BANKRUPTCY.

Press, Volume LXII, Issue 18802, 21 September 1926, Page 7

BANKRUPTCY.

RANGIORA BUSINESS MAN'S FAILURE. Mr A, tt. Watt?.-?, <~':~..::\ I sided s- a meeting of cr*dr--r: the bji-k----•int. j- tic rvurtro-;..;. Ka::;iora, yc:t.-.rda>. Mr H. K. K.rj.rr.r-"'..-1 A stat-irce-'. .-uhnv.ped ':■" the trtis'.e... 'i'hfr eif'tl!. tier.- v.-s; a s';r: !:.- c: i-3*ti i:' = "f 'iC.-s'os M a::.! pavir.- isl 10; Id ■::? a registered bill c-f ral? of £207 02 the ■liirr..- and [----ured creditors v vre raid ;2'- v :> 14- 7d. leaving a baiar..-.-- of, £3l Si M. which w.is in-duded in the cash in hand. The to;--;] owing- to unsecured creditor!, ws::rr.d» -"10. .a.-'u in h;-d £IOS ISs. a to-al '•; -ns 1-r, a dofioienc;.- ci £.5-4:2 1:- rj d. li;.r t*a = principal 'ins-enured creditor;. •"-is .is to 1 low;:—North Canterbury Motors '.'r.mpjr.y, £l7 2:: I'Jd; His Master's Yoic, Ltd.. £l4 lis l'"'d - V-V-blev, Pons, and Goffer;. £» C's 2d: Wi!;nii F.r-.-., £7 2s Id: New Zealand Trades Auxiliary Cnm;.«nv, £.j 102d: Keir and Th"mp.= on. £-'O4 14.-; Korr-.!l Rro;., £22 IPs. (."••!: A. Beaten, £;< 12.-. .T. rii.-c-ici.-iti. £3; Owen's. Ltd.. £lO 13s; N-""v Zealand Farmers' Co-opereti'-e Association. £1.5 Hi 2d; Mi.-? if. Goldsnith. 7'5 -?c!; Timer's, Ltd.. £65 15s lid; Hargreavet and Flarp'T, £34 0? 'M; T. Shnnklar.d, £l'"': "rea.-h and Rowland, :M 2s 9d; TruM.-es H. M. Hawkin- £ K:-ta:-?, £ll3 2s lid; Trustee; Mark So tt ld--<?.-ised), £O3 10s; L. W. Dench. £57 C's lOd; T. H. Fras»r, £2 IS; '■' d; Parti Rubber Company, £7 12s; V.'. .-talker, £155 Os Sd.

In his sworn stat.:ner.\ bankrupt stated lie ermmenccd business in R-angiora as an accountant on April Ist, 1022, after being retrenched from the staff of the Defence Department. He had no capital when ho -t.trtod. He hod a house built, but was uncertain as to the actual cos' as the builder built it on a percentage basis. When completed, he was owing £304, independent of •ho money borrowed from the Government as a returned soldior's loan. Had he known the price would be so high, he would Dot have built. Building material was then at 'op price, but he had to set out of the house he was living in, and at the time it was almost impossible to rent a house. He also owed the Farmers' Co-op. about £3O, and Hargreaves and Harper about £35. Besides this, bankrupt had to pay off a part of a £SO loan from the Repatriation Department for furniture. When he started in business ho had to buy office equipment which was essential, including a typewriter ' costing £3B and a filing cahinet costing just ion £2O. After being in business about 12 ; months he lost one good line reporting for : a newspaper, which brought in about £l2O per annum. Fie got a good amount of work. but a certain amount of it did not pay, though be could not give it up, as it kept the other business together. He was paying •'los a week rent for the ofrice, plus rates and insurance, also int"rcst and sinking fund on the house loan and rates and insurance. He was also paying £1.5 14s per .annum life insurance. Ho also had to pay wages and overhead expenses, both of which were heavy, up to £240 per annum. lie thought he cmployed too big a staff, but- though he worked very long hours himself, and took practically no holidays, he could not get tho work done. Ho was suffering from neurasthenia, and though spending long hours at his office he could make no headway, and lost business. Had he been well he could have employed :i smaller staff and got the workdone. In the year 11)24.25 he lost about £IOO through two clients going bankrupt, and it firm whose accounts he attended to cut down his salary by £OS per annum. During this time he worked very long hours, but his nervous condition was getting worse, and ho could not settle dowu to get things done. He kept ou hoping matters would improve. For some of his business he had to have a car, and lie lost about £l6O this year in buying second-hand cars, one of which cost £(U for repairs almost at once. During the year 1025-26 his gross income was about £620. Out n£ this £240 went in wages, £6O in office expenses, aud £SO in car oxpense6. His wife had an illness which cost him £SO. He was getting behind with all payments, and worrying a great deal. Early in June he had a nervous breakdown, and was sent to Haunter. Ho was discharged from the hospital there a fortnight ago, but ho was not yet in good health. Bankrupt did not gamble or drink. Ho had suffered from neurasthenia for nino years. When he was on the defence staff in 1921, the medical officer told him to fake six weoks' leavo and go to Hanmer, but he did not do ;.o, as he would probably have lost his position. Mr Smith, stated that, tho creditors were very dissatisfied with the position of affairs, and ou their behalf he wanted to got at the true position. He wanted to know what bankrupt had done with the .£2OO which ho borrowed from W. Stalker, security for ■which wae given over a motor-car and furniture; also i' 93 collected in Hawkins estate, and £6l in Denche's Estate. Debtor stated that the moneys were paid into his private account. Tho amounts stated were not correct, nr, there wag his commission and time to be deducted. Mr Wattors said the statement was 3. very full one, but it was not a very patisfactory report. Debtor had received about £3sii a- year for himself. Mr V. LCeir moved that the bankrupt's statement be accepted and that it, bo left in tho Official Assignee's hands to wind up. As tJie.ro was no seconder, the motion lapsed.

Mr Smit.li moved that the Official Assignee conduct a, further examination of tho bankrupt as soon as he had made a. statement, to satisfy the creditors as to the money received and where the moneys were.

This was, t-eornded by .Mr G. Taylor and carried. Tho meeting w-as then adjourned. The second hearing will ho held in Christchurcli on Wednesday at '2.?.0 p.m.