MERCHANT'S FAILURE.

Press, Volume LXIII, Issue 19126, 8 October 1927, Page 9

MERCHANT'S FAILURE.

AN AMBERLEY BANKRUPTCY. The' creditors in the bankrupt estate of George Wentwortb Rhodes (trading as Rhodes Bros.h of Amberley, - merchant) met at the Official Assignee's Offioe yesterday. The amount owing, to unsecured; creditora ; was £715 5s ,3d, which represented the total; debts, stock-in-trade amounted to £lO5, and' book debts, £287 6s 9d, were estimated to; produce £U77, Cash in .'hand was 10s,' malt-? lng a deficiency o£ £382 15a 3d. The principal unsecured creditors were Ashby, B'ergh and Co., £l4 Bs' Gd; John Burns, Ltd.,- £ls 5b 8d; Forbes, Ltd., £4O; Mrs V, J. Rhodes, £400;;.., New Zealand Refrigerating Co., Ltd., £103; E.'R'cece",' Ltd., £44 14s 7d; Vacuum Oil Co., £l2; National Mortgage and Agency Co., Ltd., £l3. • Bankrupt attributed his failure to the' •general depression, keen competition and lack o£ .capital. In bis swo.rn statement lie sct : out that he did not gamble or drink, and had been supporting his widowed mother since 1919. He commenced business in January, 1920, at Amberley as a grain and produce merchant, in partnership with his brother, Victor Joseph Rhodes, Each subscribed £l5O capital, and they borrowed £SOO. The first year was successful, until the slump came, and a firm commenced business in opposition. In October, 1924, the grain store was burnt, causing a financial loss. ' In January, 1925, tho partnership w»b dissolved, and bankrupt was left to carry on the business of Rhodes Bros. A general valuation wsb made of too stock, ■plant, and boot debts, and showed a credit balance of £BO. This was taken over b» the bankrupt, and nothing waß paid to his brother. The money advanced on loan, £SOO, was also left in the business. Contrary to anticipation, business did not improve, but became worse on account ol the eeneral depression. In July, 1926, He M 4 to repay £lO5 off the loan, which cot ao-ivn his ready cash. He carried on the business, anticipating that a good season would place him in a sound position, but conditions, instead of improving, became worse. Last season was a very dry one, and seriously interfered with his commissions., ] The Assignee said that the creditors had not been informed of the dissolution of the j P *' , That was a moral obligation that should have been attended to," said a Med" o *- Bankrupt said that his actual living expenses had amounted to £8 .a wee*-. »• had taken stock of the business twice—m the first year and at the time of the dissolution of the partnership. The estate was left in the hands of the Assignee. ■