Meeting of Canditors.

Gisborne Standard and Cook County Gazette, Volume IV, Issue 529, 8 November 1890, Page 2

Meeting of Canditors.

PITT AND BENNETT’S BANKRUPTCY. The fint meeting ot creuitors in the bankrupt estats of Messrs Pitt and Bennett was held at the Courthouse yesterday morning. Present; —Mr Croft (D-puty Official Assignee), the debtors, and Messrs Dunlop, Sievwrigh , Matthews, Coleman, Dalrymple, Johns on, Butt, Forsyth, Friar, Nolan, Chrisp, Salmon, Finn, Bourke, Muir, Parker, and Day. Th" Assignee reported that there had been nine private meetings in the estate prinr to its bring adjudicated in bankruptcy, and the bu<d iesa had also been placed in the hands of trustees. The minutes were there for anyone who wished to read them. Since the estate had come into his hands he had not made any change in the conduct of the business. He then read the statement of assets and labilities, showing estimated assets at £10.303 and liabilities (£11,153 unsecured) at £l2,o9l—deficiency, £1,787. He bad yesterday made a preliminary examine inn of the debtors. Ha first read that of Major Pitt, who stated that his portion of the business was the auctioneering and that he did not interfere with the other work. When he was in England he had received word from Mr Bennett to come back, as there was difficulty in getting the money in. He had no private estate. After he had returned, about the end of November, he had been told that the firm was in difficulties.

There were no questions asked of the debtor. The Assignee said nf course this was only a preliminary examination, and he agreed with Mr Sievwright that it would be necessary afterwards to adjourn, so that outside creditors would have an opportunity to be properly represented. Mr Bennett’s statement was then read : I am one of the firm trading under the style and name of Graham, Pitt and Bennett, Merchants, Gisborne. The statement now produced is the one which I Signed, and I believe same to be correct. I knew we were getting in diffienbies about. May last on account <>f business falling off, and the difficulty of getting mon-y in. I superintended the business and office. I assigned with my partner the whole of the assets of the firm of Graham, Utt and Benne't to three trustees—Mersrs Butt. Parkir and Forsyth, for the benefit of the creditors A meeting of onr creditors was called about the 10th September, and actins on their advice we assigned our estate to the . Trustees. I gave them all assistance that the Trustees required. At the first meeting of the creditors an offer was made of 12s 61 in the £ unsecured, and subsequently an offer of 10s 61 practically secured, was offered to the Trustees. I was not present when the offer was made, but I believe it was the sum of £B,OOO for the whole estate.

Mr Forsyth (representing Messrs Stewart and McDonald, of Glasgow) questioned Mr Bennett as to a balance sheet made up from the books in Jn’y, 1889, (since obtained by the Trustees), which shows a loss on the year'e working of £970. Your stock is therein estimated at £9.647, and bonk deb's £9,430, of which upwards of £3.500 must have been known to you to have been absolutely bad.—Debtor rep'fed that they had written off what debts they considered not recoverab'e -Mr Forsyth: Deducting from assets£l9,ooo odd, unrecoverable book debts £3.500, leaves £l5 500 odd, without allowing for loss of all capital and depreciation of stock to meet liabilities amounting to £l4 400 ; thus yotir surplus in July, 1889, could on'y have been £l.lOO. Did you allow anything for depreciation of stock 1— Debtor: lam not aware that I did. —Mr Forsyth: When did you see this balanoe sheet of July, 1879, showing a loss of £970? —Deh'or replied that he had seen it at the time it was made out.—Mr Forsyth: Did you with a full knowledge of the actual position of the business on or about Anril last furnish to me a h-ilance sheet showing a surplus of over £9000? — Debtor : Yes. -Did you also fur -ish your bankers with a copy ?—Debtor : Yes. Mr Butt asked from what those balance shee's had been taken—some of the figures agreed and others did nor, Gould he tell from the books where they had been taken ?—. D-btor replied that they had been taken from the books —Mr Butt wanted to know why they had not been supplied with the balance sheet shown him (Mr Butt) at the time?— Debtor ; Don’t you recollect me telling you Karaitiana’s trustees owed us £2ooo?—Mr Butt said that did not aff-ot the figures, it was nnt shown in the balance sheet he h»ld in his hand.—Debtor said that the balance sheet had been taken from the bonks.—Mr Butt: How is it that it does not agree with the o'berone? It purports to have been taken from the books at the same time.—Debtor did not reply, and on b“ing again asked said he was unable to explain.

Mr Forsyth handed in the balance-sheet, which he said was the one th it hid been t iken from the books by the Trustoes. In reply to the assignee Mr Bennett said he be'ieved that was eo. Mr Forsyth said ihat in April bis firm had received a balance sheet showing a aurplns of £9OOO, and four months after that Mr Bennett allowed another balance, sheet giving a defi-.iency of £looo.—Mr Bennett said he b lieved that was correct. That was shown after there had been a stock-taking.—Mr Forsyth: Ten thousand pounds in f inr months I—Mr Bennett said the balance sheet bad been given before there had been a stocktaking.—Mr Forsyth: On the face of it I take it that you show a depreciation in your business of £lO.OOO in a year’s time?— Debtor : Yes, 'h“ firurea «how tha'. Mr Butt: When Mr Pict came in October. 1889, there Was an investig .tion as to the erate of the account; what did you represent then as the state of aff.ir’?—l represented that we were fairly well off, and I consider we were, too —ln October last year you represented a credit of between £BOOO and £9OOO ?—Yw.—That was after writing off all bad debts and taking stock ?—Debtor : Yes. —Mr Butt: In 1890 we find that surplus has completely disappeared.—Debtor: We have wiped off £4OOO bad debts.—Mr Butt: The statement io October says that the balance was after making allowance for all bad and doubtful debts.—Debtor: I did not consider, those debts bad then; we had wiped off a lot besides, —Mr Butt : The book debts, eo far as my recollection serves, were put down at £9OOO, and apparently £<ooo had been written out. You remember miking a statement furnished to tha Bank in October, 1889. —Debtor: Yes.—Can you tell me from what that atatement was taken ?— It. was taken from the books, I believe.— Mr Bntt: It was done during the day, I believe; were the figures taken by yourself, or furnished by the accountant f—Debtor: Taken by myself, I think.—Your accountant or some of the clerks were present when you took them ?—Debtor: I think so.-—Mr Butt t Who ordinarily prepared the balance sheets P—Debtor: Mr Dunlop, the accountant.—Were they checked and duly verified ?—I believe so —By yourself, of course ?—Debtor : No, I don’t think so.— You took them for granted ? — Debtor : Yes.— Mr Nolan thought Mr Dunlop would be better able to give information about such matters.

In reply to Mr P. Bourke, Mr Bennett said he did not know whether the balanee sheets previously mentioned had been given with the knowledge of the accountant's department. In reply to Mr Chrisp, he said he had no means of verifying them except by the books. Mr Nolan: No doubt you gave them; you to'd us you sot them from the books also that the bookkeeper kept the books, Where did you get them ? Did you take them out of the books themselves?— Debtor: Yes. Mr Nolan was asking further questions as to ths different balance sheets, when the Assignee said ha could perhaps throw light on the point, and he put a number ot questions, the answers being to the effect that a yearly balance sheet was made up by tho accountant, Mr Dunlop, and the other balance aheets had been prepared in the interim by Mr Bennett himself. —The Assignee said ths books were well kept, every year's balance sheet was prepared in Mr Dunlop's handwriting, and these I other balance sheets bad been prepared by | Mr Bennett outside of the bookkeeper.—Mr j Nolan thought that in fairness to the book. I keeper this should have been explained ; one statement or tho other must bs inoorreot.— I Mr Bennett said that the balance sheets of April and October had been prepared by ( him»jll imlependcot of tbs bookkeeper,—Mr I

Forsyth said he had asked whether the depr . ciation spread over the year or over the three months.

Mr Dunlop said he would like to explair. As mmy balance sheets h >d been passed in, some prepared by him«elf and some by Vr Bennet', he thought they should be marl * to distinguish them in some way. Each y- r he had prepared balance sheets, of wh oh pressed copies were kept, and any statemen a that did not agree with them were incorrect. The other statements had been prepared wi'hont his knowledge. They bad probably been prepared by Mr Bennett himself, whose knowledge of book keeping was deficient. He (Mr Duolop) distinct'y said thou balance sheets given to the Bink or Stewart and McDonald had not been prepared by him, His own statements were not estimates—they were actual records. In reply to Mr Forsyth. Mr Dunlop said his duty was simp'y to prepare a ataretnont showing the position ; he was not a valuer | some rn mher of the firm wou'd do that. In reply to Mr Butt, Mr Dunlop said now was the fi.at time he h» had seen the balance sheet produced, dated July, 1889.—Mr Butt then referred to the disparity in the flsTirffi; in the two balance sheets, the other being the one prepared by Mr Dunlop in July. One item fstock) appeared as £O.OOO in Mr Dunlop’s and fill.OOO in the other, and in another item foundry accounts) one showed £4,799. and the other £6,700. Mr Diinlop said the o'her balance sheet could not be correct if it purported to he made up at the same time; no one who had a knngledge of book keeping could thidk so. His Balance was handed to Mr Bennett about a fortnight after July 28; the books wore ready to make up. but they generally had In wait for stocktaking Tn the balance sheet referred to by Mr Forsyth, it was shown there had been a loss of £ 0,000 between April and July, but the other balance sheets showed nothing of the sort. There was a difference of £4 000 between the two; how Mr Bennett made th it opt he did no* know Mr Chrisp asked whether the difference wou'd be accounted by him (Mr Dunlop) putting down the cost price and Mr Bennett taking the selling price. (Laughter)—Mr Dunlon said no accountant won d do that— Mr Chrisp: Ta it not poasible that Mr Bennett would do it ? -Mr Dunlop said that wan possible.—Mr Butt: Mr Bannetttaya he took the item' from the books. —Mr Chrisp said h* had not quite said that; he said he had made np the statements, and h» most have acme knowledge of his own butioMl.— Mr Nolan said he had put the question to Mr Bennett as tn whether he had taken the amounts from the books. . Mr Duntnp, as a creditor, asked Mr Bennett whether he had taken certain fifftte* from the bank, end then included commission from Ksrai'iana’s estate.—Mr Bennett raid he had stated that the commission from Karai'lana's estate would be between £2OOO and £3900 —Mr DunlopThe 00/nmission ia nothing like that; I had no knowledge of that; if the figures are taken from the books and some prospec'ive account pnt In——Mr Bennett: I said generally.— Mr D<y: I think Mr Bennett said he had made that .statement tn Mr Butt Mr Butt: Towbat i'em did you add the' £2ooo?—Mr Bennttt 1 I cannot eav now.—Mr Bntt.: I will aak you plainly ; did you know when you handed that balance sheet ro me that that was not the aotcal position of the firm ?—Debtor: I reckon that that was correct.—Mr Butt wanted tn know whether Mr Bsonett really thought tha' he bilanoe -heat showing a surplus of f9OOO after everything had been written off re.i'v showed the State of affaire nn July 28 1889 ; did he know it was ln« correct when he handed it to him (’be sneaker) ?— Dsb’or rape «ted that he be'h ved it tn he oorrent. —Mr Batt wanted to know how he oou’d possibly remnot'e it with the statement nf Ju'v 28. 1889, prepared by the h 'okkeeper ; whv had he not b*an hanned a conv of the latter ?—Debtor said he did not know Mr Div wanted to know whether the £2OOO was included in the c'alm against Pe'l Ktrai'iana.—Vchtnr said that whatever was due in July, 1889, waa included in the book debts.

In reply to Mr Matthews debtor said Im did not keen diinlHe'ea nr two rets ot books. Mr Day (solicitor fir tlh-r' Kiraitiana), wanted tn know if tmst amounts were treated as part nf the business nf 'ha firm Mr Chrisp (aolioitnr), ohi°o'el to the qnet'ion, and instrnC'-d Mr Bennett nnt to answer it. The Assignee upheld the o*qeetioa, consenting to make a note oi it, Mr Chrisp thought these matters should be left alone, Mr Day said a claim would he made Meinst 'he estate, end it was to the interest nt th( creditors to know these matters. Ur Day asked whe'her Mr Bennett had not stated before the Registrar on oath that he had no c'aim against Karaitiana’a estate. Debtor stated that what be had told Mr Bntt was that the £2OOO was coming tn them. Mr Day said be wnn'd not press bia qu*s'u>na farther he would leave the matter a« it stood, In reply to Mr Forsyth Major Pitt said he had not been informed that the fi’tn amt in difficulties in November last. Mr B«nnott, in renly to the same question, said he did not think the fi rn ws« then in difficulties. He considered that in July they were able to pay within threepence of twenty shillings in the pnund. The Assignee read the following list, showinc profit, and Ines '.—Profit: 1883, £295: 1884, £3,205; 1885, Sl.380; 1886, £948; 1887. £l.olo ; total. £6 288 Lnss : 1888, £850; 1889, £1,450; 1890, £4,160; to'al. £6,460. Tha Assignee said tha tenders would be ia hy Thursday nex». He had’ received a report from the Trustees, hut ha 1 not yet had time to look intn It. He had gone through the accnuots, and his statement varied little from that last, given by Mr Bennett. It. was decided to adjourn until 8 -on Wednesday afternoon.