IN BANKRUPTCY.

Dominion, Volume 1, Issue 296, 8 September 1908, Page 7

IN BANKRUPTCY.

A HERBALIST'S CASE. Tho first meeting of creditors in the bankrupt estate of Richard Ayres, herbalist, of Island Bay, was held yesterday beforo tho Official Assignee (Mr. A. Simpson). Mr. A. do B. Brandon, junr., appeared for the debtor, and Messrs. Young and Myers appeared for contingent creditors. : Tho statc-mont showed that there wore unsecured creditors to tlio extent of £56 3s. 3d., and scoured, £2545 4s. 7d.; estimated value of securities, £5150; total assets, £2704 15s. 5d.; estimated surplus, £848 12s. 2d. Tho principal unsecured creditors were Messrs. Reid and Koeiio,'. contractors, £30. The following is the list of secured creditors: —National Bank of New Zealand, To Aro, £395 4s. 7d. (estimated .valuo of security £1500); A'nnio Luke, £100 (security £150); Equitable Building and Investment Co., and James Drysdale, £2050 (security £3500). Other liabilities amounted to £1800. . In a written statement bankrupt declared that ho sold his business on June 1, 1906, to E. C. Ayres and Co. for £1257, of which £400 was to remain in the business in tho name of his soil, Wilfrid Alexander Ayres, of Mansfield Street, Newtown; £400 was to be paid in cash, £350 to bo paid in Decomber, 1906, and £107 to remain as purchase money for the Berhampore business. Previous to selling out he had given his son, Edgar Charles Ayres, a £400 interest in tho business. E. C. Ayres and Co. borrowed £800 from Young's Chemical Co., for which Mr. Joshua Bell 1 and debtor became responsible. Tho two latter guaranteed an overdraft of £200, sinco reduced to £151. Some timo later they became behindhand in thoir payments to Young's Chcmical Works, and ho gavo his notc-of-hand that ho would seo that the goods purchased were paid for every month. Ho found that a cheque for the first month's goods,was sent to tho company, but they wero asked to hold it over for a fow days Another month's goods wero ordered and not paid fcr. The chequo for the first month's goods was dishonoured, and then tho company obtained judgment against him for the goods. Ho w y as unable to pay, and was served with a bankruptcy note, and consequently ho filed his petition. _ Giving evidence, bankrupt stated that when he retired ho was worth about £2000 in addition to tho value of'tho business. -He was depending on the sale of his. land, to keep him; lie would then havo, enough to keep him for tho rest of his life. The land consisted of the property in Liffoy Crescent, Shannon Street, and a Cuba Street lease. At this time he also had tho Berhamnore business, tlio stock and fittings of which were estimated to bo worth about £100. Ho received nothing from his daughter for this business. She got her goods from tho Cuba Street shop, without paying money, as his ront account was deducted. Thero was no doed to show that it was handed over tc his-' daughter, but it did not belong) to him. In addition, debtor had a wine business which was floated into a company called tho Medicated AYino Company, Ltd., and 500 paidup shares went to E. C. Ayres and Co. and his son. He would bo prepared to hand over all proprietary rights ho had in any medicinos. The Assigneo remarked that tho bankrupt's affairs were somewhat mixed, and thoy needed a good deal of sifting. Mr. Myers said that'the answers given wore unsatisfactory, and a public examination or' such inquiry as tho Assignee and creditors thought necessary should bo held. In reply to Mr. Myers, tho bankrupt stated that tho Borhampore business belonged to Ayros and Co., or himself and his son. His daughter kept no books, and neither did ho, as tho business was so small. Tho- Assigneo said that a man must keep books no matter what was tho size bf tho business'.-^ Mr. Myers: Why did you borrow money from Mrs. Wright? Bankrupt: I don't know; money is always roquirod in business. Tho Assignee: That's no answer, Mr. Ayres. Debtor then explained that it might havo been for tho land. \ Mr. Myers: It's no uso going on in thisway. Tlie bankrupt has givon. no information at all. I would liko to examino other members of tlio family. Tho Assigneo then adjourned tho mooting sino die.