DAIRYMAN'S INSOLVENCY

Evening Post, Volume CXVI, Issue 142, 13 December 1933, Page 3

DAIRYMAN'S INSOLVENCY

A meeting of the creditors of W. Pratt, a Lower Hutt dairyman, was held before the Official Assignee, Mr. S. Tansley, yesterday. It was decided that the bankrupt's round should be put up for private sale and that it should be carried on for not more tliau one week by the bankrupt on the understanding that the Ava Dairy Company supplies all the milk at 8d per gallon and. that the bankrupt look to the takings for his wages (£3 per week) and those of a boy (15s). In the event of the week's trading resulting in a loss this will be borne by the Ava Dairy Company, which, if the round is sold, will be reimbursed from the sale or from other assets.

In his sworn statement Pratt said that lie was a boxmaker by trade, but having lost his job as a result of the depression, lie started on "his own account as a milk vendor in August, 1931. He had no capital and arranged to buy a motor vehicle i'or delivery purposes at a cost of £20 on time payments. The vehicle was not satisfactory and he had to hand it back to the seller and buy a horse and cart, for which he paid £7. He then discovered that the concern from which he was obtaining his milk was charging him Is 2d per gallon while supplying other retail dairymen at lid per gallon. Five months ago he saw that he could make more money by buying his milk in the Wairarapa and' bringing it over the hill. He bought a motor-truck for £110 on the hire-purchase system, and since then had been making a profit. He attributed his bankruptcy to the petitioning creditor company, which considered he should not buy milk in the Wairarapa and sell some of it to retailers whom the company had previously been supplying. He considered that if. he had been able to carry on he would have been able to pay all his debts in full.

The amount owing to unsecured creditors was £269 8s 4d, of which £70 was to Avn Daivy Supplies, L.td. The amount owing to secured creditors was £1065 and the estimated value of the securities was £900, and this, in addition to £75 still owing on the motor-truck, left a deficiency of £478 8s 4d on the whole estate.