JEWELLERY AND A GARAGE

Dominion, Volume 20, Issue 59, 3 December 1926, Page 15

JEWELLERY AND A GARAGE

ILL-FATED UPPER HUTT VENTURE £2BO BEHIND IN FOUR MONTHS How a garage proprietor at Upper Hutt came to throw himself upon the mercy of his creditors at the end of four months' trading was a problem inquired into by the Office Assignee yesterday. The bankrupt was Herbert Harold McNelly.

Tbe amount owing to unsecured creditors was shown us A’sO2 18s. Bd., while the stock-in-trade was estimated at JlltX), the Ixxik debts at 3237 6s. 9d., and the surplus from securities in the hands of secured creditors at JiSa 2s. 5d., leaving a deficiency of .A2BO 9s. 6d. The principal creditors were: H. Buck, farmer, Featherston, Jiso; British Imperial Oil Company, .£120; Ford Sales and Service Co., J 122 Ils.; E. Reynolds and Co., motor proprietors, £35 75.; Cycle and Motor Supplies, £3O 18s. 7d.; Hope Gibbons Ltd., £l5 16s. lid.; United States Rubber Co., £47 15s. lid.; Gruar’s Battery House, £3sg W H. Simms and Co., £l5 18s.; W. R. Twiggs Ltd., £7 10s.; Robertson Bros. (Auckland), £l5 10s.; Commercial Printing Co.. £l4 3s. lOd.; Nixon and Matthews, £l3; W. T. Johnson, £2O Os. od.; New Zealand Loan and Mercantile Agency Co., Ltd., £l6 Bs.; Arthur Clarke Ltd., £9 165.; Barrett and Co., £lB 16s. lid.; Sargood, Son and Ewen, £27 Os. 2d.; Hazlewoods Ltd. (Upper Hutt), £l6 6s. 5d.; Mutt Valley Sawmill, £l6 7s.

I’lie secured creditors were: State Advances Office, £247; G. H. Field, £150; W. H. Jackson, £317 17s. 4d. Bankrupt had an interest in a section of lr. Bp., on which was a threeroomed dwelling, in VVilford Street, Upper Hutt, and a section of lr. 22p. in the Hutt town district, but these were subject to three mortgages, totalling £714 17s. 4d.

The Official Assignee (Mr. S. Tansley) presided, and there were also present: Bankrupt and his solicitoi (Mr. S. G. J oil), Miss Sutherland (Commercial Printing Co.), Messrs. Shaw (representing several creditors), Levy (United States Rubber Co.), Scott (Robinson Bros., Ltd.), Whitehead (W. H. Simms and Sons, Ltd.), Bruce (National Bank), Manderson (N.Z. Loan and Mercantile Agency Co., Ltd.), McArtney (British Imperial Oil Co.), C. B. Kline (C.. B. Kline and Co.), E. Reynolds (E. Reynolds and Co.), Hazlewood (Hazlewood and Co.), and Buck.

Bankrupt, in his sworn statement, explained that he commenced business in the Premier Garage, Upper Hutt, on February 14, 1926. Things went fairly well at first, but the expense of commencing business used up his small store of capital, and he commenced to get into difficulties, which he had never been able to overcome. Ho had been hoping to raise the necessary capital to enable him to carry on, and had also unsuccessfully endeavoured to sell the business.

In answer to the Official Assignee, bankrupt stated that he started with approximately a capital of £l5O, which he borrowed on his house. His turnover was about £l3O a month His rent was 15s. a week, and he paid a good deal out of cash. He took money for himself just as he could get it, and sometimes went for a fortnight without drawing anything for persona) expenses. The Official Assignee: Can’t you tell us what you drew for yourself during the yeart , , Mr Kline: Did you not mark each cheque you drew for yourself as “drawings”? Bankrupt: No. Then it would he unjiossible for you to tell what you drew out of the busi-ness?—-”1 would not say it was impossible.” , , , ~ The Official Assignee: I would say it was quite impossible if you did not keep any record. . . In reply to a creditor, bankrupt Said that he did not owe any domestic acC Assignee: W*at were you doing before you entered upon this bU BMkrupt; 1 was travelling selling jewellery, mostly amongst railway cm pl f 7< uotice you owe money to nearly every ruVbeZand oil firm in Wellington Did y you jump from one to the °tber when you could not get credit? -No; clients demanded certain kinds of tires, for instance, had to go "-ft, should be forthcoming as to what bank a statement of receipts and e . xp ®“ rtain ] y a Jee 6 fW To shouW ask to present a proper statement to adjourned meeting. Kline, it was On the motion of Mi- ™ o > ent decided to ask ant ] expenditure a statement of '?p. elp It'. 1 t '. ; ewP Hery and in connection with his jewene y months only . . a (, 00 d Ml -_ Shaw- it many ?hnt bankruptcies have has been proven that nauM it be Pn caused through people oornmen cin, business with " r dealt with P er_ ..onsider it is time vou capital son, startinc business with no c- P as rigorously ns the la P know the pM.oie' to make'a start in business have little or no eapitnU niaUe Mr E. Reynolds: Vs nnd n a the best nnyers. It « to® ... h b s man employs which estahli- < ’ r The‘ Official Assignee: The ’[jT’being caused through too much credit being ci Mr n ’ Shaw Yes: lam afraid that i“ at tlie root of most' hankrnntcie..