J. R. Scott’s Bankruptcy.

Gisborne Standard and Cook County Gazette, Volume III, Issue 360, 5 October 1889, Page 2

J. R. Scott’s Bankruptcy.

Ah adjourned meeting of creditors in the bankrupt estate of James Robert Scott wae held on Thuradiy afternoon, there being present : Messrs Adair, Friar. Lewi., Harding, Matthew., Craig, Erskine. Score, Bourke, Dunlop, Adams, Porter, Moore, Hennessy, Evane. Clark, Bennett, Whinray, >nd Townley ; aleo Meaera Finn and Skeet, solicitors. The Deputy Official Assignee sa'd he had arranged a tran-f-r of the license r.f the Masonic Hotel to Mr Jovca or Mr Harding and had sold the stock for £lB3 13< 81 Ha had paid rent of £lO4 to the 30' h September, and £ll5 fnr wages, leaving a balance of £2O due. There also had to be provision marie for the payment of £54 for taxes Messrs Townley and Whinrav had valued the effects included In the bill of sale to Messrs Dunlop and Bonrke, the va'uation being £1320. A discussion took place as to whether the Assignee was bound to pay the rates or leave that to the new tenant. Mr Croft aaid he thought the money would have to come out of the estat-, but it was a matter that could he looked into and acted upon as was considered proper in the circumstances. Mr Score: Are there any assets besides what you have mentioned? Mr Crof : The hook debts. Mr Score: Has any e'tomo been made to get them in ? Mr Croft): M Cecil Lewis is the collector and I relieve ho is doing hia best ; he has collected about £4O —The bankrupt pointed out that another £3O had been collected from one gentleman. Mr Bennett: That was got through me. Mr Hoore : What other assets have you to pay wages with ? Bankrupt : The wage* have been paid. Assignee: AH but £2O. Mr Score: And bow about rates? Assignee: That will have to come cut nf the book debts. Bankrupt: Anri the balance of furniture. In the course nf further remarks the bankrupt said there would bo nothing out of the furnltura as Messrs Dnnlon and Bturke had that, Mr Clark • What are the bonk debts? Assignee : Over £BOO. Mr Friar: And about £7O has bean collected. Mr Benno’t: It isn't much to collect £7O out of £BOO in thraa weeks. Mr Friar auggeatad that tha bast debts would have bean got flrat. Mr Yon may take vouroa'h upon that. In reply—' tn Mr Score the Assignee said Ihe bonk debts were the only assets ha knew of. Mr Moor. | And the pin. over the bill of .ale. A.signea That i. a question for tha creditors to talk about now, Mr Score wanted to know whether the bankrupt had any jewellery besides the watch and chain which he admitted at ihe previous meeting that he was po.Mi.sd of? Bankrupt replied in the negative. Mr Scot. I Have you disposed of any lately ? Bankrupt: I don't think «o. A.signea : Whst did you say ? I didn't hear. Bankrupt: No. Mrhoon: Is that all the jewellery you had whan you went Home? Bankrupt: I didn't say that. Mr Score: Yon haven't been away so long, Bankrupt: I have been away sixteen months. Mr Score thought Mr Scott had more jewellery than a watch and chain when he left. Banks tupt (holding up hi. wrist.): I have got a pair of sleeve link., Mr Score said that was not much jewellery for a gentleman going Home. Ha didn’t suppose Mr Scott had got any diamond pins? Bankrupt; No. lir. Mr Score: Have you any horses? Bank, rupt: No. The Assignee said be might explain the metier in regard to a roan here.

which, with saddle and bridle, had belonged to debtor. It had been in Mr Little', charge for two years and paddooking wa. due on it for nearly the whole of that lime, and Mrs Scott told Little that he could take the horse, ssddla, and bridle tor his debt Being for paddooking he (Mr Crofi) thought L ; ttle was entitled to retain tha horse. Mr Little bad said he was willing to meet the creditors in any way in tha matter. Mr Score : It is a poor hor‘e, saddle, and bridle that is not worth £lO. Mr Bennett: It is a good ona that is. The Assignee said Mr Little valued the saddle at 80s, tha bridle at a pound, and did not consider the horse to he worth much, Mr Score: Has he got a receipt ? Bsnkrupl: No. Mr Score thought the horse, saddle, and bridle ought to be in the estate. Assignee: That is questionable. Mr Score said if they were put in Mr Little might gettwantyabillings tn the pound, which wnuld perhaps be better for him than to t.ke the horse. (Laughter.) Bankrupt said Mr Skeet (solicitor) might tell them whether Little was in the right? 3ft' Skeet (laughing): The creditor, want to gat cheap law. Mr Olark did not know how law could be cheap in tbe end, Mr Skeet .aid he was afraid the creditor, would come out second best. Mr Bennett said in return for his advice Mr Skeet would be able to get his share in tbe estate. (Lanvhtar,) Mr Score : lyhst was Mr Leyinsohn's claim nf £2OO for? Bankrupt; Borrowed money, Mr Score ; Borrowed lately ? Bankrupt: To come home with. Mr Score: That with Mr Bencett's £3OO. is £5OO. And Levy ? Bankrupt : Same thing. Mr Score : More borrowed money ? Bankrupt: Yes. Mr Score: He has nnt put in a proof yet. The bankrupt replied in the negative, and in reply to Mr Croft said the amount was £124,

Mr Score: Were there any more profits from the football team after you sent out the two drafts? Bankrupt: There was no profit, —it was a great loss. Mr Score: Hayg you got the books ? No. Mr Score: Are they not in Gisborne? No, the Secretary has them ; he was a partner of mine. On being further questioned as to the drafts debtor Mid he had sent out £5OO, £3OO in December and the other in May, both being from London, Mr Score: You didn't send out money to Lsvinsnhn or Levy? Is thia all you sent? Bankrupt: Oh.no. I sent out £3OO to Levy i the £124 is tor interest; I sent out what I borrowed from him. Mr Score : How long wee it from when you borrowed tbe money to when yon returned it? Nine months. Ml Score; That would hardly pay I Bankrupt: Another six months elapsed after that, Assignee : That was for about fifteen monthi (nterest? Yas. Assignee : That is pretty good interest * more than I would give. Mr Hardt ing: Surely a man cannot prove for that amount ? The Assig ice said Mr Lovy had not proved ; it woqld be a hard thing to prove that amount of interest on £3OO. Mr Score to bankrupt: Is that all you sent out ? Yes! That would finish up your share nf the profit* in England ? Bankrupt: Profits I I Mid just now there were no profits—it was a loss. Mr Score : How much did you lose ? Bankrupt There were four of ns in it, I couldn’t exactly tell that. Mr Score : I think you ought to know. Bankrupt: Yes. Mr Score; I lap . pose you could gat the book* if you wanted to ? Bankrupt: No, the gentleman has gong to Aus'rails. Assignee; What is his name? Bankrupt; Mr Eyeton. Mr Score: I think we could get the books. Bankrupt: In f, o t I don't know whether any set of correct book* were kept. Mr Score: There would surely ba books kept for the partnerebip? Bankrupt • We hadn’t enough to pay ourselves, let alone a bookkeeper. Mr Score: I don't see how you could help it. Bankrupt: Wore partners but without a deed of partnership. Mr Score: I suppose you could get a statement of th* position ? Bankrupt: I don't know where to find Mr Eyeton ; ho has gons to Qusensland I think. Mr Roore: I think it is vary import tent we should know bsfors we know whet wg cando. Bankrupt: I don't know whore to find him. Mr Score: I think wo have a right to the information. Mr Friar: Did each of the partners draw an equal amount to what you have remitted out of the business ? Yes. Four of you ? Bankrupt: No, two of us. Mr Score: Did the Australian tour pay, can yon remember ? Bankrupt: No; we lost £4OO in Melbourne, Mr Score: At that rat* £5OO more has gone into your hotel business —money not taken out of the business, bor. rowed money? Bankrupt; Yes, that baa gong in to pay working expenses. Mr Boors: £5OO from December. Mr Moor* . j can't s*e that; £BOO was borrowed from Mr Bennett. Assignee: It was not paid back. Mr Moore said the amount stood a« a liability. Mann, rupt; Mr Matthews can tell you that £5OO ha* gona towards working tha business. Mr Roore; That makes the hotel gone to ths dog* £3OO more than if only this draft bad gon* in ? Bankrupt: Yes Mr Score ; Thera is a great deficiency somewhere. Bankrupt: If you had to keep it twelve months you would say so in the present ststa of things. Mr Harding : Is there any possible ohenoe nf getting a dividend in the estate? Aliigneei X don't know ; that depends on the bnokdebts ; if we get £BOO in there should be a dividend. Mr Friar : I would like to ask Mr Scott If he has been in business before he cam* tc Gisborne? Bankrupt: Yes, in Napier and Auckland, Mr Frier : How long in Napier? Bankrupt I Eleven or twtlve ysan, ggf

Friar : Did you have any trouble with your Creditors iu Napier ? Bankrupt : Yet*. I failed in Napier Mr Friar: What did your Creditors get? Bankrupt: I don’t kn<«w; Mr Robjohns took it over. Mr Friar: You don’t know wbat the es’ate paid ? Bankrupt: No, the estate was handed over to the Oihcial Assignee. In reply to Mr Score, the bankrupt said that when taking over the hole! his partner, Mr Saville, put £lBOO cash ia, and the balance was paid in bills. He (hankrup ) borrowed money off Common, Shelton and Co., and paid him <ff and niei the biilp. Mr Saville had sold his bill of s-de to William Graham The business was doing very well then, He believed Saville got £l5OO from Mr Graham. He thought he (bankrupt) had got the business fur £l7OO, He gave a bill for £l5OO, and Mr Matthews lent him £2OO to meet the lease, and he managed to brirg the amount down to £750, He had no Capital when he went in, Mr Score: Did Mrs Scott have any Capital ? No; she may have had a few pounds, but nothing of any consequence. Did Mrs Scott have any capital when she went away from here ? I do not think so, She did not receive any money previous to her departure ? Bankrupt : Not that 1 know anything abou*. I suppose she has got a few pounds. She has worked hard enough for it. There is always a email amount for wages which we always allow. I think she has earned it if she has any. I know nothing

about it though. Mr Score : Did she have any Building Society shares ? Bankrupt : I Couldn’t say. I know nothing about it. Mr Score : Whan your children, the servant and Miss Beale went away, a few cases went with them. Bankrupt : Their luggige. Mr Score : All their wardrobe ? Bankrupt : Yes, their wardrobe; personal effect*. Mr Score: Were there seventeen trunks ? Bankrupt: I couldn't say; there might have been; trunks ?—I am speaking of small boxes. Mr Score said he was only asking these questions because there had been so much Btreet talk about the matter, and to be satisfied about the thing. Bankrupt said he Was satisfied that Mr Score was acting fairly. Mr Score : There were two dray loads, I

heard. Bankrupt : All the childrens’ clothes, Miss Beale’s and the servant’s. Did you see the cases going BVway ? No; the servants own as many W clothes as anyone else; they generally do. In reply to further questions by Mr Score, the bankrupt said no account was kept of the purchases; the stuff was put in the cellars or storeroom and charged against the different btrs. Th* only thing they had to fall back on were the invoices. Considerable discussion took place in regard to the bill of sale held over the furniture by Messrs Duulop and Bourke. The bill of sale was for a thousand pounds, and the Ust valuation made by Messrs Town ley and Whinray was for £1320, while one made a month previously by Mr Townley Was for £l4BO. Mr Moore thought the creditors sh >uld have the surplus over the thousand pounds, Mr Dunlop said decidedly he and Mr Bourke considered the furniture was theirs, their claim being also for interest and other moneys lent above the amount. If the other creditors were not satisfied they had their remedy, but they (Messrs Dunlop and Bourke) were net going to leave the furniture lying there from week, to week at their risk while the other creditors were making up their minds what they would do. If the furniture were removed it would not be worth £lOOO. H» did pot |hiuk right when they appointed gentlemen to make a priva e valuation that the valuation should be made public pro perty. The Assignee said by law he could compel anyone to give information that he required. Mr Dunlop said he could not have done so in this ca«e when the hotel was out. Of his hands. The Assignee said that would not make any difference, Mr Townley said beyond the reply he had made to the Assignee at that meeting, he had not told anyone what the valuation was. Thu Assignee said he had heard it in the street. Mr Whinray sa d h»* had told Mr Croft, as be did no* consider there was any secret about it. Later on the subject was Ibgaib brought up, and its discussion was enlivened by a spirited passage between Messrs Dunlop and Matthews. Mr Matthews bad got a legal opinion about the matter from Mr Sheet and he had handed it to Mr Scott. Bo me of the creditors suddenly thought they ~~tvsuld like to hear it re*d, hut Mr Skeet referred them ter Mr Matthews and that gentleman said he wou d not allow it to be read after what Mr Dunlop had said. Mr Dunlop contended that a copy of the opinion had been handed into the meeting. Mr genpptt said he bad only given it to the Chairman to read. In r«p!y to Mr jiennett, Mr 'Matthews said he would have to pay for the opinion, two guineas, but the creditors could have it if they liked to pay for it. This sally tempered the anxiety of the creditors, and after B laqgh, they evidently came to the conclusion that they could manage without it. Mr Score, to bankrupt: Is your life Insured (laughter)? Yea. for h w much? £lOOO. How long have the policies been ia force ? One for six or seven years and the other for three; both premiums are now due. Mr Score (laughing): They might be put in M ap asset. Mr Bennet thought such policies were always protected. Mr Score: But perhaps Mr Scott would like to pat it ia. Bankrupt: I don’t think it is the particular wish of any. One ; I have got four little ones, you must remember. Mr Score : Yes, but still there are a lot more little ones. Bankrupt: It iso’’ the first time I have attended here (the Assignee s office) on the other side. I know if people had paid me I should not have been here Mr Score; I can’t make out Where the money has gone. Bankrupt: Go Mad keep the Masonic for six months and you will find out. Mr Sco e•• Ido not think that ia the question ; I don’t think there is

much money to be lost, in a house like that. Bankrupt : I think Mr Croft shows that; he took £42 in a week, and the expenses, without paying for wines and spirits, butcher and baker, are £5O. Mr Score; I don’t think it is any comparison when the Offioi 1 Assign, e in. Bankrupt : I dont think he took half the expenses yesterday. Mr Score i The trade ia broken up. Bankrupt: Take the

Whole three houses, not one of them is taking it Mr Score said that when the proper ..books were n 't kept they could not toll what trade was doing. Bankrupt: We keep a ledger, day-book, and cashbook, Mr Sheet said Mr Scott had been endeavoring to make an arrangement so that he would pa enabled to offer a composition. He bad pot been able to complete the arrangement, but be hoped be coold do so with a little time. In any ease the amount would be a small one, and they could not be certain of completing the arrangement. In reply to Mr Matthews, Mr Skeet said it would take a fortnight or three weeks to complete the arrangement, Bankrupt: I have got a friend who has pro. mised to help me if he can realise on certain I property of hie own, bat I don’t know whether he can realise. He tried this week, bat vii not successful, Mr Lewis said that the beet course then would be to adjourn the meeting for a fortnight or three weeks to see what the offer would be, and enquiries could in the meantime be mads as to their position ifi regard to Messrs Dunlop and Bourke** bill of sale. Mr Moore, to test the feeling of the meeting, proposed that the bill of sale be Contested. Mr Matthews suggested that they give a general instruction to the Assignee to protect their interest and report to a future meeting, Mr Bennett: Will this cost ns anything ? Assignee : This meeting ? Mr Bennett; No, that has cost us enough already ; finding out abuut the bill of sale. Assignee, I suppose I would have to get a legal opinion: Mr Harding wanted to know whether any arrangement could be made by which they could pay Dunlop and B mrke the £lOOO and interest and take qver the furniture, and Mr Wbinray thought the creditors were emitted to something for the time the furniture had beeo in UM since the bankrupioy. It was resolved on the motion of Mr Bennett, seconded by Mr Moore, that the Assignee be authorised to abtaio legal advice on all Securities and report as soon aa he can, the meeting to be adjourned tint die. Mr Clark wanted to know who was to pay for tbe advice. Mr Bennett said that did not [matter. He remarked that they had been there long enough, .Mr Moon flao;*^; j, aofln ' t matter, "i good tun. Mr Bennett i We haven’t had much fun to-day. Yea, it started with a little. The meeting then dispersed after a sitting heady twe keurs,