterations, on the concrete foundation £9O, and starting out of line £4O, From the rise in tbe price of iron between tho time of their tender and its acceptance they lost £35. In consequence of the sub-contractor for .the painting, backing out thoy lost £10(5. Their labor cost £B2O, the rate of which was half as unich again as they would have to pay in Maaterton. ' The carrying out of the contract wtia practically in the hands of Mr Brown, who managed everything from Masterton. Miscalculations in the contracts of Messrs Wat'dell's and Caselberg's lost them £l4O. Neglect of their Masterton, work, and getting out of their depth over the Wellington contrait had brought the' firm to its present unfortunate position,/. A, W. Brown, examined by Mr Jellicoe said, They kept a time book lodger, and; cash book, Kept the books himself, and made entries in the cash book himself. An accountant made up tbe cash book two months ago, for a period of two years, from liis bank book, before that he only kept a rough book. The ledger waa now, and only fixed tip last week from beginning to end. He entered into partnership with Bodgers tlirej years ago, .and Nees f about one year since, They, did not owe 11000 before the Wellington contract was taken. The tirm, ho thought, owed £3OO. The bank bad as security a guarantee from Mr Gappcr £IOO, and Mr Booth £IOO. He also owed B, Donald about £SO, E, Evernden £lO5, J. Graham L4O, Tinsley L2O, Pickering L3O, CadeLoO, Mills & Co, LGO, in all about L6OO, The stock in the yards was at that time about Ll5O, and the plant about L2OO, subject to a leiti of J.IOO. Their book debts were about LSO, when they took the Wellington contract,. He told the bank manager they .were about doing so, Taking into consideration the value Of their properties over and above the mortgage the assets at the time teovered liabilities, Arranged with tlie Bank to draw on account of monies .coining toithe firm from the contract.

The debtor explained in . detail the expenditure of>. monies, received .on account of the Wellington contract. £3730.' was' the -'toUil received' 1 ton account 1 otthe'Macdougall contract, learing a balance of including' extras. Tie final certificate was cot yet given. A certificate had been given to Dawson.for £55,0.. £175 bad to be retained in hand for maintenance after the contract was completed. He went to Dawsoband Co. to prdcuKi material for tho contract bi-caiiW dougall wanted it from there. dougall introduced him to;paws6a!and Co. He got iron ifromattothei'; place, and. it pii condemned, ; Dawsp agreed to supply' hisfirm, on ■ four months bills v without" atiy guarantee; sbe first s29Vlsa August 4, and another,,bill, for ; £95 had not yet failed due. After he gave tbe : £9i> bill ho waited on Mr Dawson, who skid the account stood, at £4OO, and he would iidt supply' further 'goods without.an order for £4OO. Ho gave the order as requested, because'he would not be able to get the goods otherwise. Considered it as security for, future supplies.' : Dawaori it Go sent him in June another order to sign for £l6O which he'did and returned. Hadlo get credit before he could get on with the 1 job in j Wellington., He did nobefer anyone tb'liis bankers. ■ First ' discovered the firm was not able.to pay, their way on August 3rd and he told his partners. Mr Gapper became security for thera'to the 1 bank for £IOO which

they jWojt jon.( \ The Bank wanted a;'guarant&i before they would make further' Advances. . t The Bank holds igamsti'lje £6OO iat guuvantce frota Booth 'J&jjh for £IOO, from Mr ' Gapper and a bill for £2OO of Mr Neilla," At the suggestion of the manager of the batik he gave ordeis on the .contract for £2OO and £100. ; This was after the third of August,; Hfterhe:. h adtalked., ,o£ their position over with his partner, fle did it because it was hard cash advanced, and he felt sorry, not for'the Bank but for- the "manager,- • In' July he went to the manager of the bank.as lie was short to meet.his bills and required money to go on with. The mahagersaid if he got a-good jikme to, 1 a bill, he '.cojild acbomriodatej him, Witness' asked .if Neill would do, The MahagjstaaidWwould, aindjto proteot MrNeill the banker said they could give fMr Nejli'an dralr on.Mr Macdou-. gal which he '.diij,* land the baiiker allowed' him/toi draw against the Bill. of £l5O to come on the contract for, extras, i,'J

By .Mr Beard':—Have never filed ®r compromised with any creditors! befoie 1 the'preseiit time. Had been'sjioit to meet hisbillsatthe bank before the contract, and. he asked Mr Gapper to become surety lor him at the',bank, asked him?;for i 5.0, giving as a reiaon' that he .ahbrt of,'money* Was overdrawn at the ; time about £60,: Thei' Banker told' him: lie ,would vhave' tb get some guarantee and,; in consequence 'got Mr Gapper. The' contract was aow"out of their hands and. lyas.being finished (jut of the mbijies communicated,to his other creditors the fact , that . ließad; given Dawson tbe orders. Soli fplaining-machin6jwhich was includedinahagreement for bill of Biile, . -Did npt get permission from Mr Gapper to ; doso'as he'had intended' to replace it with a 'better oiie., The statement of , accounts showed they were owing £B3B when he took the Wellington job for which they showed assets nearlv to the amount.

Books were made up from memory and rough books. ; His memory was his book-keeper'to a certain extent, Had'a settlement with Wagland about' a month ago by exchanging promissory notes, , The bill went into the lirm's banking account; Aboutmonth sgo he had hopes still to be able to pay everything. , When lie. wont' to take the Wellington job he did not toll the bank manager that lie wanted a cheque for deposit, He got a marked cheque (rom the Bank when lie tendered for the contract. ' Whea| he filed he baa two uncompleted jobs still in hand, oiio about £SO, and the other £2O, the latter would take that amount to complete, Hare received £93 upon H. Nees' job, and all tho monies due on Wardell's contract. : Also received the full amount on Hooper's contract, aiiy contra account was settled in tjie usual manner. - In Dixon's cose he was also paid ia full by cash and promissory notes. 1 All the bills shown as discounted in the bank book'we're for contracts. There might be' amongst the number about half-a-dozen accommoditioh bills. The contract, for Mrs Carter | was £IBO, of which ; £l2O, was paid in cash, and the rest,-by bill; the bill was given to Graham 'and do, When I he tendered for the Wellington job he obtained a cheque from the Bank marked good, for eight days, not-, withstanding that at the same time time they had an overdraft at the Bank for over £3OO. pave no security for that cheque, All the piece-work of the contract was paid by . cash on receipt of progress payments, as it was more convenient to do so, not' having a banking account in Wellington, The certificates for extras produced were to the best of his knowledge correct, with the exception .of £6O, which Mr Fannin, the architect, held.

Mr Pownall examined tile, debtor upon the evidence already given but did not elicit anything new. Mr E, G. Jellicoo proposed on behalf of Messrs Booth, aiid.' seconded on behalf of E. W. Mills and Co., that the bankruptcy proceedings be transferred to Wellington, and on the motion being put to the meeting it was declared carried by the Assignee, but Messra Heard and Fownall protested Hgainst it on the grounds that they wero taken by surprise, by the resolution, and while the voting was being taken, suggested an adjournment "to enable them to discuss the matter, The Assignee, however, having taken the votes ruled (hem out of order.

The Assignee was requested to convene a meeting in Masterton; for the purpose of rescinding the foregoing resolution. • 1 ■

The meeting then closed,