BANKRUPT’S DEALINGS

Greymouth Evening Star, 26 November 1936, Page 12

BANKRUPT’S DEALINGS

£171,000 BANKED IN ONE YEAR. SYDNEY, November 17. . In the Federal Bankruptcy Court yesterday, the Official.. Receiver (Mr. Nette) sought ah explanation of the financial transactions of a bankrupt whose business over a period of two years showed an annual turnover of about £lO,OOO, and whose banking records showed deposits totalling £BO,OOO in one year and £171.000 in the other. The bankrupt, Arthur Elias Simon, shirt manufacturer, said the transactions might be called “high finance.” He had been borrowing money day by day from Ills friends to l(.eep his Iran It

account, in credit, the borrowings of one day meeting the obligations incurred by loans on the previous day. Official Receiver: i want to know why this went on to the extent of £171,000, in one year. Your , business represented £2OQ ajweek, and the bankings, ayeraged £3500.. . The bankrupt: Well, I have.explaihed it. , • The Registrar (Mr. Kearney): .Your explanation is not very clear, and it will be necessary for you to. throw more light on these transactions. Bankrupt’s statement of affairs set out the assets as £3223. Liabilities to unsecured creditors were given as £9332, and creditors fully secured were shown at £7709. He stated. that he ha<j been in business as-a

facturer since 1920, and also had retail shops in 1933 and 1934. He lost about £l4OO iii two 'and a-half years in a shop in Liverpool Street, and another £4OO in a similar venture in Rawson Place. In one year the whole of . his tradings,, and retail, amounted to £25,700, and there had been ,a Joss, on this of. £l7OO, A. loss of £1896 was incurred in the following yean He had been-making up to 250 dozen shirts a week at his factory when working full time, and the turnover went as. high as £3*0,000 a year, year. The examination was adjourned to enable the bankrupt to produce further information about various business transactions which the Official Receiver-said he did not understand.