A BAKER'S BANKRUPTCY.

Auckland Star, Volume LIII, Issue 82, 6 April 1922, Page 8

A BAKER'S BANKRUPTCY.

GOOD BUSINESS LOST. DEFICIT OF £700. At a meeting of creditors of Erie Laird, aged 2!>, a Rotonm baker, before the District Assignee (Mr. \V. S. Fisher), in Auckland yesterday afternoon, the' story related by the bankrupt revealed an extraordinary position. 'Kis =tatement showed that his unsecured debts totalled JC7OS 7/S, and his assets amounted to £251, consisting of Hook debts. Among the unsecured creditors were the Northern Roller Milling Co., Ltd. (£287), J. Mclntyre, a "Waikato farmer ( i.'lOO). and Hodder and Toiley, Palmerston North (£151). Bankrupt gavt as his principal reaeon for filing his inexperience in business. Hβ did not do his own bookkeeping, and never exactly knew his financial position. He later took in a partner, who afterwards left him. Then followed illness, which combined with drinking reeulted in his present position. Mr. Fisher: What was your turnover? Witness: About 2f)00 loaves, which I increased to ."MOO. ; What I want to Ijnow i< your profits weekly.—About £15, not taking bad debts into consideration. Then only about twelve months ago you came to the conclusion that all was not well with the business, and that there was very little in it?— Yes. that is so. You took nine months to find out the position?—Yee. Witness, continuing, said that his partner put in about £100, and left in November, but before doing so got him to sign a dissolution which gave him right to the bakehouse. This latter prevented him from selling the business. Witness took over all liabilities. The Repatriation Department, which had a bill of sale over the business, later sold it. Eventual]}' he was forced to file. Mr. Fisher: Do you think that things got woree during the partnership?—l certainly, do. He did not commence drinking, however, until after his partner had left him. How do you account for losing a rattling good business, and n,ow owing £700?— Bad management, inexperience, and bad luck, too. I suppose. Wasn't there a serious leakage all the time?— There must have been. Bankrupt, denied that drinking had been the cause ; o£ the trouble between hie partner and himself. "There is not the slightest doubt in ray mind that this man is an absolute tool where business is concerned." said Air. J. I. tioldstine, who appeared for liankrupt. "He does not know the rudiments of business." Laird did not handle the money; that ivas done by the partner. Bankrupt had been absolutely frank, and if all details had not been given it was through ignorance and not intentionally. He was prepared to admit that another cause for his present position was drinking, caused by partnership differences. "I do not like saying this," he concluded, "but when returned soldiers get worried they have one failing—drink! That has been the case here." Air. Fisher eaid even if they did make all allowances for bankrupt there was no reason why he should not have called the • creditors together in November instead of waiting until everything was swallowed up. "I am afraid, gentlemen," he remarked, "that there will be a heavy loss on this estate." After some further discussion it was decided to adjourn the meeting for a week until the evidence of Thomas Burnett, bankrupt's former .partner, could be taken.