MANUFACTURER'S FAILURE.

Auckland Star, Volume LVII, Issue 112, 13 May 1926, Page 6

MANUFACTURER'S FAILURE.

PARTNER IN POLISH FIRM. EXPLAINS HIS DOWNFALL. The financial failure of John Matthew Povey Barler, partner in a patent polish company, now in liquidation, was investigated this morning at a meeting of creditors, the Official Assignee (Mr. W. S. Fisher) presiding. No resolution could be passed, as only two proved creditors were present. The sum owing to secured creditors totalled £1151, and the estimated value of securities was £1150, according to the schedule. Creditors unsecured had proved to the extent of £304, which made the total debts £401. Against this, total assets were estimated at £40. Up till 1924 bankrupt had been working for wages, according to his written statement. In that year he took up business on his owa- account. At that time he owned his own home, subject only to a mortgage to the State Advances Department. He joined with Mr. J. L. Yarnton in purchasing from Mr. Max Alfeld the Slick Shine Company. Mr. Yarnton had no money to put into the business, and, as more capital was required, it was decided to form a limited liability company. This was done, under the sytle of "The Bright | Star Products Company, Ltd." From time to time, as the company needed more money, bankrupt mortgaged his home and furniture to supply it. Bankrupt used all his spare cash, and raised £30 on his insurance policy. The com- ' panv was at present in liquidation, and would not pay 20/ in the £ to rts , creditors. Bankrupt was sworn. i The Official Assignee: Vinegar was all j you knew about really, when you took j over this business? I Bankrupt: During the term of my i employment I had obtained a good deal iof knwledge of other lines, suppleI mented with private study. I You had had no business experience? i —No. What was this Slick Shine Company? j—A manufacturing business—floor polI ishes. floor stains, harness dressings and ! sundry packing lines. By buying this you bought the patent j rights":—l was given to understand there ' were certain proprietary rights, till at j a certain stage the former owner claimed I a particular trade mark. j At the time of your purchase, didn't 1 you protect yourself in any way? I Didn't you employ your solicitor?— Yes. Will tou please explain the position, 'Mr. filai'ster? [ Mr. Olaister: He bought what I would ! not have bought, but apparently he conI sidered it good value. However, it is a lons story, very involved, and if what lie has told you in three minutes has •bored you. what would take mc three ; hours to tell would bore you more. | Official Assignee: Yes. we do not want jto go into all the details. What I [ want is a connected story. ! Bankrupt said he reckoned the equity jon his house was worth £060 when he • went into the business. The company I went into liquidation in June, 1925. j Bankrupt attributed the ' downfall of 1 the company to excessive expenses in , the initial stages of its existence. Details connected with the bankruptcy ; were discussed at length, and the solicitor for one client expressed the opinion | that the discharge should not be facili- : tatcd straight away. j Mr. Glaistcr said he was hopeful of I getting the discharge. The Official Assignee said that, al- ', though bankrupt was not justified in : raising money from a certain party | when he did, he had been pating every ! jenny into the business whenever he ] could scrape some money together. He must have had faith' iii the company. .It seemed to Mr. Fisher Lke misfortune.