A GROCERY FAILURE.

Auckland Star, Volume XLIV, Issue 48, 25 February 1913, Page 9

A GROCERY FAILURE.

rrrSTTFFICENT CAPITAL AND A MOTOR CAR. PLAIN TALK AT CREDITORS ' MEETING.' A meeting of creditors in.the bankrupt estate of Herbert Montague Herdson and Francis lteginald Simrnonda, grocers, of Ponsonby, was held yesterday afternoon at the Official Assignee's office, Mr. Fisher presiding. Mr. Quartley represented the debtors. In addition to the statement already pirblislied, the' Asignee read another ■pta.teinent by F. R. Simmomfe, in which he stated he was realjy a builder by trade. When they started business ho had reason to think ho could get £50 from his friends.

Mr. Fisher said when the estate came into his hands, he realised the stock, which yielded i-70 9/ net. Debtore were asked to tile at a private meeting of creditors, but they did not do so for a week, giving as a reason that they had not the filing fee, which seemed to him to be a frivolous excuse. For that week "the debtors were living on the stock, as was also the bailiff who was in for rent. Mr. Fisher said the two men seemed to have no conception of the responsibilities of business men.

llr. Quartley said he actually paid the filing fee, and it was subsequently repaid to him.

Mr. Lantbourne, a creditor, expressed the opinion that it was gross neglect that caused the business to be a failure- Men starting with practically no capital ought not to have purchased a motor car, and gone iiway for week-end trips. F. R. Sinunonds. one of thp debtors, declared, nn oati. that the delay in the tiling of bankruptcy was not due to the anxiety of thr debtor? to get their books made up first.

The Assignee hen- interjected with the TPmark thnt an account for £5 had come in for rhp making up of the books. This account would have to he paid out of the estate.

Simrnonds said that the lady bookkeeper had kept .1 rough ledger account, and "enerally looked after "the books, and he pointed out a number of books which he declared had been used most of the thrw month? during which the business .bod been run.

In reply to a creditor bankrupt said that subsequent to the bankruptcy no poods had been .sent out of stock except in the ordinary course of business. Neither did they allow any merchants to Lake back any goods in stock- Simmonds admitted that several merchants had endeavoured to pet their goods back, but at some trou-ble debtor prevented it. " I nearly got m y ibacon-cutter- back." said a creditor. '" When my man went up with a cart to get it, the shop was empty, so he got a boy from next door to give him a band, and just-as tbey were lifting it from the counter,-in came the bankrupts and threatened to hay« them arrested by the police. My chap got a bit frightened, but if I'd been there I'd have had my bacon-cutter..lll be bound." (Laughter.)

Simraonds, questioned, declared they had no assets -outside the business, and no expectations of money from any friends.

Herbert Montague Herdson, on oath, admitted thai he had spoken of expectatious after they had started business. He told one of the creditors that he wa3 going to ■Oβ married in about a niontn, upon which he was to receive £]00 from his wife's relations. He had made no statement about deposited money of his own.

The Assignee pointed but that the defieifc really amounted to about £330 in three months' trading, while there was also rent and bailiff charges to go on to that. As for the motor-car, he understood that was covered by a registered agreement.

" What was the motor ear for?" asked a creditor.

" To carry groceries. It is the most up-to-date method of conveyance," replied one of the debtors, to the' amusement of most of the creditors.

It was decided: -'That the facts of the case be laid before the Oown Solicitor by the Official Assignee, with the view of having the bankrupts prosecuted." r v

The Assignee, in commenting an the ease, expressed the opinion that -to allow such careless methods to pass was almost offering n premhnn to people so placed to continue on their course of irresponsible business.. In short, the good name of the commercial community was a matter which in snch a case should be considered by the merchants of the town.