MEETING OF CREDITORS.

Dominion, Volume 2, Issue 460, 19 March 1909, Page 7

MEETING OF CREDITORS.

» A CONFECTIONER'S BANKRUPTCY. A meeting of creditors of William Henry Trotman, confectioner, was held yesterday before Mr. Ai Simpson (Official Assignee). About half-a-doaea creditors wero represented. Tho bankrupt's legal representative was Mr. Balcombe Brown; Mr. Von Haast appeared for Messrs. Rigg and Co., wholesale confectionery agents (tho petitioning creditors), and Mr. I{. B. Williams appeared as a creditor. Tho Assignee remarked that, on paper, a very small deficiency was shown. The tolal amount owing to unsecured creditors was .£4lB lCs. 2d., to secured creditor .£340 10s. 9d. Against this was a sum of <£GCO set down as the value of the stock, and another JCIM 2s. 3d. representing cash in hand— £'M 2s. 3d. altogether. There were unsecured creditors'to tho number of 29; tho largest creditors were:—W. J. Bush and Co., Melbourne, .£ll4 Is. 4d.; Spier and Grove, Melbourne, MS 3s. 7d; ; M'Pherson, Kemp and Co., Duuedin, JE43 75.; Hudson and Co., Dnnedin, .£32 175.; J. Rjgg and Co., Wellington, £M lis. Bd.; A. S. Paterson and Co., Wellington. .£2O 2s. lid.; New Zealand Express Co., Wellington, .£2l 15s. 2d. Mr. F. N. Meadowcroft was secured for an amount of ,£540 10s. 9d. It was stated that Mr. H. A. Gold, accountant, had beoi appointed supervisor in the estate by the creditors. A statement by Mr. (lold was submitted. The action of tho Official Assignee in carrying on the business, in order to save the tivo shops, was confirmed. The sworn statement submitted by the bankrupt set, forth that ho commenced "business in IJecember, ISOG, with a capital of .£240, and two shops; one in Willis Street, and the other in Lambton Quay. Increase of business led him to borrow at 5 per cent, in order to keep large stCcks, and the following month the shop at I etone was purchased; in September was added the shop in Upper Willis Street, and, in October, the Ingcstre Street shop; the last-named was absorbed into tho business in liquidation of a debt, but as it was run at a loss, its sale was effected in February of the fullowiug year. Mocks were increased in order to improve the trade at tho various shops. These operations necessitated various ■ further advances on loan; .in August, 1908, a bih of sale was given to cloar matters up temporarily This step was the beginning of the bankrupt's financial troubles, for his creditors began to press him and towards the end of the year he found that it was impossible to obtain further advances lie got out a balance-sheet on January 15, 1909, and called a meeting of his creditors, who appointed Mr. H. A. Gold to act as supervisor to the cstu-.e, which at that time was .£sl in bankrupts favour. Since then the shop in Upper Willis Street had been sold. Had it been possible to have carried on, continued (ho bankrupt, matters would have righted themselves in time. The principal reasons for l', ,s . Y°uate were overstocking, losses through incompetence in the manufacturing department, and the stoppage of advances. The loss as shown by balance-sheet in February, ?.h was £iS I on January 14, 1909, the loss was Ai/b. According to the turnover, there should have been a profit shown; that there was not could only be attributable to carelessness and neg.igence on tho part of employees. With regard to the Lambton Quay and Willis btreet shops, the Assignee explained that an independent valuation in respect of the stock appliances, and fittings of each, had resulted in an assessment of JI2S7 2s. Id. for the Lambton Quay business, and .£24G Gs. 9d. for tho Willis atreet snop. (Jnder examination by Mr. Von Haast, the bankrupt explained that the bill of sale held by Air. Meadowcroft as security for his claim ot ,£540 10s. 9d., had been negotiated in respect ot cash advanced in August, 1908, when on the same day separate sums of ,£IOO and ,£431 were advanced. He estimated the value of the estate covered by tho bill at .£I2OO. The Assignee remarked, after considerable discussion had taken place, that this particular bill of sale should be tested.

Bankrupt was further examined as to certain transactions with Messrs. A. S. Paterson and Co., and stated that in selling that firm, which was a creditor in tho estate, goods to the value of .£155 (sold at a profit), ho was actuated by a desire to partly disencumber tho estate;. li 9 considered then that ho was solvent, and was not aware that in his transaction with Messrs. A. S. Paterson and Co., he had actually given preferential treatment to an unsecured creditor. '

The Assignee thought that the transaction was in the nature of a preferential payment, and could be invalidated. The goods wero received on December 1, and sold on January 12, a day or so before the estate beoamo insolvent.

It was finally agreed that the supervision of the estate be left in the hands of the Assignee, and that the bankrupt bo required to furnish detailed statements as to his dealings with Messrs. A. S. Paterson and Co., Cadbury and Co., and Mr. F. N. Meadowcroft. Mr. H. A. Gold, after submitting details concerning his supervision of the estate, and disposal of part, was voted a remuneration at the rate of 5 per cent, oil .£32 19s. Id.