IN BANKRUPTCY.

Auckland Star, Volume XXXIX, Issue 103, 30 April 1908, Page 6

IN BANKRUPTCY.

DEBTOR'S EXTRAORDINARY

POSITION.

A QUESTION OF BOOKKEEPING.

The adjourned meeting of creditors in the estate of John Newbold Heape, storekeeper, of Paeroa, was held before the official assignee (Mr E. Gerard) yesterday afternoon. Mr E. G. B. Moss appeared on behalf of the bankrupt. The meeting was largely attended.

Bankrupt's solicitor stated that the reason of his client's absence from the creditors' meeting on Friday last was not owing to any intention to defy the creditors, but because the man had been dazed by his position, of which he was somewhat ashamed.

Mr Gerard (to bankrupt): In other words, you '"funked it"?— Well, I didn't exactly run away.

Bankrupt, on oath, declared as to the truth of his statement (as previously published). He could not say what his average gross profits had been. He thought that by Mistake he had omitted to state his liabilities in full, when he believed himself to have a surplus of £1022. He bought Mr McWatter's business at a time when he knew he was a few hundred pounds short through bad debts, because he thought that with an additional round of customers he might improve his position. He had taken over MeWatter's stock at 20/----m the £ with the exception of a few unsaleable lines, in addition, he had to pay 8 per cent, on the bills. When taking over MeWatter's business, his own balance-sheet showed a surplus of £600, after writing off the bad debts of about £300. Possibly he had made another ■mistake in taking out these figures, but he did not think there would be a difference of more than £ 100. He estimated his expenses for the year prior to taking over MeWatter's stock as follows: —Household, £8 per month; stores withdrawn, £4 per month; average other expenses, £1 per week; shop rents, £3 8/per week; wages, £7 3/- per week; horses and wagons. £ 2 per week; lighting, 5/-: and sundries, £1. His sales for the last two years had averaged, he thought, £600 per month.

A Creditor: That leaves roughly about £ 250 per annum to account for, although the bad debts reduce that sum.

Bankrupt further 6tated that be had never sold goods at a sacrifice. He considered that he had taken over MeWatter's stock on the basl» of paying no interest. He had not recorded the actual cash he had taken oul of the business.

In reply to the assignee, bankrupt denied having played cards to excess, end ho considered that £10 would cover all his debts in that direction. He had been on»y a moderate drinker.

Mr Entrican: The position is very simple. Mr Heape started with nothing, and he has not improved his position.

Several creditors gave their opinions that -the whole affair had been due to bankrupt's ignorance as a trader, but a motion that this view be expressed was lost, the others being in favour of the whole case being left in the hands of the assignee. An amendment, moved by Mr Entrican, to this effect, was carried.