GROCER’S RACEHORSES

Greymouth Evening Star, 13 May 1927, Page 8

GROCER’S RACEHORSES

QUERIES BY' CREDITORS.

(Special to "Star.”)

AUCKLAND, May 13. The bankrupt grocer, Walter Cunningham, whose creditors met yesterday, was subjected to a searching examination by the Official Assignee as to the possible effect of his speculations as a racehorse owner, upon his business affairs.

Debtor’s schedules showed ; Liabilities to unsecured creditors of £1269, secured creditors £220, on property valued £216, also a debt of £324 to his wife for money lent. The assets were £996, including stock in trade £4OO, book debts £2OO, cash £250, horses £5O. The debtor said that he had one racehorse, now’ turned out, valued at £lO, and another which he had raced for six months valued at £l5. There was another which he had not raced for four years, worth £25. He estimated the cost of keeping his horses at £4 a week.

Answering questions, Cunningham said that he seldom attended race meetings, and his biggest bet in the last twelve months was £l, as he raced only for the stakes. Bankrupt swore that horse-racing had nothing to do with his failure.

An accountant who investigated the position of the estate on behalf of the creditors, said the debtor’s total drawings in five years had been £1469, against which £1133 of horses’ winnings had gone to the credit of debtor’s bank account. There had been no recent winnings.

A creditor said it looked as though bankrupt had simply put his hand into the till whenever he wanted money for the upkeep of the horses. His gross profit in trade had been only 4g per cent, which was absurd.

Counsel remarked that one of the debtor’s horses, Lady Rewa, was very successful at three meetings. While he would not say that a man in Cunningham’s position should have racehorses, the estate had benefited from the winnings to the extent of £llOO. The creditor pointed out that that was some time ago and the present set of creditors had not received the benefit mentioned.

Dr Brockway, another creditor, said he knew some creditors were aware that. horse-racing was going on and did not demur, ft seemed unreasonable to find fault at this late stage.

Ou Dr Brockway’s motion, the Assignee. was instructed to facilitate bankrupt’s discharge.