POOR BUSINESS

Evening Post, Volume CIV, Issue 91, 14 October 1922, Page 19

POOR BUSINESS

WORKING MATERIAL AND NO CAPITAL.

The failure of a motor-repair business that was commenced with took and ho capital accounted for the appearance of a young man named Edward Berg-, jun., formerly of Picton and now of Wanga-' nui before some of his creditors and the Official Assignee (Mi. S. Taneley) yesterday afternoon. The financial statement presented at the meeting showed the liabilities to be £169 13s 9d and the assets nil. The largest aahount on the list of twenty-six unsecured creditors was £25 10s.

The bankrupt explained in a statement that prior to September, 1919, .he was employed in garages in Blenheim and Picton on \vages. He then started iii/ business on his own account in Picton, and rented premises. He had no capital, but had accumulated tools^ by purchases with his \vages. His work was restricted to repairs, and he had no selling agencies for cars. He kept a banking account, but was asked to close ifc as he was under twenty-one years of age. It was reopened when he became twenty-one years of age in January last. During the first twelye_ months he did reasonably weir in business, but towards the end of 1920 when times of depression came he began to find it uphill work to carry on, and decided that it was only a matter of time before he would be forced to close down. His father had given , him a second-hand Ford car, which he traded for a secondhand Hudson. He sold the business for £100 in cash (for the car), and £40 for goodwill and tools. . A sum of £34 was deducted by the purchaser to pay, arrears of rent, and the balance paid into the Bank of New Zealand at Picton and used in making /payments to creditors who were pressing the bankrupt. Being anxious to earn sufficient money to pay off his liabilities, he came to the North Island in search of work, but, during his absence, certain of his creditors had obtained judgment orders, leaving him with no alternative bait to file. He could only attribute his failure to the slump period. In reply to questions by the Official Assignee and creditors, the bankrupt stated that he married in July last, although not in a- financial position to do bo. If he had any assets at that time they were very small. An Overland ear had been passed* over to him by his father, and that was taken by a Mr. Lucas, of Picton, who had assisted the bankrupt when a distress warrant was issued. Bankrupt had reoeived sums amounting to £75 as payment for the car. About two years ngo, said bankrupt, his father paid £T2O for the car. The creditors were; of opinion that the car should come into the estate, and that Mr. Lucas* should be included as a creditor.

The bankrupt stated that he was now in employment, earning £5 per week. The meeting adjourned sine die^ the Official Assignee in .the meantime to make inquiries regarding the ownership of the" Overland car, which bankrupt alleged belong to his father.