AFFECTED BY SLUMP

Evening Post, Volume CXII, Issue 82, 3 October 1931, Page 6

AFFECTED BY SLUMP

BANKRUPTCY BOOKS; TO Bhi EXAMINED

■: A meeting1 of creditors in.the bankrupt estate of Joseph Alexander Osborne, storekeeper, formerly of Upper Hutt, mud now of Auckland, was held at the office of tne Official Assignee (Mr. S. Tansley) on Thursday. -, • ,' The statement of accounts showed:— Amount owing to unsecured creditors; £1109 2s 3d; book debts, £180 Ss 3d, estimated to produce £60; cash m hand, £22 4s 6d; furniture, £100; total assets, £IS2 4s 6d, leaving a deficiency of £926 17s 9d; ■ There were 10 Unsecured creditors, the. largest amounts being as" follows:—Moore, Wilson, and Co:, Ltd., merchants, £972 10s 9d: A.iS.-Paterejon-and Co., Ltd.,: £00 108 4d JVB. MaclWari and Co., Ltd., £27 0s 3d; J. Myers and Co., Ltd., £7 17s. Id; Denhards ißakery,' Ltd., £8 0s 2d. lln his sworn statement the bankrupt said ■ that he started business in Upper Huft in. 1921. He had £450, and borrowed £2513 from Moore, Wilson, and Co., Ltd. The business cost £854, which he paid in one; month; Finding he had difficulty in settling hie accounts he borrowed £100' from 'a! brother-in-law I The business increased rapidly, and was returning up to, £1184 per month. In 1924 he was informed by an accountant that the business was paying, but that his total indebtedness was about £2000. Bankrupt took over the books and-reduced his debts to about £1400. -In 1926 he paid'back both the loans. ! In ,1929 he met strong opposition from two other storekeepers in the same locality, and feeling he was going downhill he-commenced to draw wages at the rate of £2 per week, and by 1930 he had saved £100. Some'of this,, hbwr eveiY' was ' used 'to meet short-time accounts. • ' .'■■ In March of this year he found it impossible "to carry on. When he left Upper Hutt he had £166, with which he purchased a''^mall'business in Auckland. He regretted dojmg^this,(and he ,was:pre-. pared to accept' whatever demands his creditors thought fife The .bankrupt';^atd"; he" attributed his failures .ttPthei w^amO-un11 of interest he had ,|o' pay^j*the!;>;Btr6ng. 'opposition ■ from the'btlier^Wiops;'?^nd the general slump. '■■ -. iTh^baiikriipt Said that about six months ag<> he 'started drawing, £12 per week-out of -the business. This was made up as follows:—Rent, £2 15s; living expenses, £5; telephone, ss; motor expenses, £1; insurance on stock, ss; premium on life' insurance policy,:. 15s. Mr»' Tansley pointed out that there was still £2 not accounted for, and bankrupt said that that was.put by in the event.of anything hap^' jiening to him, "Then .Wjth'Jthe. premium on the life-insurance, you were drawing for •yourself* £7'lss said "Mr. Tansley. : ." '. "„'..■>■■';'.'■'■''■■ ■■ .■'""■ The bankrupt * said: he^eft Wellington about a fortnight .ago" withHabout £200, with which he-purchased a grocery business, ii^AucKl£nfc «T-he' value' of the stock in that'bdsineSß*wai about" £80. In.reply to Mr. Pii;Wi''.Mdbre, he said he had not contracted-any' debts in Auckland. Mr. Tansley tasked how the creditorsknew the bankrupt had gone to Aucklaud, and Mr. Moore said they did not know. "Wo had difficulty in-tracing, him, 1' he said. "Ho left me on the 14th. of this, month, and said he was going to Christehureh. His wife was/iti Christchurcu, but we discovered by accident that he had not' gone thereat all,.but had left instructions, for. hissletters. tb' be addressed to 'Auckland, He/deceivett.uS'by making us believe he was going to Christchureh to join- his wife;" :■• ■>'■'■' ■■ ■ '.■• ■ ■• ■ The bankrupt said he, had an invitation' to go, to Christehurch," but lie did not want his creditors to think lie was slacking, so he endeavoured to get work in Aucklaud. Me could not«ct work so took the opportunity, of-buying his present Moore pointed out that if the bank-, rupt was drawing £5 per* week from his •busifteTrt'in-Upper-Hutb it was. too; touch. . Mr. K. D. Greenwood, who represented A. S. Paterson and Co., Ltd., said: that. from the figures he -?had tsjitracted^the; bankrupt's average drawings ai»pearejl to. be £18 per week. '■'.'■'.. Mr. Tansley-: '!Can ; you say why your books show -you, drew £18 per week, (luring the. last six or eight months? .'. ; tff^C^'aS^tho '&f said he had never had any gambling or diSSaSSe^Xhe- seems to be a S^ditofSw^the bankrupt-^ iniolve'nti Ellington when he purchased S an accountant be asked and.. in* rl"''^ii^^^s>ssHSS2SS^ ' ■ ■ ■"■