MEETING OF CREDITORS

Press, Volume XCVI, Issue 28421, 30 October 1957, Page 3

MEETING OF CREDITORS

Painter’s Affairs Examined

Inexperience, an occupational skin disease and the liquidation of a contracting firm were blamed for his bankruptcy by Raymond Eli Macfarlane, a painting contractor, of 29 Dunarnan street, whose meeting of creditors was held before the Official Assignee (Mr G. W. Brown) yesterday afternoon. Macfarlane was adjudged bankrupt on October 15. In the statement of affairs supplied by the bankrupt, unsecured creditors were shown as £369 15s 5d and assets of plant at £2O. Book debts of £lO6 were estimated to yield £BB. and there was £7 10s cash in hand. Macfarlane said he commenced in business on his own account in October. 1953, as a painter and paperhanger with a capital of some £5O. By February he was owing £BO, which he attributed to inexperience.

He then went into partnership with a Mr G. F. Cane and the two operated until April. 1955. when the partnership was ’ dissolved. At this stage the partnership was owing about £275. Some of these debts, however, were personal ones.

Shortly after this, Macfarlane said, he developed a skin complaint and catarrh, presumably due to painting activities, and lost time from working. This complaint had subsequently been cured and he would be able to continue working as a painter. The liquidation of the Walker Construction Company had come at a time when his business was beginning to improve «and repeat business was coming in. This, he said, was the beginning of the end. and shortly after his suppliers refused him further credit. Questioned by Mr Brown. Macfarlane said he had owed money when he first began in business, but his capital was more than sufficient to cover these debts. Partners’ Drawings The partners had originally to draw £l2 10s a week wages, but Cane had said later that £l2 10s was insufficient because of Cane’s taxation and maintenance commitments. After this, drawings varied and might have been as high as £l4 a week for either partner, although in some weeks he had drawn only £B, said Macfarlane.

Mr Brown: Did you keep any records or accounts?

Macfarlane: I had it all written out in a book, but it was stolen from my bicycle outside a hotel. I had gone there to find my accountant. who was also the accountant for the hotel.

Macfarlane said that because of the loss of the book he had been unable to prepare income tax or social security returns. It was impossible to tell what had been the total drawings or expenses of the business.

Questioned by a creditor about his statement that the partnership account with a wholesale paint firm had been in his name because the firm had refused credit to Cane, Macfarlane said that the auditor of the firm had told him so. The creditor’s representative stated that this was incorrect and that the firm had not known of his partnership with Cane. The account had been, and still was. only in the name of Macfarlane. Mr Brown: In that case, is Cane only liable for a small amount of the £275 owed by the partnership at its dissolution? Macfarlane; I suppose so.

Mr Brown: You have very few details of your affairs. I think the number of judgments, judgment summonses, and orders obtained against you induced you to file in bankruptcy. Macfarlane offered his creditors £1 a week, plus 75 per cent, of his week-end earnings. He claimed that he would be able to earn as much as £6 a week-end, and was prepared to have the money paid directly into the Court. The meeting agreed to this offer subject to records being kept of week-end work, and a revision of the bankrupt’s estate in three months.