UNDER EXAMINATION

Evening Post, Volume CIII, Issue 152, 30 June 1922, Page 3

UNDER EXAMINATION

A BANKRUPT STOREKEEPER

THE OFFICIAL REPORT.

JoHn Joseph, formerly of the London Drapery Store, Rona Bay, was called before Mr. Justice Hosking at the Supreme Court to-day for examination in accordance with the provisions of the Bankruptcy Act. Mr. C. A. L. Treadwell appeared for bankrupt, and Mr. H. E. Evans for the Official Assignee, Mr. S. Tansley. The report of the Official Assignee was to the effect that the bankrupt was adjudicated on his own petition,'- filed on 22nd April, 1922. Though he passed under the name of John Joseph, it appeared that his real name was William John Littauer, and that he was a Russian Pole by birth. His statement showed assets amounting to £638 7s 6d, and liabilities totalling £1199 18s 3d, the chief assets being stock-in-trade £540, furniture £10, book debts £52 7s 6d, surplus over unsecured creditors £10, fittings £26. The mam liabilities were: Standard Manufacturing Co. £113 10s 3d, Kaiapoi Co. £42 15s 7d, Wellington Woollen Co. £116 16s Bd, Commercial Agency, Ltd., £529 17s, Empire Clothing Co. £133 8s 7d, and W. J. Ross, £80 8s Bd. Prior to Ist August, 1921, Mr. Tansley reported, bankrupt was trading at Wellington as the Wellington Hat and Cap Company, in partnership with one Max Meridels. The business got into difficulties, and in September, 1921, an arrangement was made with the Commercial Agency, Ltd., representing the principal' creditor, that bankrupt should pay £3 per week towards £600 worth of liabilities of the old firm but of the profits of the business at Rona Bay. Apparently the second business *as commenced upon £65, borrowed for the purpose, and when obtaining credit for the store bankrupt had apparently not made known the existence of liabilities under the first business. On 7th September, 1921, bankrupt assigned his estate as far as the Hat and Cap Company was concerned, to the Commercial Ag T ency, and on 15th October, 1921, he executed a deed of guarantee in favour of that company for the payment of £3 per week out of the profits of the Rona Bay business. It therefore appeared, continued the Official Assignee, that bankrupt was using to pay off his old creditors moneys which he should have used to pay off new creditors. Bankrupt also appeared to have sold goods that were held by him on consignment, "but failed to account to his principals for the proceeds. In August,'.. 1921, bankrupt reported to the police that his premises at Rona Bay had been broken into, but that nothing was missing. On 3rd May, 1922, at the first meeting of his creditors, however, he swore that he had lost £10 worth of goods by ourglaries, and in his later statement mentioned burglaries were one of the causes of hia bankruptcy. It had been reported that bankrupt drank and gambled, but that statement he denied. He admitted having kept no books since September, 1921, and having banked no money for about four months prior to his going into bankruptcy. The stock in the Rona Bay store had been valued by Joseph (or Liltauer) at £500; it realised only £224 10s when auctioned.

In spite, of a warning that he had no longer a right to collect book debts, bankrupt had collected a considerable number, though he had since accounted for the same. '

In the course of proceedings taken against Mrs. Joseph, continued the report, she gave evidence that on 12th June, 1922, bankrupt had hidden away four cases of goods, and that he had told her of his action.

(Proceeding.)