COMMERCIAL TRAVELLER'S FAILURE.

Evening Star, Issue 18716, 19 August 1924, Page 9

COMMERCIAL TRAVELLER'S FAILURE.

A meeting of the creditors of Herbert Ernest Smith, a commercial traveller, who was recently adjudged bankrupt, was held yesterday afternoon in the office of the Official Assignee! present—the Assignee, bankrupt and his solicitor (Mr J. G. Stuart), Mr F. J. D. Rolfe, (representing D. H. Napier), Mr IV. L. Moore (representing John Simpson), Mr A. E. Wright (Fraser and Hurst), Mr A. H. Crawley (Butter.vorth Bns.), and Mr H. Divers (representing P. Cummings (a secured creditor). The bankrupt’s written statement was to the effect that up to the end of May, 1923, ho was employed as a commercial traveller by Mollison and Co., Ltd., at a salary of £5 per week. (Jut of that stun ho was paying £2 10s per week under a maintenance order for the support of his wife, and an order for the payment of this amount was still in force. When Mollison and Co. went out of business ho was without employment for two months. About the beginning of August, 1923, he started in business on his own account, buying goods chiefly from Messrs Butterworth Bros., and selling them in the country districts. For a time he held his own, but towards the end of November he began to get behind. Business during January and February was bad. It became increasingly difficult for him to get goods for sale, and latterly the linos of goods he had for sale were very much restricted. Messrs Buttenvortb Bros, began to press him for settlement of his account, and as he was unable to pay he had no option but 1o file a petition in bankruptcy. He attributed his present position mainly to the great falling off in business since tho beginning of tho vear.

Bankrupt’s total debts were given as £314 12s, made up of £266 7s owing to unsecured creditors, and other liabilities of £4B ss. The assets were stated at £149 3s. There was one secured creditor of £l7 7s. The security was a motor car valued at £6O. The assets were thus made up of book debts estimated to produce £75, cash in bank £1 10s, surplus from securities £42 13s, and stock in trade £35. The deficiency was £1,65 9s, The unsecured creditors were: Butterworth Bros , £155 15s 8d; M‘Leans, Ltd., £22 17s 4d; Fraser ami Hurst , .£lO : Gordon and Co. (Palmerston), £l7; E. Peat (Middlcmarch), £3 12s; Milne, Bremner, £6 10s; Arthur Barnett, Ltd., £10; Lanes, Ltd., £4O 12s. Mr Crawley, in questioning bankrupt, saicl.it was nut fair to say that it was owing to Butterworths pressing him that he had to file. They understood that he had a motor car, and they did not know that ho owed other debts.

Bankrupt, in reply to queries, said ho did not tell Butlerworth Bros, that there was a lieu on the car. He was not asked whether there was a, .security over the motor car. At the first, he did lead them to believe that his assets were sufficient to meet liabilities, and at that lime such was the case.

To Mr Moore, bankrupt said ho intended to go out on commission now, and would probably make. £5 a week. ' Mr Moore: I suggest that you pay 10s in tho £, Mr Smith.

Further questions elicited the information that bankrupt’s wife hud at the time of the separation, some years ago, £l5O worth of furniture belonging to bankrupt. Bankrupt did not know whether she still had if. He said ho did not know anything about it now, as he had not seen it fur years. That was why it had not been set down in the .statement of assets. Besides, he did not want to deprive his children of the use of it.

An offer by Mr Crawley to take back at cost price goods sold to bankrupt by Butlerworth Bros, was accepted by the creditors.

Mr Moore said it was plain that Smith had boon contracting debts which he knew lie could not pay. He moved, and Mr Crawley seconded—“ That bankrupt pay 15s in the £, and that in the meantime tho Assignee consider section 138 of tho Bankruptcy Act with a view to a prosecution.”

Messrs Wright and Divers said the motion was much too severe.

Mr Moore later withdrew his motion, and on the suggestion of tho Assignee it was moved by Mr Crawley, seconded by Mr Moore, and carried —“ That the meeting stand adjourned for three months, the Assignee to realise flic assets and then place the mailer again before the creditors.”