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The Pamphlet Collection of Sir Robert Stout: Volume 74

Mr Simpson's Evidence

Mr Simpson's Evidence.

William Lawrence Simpson, one of the official liquidators, was sworn.

Mr MacGregor You have joined with the other liquidators in this affidavit ?—Witness: I have.

In making the statement in the affidavit, did you rely on your own inquiries and investigation or on Mr Cook's ?—As regards what ?

As regards the value of the estate ?—I took investigation by Mr Cook as a basis. We made an inquiry ourselves.

What do you mean ?—We went down ourselves.

Did the three of you go down ?—No; two of us—Mr Ramsay and myself—and we went through the books with Mr Cook.

Mr Vigers did not go down ?—No. It was more convenient to keep one here.

Mr Vigers must have been down since he was appointed liquidator ?—Yes, but not on this occasion.

And I presume we may take it that you are satisfied that this is the best offer that you can get?—It is the best offer on the basis of Mr Cook's statement which was made on March 20. I do not know now, when oats have risen 6d, that I would say it is the best.

Oats have risen 6d since then ?—They jumped up last month.

Did the company hold large stocks of oats ?—No; but, dealing with farmers, they must be paid in oats, I think.

That has improved the position of the debtors ?—It has improved the position of many of them.

That would affect both the book debts and the capital account ?—Certainly, so far as the stock is composed of oats.

You say that if this was a fair offer when it was made it should now be increased considerably ?—To-day, if we had not closed as it were, I would think twice before we closed; but we have closed, and we let the court take the responsibility of withdrawing out of it. Between man and man, it would be a binding contract, and it would be dishonourable to withdraw.

Can you give any idea in pounds of the pro-[unclear: able] difference ?—I would say, roughly, that a good many of the doubtful debts ought to have become good.

To what extent ?—What would require perhaps 600 bushels to pay an account would take about 500 bushels.

That is 20 per cent, better ?—I dare say it is all that, but there are a number of other considerations which must be taken into account.

Take the book debts.—There is not the slightest doubt that the rise in oats has improved their value.

Surely if you got a better offer than this you would be bound to take it ?—Not if we have committed ourselves to one offer already.

Is there any other reason that you can suggest why you can get a better offer ?—None.

Assuming that this was a fair price at the time, you think that Messrs Smith and Reid should make a handsome profit ?—Their position has been improved by the rise in oats.

By 20 per cent. ?—Oats may go down again before they are able to sell.

Yes; but they may sell to-morrow ?—If they realise at once there would be the danger, through their being such large holders, of their knocking the market down.

Mr MacGregor : They could ship to London, not in the manner which has been described, but bona fide.

His Honor : I understand the company have a very small stock of oats, but you say the rise in the price of oats affects the payment of the debts and the uncalled capital to some extent ?—Witness: Yes. Mr Cook, who has been handling the thing, will be able to give a better idea.

Mr MacGregor: The contract was only signed on the 1st June ?—But the proposals were dated the 20th April.

Mr Woodhouse: The rise in oats would only affect the bad and doubtful debts ?—It would only affect the bad and doubtful debts.

The extent to which it would affect them depends upon the quantity of oats the farmers have ?—Yes.

You do not know what they have ?—No.

His Honor: Is not this the case: that if a man is hard up he sells his oats as soon as he can ?—The accounts remaining unpaid are coming in now. When they come in the man who is a debtor demands that the market price be credited to him, and that price last month has gone up 6d.

Would not the weaker men have disposed of their oats as soon after harvest as possible, and would there not be stocks in hand in respect of these ?—They would sell as soon after threshing as they could, but it was nearly the end of April before the threshing was done, so that they were bringing in just after the rise

Mr Woodhouse : And it is also possible that the selling of large quantities will bring the market down ?—Yes; I do not say what the exact effect will be, but it would make me doubtful to-day about selling.

Mr Haggitt: But there is just as much chance of oats falling as there is of their continuing to rise ?—Not for a few months.

If the Ward Farmers' Association were put into liquidation, all the oats would come in at once ?—If they were judiciously handled.

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Is it not a fact that your co-liquidators do not agree with you on this point ?—They are not of the same opinion as I am.

Mr Woodhouse : Do you know if anything has gone down since the offer was made—manures, for example?—There is a very large quantity of guano. We do not consider that to be of such value as it was.

You do not know any other persons who would make an offer ?—No.

His Honor: You cannot hawk the thing round the country.

Witness : I do not see how you could advertise or let it be known it was open for offer.

Mr MacGregor: There is some goodwill ?—But you forget we have not a business to sell. We have only a small control or interest in it. So much was that so that we had some difficulty in getting into the premises at all.