BANKRUPT CATERER

Dominion, Volume 25, Issue 206, 27 May 1932, Page 7

BANKRUPT CATERER

‘Business Totally Neglected’ CREDITORS DISSATISFIED Numerous questions were addressed to Ernest Sylvester O’Neill, bankrupt caterer, at a meeting of his creditors yesterday. The questioning was directed to the manner in which bankrupt managed his business and kept his books. Toward the end of the meeting counsel for Mr. and Mrs. Johnston, from whom bankrupt purchased a catering business, said: appears' to me that the business was totally neglected; there is no adequate record of moneys, transactions or stocks, and the whole thing was left to rack and ruin.”

Bankrupt said in answer to a question fro mthe Official Assignee, Mr. S. Tansley, that at no stage did he know what his financial position was. The only books he kept were three diaries and the bank passbooks. At the close of the meeting, which was adjourned sine die, bankrupt, on the advice of his counsel, refused to sign his sworn statemnt, which had been taken down in writing by the Official Assignee, on the ground that it did not convey the true impression of what he meant. . Debts to unsecured creditors amounted to £392/4/2 and assets were estimated at £299/14/2, leaving a deficiency of £92/10/-. The principal creditors were: P. S. Taylor and Son, £llB/8/9; Mcllraith and Son, £64/4/7; Bank of New South Wales, £25/7/10; Lempriere and Co., £39/8/2; C. F. Priest, £2O 16/-. V 1 Bankrupt stated that he purchased a catering business in February, 1927, from O. and L. Johnston for £1240. He paid £340 down, leaving £9OO owing, for which security was given on the 'chattels of the business. For the first couple of years business was good, and he paid £250 off his debts to Johnstons. About this time the business began to fall away, said bankrupt, and he ascertained that the Johnstons were interested. in an opposition firm. This and the depression which was then making itself felt, made it difficult to carry on, and gradually got worse, In March, 1031, his trade creditors pressed, and he agreed to hand over to them a one-fifth interest in his mother’s estate, and they agreed to let him carry on. They received a dividend of 4/in the £. Johnstons had security over the catering plant he purchased from them, which was valued at £9OO when he purchased it.