A YOUNG BANKRUPT

Evening Star, Issue 18053, 22 August 1922, Page 4

A YOUNG BANKRUPT

MUDDLED A BUSINESS AWAY. TOO MUCH CREDIT GIVEN. The Official Assignee (Mr TO. TO. Samson) presided this morning over a meeting of creditors in the estate of Charles Walter Penrose, storekeeper, Hindis Pass. The bankrupt was present but unrepresented • also Mr C. J. Payne (representing N. Kenny), Mr C. F. Johnson (Jolly and Sons, G. Tumbles, and T. Varooe), Mr A. P. Smith (Mooney and Sons), and Mr A. Wright (Moore, Moore, and Nichol).

Tire statement showed that the money owing to unsecured creditors amounted to £1,575 6s 6d; book debts, £275 Os 7d (estimated to prodiico £150); stock in trade, £235; cash in hand, £1 15s; furniture, £lo—a total of £396 15s. The deficiency was thus £1,178 11s- 6d. Tho principal unsecured creditors were; J. K. Mooney and Go., £400; Jolly’s (Cromwell), £282; S. R. Stedmau, £39 3s SJ; J. Shadrack, £3B; N. Kenny, £B6 7s; R. J. Collie, £7B; H. Gibson, £6O. There was a. long list of smaller amounts. The bankrupt added in his statement that he was a carpenter in the Wanaka district up till about 1918. Ho was approached to take over the accommodation house at Hindis Pass and did so, _borrowing £25 to go in with. He continued to work at his trade, but later found it necessary to give this up and help in tho work in connection with the house. H,o got a Ford truck on the hire system, and went in for the carrying business. He then opened a store at Hindis Pass, and it was here his financial troubles began. Everybody expected' credit up to anything from £SO to £IOO, and practically all accounts in bis books ran into big figures. As a result, be hadl to get. extended credit from Dunedin merchants, and ho got behind, although bo worked day and night with tho lorry. Things got muddled and the business finished up. Ho had four young children, and theso and Iris wife had put him to very heavy expense in doctors’ and nurses’ bills—£3oo would not cover the expenses so incurred' during the past year or so. He was twenty-six years old- and had no previous experience in business and got out of bis depth. In answer to Mr Payne, bankrupt said he had acted merely as agent for Mooney and Co. in connection with rabbit-skins within tho past three years, that firm finding the money for purchases. Mooney’s claim included a loan made to him oh his going into business and tho balance of account in connection with rabbitskins transactions. His boarding house season had been a busy one. but everything (except a cheque for £7B which Lad been the subject of certain proceedings recently) bad been put through the bank, and bad been used to keep the business going. The accommodation house itself was only a living, and ho took over the store and lorry to increase his earnings. The returns from the accommodation house were about £8 a week, on an average. To CMt Wright: Mooney’s account had increased all the time during the past two years, and further, they had made gratuitous payments to him when Iris wife was ill and o'n other occasions. Everyone in tho district must have known his circumstances.

Mr Payne remarked that it looked as though bankrupt had mixed up his skin accounts with his ordinary account. In answer to Mr C. F. Johnson, bankrupt said that he had borrowed goods from Jolly’s, but had given them, postdated cheques to cover these at stocktakincr time last August. Bankrupt added that there was still about £IOO owing on the motor lorry which had been seized by Todd Bros.

Mr Wright said that the position was that a boy of twenty-four had been given Credit up to £IOO or £2OO by everybody dealing with him, and then these people had wakened up and found that tho estate was bankrupt. Penrose had simply muddied the business away. Mr Payne said there, was a suggestion in the district that moneys received latterly from tho accommodation house business bad not been accounted for; it would bo as well if the assignee, satisfied himself regarding this. If it was found that everything was all right there could bo no object in carrying tho matter further. On the motion of Mr Johnson it was resolved that the affairs of the bankrupt he left in the hands of (be assignee to administer to the best advantage.