LIVELY MEETING

Gisborne Times, Volume LXVII, Issue 10566, 20 April 1928, Page 2

LIVELY MEETING

MRS E. E. HEAD’S BANKRUPTCY CREDITORS WANT MORE INFORMATION. PUBLIC EXAMINATION TO BE HELD. . > : .~~ T \ ■ Exceptional public interest .attached to the examination of .Mrs Eveline Ellen Head, confectioner, who libs filed in leuikruptcy at the first meeting ui\ creditors yesterday, over which tile Deputy Official Assignee (Mr C. Blackburn) presided. The bankrupt was submitted to a running fife of searching questions which probed deeply into her busyness and private affairs, but ioiig before the inquiry concluded tile bankrupt became 'So distressed, as she did several times during the meeting that she left. tlie room. A motion was then carried to submit Mrs Head to a, public "examination. which is to be Held in due course. , ■ -j There were about twenty creditors present, the bankrupt being represented by Mr S. V. Beaufoy. Mr J. R. Kirk represented J.‘Cleave and Co., A. J. Popple and Sons and j. D. Roberts. LtcL, of Auckland. A heated preliminary argument as to the propriety of counsel for bankrupt outlining facts relating to tlie bankruptcy before Mrs Head was examined, marked tlie opening of the proceedings. Mr S.- V. Beaufoy, on behalf of bankrupt, said lie wished' to outline certain facts leading up to Mrs. Head’s filing. Previous to . filing, three meetings of the principal cred itors had been held in Mr M l . Fry’s offices, two of which he attended on behalf of Mrs Head and- 1 for which he offered no apologies. After the second meeting of the. creditors, Mr Cleave saw Mrs Head regarding the cash in hand. Mr Kirk interrupted: “I doubt il this is wise,”,lie said. “.All the facts should. cohie out from th<j bankrupt on oath.” . The Assignee- replied that lie would allow Mr Beaufoy to make his statement- at tlie opening of the proceedings, and Mrs Head, who was now on oath, could confirm the statements in examination. “It seems to me to bo a wrong course,” protested Mr Kirk. “I am going to allow Mr Beaufoy to continue his statement,” retorted the Assignee.

Proceeding, Mr Beaufoy alleged that Messrs Cleave and McKinnon had done their utmost to get Mrs Head to get £IOO she had in hand paid over and to get her to make an . assignment of her business, which, he alleged, was an absolute breach ( of faith of the arrangement made at the creditors’ previous meeting. “This is unite ridiculous,” interjected Mr Kirk, who was on his feet. “I can’t have two on the floor at once.” remarked the Assignee warmIv. in endeavouring to restore order. ASSIGNEE’S REMINDER TO MR KIRK. “It is ridiculous that counsel for the bankrupt should come here- and make a statement on hearsay,,” warmly proceeded Mr Kirk. “T have never known it to be done in my life.” Tlie Assignee (heatedly): “I’m holding this meeting, Mr Kirk.” Mr Kirk: “I know, you are, and 1 want to protest, but to allow counsel to make a statement before the bankrupt is examined is quite improper.” . . “I’m going to, stick .to .the facts,” rejoined Air Beaufoy. '• Continuing, Air Beaufoy declared that the creditors appointed Air AlcKinnon to manage the business for a week, the takings to be paid to the secured creditor, Air Robcke, "to satisfy his demands for rent and interest- which' were due, but, lie said. ! that was not done. Air Kirk: “That is not correct.” Air Beaufoy said it would be shown that Mr AlcKinnon did have- sufficient money in hand from the takings to satisfy Air Robeke’s demands, although it might lie suggested there was not enough money available. “l T ou are wrong, and we can prove

it.” interjected Air AlcKinnon. Air Beaufoy said that, when communicated by phone, he advised Airs Head to pay over the money to Mr AlcKinnon, for the 1 benefit of all the creditors. The Assignee': “You. remarked that Mr McKinnon did not. pay the secured creditor. Did you then know that the rent of the house was in arrears?” Air Beapfoy: “Yes; but an undertaking had been given by Airs Head to pay that debt also.” Mr Kirk said he desired an opportunity of answering the suggestions made by Air Beaufoy ,which,, lie contended; were out of order. In doing j so, he was not speaking from hear- j sav,- hilt from knowledge of the facts. | At- tlie meeting the creditors held J on March 29 in the evening, it was J alleged that Air Robcke was an im- | possible man to deal with. u Mr Beaufoy: “Who alleged that.” ? Air Kirk: “Messrs Brosnahan and . Begufoy did.” “No such suggestion was ever made,” retorted Air Beaufoy, lyMR ROBCKE’S RE-ENTRY. Air Kirk pointed out that Air Robcke had not attended the meeting oh March 29 and the creditors iveve informed. that Airs Head was afraid he would be- re-entering into possession of the business.. It had been, therefore, arranged that Air McKinnon should interview Airs. Head to ascertain if Mr. Rlobcke’s mortgage could not be taken over, to prevent the latter selling up the -| business. Arrangements were then tentatively made that Mrs Head was to hand over the funds in hand to Mr AlcKinnon, which were to be directed towards reducing her liabilities. It' was never intended that Mr Cleave was to receive preference but the £IOO was to be used for tlie benefit of the creditors generally. It was arranged that Air AlcKinnon should run the business meantime. A deedxof assignment was drafted, but Airs Head objected to signing rt, unless she was kept on unconditionally, but that could not be agreed to, and although a clause was inserted in tha agreement that she would he employed so long as she, worked properly; she would . not attach 'her signature. .- - - • Replying to the Assignee, Air. Robcke declared that ho re-entered the busihess about six o’clock in the evening before he received any official intimation that Mrs Head filed in . bankruptcy. • V [ -Mr Beaufoy said lie defied any creditor at the previous meetings to sav that there had been any decision to have the business assigned; - Mr AlcKinnon asserted that the creditors had passed a, motion deputing Air Cleave to confer with J. D. Roberts,, antj .Go. oh returning to. Auckland,, to see .if that firm was prepared to. advance the money to keep th<j business running under an assignment, and arrangements on these lines had been completed. “There is no mention of a decision regarding an assignment of the business in the niiniites,” remarked the Assignee. - - - Air AlcKinnon replied that the creditors had discussed The matter, and it should-have been; in the : minutes.,; He declared; that the reason■he had hot- paid- tlie moneys due to TRobcke was. because . the takings were inadnquato to VTisehargo the liability. -

: ; A WARAIGINTERLUDE. | - Mrs Head interjected; that Mr Me? Kiiinon had Tiever informed hei’ there was - insufficient , ill the takings to - meet Mr Robeke’s demands, ’ She tackled him at the Masohio-corner one day over her wages during the tiirie he was managing the sllbp for a week, slio said, and- Air AlcKinnon replied, “You bring round ,yes r terday’s takings and I’ll try and wangle, it.for you.”. ' “Ii didn’t,” retorted Air McKinnon.- ■ - > • y ‘ '; ■ ; “You’re a liar,” roared Airs Head. “Don’t get too advised the Assignee,- “Just .control yourself,” lie said to Airs Head, who was near to breaking down. "“You. know you are telling a lie—an untruth.” . There was no mention of an assignment,” she declared, adding that Air McKinnon, whilst managing the .business, had undertaken •to pay both the, mortgagee, Robcke, and the renK. ' \ Replying to her allegations that she was forced to file because he did not pay the , interest. and rent due to Robcke, Afr AlcKinnon explained that. £26 10s was due in rent to the secured creditor and on due date lie only had £lB in hand. “Did you ever tell me you never had sufficient to pay Robcke,” demanded Airs Head, , Ignoring the question, Air AlcKinnon said that the following morning he askecT Airs Head for the takings the day previously, ,amounting to £lO, but she refused to hand them over. “Oh! God,” exclaimed Mrs Head, who again showed signs of breaking down. He declared that not at any time were the takings sufficient to meet Robeke’s demands. He admittedly had access to the till, but he allowed Airs Head to run the ‘business, and hand the takings to him each 1 morn-'

ing. ~• . . d'he Assignee: “Why did she refuse to hand over the takings on that occasion?” “I don’t know,” replied Air Alekirmon. AIRS HEAD’S TESTIAIONY. Under examination ,by Air Beaufoy, Airs Head stated that she started business as a confectioner, fruiterer, ice cream vendor, and registry office at illo Gladstone Road in December, 1926. She was financed into the ■ business by Afr Robcke, the agreement being drafted by Air Bullard for Robcke and Air Brosnahan for herself. The business was sold for £2so* with £SO added for interest. After being there ‘lor some 18 months, she started business in the bottom shop, for which Afr Robcke loaned her £6OO, the instalments being £8 10s a fortnight, which she had always paid regularly. About this time she sold the top shop to her son, she guaranteeing, the mortgage held by Robcke for £4OO. The business in both shops was very good. Whilst in the toil premises she had suffered considerable illness for four months, and whilst engaged in the liottom shop had broken her ankle whilu on a visit to Wellington, thus being unable to give the businesses her personal supervision, in March, when she first discovered her pcs', tion was unsound, as she was owing a lot of money at the time, she informed Afr Brosnahan and a meeting of her creditors was held. The minutes, which were put in, and sworn to by the bankrupt as being correct, stated inter alia: that Air Af. Fry tabled a statement of accounts for tlie year ended Decembei 15. 1927, and a glossary of turnover and expenses for the three months to date. Air Beaufoy outlined the position of the secured creditor, and in the discussion it was evident that the only remedy was to buy the interests of thy secured creditor. Oi. the matter of guarantees, Air J. .Cleave suggested that the local committee might be able to subscribe in conjunction with other creditors. No promise, however, was made from those present. At this juncture. Mr 0. J. Alley proposed that the affairs be wound up, but the proposition lapsed for want of a seconder. After general discussion, it was thought that the secured creditor would not help the creditors out of the position. AN INTERESTING INTERVIEW. Two further meetings were held, which she was too ill to attend, but at which she was represented by Air Beaufoy. After the last meeting, Air Fry had communicated with her by phone inviting her to interview Alessrs Cleave, McKinnon and Kirk. This she did and found them very nice and they told her not to worry, Cleave asking her to put herself entirely in their hands. The following morning she again interviewed Cleave in Afr Kirk’s office.,. and Mr Kirk then suggested he should write

Robcke on the matter, but sue- objected to tins course. Air Kirk replied that “there was no man in Gisborne that he could not overcome.” (Laughter.) Later she again met Cleave and AlcKinnon, Who informed her that everything would be all right, but' that they could not arrange to pay off Robeke’s mortgage. She renlied that sho had been advised to take the takings of the business home as Robcke was going to ! /sell her up. Cleave asked Kirk in \ her Dresence whether, il Airs Head ‘ handed over the money she had in hand to him if she could pay off l Rock be’s mortgage, and when Kirk replied that this could be done she offered to hand, over the money. Following this, in conversation with Cleave and AlcKinnon, they asked her'to- hand over tfts moneys she had in hand, offering to come upi to her place for it, hut she declined, and offered to bring that money down that night or the following morning to which, however, they were not agreeable. Next day she handed over to McKinnon £52 for the benefit of all the creditors and obtained a receipt for it: YVlien AlcKinnon took charge of the business as manager, he informed her she was to pay all ■1 the takings to him and not to ordei any goods without his authority. On the Saturday and Sunday tlie takings amounted' to £26, which her daughter and son counted, but AlcKinnon later complained to her there was £2 short. On the following Tuesday AlcKinnon told her that he had received a wire from J. D. Roberts and Co. and that everything was all-right and asked her to boom the Easter trade. However, she had received n' case of goods from Pascalls valued at £SO and thinking it might not; he sold she returned, it to the carrier’s, as she had heard , that, Robcke was re-entering into the- business. Next morning Robcke entered the premises, remarking “Happy family,”, said bankrupt, who said she told him not to sling the dirt.' PURCHASE. OF CAR. “It was a very' cheerful greeting so early in the morning,” remarked the . Assignee, amidst laughter. - ■ “ When would: you like your i sule-r----in frvo minutes?” asked Robcke, Airs Head said,. ;. He then went to the tills, counted the money and ques- . tioned the. girls. ' .., , Mr; Robcke (warmly): “I. did not ’take possession then and did. not do iso until you refused to (sign tlie deed of assignment. Airs Head kept me in the dark regarding her debts,” lie added. • ~ , • Continuing. -Mrs Head said that lliobcko was in and ouk of the shop and sito- appealed to him not t0,.b0 too hard, and promised that AlcKinnon would pay the amounts due to him into the bank. McKinnon, however, failed to do this, explaining that * the takings- were inadequate. It was’- grossly unfair, she said, to say -.that there*' was not sufficient money to pav Robcke. - - Examined by the.. i Assignee,. Airs. Head stated that the Rugby car was bought in the names of her sous and

daughter. She paid her son lio wag-es-to-pity for tbc car, but she da* putted -having paid; for benzine and repairs'Tor .Jit. The Assignee: What was the car used for ?~We used to go home to nieals in,-it.; and carry fruit to various people. When the Rugby, car was. traded In for. a limousine, was any cash paid? —No; I bought the car in my name. • So that really your sons and daughter made you a present of £25? — Yes. VISITS TO WELLINGTON. , . She admitted travelling' tjvicd to Wellington in the car. On the first occasion, on January 4/ a motor salesman drove tlie car down, and alonq went, on a trip to Auckland and back to Wellington. She found £2 for benzine for" the' trip to Wellington. She admitted her knowledge that Tier position was not good, when she made the second trip; to AVellington, which she made to raise money from. her sister, though at the time sho was unaware of the extent of her debts. The roason ' she endeavoured to obtain a loan from her sister was that she had been told that Robcke was demanding payment of the amount due to him on the top shop, but she failed to obtain an advance. •

The Assignee: Did you take any money or stock with you? “No,” retorted bankrupt. “That’s a rather sharp answer” commented the Assignee. - ’ ‘What made you answer like that ” Bankrupt was much distressed. “The reason is that there is a report going round town that I took two car-loads of slock away, it’s a lie ! ; Ii only took a case of apples which I bought and paid for,” she said amidst tears. Bankrupt said there were four passengers in the’ car. The Assignee: So- you didn’t have much room for stock?—No. Questioned further witness declared' that she did not know what mileage the car had done. The Assignee: AVlien did A. Head leave Gisborne ?—After the last meeting 1 think. Both my sons went away then. Bankrupt declared that when she was iu AA r ellingtou Robccke had visited the shop and “cut up rough” about certain payments due to him. She returned to Gisborne with her foot in splints so that she could fix up the matter. The Assignee: Were you expecting any cash from Gisborne whilst you were in Wellington ?—No. Tlie Assignee produced a wire; to one of her sons asking him to “get cheque”. Bankrupt explained this by saying that her sou" in AVairoa could not save, and “splashed his money around” so he had sent her money to put aside for him. She received £5 from him just before leaving for AA’ellingtou and lie bad wired to his mother in Gisborne to send that amount.

POSITION AS TO STOCK. The Assignee: In accordance, with your arrangement with AL Robcke die stock in the shop was to be kept up to £3OO? —Yes. How then did it get down to £169?—1 don’t know. In December 1927, tlie stock was valued at £327?—There ’was - ’Xmas trade out of it. She could not explain the discrepancy, saying that sho had been absent from the shop for three months. Bankrupt burst- into toars at this stage. The Assignee: lam sure 1 have not asked any questions that should upset you. Proceeding, later, bankrupt saici that she could not account for tlie stock being short other than that it was depleted by Xmas trade. The Assignee: But you must have bought goods up ’ till March ?—1 wasn’t there most of the time. Your- purchases between December and April amounted to £Bs4?—Yes. Further examined bankrupt declared that although she did not pay her son wages for running the shop, she paid the rent. She did not keep the books, this work ( being performed by her son ■ who also/ signed cheques whilst she was away ill. She also supplied her son with stock from the bottom shop, but kept no record of what- went out. The Assignee: Did you son order any goods from any outside creditor and take delivery on the wharf or did lie get stock only through your shop?—l think he got- stock only through my shop. AA’hat did your trip to Wellington '•'ost you. The amount was £97 I think?-—I don’t think so.. The Assignee; It is very difficult to trace the payments as £o many of the blocks in the cheque book are blank. Bankrupt declared that the trip cost her £SO. AATiat did you spend it on?—Benzine mostly. AATiat! £SO for benzine?—Yes. the car only did 19 miles per gallon. She added that she was only three weeks in AVellington. The Assignee : But you told us before benzine only cost you £2—That was my share of the benzine on the previous trip. Did you give anyone any money whilst in Wellington?-—No. Air Collett said that benzine and oil for a reurn trip to Wellington cost about _ £5. She denied possessing a wireless set but admitted that her daughter had a Gulbransen piano, on which the girl paid the instalments. She admitted, however, she might have naid some instalments by cheque, hut her daughter had always reimbursed herA DRAMATIC PASSAGE. “fi did not know how bad my position was when i went to Wellington the second time”, protested Airs Head dramatically. “As God is my judge I did not know”. She stated further that she thought she obtained £7O worth of furniture on the time payment system. The Assignee: I could go into any house in Gisborne and ask tlie housewife how much each article cost and she could tell me definitely at once. Bankrupt: AA T ell I don’t know; 1 never saw the accounts. My r son kepit the books. Bankrupt admitted she nevei inquired of her sou whether or not he had maintained the payments ol rent and interest .on the top shop to Mr Robcke. Mr Robcke remarked that the son had defaulted in his payments in the second month .and Airs Head met the demand. Further questioned bankrupt said that her son had got into arrears in his accounts and she had guaranteed payment to Murray ; Roberts. She admitted that the arrangement with Mr Robcke was that wages had to be kept down to a- minimum. The Assignee:‘ln 1927 your wages bill was £242? AVhyro did the money go ?—I have two girls in the shop at 30s each and: at Xmas time employed two more, one at £1 and the other at 15s. I: liave not paid my husband any wages. . Did he remove any money from the till the day Robcke;re-entered? —- Yes, he handed the takings to me. How much did you have when you filed?—£lo after the filing lees had been found. Bankrupt declared that; her bus’ band worked in thp shop and she kept him. The Assignee: Did you run up many private accounts ?—l, don’t know; I suppose you’ve got all tlie accounts'. ;; ■ Did you find clothes for your husband and daughter?—Yes. : So. that in addition to the £242 for wages we can add on a good sum for private accounts ?—Yes.

.How did you come sold totalling £2O- ' - i v , Would- £lB9 cover your loss.—l »" aixlliorlty to s 'cU the bustaek for the cash register, valued at aiid the . gramophone and records were not included,,,-.! ■■ t . j The Assignee stated that tlie oveiliead exoenses of the bottom shop were £67 a. month, and at the house £lO a 'week' and even this was a very conservative estimate. _ j The Assignee: -Did you think when you bought the egr you could afford it?—Yes; : if I had thought otherwise would not Have taken it. So it .was. hot really the high interest .rate Air Robcke was- charging that caused your failure ? Mr Robcke:- She was having a ten'times - better time than any creditor in the ropm. . > , The -Assignee added that" the shop purchases amounted to £65 per month and the sales returned £ps, so that taking into ; . account ,:tho overhead expenses no. profit was made in 1927, which- resulted in a loss of £645 and for the sixteen weeks to the-time of bankruptcy, the Joss was £478. . ; - ;

MR KIjRK GRGSSTKXAMINiftL Cross-examined by Air. KirJc bankrupt stated .that on the occasion of her . first. trip to AVellington she stayed with.her sister. Airs Dalton, a confectioner, and lived with her daughter a week at the Occidental Hotel. On the second occasion she again stayed With’ her sister. Air Kirk : On March 23 you gave Mrs Dalton a cheque for £2O. AAliat was that for ?—lt was a cheque for £lO I think. Well, £lO then. AVliat was it for ?—• My son had wired to send him money. I was saving for him, and I sent to him portion by the cheque. Would you be surprised to know that the cheque was £2o?—l don’t remember. On March 10 iii AVellington. you drew. a cheque payable to cash, What was that for? I don’t remember. Expenses I suppose. You say you spent £SO on tlie trip to Wellington ?—Yes. Wasn’t the sum nearer £l(J0? —No Don’t you think you spent nearly £IOO, and didn’t you say you wouldn’t have done so hud you known your position?—l don’t think that is right. Did you leave your soil any blank cheques duriug the time that you were away?—AJl the expenses were paid. But von must have left some signed cheque forms?—Yes. Did you direct him as to whom these were to be ?—Yes. But you just said that all the expenses were paid?—There was the the gas and electric light accounts to be paid.' Were all. the cheques you left paid out —I: don’t know; I suppose so. AVliat does the bank book show?— Oil. I don't know; I never understood the books. It was' my .job to serve tlie customers in the sliopi and see that the girls did their work. Isn’t it a fact that these cheques you left were generally marked “pay self”?—! don’t know. How did the suggestion arise that you took away two carloads, ot stock?—l only took a few private things away with me. WHAT AVAS IT ABOUT? Bankrupt (heatedly): Aly son and daughter went io AVairoa, and if you want to know what for 1 will tell you—it was to send a telegram that I did not want to go through the 'Gisborne Post Office. Air Robcke: Perhaps you will explain why vour daughter went out only to Tarewa and returned to town by service car ? Aliss Head: I did not. Air Kirk: AATiat was the telegram about?—lt is of no value to the creditors. The stock in the shop just before Xmas was valued at over £3OO and now just before the bankruptcy it is only worth £169. How do you v account for th e discrepancy?—l don’t know. Stock was taken before the Xmas goods went into the- shop. Do you know how many cheques were issued in AA r ellington ?—Four or five issued to myself. She added that she did not know her position when, she went on the trip. . Have you put- all your assets in your statement? —I don’t know of anything more. There are a few things worth 4s or 5s at the house you can have if you like to come and get- them. u Have you any property real or personal you liave not disclosed?—No Have you got any live stock?— No ; my son lias two cows. Is there anything in AA’airoa _ or Wellington belonging to you ?—No, it is very unfair to make those insinuations. There is nothing in any part of New Zealand belonging to me. Did you have a sewing machine ? ft is sold; it belonged to my daugh ter. Air Robcke stated that he bought the machine from bankrupt’s daughter. “Yes, so that the blankets might be left in the house for us to sleep : on and the' crockery for ns to eat off.” retorted Airs Head. ' She declared that slie ; did not know what her son was doing at the present time. At this stage Airs Head complained to the Assignee that she could not bear it any longer and left the room in a distressful condition. Air Kirk said lie was instructed by the Auckland creditors to move that Airs Head be submitted to a public examination as they were dissatisfied with the bankruptcy. He proposed a motion on these lines. Air Robcke seconded the motion and Air AlcKinnon' then intimated he would reserve his questions until later on. The motion was submitted to the meeting and carried without dissent. DISPOSAL OF STOCK Tlie 'Assignee asked creditors foi an expression of opinion what they intended, to do with tlie business. There had been a suggestion that it should be carried on,. but he was not in favor of that proposal as lie did not flunk that it would pay. However, “thg, business was more or less iii Air Robeke’s hands as hob-had the plant and fittings. To continue running . the business meant that labor would have to be employed and goods would have to be purchased and with the winter coining on ho did not want, the responsibility of continuing it.. Air Alelvinnou said that live people had approached him with a view to purchasing the liusiness, for which they were prepared to pay. cash as a going concern. He considered that if such- a deal could be effected the merchants would - welcome a client, bivt hq did hot -think much . goo'd would be done by, the creditors continuing the business. He suggested that tlie creditors' ! should arrange with Air Robcke to call tenders for the business -as a going . concern. The Assignee intimated that a large portion of - the,:jstock ;coinprised Xmas and Easter goods Which‘would not be saleable, for about twelve months, and lie wanted a cuumdttee set up to advise him regarding the value of the goods. , Afr AlcKinnon said that oD per cent, of the stock comprised Easter ■ eggs. . jY 1 \ . ~ 1 r On the motion of Afr Kirk a committee comprising Messrs ,L. ;J. Macdonald. Robcke, AY, McKinrioir. and a representative of Alurray Roberts was appointed to-assist’ the Assignee in disposing of the stock.

BAD LOSS FOR CREDITORS Air O. J. Alley expressed the opinion that the creditors must realise they were going to make a bad loss. Personally he felt sympathetic for Air Robcke in his loss. The creditors would have to feel satisfied Kith : the. advice given tAHs 'Head by Messrs' > to> file!, which was. Hie teething -that; she could have done in fairness toall the creditors, seeing that AJ r Itobeke had . re-entered. This was one of..the .unfortunate .cases where creditors were trading in the dark. Air McKinnon said- lie could - not agree with the view as, to .tho^wisdom of the filing. He contended that if the business had been assigned and- run on strict lines it would have returned the creditors 10s in the £ in a very short time, and tlie sale of the business might have realised tlie balance. It was vogrQtt&blG this hfiuj/uofc hcon. do ijo, especially as Mr Robcke had been willing to pull in With-the other ere ditors. The speaker added that his principals in Auckland' had made a loss of £260 ' which otherwise they could have avoided. “A SWEET BUSINESS” The Assignee reminded the creditors that Airs Head was the third tenant of the -shop who had been unable to-“swim.” ; •- , Mr i AlcKinnon contended that Inc profits must have been in the business as the turnover wan about £4OOO a vear and there should have been £IOOO profit in it. Mr Kirk: It appears to be a “sweet business” (Laughter.) The Assignee: It is very sour tins morning. (Laughter). ' Air Robcke said that when he bought the tpo shops there was £soo.worth of stock in them and he therefore asked why ,it was necessary for Alurray Roberts to sappL Airs Head with goods on credit and

“tradq in the dark.” “EXTRAORDINARY COLLAPSE OF PAST FEAV AYEEKS” Air Alley replied that Airs Head paid the accounts regularly up till January 20, and it was not until March * that lie learned she was short. It was the colossal collapse in the last lew weeks that appeared to him to be extraordinary. It seemed that up, to January as some of the creditors were being .paid they had been misled into believing all the others were also paid. Air AlcKinnon concurred saying that Airs Head apparently paid some of her creditors but not others who were not represented in the district. He .declared that the question of assignment of the business must have been missed out of the minutes. .1.. THE PROPOSED ASSIGNMENT Air Clare expressed the opinion that no decision regarding an assignment was reached, though it had been discussed by the creditors. * This was confirmed by Air Alley who said be had protested that the previous meetings had not been in order, tiny secured creditor being absent. Apart from that the minutes were signed by practically all the creditors. ; Afr AfcKinnou stated that he nor Air Kirk received a copy or the minutes. Air Fry: They were sent to you. QUESTIONS AT PUBLIC EXAAIINATION Mr AlcKinnon said there had. been no suggestion of his trying to get £IOO from Mrs Head for Air Cleave’s benefit. He declared, he had some very interesting questions to ask at the public examination. “So have I”, remarked the Assignee. “I’ve got something to bring up;” Air Alley said that the action for aii assignment -had not been agreed to-by the creditors previously. ~ The Assignee mentioned that there was no mention of a proposed assignment in the minutes. AH{ BEAUFOY SPEAKS OUT. Air Beaufoy said that, Air AfcKinnon ’s* statements were no doubt a back-handed smack at the advice he had given Airs Head. He denied that there had been any agreement among the creditors to make an assignment of the business. All he wanted for Airs Head was a fair deal from some of her creditors and lie was going bo see she got it. Despite the fact that his firm was ing for. Airs Head she bad been taken to .sign an assignment under their Very noses, but they had been in time to prevent this'disaster . If any of the creditors could sav that in giving Airs Heat! the advice he had not been honest and fair to all creditors he invited them to get up and say'so.; . . . .. ~' lr McKinnon said that at- one time Airs Head promised to give Air Robcke all the takings if ~~ fie would leave her alone.

Tlie meeting was adjourned, the Assignee intimating that the date of the public examination would be notified in due course. ~