MERCHANT'S FAILURE

Evening Post, Volume CXIV, Issue 18, 21 July 1932, Page 13

MERCHANT'S FAILURE

RESULT OF DEPRESSION

A meeting of creditors in the bankrupt estate of Adolphus Frederick Spiller, merchant, Wellington, was held ■S.t the office of the Official Assignee to-day.

The statement of accounts showed that the total debts amounted to £798 16s 9d; stock in trade estimated at £82 13s 8d; book debts,•estimated to produce £40; total assets, £101; deficiency, £607 4s Bd. The-principal creditors were Daly Bros., Ltd. (Christchuroh), £203; British International Oil Co., Ltd., £101 12s 8d; Dominion Motors, Ltd., £85; Buckleton ami Co.,' £35; J. Francis, £90. In his sworn statement bankrupt said that he started business on his own account' as a manufacturers' representative and indent agent about two years ago. 1 He began with a capital of £150, which liad fromtime to time been added to, and his capital invested to date was £332. Business was quite fair at the commencement. One of. his selling agencies did not prove profitable; on the other hand, another agency proved profitable, but on account of being under-capitalised ho found he waß unable to work it throughout New Zealand. A friend advanced him £175, and .was employed at £4 a week for a short time, but the overhead expenses were too heavy to continue the arrangement. . In March, ■ a fuf ther £92 10s was advanced, which was required to pay for shipments arriving. Particulars Were given of the working of several agencies. He attributed his failure to the fact that from about the time he started business general business conditions became worse; he was under-capital-ised,-and in consequence had difficulty in meeting drafts for indents, which in the early stages were cash against documents, and he was unable to build up, a reserve. He was unable at present to make any I offer to bis creditors." ; '' ■

A resolution1 was' carried authorising the bankrupt to sell the stock-in-trade at the best price possible, on a 10 per cent, basis; also, that: the question of agencies be revised at a, ' subsequent meeting of creditors: ' .' .. , •'

During v tlie discussion one creditor said he realised that there had been no extrayaganie 'on' the part' of the:' bankrupt. Hig misfortune had resulted from the existing depression... ; ..'.■'■..-

The meeting Svas adjourned sine die.