IN BANKRUPTCY

Dominion, Volume 13, Issue 230, 23 June 1920, Page 8

IN BANKRUPTCY

PUBLIC EXAMINATION

A BAKERY BUSINESS THAT FAILED Tlio Chief Justice (Sir Robert t Stout) f yesterday presided over a sitting in Bankr j riiDtcv, at which Bert Crook,- a bankrupt ( formerly in business as a baker in Ade- ( laide Eoad, was subjected. to public exaraination. • i The Official Assignee was represented by 1 Mr. H, E. Evans, the bankrupt by Mr. C. J B. O'Donnell, and Bert Smith (one of the 1 principal creditors) bv Mr. A. M. Salek. \ According to the report filed by the i Official ABaiKnee Crook was adjudicated a bankrupt on his own petition on July 1. ( 1919. He filed a statement showing his . assets to consist o'f cash in hand £18 165.» and book debtß £72 11b. 10d.; which book ' debts wero estimated bv him to produce the sum of £50. His. statement further Bhowed unsecured creditors in Bums totalline £855 Bs. Ud. The total amount re- , ceived bv the asßisnee in respect of the assets waß £19 2s. It appeared" that the bankrupt went' into business without capital in the month of September. 1916. purchasing the busineßß at the prico ■ °f He admitted that most of his liabilities were incurred before the influenza epidemic which took place in November, 1918. He also admitted that In January, IHB. he knew he was in a bankrupt condition. He nevertheless continued In business until Juno. 1919. when, he aaid. ho Bold out to J. Jenkinson. He arniearcd to have used the purchase money in repaying the loan ho had obtained wnen bimim the business. The ob.iec„ of the creditors in aakine for a ntibllo examination was to ascertain: (a) Whether, when entering upon the business and borrowins capital for the purpose. bankfnnt could have had any reasonable or probable expectation of belne ablo to reoav tho same as, well as all his other (ic l >• (b) whether the bankrupt was lUßtifled in continuing in business after thi mo.ith of January. 1918: (c) whether the bankrupt was justified in tiayiniz the nrooMdE of sale of the business t-o the creditors from whom ho had purchased it. Under examination, bankrupt B&id he knew about the end of ul y h *MK H" 8 , 1 ' neBB was iipnirK back. Helooked into the books o£d found at one tlmo that there was an average shortage in delivery ot 350 loaves a week. There wero two men clrivliiK 'the del \ c . ar '® J[ 1 a e r' man (bankrupt's partner), and another. Bankrupt dismissed the other man. and drove one of the carts himself. ine shortauo immediately bccarac very amaU ..j f nr aomo time before the epide-nic the buislncß™ was doing well Hainan i:„j rturinr tie enldemlc. and owine 'o illieaHh of bankrupt himself, the business was closed ol^ weeks ■ Bankr'.int -considered that « omv he had got Tuck after the epldemio tie amount of trade he did before 4.. he could have made the J?f y ; H^v .. took . °Zth ""He" 1 never made any',hln K 1 ' 'K^'salek^Y 1 aro instructed to put it to " .w the money vou made in excess > 0 7Vptls h wa?W at race meetings?t B YouZnt'to°th' ! races at Ohrlßtchurch? f "Havejou'attended any race meetings J B Hifiono°ur: Were you subline at the " Tw' to su*- > jysSSJ»«B frittered away m hotels. 1 "to" Mr. P'Donnell. bankrupt said thf.t 3 was actlnE on the a creditor!!. i 1 advised him to do ■ havQ re . ; " and /hilton ffl . s hnnkrupt b claim that i be£oro .thb epii - f P The evidence was Placed upon the file i ; till July ft .