FRUITERER FAILS

Dominion, Volume 21, Issue 188, 11 May 1928, Page 7

FRUITERER FAILS

MEETING OF CREDITORS

“HOPELESS TO CONTINUE”

A meeting of creditors in. the bankrupt estate of Mrs. Mary Kate Burton, fruiterer, of Adelaide Road, Wellington, was held yesterday. The Official Assignee (Mr. 8. Tansley) presided. The total debts were shown as £3BO 13s. Id., and the total assets as £37, thus leaving a deficiency of £3-13 13s. id. The principal unsecured creditors were: B. Kelly (baker), £45 17s. 3d.; Hardwick and Robertson (general merchants), £32 10s. 2d.; Johnston and Co. (general merchants), £2O 17s. Id.; Warcup and Elliott (builders), £22 125.; Campbells Ltd. (grocers), £lO 9s. 10d.; Auls-sbrook and Co. (biscuit manufacturers), £l4 4s. 9d.; Phoenix Aerated ■Water Co., £l4 2s. 9<1.; Nestle and AngloSwiss Condensed Milk Co. (Aust.), Ltd., £l3 14s. Td.; J. H. Whittaker and Sons, £l3 Os. 8(1. Bankrupt in her sworn statement said that until a short time before her bankruptcy she had no idea of the muddled state into which her affairs had drifted. She had left the whole care of her finances to her son, Frederick Burton, who had always been the main support of herself and family since the death of her husband some years ago. She had had every confidence in him, but was now forced to the conclusion that he had put her in the presetn muddle through trying to carry on the business when it was, or must have been, bankrupt. Iler son had given up a good position with an insurance firm, and went Into partnership with two other men, and unfortunately they did not do sufficient in their business to pay a regular wage. That meant that instead of receiving support from her son she had to assist him, although she did not know, as he had charge of the money. Her son had provided the capital to start business in Rlddlford Street. The amount provided would be about £4O. The shop did not pay for itself, and she had sold it for £69, which was utilised to pay the debts in connection with the business. In July last she had started again at the present shop, No. 4 Adelaide Road. The takings had averaged about £2l per week. The rental was £4 55., and this alone exhausted all the gross profits on her receipts. In addition, there were the household expenses for her two sons, two daughters, and herself. One daughter was to receive a wage of £1 a week but bankrupt had been unable to pay her.' He find also given up a good position to assist bankrupt. In December it was necessary to raise some money to pay her debts, and he had arranged a loan of £5O on the furniture. Her son had expended that in payment of bankrupt’s debts. Nothing had been paid off that loan, and recently the mortgagee bad distrained on the furniture. , , In March her son was in financial difficulties, and had informed her that he owed £l5O to a Mr. Gourley, and that that sum had to be found. She had been led to believe that the consequences for her son would .be serious unless the money were found, or security was given to Mr. Gourley. Consequently, she had given Mr. Gourley a bill of sale on the fixtures for that amount. Her son had then left the partnership, and had gone to Auckland. After his departure, she began to receive accounts and sunimonses, and ultimately she had obtained the help of a friend (an accountant), who had gone into the position for her. She then saw how hopeless was her endeavour to continue the business, and had consulted her solicitor, who had advised her to file. Her son had writtten to her, and had admitted that he was to blame for the position of affairs, and gave the reason for failure as being lack of capital and muddlement by him through having too many matters to attend to.. In December last she had been approached by prospective purchasers as to a sale, and had she known how financially embarrassed the business was, she would have sold out, even though she would not have obtained the amount she was asking for, namely, £250 cash. The Official Assignee said that the stock had been put up for sale, and had been cleared right out. _ _ Bankrupt's solicitor, Mr. C. 13. O Donnell, said that her son had obviously got things into a muddle. It was also her first experience in business. Her son was reported to be a very fine young man, and several friends had offered to lend him all they had. Ho had been trying to run another business, and had evidently been drawing on his mother’s money. He did not know where this money had gone, but evidently it had been a good big amount, because in a year there was a deficiency of £2OO. The person who was responsible for the muddle was the son, as in, most instances he had had the handling of the money. Mr. Beveridge, representing the son, F. Burton, said that his client had done what he could to keep his mother in business. The mother, he was sure, had not known how matters stood. What had happened to the money he did not 'Tin Tansley pointed out that the landlord had been paid up to within a week before the bankruptcy. He suggested that bankrupt should ask her sou for a statement as to what had been- done with the money. Mr. Vickerman (representing Nestle and Anglo-Swiss Condensed Milk Co.) said that generally speaking, there was too much credit being given in the town. When they got round the Official Assignee’s table, they usually deserved what was coming* to them. The takings in the till had evidently been used up in expenses, rent, and for other purposes. Mrs. Burton had come to the firm, and told them that she would pay, as her son was raising money to pay off his mother’s debts. If the son was the man they had heard he was, he would ‘come to light.” . ... , Mr. Tansley remarked that the proposal was a fair thing. Mrs. Burton denied obtaining goods on credit. She said that she had taken the goods only when travellers had come round.

Bankrupt’s solicitor said that it seemed hopeless to expect money Jrom tJie son, as he had a debt of £l5O to Mr. Gourley, owed £6O to another friend, and owed £55 to a club. Bankrupt’s solicitor also stated that they should not place reliance in the son because he was not in a position to pay. Mr. Vickerman said that people muddled along on credit. As long as they were making a crust they seemed quite satisfied.

A letter from the son to his mother was then read by Mr. O’Donnell. It stated that the shop would have been quite profitable it all had gone on as it had done in the summer. The loss at Newtown was estimated at between £4O and £5O. Then they had moved to. Adelaide Road. The shop had practically been opened on credit. He did not think the business had ever paid. On the motion of Mr. Vickerman the meeting decided to adjourn until a statement about the money was obtained from the son. Failing that, the Official Assignee was to make inquiries as to whether the son had got the money Illegally from the business.