SCOTT’S BANKRUPTCY.

Gisborne Standard and Cook County Gazette, Volume III, Issue 361, 8 October 1889, Page 2

SCOTT’S BANKRUPTCY.

ANOTHER MEETING OF CREDITORS.

The third meeting of creditors in the bankrupt estate of J. R. Scott waa held on Saturday afternoon. Present: Meesrs Moore. Score, Dunlop, Bourke, Page, Adamr, Whinray, Harding, Townley and Adair. The two latter gentlemen were late and Mr Townley only remained a short time.

The Assignee stated that he had consulted Mr Kenny, solicitor, in regard to the securitiee held by Messrs Dunlop and Bourke and Mr Matthews. Mr Kenny then read the opinion, which in effect was that the security of Messrs Dunlop and Bourke was unassailable, provided that the £lOOO had actually been paid.—Tho Assiguee said there was no doubt upon that point.—ln regard to the securities held by Mr Matthews that gentleman had declined to give any information or allow the perusal of any documents except those registered and open to the public, and the latter were of no use fo far as the creditors were concerned. Mr Kenny further pointed out the Assignee could summon Mr Matthews and Messrs Dunlop and Bourke to give evidence in regard to the securities.

Mr Whtnray thought there was nothing to be got out of the furniture. Mr Page agreed, and moved that the cred! tors abandon any claim upon the security held by Messrs Dunlop and Bourke. There was no use spending any more money in law about the matter, and he bad enough ol " that firm ” (meaning Scott’s) for six months, Mr Whinray : Is it true Weaver has struck oil ? (Laughter.) I heard he had and that Scott had gone up to guage it. The Assignee expressed himself very sceptical on the first point, Mr Bourke: Perhaps he has gone up t< improve the Bank of New Zealand's securitiei (the oil shares). Mr Whinray seconded Mr Page's motion Of course if Messrs Dunlop and Bourke wen willing to give the creditors anything they could take it afterwards. Mr Dunlop (laughing) said they might de that after they themselves got paid. Mr Harding said he thought the holders ol the bill of sale would be glad to get I thousand pounds tor the furniture. It they (the unsecured creditors) oould manage to gei that and pay off those gentlemen ha woult be in favor of it, but as that appeared impossible he did not see what other course they oould take. As tha Assignee was going to put tb< motion, Mr Adams said he did not think tbl meeting was a full enough one to decide tbl question. Mr Whinray; I have been here often enough I think I will have to charge my time to ecm< one.

Mr Moore agreed with Mr Adams, and asked if the meeting could legally do what was proposed 1 The Assignee said it would be perfectly legal. His instructions from the creditoil were to get the opinion of a eolioitor and then call another meeting ae soon as possible, That he hud done, the meeting being culled both by postcard and advertisement. The meeting was an adjourned one, and there had been two previous meetings at which any creditor who wished to take action might have done so.

Mr Moore ; I do not oppose the motion. 1 only say there is no use going into the thing when not a fifth of the creditors are represented. A good many of them living out of town will not have got their postcards. The Assignee said he could not help that, and he also stated that very few of the creditors hud yet taken the trouble to prove. Only about £7OO had been proved for, and even if all the proved creditors were present there would be a majority for the motion. Mr Harding said there was a fair number present. The Assignee said in value there was £4OO for the motion out of a total of £630. Mr Bourke eaid he would not vote on the question on his own behalf, as he did not care to do so in the circumstances, but ha would vote for it on behalf of thoee creditors he was authorised to represent. — Mr Adams pointed out that the security was valued at £1320. Mr Dunlop eaid the queation was whether the unsecured creditors would give hll firm £llOO for the furniture. Mr Adams : I would not take it for 1100 shillings ; that is not the question. The Assignee thought ft would be impoaeible to realise a thousand pounds cash upon it. Even if it were sold at the valuation a considerable time would have to be allowed for payment. The motion was then carried, Messrs Adams and Moore offering no opposition, but declining to vote. In reply to Mr Bourke the Assiguee said the resolution meant that those gentlemen could dispose of the furniture as they wished, without the fear of any action on the part ot the creditors. Mr Page said that was as he intended. The question in regard to Mr Matthewr, security was then gone into, and Mr Dunlop at once proposed that Mr Matthews be summoned under the 199th section of the Act, to enable enquiry to be made. Mr Matthews had courted enquiry and he could have it. Mr Score seconded. Mr Whinray asked if ull they wanted had not been disclosed.

The Assignee said he would not take the proposition as a resolution, but in hie ordinary position act upon it as being an expres. sion of opinion from the creditors.

Mr Dunlop said the Assignee already had the opinion of a solicitor, and as that gentleman had been refused information Mr Croft could not exneot to get anything further. The Assignee: Thea of course I shall summon him. Mr Dunlop: lam satisfied so long u that is understood.

Mr Croft said that of course it would be. In any case he would have done it in a week or so, as soon as he had got over the difficulty. In reply to Mr Score, the Assignee eaid in J regard to the book debts that no money been paid into the bank since the meeting on Thursday, but he had received a cheque toy £ll that day and Mr Lewie had collected g few pounds. He had not asked the bankrupt to attend that meeting, as he bad not considered it necessary. Mr Score thought the bankrupt should have been present, so that he might be asked any questions. The Assignee said the bankrupt had been fully questioned at the previous meetings, and he did not think there were any further ques. tions to be asked. Mr Scott had told him be was going up to the oil springs, and he (the Assignee) did not think the business before them required the presence of the bankrupt. Mr Score then moved: “ That the creditors request the Deputy Official Assignee to adjourn this meeting to Thursday next and to issue a summons to the bankrupt, requiring him to attend at such meeting in order that he may be fully examined as to the causes ot his insolvency end the position of hie affairs and property, the bankrupt to produce at the meeting any books, papete, and accounts no) already banded over to the Assignee; that the collection of the book debts be taken from Mr Lewis and that the bankrupt be employed to collect them, thoee indebted to the estat<> to be given until nrxt meeting tolpay, and it they fail to do eo that summonses be at once issued acainst them.” That will soon show whether they are genuine or nul. Mr Moore said that if there was any further information obtainable they had a right td It, but at the previous meeting tho bankrupt had beau {dr two hours, and nothing had been got from it. Let th* Assignee make the enquiries before Mr Scott came himself, So far as he oould see Mr Score had aeked all there was to ask about, but there might be something els* of which he (Mr Moore) did not know. Mr Score : I want to know about the foot. bgll hooks, which I consider we ought to have and are entitled to, Mr Moore: Ido not think there te any use summoning him. Mr Harding: He told us the book* were not here, and I do not think you can compel him to produce them. He says the man i* in Sydney and has taken the books with him. Mr Score : If Scott ia a partner and haanot got fhe book*, ah he oan do is onrne here ana lay he lost money. It ihst sstfsfsoldry ? ' Mr Harding : Very luislactory I ifh* li regard to ootid, |ng,tha booh <leb|| be ( hau ten to,

Lewi?, because he had been appointed at a meeting of creditors previous to the bankruptcy, Mr* Score had no wish to push the latter part of his motion, but he thought time enough had elapsed and the was not coming in fast. The Assignee said he had sent a notice to each of those persons indebted to the estate, giving them fourteen days in which to pay, and that had now elapsed. He would hardly like to send a round robin to them all and sue them. Mr Score said they had only the statement of the bankrupt and did ‘not know whether it was correct. He wanted to see what wag in the thing, and the sooner the book debts were wound up the better. Mr Page thought they ought to get a lot in yet. Mr Moore said the books should be put up to auction. Mr Harding*. I think the best thing would be to let Scott “go on his way rejoicing.” He told me he was going to the Springs today (Saturday) and to Auckland on Sunday, and that he would be able to raise some money there and make an offer to the oreditors. A man could collect the book debts here, and if Scott goes away and will come back in a few weeks and offer 2s Gd in the pound Mr Moore : When ? Mr Harding: I don’t think he can do any good here. If he is likely to give us a couple of shillings by going to Sydney I say let him

go. Mr Bourke: There will be a meeting shortly in regard to this offer he intends to The Assignee said the bankrupt had writ ten him a letter saying he was going up to Auckland to try and raise some money. Mr Whinray: Oh, he was going ’ Mr Skeet (bankrupt’s solicitor) said that if they prevented Mr Scott going, there would not be the slightest chance of any composition being offered, Mr Dunlop: I think ws should give him an opportunity. Mr Sheet : His idea is to go to Auckland and endeavor to realise there, and if he can’t do that go on to Sydney. Mr Bourke : Realise what? ► Mr Skeet : Tn make arrangements about an offer of 2s 6d in the pound, Mr Score : Talk about 2s fid 1 At one meeting one party made it out 13s 7|d. I for one won’t let him go away to raise a loan of 2s 6d in the pound. Mr Porter: It seems to me that if Mr Seott has money to travel round the country it Would be better to have it in the estate. In reply to Mr Bourke, Mr Skeet said that if Mr Seott was compelled to remain, the creditors would ba asked for maintenance, and if that were refused he should apply to the Court. There was no use Mt Soott stopping here doing nothing. Mr Whinray : I don’t think Soott is ssKing any harm, Mr Porter : He is doing very well. Mr Score asked how it would be if the bankrupt went away, and those who were down as debtors to the estate said they did not owe the money ? Mr Croft said he had never had much trouble in that respect, the B.M. being always perfectly satisfied with the books produced if they were kept in due order and posted in the Ordinary course of business, Mr Moore said the bookkeeper had gone away, but he would be baek shortly. In reply to a question Mr Croft said that there were some bad debts set down—one of which was for £6O, and another for £57. His rough estimate of the value of the debts was : £2OO good, £2OO doubtful, £350 bad, Mr Moore thought if anyone would advance them £2OO for the debts it would be better to let them go. Mr Whinray considered it would ba wiser to collect some more yet, The Assignee said he could lay his hands on £24 that day. Mr Harding : Have you got enough to pay a dividend ? (Smiles). Mr Adams: Just to keep us in a good humor. (Laughter). Assignee (laughing): The time has not arrived yet. Mr Harding suggested that they put the names in a box and each creditor draw for himself. (Laughter). Mr Skeet: They would then have you up under the Gaming and Lotteries Act. Mr Harding : Oh no I we could apply for permission. Mr Score : I would move— Mr Harding: Don’t keep us here; that is all I want to know, whether we can get a dividend. Mr Score: Scott is away, the bookkeeper's away, and we’ve got no one here. The Assignee cited a clause of the Act to the effect that if a bankrupt were detained an allowance would have to be made for maintenance. Mr Harding : But there is nothing in the estate ; we can’t give him anything. Mr Bourke : We should have to if we kept him here. Mr Dunlop (to Assignee): If he wished to go could yen prevent him ? Assignee : I think not. I could stop him if he refused to attend the meetings, but he has not done that. Mr Harding said in any case the bankrupt could get away by Sunday’s steamer, although they might have him arrested in Auckland. Mr Bourke : That all means expense. After a little further discussion Mr Score said : It is not a satisfactory bankruptcy. I will let it (the motion) go before the meeting. Some money is not accounted for. The Assignee said that in reply to the bankrupt’s letter, he stated he did not think there would be any objection to his (the bankrupt’s) going away, provided he returned to Gisborne if necessary. In reply to a question Mr Kenny said the bankrupt could be brought back. The Assignee said he could be examined in Auckland. Mr Skeet said Mr Scott had stated he , would return if required. He had no wish to run away. Mr Dunlop : We must .give the man a . chance.

Mr Harding did not see what object Could be served by detaining the bankrupt. Mr Adams said the bankrupt had answered all the questions put to him; the only thing to consider was if something fresh

turned up. In reply to Mr Moore, the Assignee said he did not require the bankrupt's presence for any purpose. Mr Whinray wanted to know if they had yet got that clause in the Bankruptcy Act by which a man was compelled to pay at least 10s in the £. (Laughter.) The Assignee said not yet. The rule in New Zealand differed from that in England, where a judge can, and often does, refuse to discharge the bankrupt, even though the creditors may pass a resolution recommending it. Mr Score: You wanted to know my reason for keeping him here. I believe two Very expensive cruets were bought from Mr Maude. Mr Whinray and Mr Townley are here, and I would like to ask them if those things were in the house when the valuation was made ? The Assignee; They don’t know thorn. I can assure yon they are not there. Mr Score : I believe a lot of calico was bought from Mr Adair ? g Air Adair: Yes, 36 yards of new sheeting. ’ Mr Score I understand that also is not

there ? Mr Whinray: Nothing but made up sheeting, The Assignee : I asked the bankrupt reNative to two cruets ordered by Mrs Scott, Which were sent specially for to Auckland, and which Mr Maude knew all about. They were sent for by Mrs Scott’s order, and Scott says he never saw them. Mr Score : He has been charged for them and the proofput in ? Assignee: Yes. Mr Score : And for Mr Adair s linen ? Mr Adair: Yes. Mr Score : I do not see what right there is tor these things to be taken out of the house. Assignee : It is a pity you never asked this question on Thursday—l never thought pt it, Mr Score: If I had nothing else to do but enqui-e into these things I might have asked, but nofc knowing about it I oould not have done so. ' Assignee 1 I knew of the oruet steudd. Meort thought thwe itma ranked

attention. There wag, he eaid, a great deficiency, no proper books were kept, and they did not know what the takings were. If they were all of the same mind as himself they would employ au accountant and see where the money had gone.

Mr Adair seconded the motion. A creditor hinted that it would take £lO a week to keep the bankrupt. Mr Adair did not see why the bankrupt could not be employed in col ecting the book debts, at the same percentage as Mr Lewis got. Mr Moore said that would be a very precarious thing fora man to keep himself upon. Mr Adair pointed out that the bankrupt had stated the debts were good. Mr Allen (to Assignee): Your notice has expired, why should we dillydally about collecting the debts ? I think summonses should be taken out against all the debtors without distinction, so that we can see what we are going to get Mr Whinray considered that these bankruptcies had got to be too much a matter of form.

Mr Score did not think they should hesitate to spend a few pounds to get at the bottom of this affair. They had paid £122 rent out of the money which ought to belong to the unsecured creditors.

Mr Page agreed with that remark. Mr Adair : It is quite evident that if Scott gets away from here and takes his departure for Sydney Mr Score: He might go to Queensland I Mr Adair : —it is “ ohuo,” we shall never see him again.

The Assignee did not see what he could do to stop the bankrupt if the latter chose to go away by one of the small steamers and then catch the Sydney boat. Mr Adair: If you can show fraud in the estate ? Mr Score made allusion to the cruets. Mr Kenny said if the bankrupt’s presence was necessary they G ’uid compel him to stop, but the question of his maintenance would also have to be considered. Mr Skeet repeated that Mr Scott had no desire to go against- the wishes of the creditors. Mr Adair • We know Scott is anxious to get away, He expressed that wish at last meeting, Mr Whinray: Ha wanted us to have the meeting earlier so that he could get away. Mr Skeet said what he stated was from the debtor’s own mouth, Mr Page said that instead of the wage list being £2O, he had learned from the servants themselves that it was £4O, He wouldn’t subscribe a pound or two to get nothing, Mr Harding said he would not, and Mr Moore asked him if he thought he had sub* scribed enough ? Mr Harding : I have kept the place in coal for a few months. If we want to examine him further about the cruets, watch, or anything else, let us do so } otherwise let him keep them, Mr Score: Let him keep them I That’s very good—l don’t know where we are all going to ! There wag a question ag to how much a week the bankrupt would require for maintenance. Some creditors thought he might be reduced to fare on fifteen shillings a week, but Mr Harding thought the bankrupt would prefer to pay the difference between that and a more luxurious style of living. Mr Harding moved as an amendment that the meeting be adjourned for a fortnight, so as to let the bankrupt go to Auckland and see if he can make any arrangement. If this was a legitimate game he did not like to lose sight of the thine. He happened to have a little private information, and he believed the game was legitimate, and that the bankrupt intended to make an offer of some sort. Mr Adair : Offer I—that is not a dividend.

Mr Score said they had bean led away long enough by Scott’s affair.->. He did not pay much attention to street, talk, but he would be willing to pay a pound or two to find out where the money had gone. Mr Bourke thought if the bankrupt ware bound to a fortnight it might prejudice the offer.

Mr Moore suggested that the time ba made a month, and anything discovered by Mr Score could be enquired into just the same. Mr Score said it was not his place to find out everything. He thought the two deficiencies mentioned were quite enough. Mr Whinray wondered where the bankrupt was to find the money to make trips to and from Australia.

In reply to Mr Score, the Assignee said he supposed Mrs Scott had the cruets. Mr Porter remarked that she was acting under a power of attorney from the husband. Mr Moore raised the point as to whether the bankrupt had £25 worth of effects, as allowed by law. Mr Bourke: His watch is worth that. Assignee : He has not got it. Mr Harding: Since when ? Mr Dunlop said Scott’s own clothing would be worth £25, Mr Whinray: He has taken our watch and chain away. Mr Harding: He has a gold stop watch. He had it at my place two or three nights ago. Mr Whinray: It has “ stopped ” somewhere else then. Mr Harding: He has a silver watch, too. The Assignee said that was the only one he had seen, and bankrupt had told him it was all he had, Mr Bourke : He wears a Waterbury now. Mr Moore said Mrs Scott had some Build ing Society shares, on which she used to pay in regularly. On Mr Score saying that the bankrupt denied any knowledge of this, Mr Moore said he thought Scott really did not know of it. Mr Adair said he believed Mrs Soott had drawn £ll7 on the shares, Mr Moore said they were her own; the creditors had no claim upon them, Mr Score: She had no capital when she went into the business. Mr Moore: That doesn’t matter; she has worked hard. No woman has worked harder than Mrs Scott. Mr Score: Lots of others have to work hard, The Assignee : There is one peculiar thing I might mention. In going through the pass books, I could only find that the bankrupt had drawn about £5O for bis private use} for he and Mrs Scott. Mr Allen : I suppose she had the till to go to.

Assignee : I only tell you what I saw. Mr Bourke : It was not necessary to draw cheques to get money. Mr Harding said with the large amount of money passing through their hands they were not likely to draw cheques for every little thing, and Mr Moore said that would be only wasting a penny each time. Mr Score: But we are getting away from these cruets. After some further discussion the motion was put, but only the mover and seconder voted for it. Mr Harding: Now, Mr Assignee, I think we should have the cruets, sheeting and watch, which I don’t thinj? have got anything to do with his going away.—The Assignee said he would certainly write to Mr® Scott about the articles.—Mr Score said they should have everything over the value of £2s.—Assignee : Gentlemen, is it your wish that I should get his watch ?—Mr Adair : Which watch ?—Assignee ! The watch he is wearing.—Mr Porter: We want the stopwatch.—Mr Score : I thought he had a gun ? —The Assignee said bankrupt stated the gun had not belonged to him, ’He believed Mr Arthur had now got it,—Mr Allen believed that the gun had been sold by Mr Arthur to Mr Scott.—Mr Adair supposed the gun had been taken on the trip to England, as he saw by the papers that ScQtt was a great sportsman at duck shooting,—Mr Page made reference to a riding whip, buffalo robe, and other articles that had been taken to England.—The Assignee said he did not like taking a man’s watch from him, but he supposed there would be no trouble about the matter,—Mr Whinray reiterated that it was the gold stpp watch they wanted, —Mr Adams : He said he only had a silver one.—Mr Adair: We know better than that,—Mr Skeet: I think it is very likely the creditors can drop the idea of a composition after what has taken place.—Mr Moore said that would not be much, There was some talk about a horse which had been given to Mr Little for paddocking, but there was a general understanding that the Assignee would look into these things in the ordinary oourae. A side saddle was staled to have been taken away by Mrs Scott, I but being her property could not be touched. The meeting, which lasted nearly two hours, was ibea adjoined Iqm a moutbi