BANKRUPT ESTATE.

Ashburton Guardian, Volume XLVI, Issue 10704, 30 March 1926, Page 5

BANKRUPT ESTATE.

HAIRDRESSER’S FAILURE

ILLNESS GIVEN AS CAUSE. CREDITORS’ MEETING HELD. Illness and lack of capital were the factors to which Mungo Alexander Guthrie, hairdresser, of Ashburton, attributed his bankruptcy, . when he met his creditors to-day before the Deputy-Official Assignee (Mr J. B. Christian). Mr R. Kennedy was present representing the bankrupt, and unsecured creditors in 'attendance, were Messrs F. Wills and T. M. Clark. Mr A. T. Robertson was present representing a. secured creditor, Milne Bremner, of T’iniftru* Bankrupt’s financial position showed unsecured creditors’ claims totalling £IBB Is Id, book debts amounting to £2O, and' cash in hand £1 9s. There was a secured creditor, Milne Bremner, Ltd., of Tim am, whose claim of £314 11s 5d was covered by security estimated to produce a similar amount. The deficiency was therefore estimated at £166 12s Id. Unsecured creditors were as follow. Aitchison, Steans and Co., Ltd. (Christchurch), £1 18s; Van Staveren Bros., Ltd. (Wellington), £l3 14s 6d; Reliable Agencies, Ltd. (Christchurch), £6 Is; W. J. Wesney (Invercargill), £9 11s 3d; Tait, Bagrie and Co.. Ltd. (Christchurch), £lO 4s 3d; Christchurch Press Company, Ltd., £1 7s; P. Hayman and Co. (Dunedin), £10; Kempthorne, Prosser and Co. (Christchurch), £lO 6s 6d; Bing, Harris and Co., Ltd. (Christchurch), £29 10s 8d; Russell and Co., Ltd., £IS 11s 6d; Darin and Son, £6 9s; T. Houston, £3 13s 4d; C. L. Collins, £3 0s 6d; H. Addis, £9 4s; Murray’s Limited, £l2; H. M. Jones. £l 19fe 7d; Argyle and Co., £2 9s; H. Funge, £2 11s; A. L. Zouch, £2 2s; T. Douglas, £1; Ashburton Power Board, 12s 6d; Ashburton Gas and Coal Company, £1 9s 6d; Manchester Bros., £l6; Dr. Coats, £4 4s; Dr. Wells, £2 2s; Sinith Bros., £3; F. Wills, draper, £4 14s 6d; —total, £IBB Is Id. The D.O.A. said the registered security to the secured creditor, comprised the whole of the stock, plant, and fitting at bankrupt’s shop. Nothing was free, in fact there was a clause in thet security giving Milne Bremner, Ltd., first call over everything that came into the shop after the date of the giving of the security. Bankrupt’s Sworn Statement.

Debtor’s sworn statement was as follows:—“I started business on my own account in Ashburton in September, 1921. I had about £2OO cash which ’I had received from the sale ol a dwelling in Hampstead. I also borrowed £IOO from the Repatriation Department. All this money went into the business in stock, fittings, etc. For the first 10 months I appeared to bt doing well, but my drawings from the business were not more than £3 a week. I had my war pension, which I put into the business each month. Mj wife also had a pension, which was used for the same purpose. In July, 192;-’ I had to undergo an operation, whicl kept met away from the business foi nearly two months, during which time I had to employ* a man in the shop. M*< wife, who had been assisting me in the shop, was also laid up for nearly a month at this time. I consider that 1 have never*' recovered from the set-bad experienced at this period. “I have had an assistant in the shop during most of the time I have been in business and have been paying £4 10s to £5 a week in wages. Toward the end of 1925 I began to realise that my position was serious. My creditors became pressing and 1 surrendered my life insurance policy, all the money (£BS) going to my creditors. In September, 1925, I gave one of my creditors a registered security oyer all my stock, plant and fittings. I did not ! realise the seriousness of this step until afterwards. I have always had a banking account, into which all my takings have been paid regularly and all payments have been made by cheques. Pressure brought to bear by my creditors forced me to file. I think I would have been able to recover had time been given me. I have taken stock annually, and on each occasion have tried to find out my financial position I have always kept books to the best of my ability; latterly they have kept by an accountant. My personal drawings from the business would not average more than £5 10s to £5 15s & week. I attribute my failure to lack of capital. Ido not gamble. 1 have a wife and six children. The house in Ebon Street is my wife s. She purchased it two years before we were married.”

Denial of Pressure. Mr Rolleston said he wished to indicate that his firm did not press Guthrie in any way. They were quite prepared to let him continue on and endeavour to pay his creditors, bnre© months ago his rm could have stepped in and realised a greater amount. The Deputy-Official Assignee said that Milne and Bremner were now paying Guthrie £6 a week, and he understood that if the business was pulled together again it would oe handed back to bankrupt. Bankrupt said he had had two other offers of employment at £6 a week. One offer was from a local man > the other from a firm m the North IS (on d oath, bankrupt said his pension amounted to about 15s a week at the time referred to in his written statement, and his wife’s pension amounted to a little over £lO a month.. The Deputy-Official Assignee indicated that bankrupt had really seHing the stock that was secured, so , tha V t T; question of Milne Bremner s cl am on the book debts and cash in hand was a point which had to be investigated. There would be very little foi distribution among the unsecured creditors. The books had been kept verv well since January, 1925, and the figures indicated' that bankrupt had had a very fine little business His takings since January, 1925, had been as follow: —January, £168; February, £139- March, £129; Abril £123; May, £171; June, £158; July, £140; August, ! £180; September, £156; October, £167; November, £157; December, £205; January, £144; February, £l4O. Could Not Make an Offer. In renlv to the Deputy-Official Assignee, bankrupt said he could not see t that he could 'make any offer to the

creditors. He had nothing. His wife had the home and the furniture. He had paid about £lO per half-year tothe State Advances Department on account of the house, and he had paid' £4 6s 8d a month to the second mortgagee. His wife had worked in the business ever since he had! started, and she had also looked after the house and children. ( Creditors agreed that it was nobfair to question the payments on behalf of bankrupt’s wife. In any case, there was the payment of rent to be considered as well as the question of wages for bankrupt’s wife'.-> >y : ’ A res-lution was then passed authorising the Deputy-Official .Assignee to 1 * wind up the estate.