"MISMANAGEMENT"

Evening Post, Volume CIX, Issue 74, 28 March 1930, Page 13

"MISMANAGEMENT"

TOBACCONIST'S FAILURE

MEETING OF CREDITORS An adjourned meeting of the creditors in the bankrupt estate of Samuel Sigall, tobacconist, Wellington, was held to-day at the office of the Official Assignee (Mr. S. Tansley). Mr. J. Meltzer appeared for the bankrupt. The Official Assignee stated that the business had been sold for £400. A report had been received from Mr. 11. B. Burdekin, accountant, who had investigated bankrupt's affairs- In his report, Mr. Burdekin said that the day books appeared to have been methodically kept, but no ledger accounts had apparently been kept. Practically all payments had been made by cheque, except wages and small items for cleaning, etc. He thought there was sufficient detail shown to enable a reasonably close check to be made of bankrupt's affairs from time to time, and was probably quite as good a record as most tradesmen of his class keep. After giving some particulars as to the business done at the Manners street and Woodward streets shops, the accountant said: "Summarising the position, the cash receipts appearing in the day books, together with the sale of the Woodward street fittings, total £2245 for the period in question. The bankings were £1877, and the payments out of cash £410. This shows a surplus of cash banked of £42, which appears to have happened during the month of December. The cash loans anentioned mako it impossible to identify into any one week. The bankrupt is unable to explain how the surplus arose. Commenting on the position revealed, I am of opinion that there is nothing, to suggest that the bankrupt lias not accounted for all his takings. NOTHING IMPROPER. "I have been asked by Messrs. E. J. Hyams and Ellis and Mariton to ascertain, if possible, what happened to the moneys during the last three months that the bankrupt was carrying on business, and why it was that there were- no moneys available to pay their accounts during which period, the in- i dobtedness of these two firms increased by approximately £250. A careful review of the payments made during this period show that evidently pressure ■was brought to bear by his landlord, and a considerable amount of arrears of rent and interest were paid. Rates and interest on the first mortgage on his house were mot, and some small amounts paid for. renovating the shop in Manners street. The Wank overdraft at the Bank of New Zealand was also reduced £76 during this period. These payments account for there being no moneys available for these two firms. In conclusion, I can only say that whilst there is no doubt whatever that tie bankrupt has been a muddler, and has not carried on his affairs as profitably as they might have been, j yet I have found nothing to suggest that there has been anything improper in any way. In my opinion the position that the creditors find themselves in today has occurred by reason of .niuddlement and mismanagement rather than dishonesty on. the part of the- bank-; In reply to Mr. J. J. M'Grath, banklupt said his papers showed the cash payments, but he did not keep a ledger. He realised about two or three years ago that he owed a considerable amount of money. He admitted paying a part of the insurance money received by him to a relative who had advanced him certain money. TRIED TO PAY HIS WAY. Mr. Meltzer said the report of, the accountant showed.that .the debtor, had done nothing improper or dishonest, lie was inclined to agree with the accountant that bankrupt had not been a good business man—that he had not made the best of his opportunities. Mr. Myers admitted that Messrs. Niecol and M'Coll had treated bankrupt fairly. Bankrupt was a family mau who had always tried to pay bis way. Mr. M'Coll remarked that bankrupt should have been more frank with his l creditors in regard to his financial position. A resolution was passed allowing bankrupt the use of the furniture 'for j two months, during which period he should try and make arangements for its purchase. The meeting was adjourned sine die.