IN BANKRUPTCY.

Franklin Times, Volume XIX, Issue 40, 8 April 1929, Page 5

IN BANKRUPTCY.

MAUKU STOREKEEPER'S AFFAIRS. MISREPRESENTATION ALLEGED. Misrepresentation regarding the value of his stock and takings, was alleged at a meeting of creditors of William John Garvie, farmer, of Nixon Road, Mangere, on Friday last.

The financial statement showed the total debts to be £1,514, assets being estimated at £2,401, leaving a nominal surplus of-£BB7. The amount owing to secured creditors was given as £760, and to unsecured creditors £1,514. Bankrupt's statement said that he took over the properly occupied by him at Mauku in 1919, and at that time he had to meet considerable legal expenses in connection with divorce proceedings and separation allowance. This reflected on the business as a general storekeeper. He was gradually getting ahead when the slump came about 1922. Medical expenses in connection with an accident to his son and himself further retarded his progress. Competition became keen and he had to press customers for their accounts, making it difficult to get back their business. He had not had a holiday since he started, and his wife, who had helped him in the store, had been forced to desist on account of her health. One of the .immediate causes of his filing was stock which he thought to be worth about £2,000 proving to be worth onlv £1,028.

Cross-examined by Mr G. N; Morris, official assignee, bankrupt said he arranged an exchange for a farm at Mangere. A creditor, with whom the exchange of the farm at Mangere had been arranged, claimed that the value of the stock and plant, and the amount of the takings had been misrepresented.

Another creditor said that bankrupt should have let his creditors know his position earlier. It was stated that bankrupt's trouble had been taking up contracts instead of looking after his store. \ A committee of the largest creditors was appointed with power to act.