IN BANKRUPTCY.

Auckland Star, Volume XXII, Issue 141, 16 June 1891, Page 3

IN BANKRUPTCY.

STATEMENT BY FRANK RENSHAW.

Mk Frank Renshaw, who is senior partner in the firm of F. and C. T. Renshaw and Co., manufacturing chemists, has made the following statement before the Official Assignee. Hβ says :—I am the senior partneU in the firm of F. and C. T. Renshaw and Co., manufacturing chemists, Mount Eden. We commenced business in October, 1884, with a capital of £50. During the first twelve months we lost that) amount, and had to borrow £50 from my father to replace it. From that! time the business grew and developed favourably year by year, until the end of last year. Our business was mainly dependent) on summer trade, being manufacturers of cordials and summer drinks. The season was exceptionally unfavourable for this class of goods, and I estimate that our profits were at least £150 less on that account. Wβ were also unfortunate in making bad debts, which I estimate haya been at least £250 during the last two years. Our drawings throughout have never exceeded £2 each per week ; for the first three years they did not exceed £1 each. Our advertising expenses, including handbills, plates, and posters have been, about £2,000, or nearly £300 a-year during the seven years we have been in business. About two and a-half years ago Mr Thomas White entered our service as traveller, and continued in that capacity until August) l fc 1890, when he joined as a partner, under a. deed of partnership. A balance-sheet was struck at that date: it showed a surplus of £900 or thereabouts (I will give in the balance-sheet later on), exclusive of goodwill, which added, I believe, made our joint interest £1,200. Mr White put in, £200 in cash, and his share was made in proportion, each partner to receive £2 per week for services, as a first charge. Oar main object in admitting Mr White was to secure capital, as our business was* cramped for want of it. This £200 waa immediately devoted to paying off pressing debts. The land and a portion of the existing buildings where we carried on business were taken over from my father four or five years ago, subject to a mortgage of about £600. We added to the buildings at various times, and at the present time a liability of £1,100 stands against the property. I believe this to be its pre-t sent full value. For the last five months we have made every effort to obtain greater capital. We knew that it was a payable business if adequate means were available. In terms of the partnership deed, Mr White gave three months' notice to determine the connection, to expire on the leb April, 1891. No balance-Bheet had been prepared during the currency of the partnership. It was not deemed necessary to take stock or prepare a balance-sheeb to determine the profit 3. It was mutually agreed to credit him with the £200 he had put in and £11 4s 9d for wages due to him, during the partnership, in all £211 4s 9d, to be paid over at a future date. Nothing: was said about interest. My brother and I gave Mr White a memo, agreeing to these terms. Recently, failing to meet biir engagements, we called our creditors together, fully explained our position, and offered 10s in the £1, without guarantee, in four equal instalments extending over twelve months. It) was refused, but no definite reason was given. We kept a full net of books by single entry; fcbey are fully posted to date. The unsecured debts amount to £1,361 16s, including; the money (£2ll 4s 9d) alleged to be duo to Mr White, our lafce partner. The assets consist of stock-in-trade and plant, £1,136 5a lid ; book debts, £397 12s 2d. I believe the latter to be all good. Total assets, £1,533 18s Id. The household furniture, of . the estimated value of something under £50, belongs to my wife's mother, who advanced fche money for ib about two years ago, when we commenced housekeeping. We are indebted to my father in the sum of £152 10s, for which a promissory note was given on June 21, 1886. He has not pressed for the principal (£122), because he was aware of our position. Now that we have been forced into bankruptcy, we cannot ccc our way clear to renew the offer made to the creditors on the 10th instant. As regards my private estate, I owe the doctor and landlord £8 5s between them, which, as I have no assets, I purpose paying out of future earnings.