Meeting of Creditors.

Gisborne Standard and Cook County Gazette, Volume V, Issue 638, 25 July 1891, Page 2

Meeting of Creditors.

THE ESTATE OF PITT AND BENNETT. A meetiko of creditors in the estate of Pitt and Bennett was held on Thursday afternoon. There were present—The Deputy Official Assignee and Messrs Dunlop, DeLautonr, Parker, and Finn. The meeting was to consides Mr Bennett’s application for discharge. The Deputy Assignee (Mr Coleman) said he bad also to ask them to consider a question of disputed accounts between Bead's Trustees and the estate, and as he was an interested party, having long acted in connection with Bead’s estate, he would ask the direction of the creditors in the matter. Tbe debtor, on being asked, said he had no remarks to make in regard to his application; the creditors knew the circumstances as well as he did.

Mr Finn said be represented the Union Bank, who offered no objection to the die. charge.

The Assignee said it would be as well if a proposition were put and the voting taken whether or not the meeting assented to the application. Mr Dunlop (for Mr Cresswell) moved accordingly in support of the application, and Mr Finn seconded. Those represented in tha affirmative were Messrs Finn and Chrisp, the Union Bank, and Mr Cresswell. Mr Parker, for Stuart and McDonald, said he had been instructed to oppose tbe discharge.

Mr DeLautour said that he was not present as a creditor, bis business being in connection with the accounts with Bead's Trustees, who had not yet proved in the estate. The Assignee said he must declare the motion lost. There were three for. represent, ing £599 5s 2d, and one against, representing £2550 Is 24. There required to be a majority in number, with a representation of threefourths in value, before the motion could be carried. Tbe value against Mr Dunlop : Is Mr Parker entitled to vote for Stuart and McDonald ? Has ho a proxy or authority ? Assignee: I have the proxy among my papers here. Mr Finn (looking at the proxy): Ha can’t vote at all—that is no proxy. There is no date to it.

Assignee : There ia no date to it, but — Mr Finn : You will find that the authorities show that there muat be a proper proxy. It appears that Mr Parker voted right through on this, There is another F. Parker in Gisborne. Mr Coleman read a section of the Act. which had reference to a proxy holding good until cancelled. Mr Finn : The question is, is thia a proxy ? No meeting is mentioned—a blank is left. There are two F. Parkers in Gisborne, and the proxy does not describe him, or say whet meeting it is for, or whan it ia to be held. Assignee : The signature is dated— Mr Finn : It is dated, but it does not say whst meeting it is for—it is ** the blank day of blank." Assignee: No doubt the proxy 1s for the dates to be filled in. I understand that Mr Parker has instructions by telsgram how to act on it. Mr Finn : But a telegram is not a proxy. Assignee : I don't see that I have any other course than to admit tho proxy. Mr Finn : I think it would be best for you to take advice on the matter, for tbe authorl. ties will show you that a proxy authorising a person to vote at a general meeting does not authorise him to vote at a special meeting. Assignee : Proxies are usually given In such a way that the holder oan vote at all meetings. Mr Finn ; I agree with that, but thia is not a proxy. There are two F. Parkers in Gisborne, as Is well known. Assignee: I have no doubt as to who la meant in this. Mr Finn: I have no doubt that Mr Parker here is meant, but the proxy is not clear, I do not think you have any discretion In that line—you may admit or reject a proof, but I do not think you can do this. Assignee : I don't think I can throw the proxy out because the date ia not filled in. Of course I may be wrong, but if ao it can bo represented before the Judge on the application being made. Mr Dunlop: Would it not be better tq adjourn the meeting and see into the mattes. Assignee : Well, Mr Parker seems to have instructions by telegram. Mr Dunlop : If the proxy was all right a telegram would not be wanted. Assignee : It would show the Intention of the proxy. I must declare the motion lost. Mr Dunlop: I would like to see the telegram produced. Assignee : If Mr Parker has no objection I will attach it to the proxy. Mr Parker handed the telegram Over, the instructions being, “Attend Bennett's meeting to-day and oppose his discharge." Assignee : I don’t think there is any other oouree than to declare tbe motion lost,

Mr Coleman then introduced the subject of accounts between the flrm of Graham, Pitt and Bennett and Read's trustees. He had, as was well known, for years acted for the latter estate, and in the circumstances he thought he should seek the direction of tbe creditors as to what he should do in regard to the accounts which had been running between Read’s trustees and the bankrupt firm. At the date of the bankrup'ov goods had been obtained to the value of £127 2s Id, and though there had been no actual settlement or receipts exchanged, there was an understanding that tho amount should go to reduce a debt owing to Read's estate by Major Pitt, and that it was to have been placed to credit in the books, in which case Read’s Trustees could have claimed for the balance. But they did not now make any claim for that—they only claimed that tbe £J27 should be considered M M extinguished debt by its reduction of the amount owing to Bead’s trustees. Mr DeLautour had Instructions from the lattey in connection with the matter, and had attended the meeting. Mr Finn : What Is the amount!—have |;hey proved ? Mr Coleman said the amount was £B4B. It had not yet bean proved for, but he as Assignee had asked for the payment of the £127. and the trustees considered thst the amount should be placed to their credit, and they would forego the claim which they were advised they had on their side. Mr Finn : Haven't they got a right In law ? Mr DeLautour: They have been advised they have, Thia debt had been going on £o( several years, »ntj beipg credited to Beaa'e Trustees in the books, they would have a right to prove for the balance in Pitt and Bennett's estate, but so far they had no| done thst. They had bean willing tq withhold the proof in tbs meantime, but if pressed for the £135 they would set up any legal rights they had, and although late would ask tho right to prove for their claim. When he last saw I the Messrs Bloomfield his instructions were that if they were not molested by the estate they would be willing to abandon the balance. Ae Mr Coleman was acting in a dual (.specify he had taken a strict position and claimed the £127, but was now asking for instructions from the creditors whether he was to sue for the amount or cry quits, There was no actual agreement in writing by which Pitt and Bennett undertook the novation of the debt, but it had been acted on for years and Interest paid by the firm, qnd engagements of the trustees oarried cut because of this being treated as a debt of tho firm. Though there was no written agreement the facta that coqlfl be brought in evidence were such as would enable a novation to be set up, but they were willing to write off the balance of the £340 if the creditors agreed to allow the £125 as a novation.

Mr Coleman 1 I felt bound to ask for the amount—l could hardly let it lie. It is now for the creditors-—-Mr Finn: No doubt that money was owing to Bloomfield’s [Read's] estate, and such being the case I do not think it should be repudiated. They are acting very fairly. Mr Parker : If they proved for the whale amount tha asset would amount to about the same, so I think the estate can fairly cry quits. Mr Finn: Yes, I think in law they could recover it. Mr Parker: I think the creditors should save the legal expenses attached to any action if the Assignee had to defend a case. Mr Finn: To settle the matter, I will propose that payment be not enforced, eonditionslly on the Messrs Bloomfield giving a quittance in regard to their claim.

Mr Parker seconded, and the motion was carried unanimously. Mr DeLautour: That is a fair settlement, but Mr Coleman was in an awkward position in dealing with the matter. The Assignee said the estate was now almost ready for winding up. There were only two small matters yet to deal with—the Union Bank bad some wool liens, of which the account sales had not yet arrived, and there were still some bonk debts. The latter represented about £2lB, of whish he expected that he would collect a certain portion, and the rest might be sold for what they would bring. He had obtained judgment against some parties, but in some cases found they were not worth the expense. He thought of closing the estate some time in August. In reply to Mr Parker, Mr Coleman said 6s 6d in the £ had been paid in the estate and he calculated that there would be another Is fid in the £ to pay before closing the (state.

In reply to Mr Finn, Mr Coleman said there was about £l4OO in band, of which £l2OO was on fixed deposit. He thought it better to keep the money in band until he could distribute it for the final dividend, and did not think it would be worth while making an interim dividend. He also mentioned that the action re Karaitiana was still proceeding, but that would not affect the dividend mentioned. He had made allowance for that in the calculation. Mr Finn: If you win the action the amount received will be afterwards distributed? Mr Coleman : Yes; with the exception of that I can close every matter in the estate. In reply to Mr Parker, Mr Coleman said the estate could be practically dosed within a month.