Pitt and Bennett’s Estate.

Gisborne Standard and Cook County Gazette, Volume IV, Issue 531, 13 November 1890, Page 3

Pitt and Bennett’s Estate.

MEETING OF CREDITORS. A second meeting of creditors in the above estate was held yesterday afternoon in Mr Croft's office. Present: Messrs Dunlop. Forsyth, Parker, Shel'on. Bourke, Matthews, Sievwright, Butt, Chrisp, Murray, and Johnston. The Assignee read a report from the trustees, regarding the management of the business prior to the bankruptcy. They bad taken £1489 and disbursed £1277, leaving a balance of £212 to which had to be added £29, and from the amount delusions for debts had to be made, leaving £163. It also dealt with the other general matters. Mr Bott explained that the large expenditure was accounted for by the fact that they had to take delivery of consignments of goods and incur other unavoidable expenditure.

In reply to 'he Assignee Mr Bennett eaid he bad about £2O worth in private estate, cows and horses. He did not think it would be sufficient to pay bis private debts. When he sold the building to Mr Murphy he could not say thus there was any absolute agreement as to the fixtures. He considered that all the fixtures but the dumping machine had been (old. Mr Croft: There are sundry creditors, £671; can you say what that is; are we to understand from that that was all you considered yru owed at that time after allowing for bills payab'e ’—Debtor: Yes ; out aide the Hile payable, and the three amounts due to the B*nk. In reply to Mr Sievwright, the Assignee said he had at the previous meeting given all the information he had. Mr Sievwright: When did you first know that you were insolvent ’ Mr Bennett: I did not know it for certain until stock was taken, July 1890 Mr Sievwright: Hadn't you made up balance sheets prior to that ’—Yes. Mr Sievwright: And these, I suppose, were correct ?—Yes, they showed £5OOO to the good. Mr Sievwright: Doesn't your balance show you to be to the bad ’—Without the G&pitftl. Mr Sievwright : Was there actually the capital in the business at the time ’—Yes, with the exception of that £O7O, the balance against it—the loss on the year. Further question were asked, the answers showing that when business was commenced there was £6OOO capital—£3ooo put in by Mr W. Graham, and £3OOO by Messrs Pitt and Bennett When Mr Graham retired, in 1884 or 1885, he withdrew his £3OOO, and about £lOOO besides, share of profits. If the books said he had drawn £3OOO himself against capital account, he supposed he bad. He did not remember the date—he had never drawn any large sums. Mr Croft: What, you don’t remember this transaction of drawing £2000?—No. Mr Croft: Well. I shall have to go closer into it; I did not think it necessary to do it. Where did you get the £3OOO from ?—I got some from the present Mrs Donner. Mr Croft: How much ? About £l6OO, »ni £3OO or £4OO from Mr Charles Dunlop. Mr < reft: Why didn't you say so before ?—I drew it out to pay them with; I did not think about it before. Mr Croft ; You have had time enough to think about these things. Do jum remember the date ’—No, I have no

Mr Croft: It was about January, 1885. Mr Bennett said he also remembered a sum of £2750, for himself and partner, being taken from profit and loss account, and debited to capital account, in July, 1886—the larger portion. Mr Sievwright asked a number of questions about a bill of sale for £4OO from D. Malone. This bad been held by the Bank on the understanding that they could take possession when they thought necessary. About £250 of the amount had been pur Under discount. When the amount of £265 was obtained by the Bank, the equitv went as an asset in the estate, and when the claim was satisfied, anything left would go to Malone. Debtor repeated that he considered the firm in a sound position when the debt to Mr Allen was contracted. They £ad found the position to be so bad on taking stock. As to the doubtful debts, many that were not absolutely bad became unrecoverable on the business being closed. In reply to Mr Sievwright, Mr Croft gave the following retorn of annual exnensev ;— Last year. £5600; year M re, £4720; 1888. £4946; 188? £5800; 1886, £4500; 1885, £4800; and £BBOO. Mr Sievwright having asked whether a larger amount of interest was being paid to the Bank. Mr Butt said the rate had actually been lessened, in the face of the favorable statement of July 1889 presented to them. Questions were then asked about a liability of £596 to Mr Finn. Debtor said that it was g loan of £5OO, the other amount bad been eaten up by interest and discount. It had been got on a promissory note in h'S own name, but the proceeds bad then gone to the firm, going to expenses in Karai'iana'a estate. Mr Sievwright: Why did you not put it through the bill book in the ordinary course if it is the firm's transaction ’—l didn’t do K, that's all. I may state with regard to the transactions with Mr Finn, there are a lot of notions going on, and I decline to give any answers to prejudice those so'ions, Mr Croft said no such questions were being asked debtor—he was merely being asked simple questions as to monetary arrange menta between himself and another person. In reply to Mr Sievwright, debtor said he hoped that about £2600 for aimmission (not disbursements) would come from Ksraitiana’s estate. Some further questions were asked as to Stewart and McDonald's debt, and Mr Forsyth explained that it was through a blunder in the shipments that led to- what appeared to be such an easy way of allowing the firm to make the payments. One lot of goods should have come by steamer, but Instead the whole lot bad been sent by sailing vessel and one de'ivery made. In rep'y to Mr Matthews debtor said the loan by Mr Finn was contracted during his partner's absence in England. Mr Finn, whether content to do so or not, took debtor’s Own personal security. Mr Matthews: Apparently without hesitation ? (No answer.)

Mr. Sievwright saying that there was no record of the matter debtor said he had mentioned It at one of the private meetings. Xtiiher Mr Matthews aor Mr Forsyth remembered (t, and Mr Bntt said all he re* recollected waa something being said about the atnearrt being placed to Karaitiana's account. Mr Matthews said as a matter of fact Kirairiana never got the amount. MrBennett Said it had gone to the credit of the estate, not in the bank, but through the books. In reply to Mr Sievwright the debtor said nans of the wool liens ware witbin the last six months,

In reply to Mr Matthews, Mr Croft said only eighteen proofs had been sent in out of 51—£8000 OU' of £14.000 In reply to Mr Matthews Mr Croft slid ths Union Bank’s proof was for the full gmount without allowing for bills under fiisooßn’. In reply to Mr Sievwright it was stated that ths value of securities were not given, though a list was annexed. Mr Sievwright Mid that was contrary to statu'e. Mr Butt Mid it had been done in the ordinary formSt was only landed security In which the value had to be given, Mr Sievwright said it was on all b. —itivs; however that was a matter that ooulo -rected. Mr Chrisp said it |ould easily be k . .ended, Mr Matthews suggested that two supers visors be appointed, and be moved accordingly i remuneration to be hereafter fixed) Mr lievwright seconded. This was carried without dissent, and Mr Ma'thews proposed and Mr Sievwright eecended, that the manager of the Union Bank he one supervisor. Mr Buri proposed, and Mr Parker seconded, that Mr Forsyth b* tbs other supervisor, . The question was raised as to whether Mr Forsyth was legible, Fram_ a clause Mr-Cbrisp quoted it appeared that Mr Fore; th could act, but persona) attendance would be necessary, Mr B *tt WS ,ct *“ h Mr ' Mr Forsyth proposed that the opening of tenders be delayed for a fortnight, the busineM to be carried on in the same way in the meantime. suggested that in the meantime pl««( be closed up, and the stock claaalbed, He had received many enquiries as to

whether anyone could purchase without book debts, &c. Mr Forsyth agreed with Mr Croft’s view—it was a matter of insignificance whether they closed up, and it would be a very convenient thing to have the stock all classifiad. A resolution was made in accordance with the suggestion. There was some discussion as to £42 due to Mr Forsyth for expenses. Mr Matthews considered that it should be paid, but no formal claim having been made, Mr Forsyth said it could be left over, and he would put in his claim formally. Mr Chrisp applied for maintenance for Mr Bennett, feeling sure that it would be allowed if an application were made to the Court. Messrs Sievwright and Forsyth said they had instructions to oppose anything of the kind, Mr Sievwright saying that he had been instructed to press for a public examination. Mr Chrisp said of course if the creditors refused, an application might be made to the Court. Mr Matthews said if the assistance of the debtors was required it should not ba forgotten; if free tbs bankrupts might be able to make an income in some O'her way. Mr Butt agreed that if the debtors’ services were required they should be remunerated if necessary. After further discussion Mr Chrisp said he would leave the matter over until the next meeting.