FRUIT MERCHANT FAILS.

Auckland Star, Volume LVII, Issue 10, 13 January 1926, Page 6

FRUIT MERCHANT FAILS.

CAREER OF SEVEN MONTHS. CROWN TO INVESTIGATE. The brief business career of Hugh Cox-Smith, fruit merchant, was investigated this morning when he appeared before his creditors to explain his position. Mr. A. N. Hays, presided in the absence of the Official Assignee, Mr. W. S. Fisher. The chairman stated that a preliminary meeting had been held on December 19, ■when it was endeavoured to make arrangements for bankrupt to carry on his business. Owing to the creditors complaining, of bankrupt's unsatisfactory conduct it had been decided to close the business. Bankrupt's schedule showed him as owing £512 14/5 to unsecured creditors. His assets totalled £188 8/9, leaving a deficiency of £324 5/8. No statement regarding the cause of the bankruptcy was filed, Mr. Fitzherbert, counsel for bankrupt, explaining that the holidays had left no chance of getting one compiled. " > *~ Under examination, bankrupt stated that he had been in business about seven months, and started with a capital of £150. That was the first time he had ventured on his own account. During the time he was trading he did not look into his affairs. He was trading as the Auckland Fruit Company. There were no partners and he denied that he told some creditors he did have a partner. He attributed his failure to the action of one of the creditor, companies in taking him to court. Another thing was that an employee left him and took money with him. > To a creditor, witness denied that he said he had a partner. A creditor: You say we are the cause of your bankruptcy? ■ Mr. Fitzherbert: That is so. The creditor: He was practically insolvent all the time. An interesting phase arose at this stage when a creditor asked another why his firm had taken bankrupt under its wing. It was explained that bankrupt was working for £4 per week and commission, but that it was only on the understanding that bankrupt gave a detailed return every night. If he had failed! to x show a return the first three days he' would not have been employed longer. Mr. Glover moved that the Official Assignee place the facts of the case before the Crown Prosecutor with a view to prosecution. The mover expressed the view that such a course was necessary. Mr. Fitzherbert said that while bankrupt was due for censure, he would point out that he was a young man with a wife and family. It was for the creditors to take the necessary steps before, giving credit. He asked that they hesitate before taking so drastic a step. Mr. Hay stated that they had allowed men like this to get off time and time again, and such things went on as usual. It was for the sake of the trade and the public that action would have to be taken. The motion was carried by a substantial majority. It was decided to abandon any claim on the property.