MILK-VENDOR'S FAILURE

Evening Post, Volume CXII, Issue 90, 13 October 1931, Page 15

MILK-VENDOR'S FAILURE

INSUFFICIENT CAPITAL

. A meeting of creditors in the bankrupt estate of Ormond Charles Hindlo Burt, milk, vendor, of Lower Hutt,, was held in the office of the Official Assignee (Mr. S. Tansley) last week. The statement of accounts showed: Amount owing to unsecured creditors, £688 13a 3d; book debts, £67 13s 3d, estimated- to produce £55j: cash in hand, £2 19s 8d; furniture, £20; surplus from securities in hand of secured creditors, £200. The total debts amounted to £793 13s 3d. There were 34 unsecured creditors, the largest " amounts being as follows:—G. Cook, Ltd., £111 8s 2d; the Featherston Co-op. Dairy Co., £43 18s 8d; Dr. G. S. Sharp, £50 12s; N.Z. Farmers' Distributing Co., £43 48 fid; Jenkins and Mack, Ltd., £37 9s; C. E. Fisher and Co., £31 Is 2d; J. Northcott, £129 9s sd; Todd Motors, Ltd., £33; E. Rushworth, £40; Wairarapa Patriotic Association, £50; Wright and Laurie, £33; J. A. Telfar, £35. Mr. C. R. Barrett represented the bankrupt. In his sworn statement the' bankrupt said that in 1920 he took up a soldier's farm at Featherston. The farm was not profitable owing to his having insufficient capital, and overhead expenses being too high, and other set-backs such as mamtnitis amongst the cows. The last two years were profitable, but owing to the liabilities accumulated during the previous years he was not able to get ahead of things. In November, 1930, he sold the equity in the farm for £1250, and as a result of a suggestion made by Mr. Northcott he purchased a milk round in Lower Hutt for £882. He carried on for two or three months, and about the middle of January, 1931, began to see that the business was not a payable proposition, so he obtained an advance of £50 from the Patriotic Association. Between the time that he took the business over and the middle of February he had incurred a liability of approximately £120 to -Northcott for milk. On the Bth April, 1931, he took Mr. J. F. Badcock into, the business as a partner. • The purchase price for a half-share was £300, but it was agreed that the balance of £382 owing was to be borne equally by the bankrupt and Badcock. On 21st June the partnership was dissolved. On the dissolution bankrupt and Badcock took one half of the round and assets each, and both carried on like that until 22nd August, when they. sold their half interests in the round to a Mr. Mason for £400. Since the 22nd August bankrupt had been working for Mr. Mason, receiving £4 10s a week. The bankrupt attributed his present position to having paid too much ifor the round in the first instance (£7OO goodwill); receiving bad milk, which caused him to lose many customers, and to insufficient capital. The only working capital he put into the business was the £50 received from the Patriotic Society, and £100 deposit. He was unable to make any offer to his creditors. After the bankrupt had been closely questioned in connection with the books of the business, the Official Assignee adjourned the meeting until next Friday to enable the bankrupt to" produce his books and a statement of receipts and expenditure.