SYMPATHETIC CREDITORS

Evening Star, Issue 19614, 21 July 1927, Page 15

SYMPATHETIC CREDITORS

A MOSGIEL DRAPER Mr W. D. Wallace, Official Assignee, E ‘sided over a meeting of oreditors_ ox win Eumlfray Hely, of Mosgiel, draper ; held yesterday afternoon at Dunedin. Mr J. H. Nichol appeared for thy delator. Eight, creditors were represented. . , The filed statement was as follows: Dr to unsecured creditors, £1,771 9s 10d; secured creditor, £VOO, tho _ value of the security £950; other liabilities, £123, against which there is a counterclaim for £123; total debts, £1,771 9s lOd On the credit side: Stock-in-trade, £1,500. book debts, £4B 14s 2d; cash, £3ll Is Id; furniture, £IOO, surplus from security, £250; total, £2,20!) 15s 3d. Surplus, £438 5a sd. ■ After the statement was made up the debtor added that ho had a motor car for which he paid £260. Principal unsecured creditors; Macky, Logan, and Caldwell, £248 8s lid; Mackown, M‘lMh, and Co., £ll2 2s 4d; Sargood, Son, and Ewen, £96 12s 10d; Bing, Harris, and Co., £55 16s 9d; Abbott, Armstrong, and Bowie, £6O 18s 2d; J. A. Paterson and Co., £42 4s; Wellington _ Woollen Manufacturing Company, £lls 7s 3d; Rutherford’s, Ltd , £63 Iss 7d; Ross and Glendining, £33 19s; IWlei Ltd., £32 7s 10d; P. B: Sheather Company •'Wellington), £75 9s; John Grner and Co. • Wellington), £3l '3s Id; Liddlo and Co. (Melbourne), £l2O 4s 9d; Joseph Pickles and Son, £79 Is 6d; Cathie and Sons, £lB7 3s 3d; Rodger Importing Company,, £34 17s 6d. _ > The secured creditor is the Government Soldiers' Land Department in regard to a section at Waimate. Tu his written statement tho debtor said that in the month of November last, while in tho employ of the Canterbury Farmers’ Association in tho capacity of manager of its drapery department at the Waimate branch, he had seen an advertisement advertising a shop to let at Mosgiel suitable for a drapery business and offering finance to a suitable tenant. After some negotiations ho had leased from Mr John Sou ter a shop for five years from February 20 last at a rental of £4 per week. The lease contained a covenant that Mr Souter would find £1.050 as capital, of wh'ch £250 was to be applied as payment to Mr Souter for the fixtures and fittings, and tho balance (£800) to bo the working capital to enable him to purchase the stock. Tho sum of £1,050 was to bear interest at 0 per cent., and to be repayable by consecutive monthly instalments of £lO each. The statement continued that tho bankrupt commenced business in Mosgiel on February 25 of this year, and that by the terms of the agreement he could not call on Mr Souter for the £BOO before April 10 last In the meantime he purchased what stock lie considered necessary. His first month’s purchases amounted to £BOO, and as his prospects were bright and always improving he purchased more stock in each of the following months until the total purchases came to £2,000. This might appear a large sum, submitted bankrupt, but be found it necessary for the success of tno business, and ms he had still no suspicion that Mr Souter would be nimble to find the capital promised, he considered it justified by tho initial results of his venture. On June 8 he received information which led him seriously to doubt Mr Souter’s ability to find the money, and he thereupon consulted Messrs Sievwright, James, and Nichol. They at once communicated with Mr fcouter’s solicitors, insisting on him at once fulfilling his obligations by a certain date. At tho same time tho solicitors sent a circular to the merchant creditors not represented locally explaining the position and advising that a meeting would be held on June 20 unless m tho meantime Mr Souter found the capital promised. Details were supplied by the statement of the non-success of the endeavor to get the money from Mr Pouter, and the bankrupt said ho attributed his bankruptcy to Mr Souter s failure to provide the capital promised, although, in justice to Mr Souter, ho knew that ho had spared no effort to find the amount. Tho Assignee said that he had an inventory of the stock taken, unci it showed a total of £1,434 15s. He thought the best thing to do was to call for tenders. Mr G. Benson said tho reason why the creditors desired Holy to file was because they were dissatisfied with tho position, not as to the debtor, but as to the landlord, John Souter, tho object of the filing being to enable the Assignee to take any steps that might bo reqmred. - Air Nichol said it was made clear that Souter was unable to find the money. . ■ It was resolved, on tno motion ot Mr G. Benson, seconded by Mr J. R. Clover, that the bankrupt be allowed to retain the whole of his house furniture. , ~ _ Mr G. Z. Bindley moved and Mr J. R. Glover seconded that Messrs G. Benson and J. S. M'Grpgor act with the Assignee, without pay, in regard to the estate generally. It was decided to call tor tenners tor the stock and Ho motor car. Also resolved that the Assignee consult the Crown Solicitor as to the lease, as to tho debtor’s rights against the landlord, as to the landlord’s right to rent, and as to tho Assignee’s right to the fixtures. It was minuted that Mr Benson voiced the opinion of the creditors in sympathising with tho bankrupt and expressing the hopo that he would soon get his discharge.