BUSINESS FAILURE

Evening Post, Volume CVIII, Issue 15, 17 July 1929, Page 11

BUSINESS FAILURE

PORTRAIT ARTIST'S DEBTS

Insufficient capital and borrowing from a money-lender at a high rate of interest to enable him to carry on was blamed by Konald Arthur Ashman, portrait artist and picture framer of Wellington, for his failure in business. A meeting of creditors in the estate was held this morning, the Official Assignee (Mr. S. Tansley) presiding. The bankrupt, who was represented by Mr. D. Perry, had not prepared a written statement of his financial position. He said he owed altogether £720, and had no free assets.

The bankrupt in his sworn statement said he loft the Bail-way Department owing to bad health in November, 1927, and started business at Petone as a portrait artist and picture framer, Mr. E. J. James rinding the capital of £150. Since then he had suffered from chest trouble. Ho took a weekly tenancy of premises in Jackson street at a rental of £1 5s a week, and purchased furniture and fittings. For eight months he carried on business at Petone, after which he removed to Dixon street, Wellington, where he was in business until about October, 1928. During the whole period he was in business he drew an average of not more than £3 a week, and for four months before he ceased to cany on he did not draw anything from the business. In October, 1928, a bailiff was put into possession and he was compelled to close. Thereafter he was out of work for three months. He then obtained a position as a salesman for the Paramount Portrait Company at Petone at an average weekly wage of £4 17s for about six weeks. Eecently he was employed by the Dominion Portrait Company for a few- weeks at an average wage of £4 Ss a week. Ho left that employment three weeks ago, and he was now working for Mr. L. Smith, of Brooklyn, at a wage of £4. Ss a week.

Under examination, the bankrupt said his business was all right until approximately seven months before he closed up. The bailiff .had then been put in. At that time he owed about £700.

To the Official Assignee Ashman said that he had bought three watches, a ring, and a necklace in 1928.. One of the watches was for himself.

Mr. L. Smith denied that the bankrupt had ever been employed on a wage by him, and in answer to questions Ashman admitted that he was not working for Mr. Smith. He had borrowed in all from various people £643. In answer to further questions from the Official Assignee, the bankrupt said that it was not possible at any time to ascertain his position from his books. He had not done any work for the past three weeks, and, although he understood he would be able to get back with Mr. Smith, he was unemployed at the present time.

Mr. Smith said it did not appear that the bankrupt made any attempt to work. When work was put into his hands he preferred to walk along the main streets.

It was decided to place the papers of the estate in the hands of the Crown Solicitor.