AN ELTHAM BANKRUPTCY.

Hawera Star, Volume XLV, 25 August 1925, Page 3

AN ELTHAM BANKRUPTCY.

STORE-KEEPER’S FAILURE,

A BIG DEFICIENCY.

A meeting o,f creditors in the bankrupt estate of Arthur Ernest Smalley, •late storekeeper of Bit ham, now a company -secretary of Auckland, was held, in the court-house at EUfbami yesterday afternoon. The Deputy Official Assignee (Mr.. E. S. Sage), who was unavoidably absent, w<as represented •by, Mr. J. Houston, and there were also present Mr. T. 13. Oruinjp,, represeiMbing ±iio provisional Ivors' t-nus-teas on. assignment, Messrs A. and P. doubts, Mr. R. A. Howie, representing the Flood estate, Mr. W- Healey, representing Messrs. Newton King, Ltd., Mr. C. Moss, reposenting Messrs Johnson and Co. .and bankrupt and his solicitor, Mr. S. T. L. Reeves. Mr. W. Healoy was appointed chairman. Unsecured creditors’ claims totalled £2645, and to meet liabilities on this score there was cash in hand amounting to £245, book debts estimated to produce £250, stock in trade worth about £2OO. 2d shares in tlie Combined Buyers, Ltd., and “a. small” equity in two sections at Oxford, near Christchurch. Altogether, on tlie statement of tlie position ais placed before the creditors, it .appeared that there was a deficiency of about £2OOO. There was certain property on which other creditors, whose cla.inifs totalled £8394, were secured, but, as Mr. Houston remarked, there appeared to be no* equity •there as far as the creditors were concerned. Unsecured creditors 1 were: Ma.stors Ltd.. £lO 19s; Bond and Bond, £3 2s 6d; H. E. Shaddock and Cb-., £33 Ss; Eltham Dairy Co.. £6B (A 4d; J. Avery Ltd., £2 9s lid; C. M. Banks, 10s 3d ; Briscoe and Co., £5 11s 6d; Colonial Rubber Co., £2l 3s sd; General Transport Co., £4 6s; Johnson and Co., £4 10s; 'Newton King Ltd., £l2 3s; Kapougai .Dairy Cb., £29 19s 4d; A. Murdoch .and Co,. £IU 16s Id; Mahng and Co., £8 8s; J- J- Niven and Go., lid - , Of ago Brush Cb.. £lB 7s sd; A. E. Pa-rkes! and Co., 7s 6d; IV. A. luukhisou and Cb., £1 ss; Gray, 2s 8d; R. F. Roebuck, £7 15s 3d ; Id. li. Simms and Sons. 10s; Swinson Ltd., £6; Shealtes and White Ltd.. 93 3s (id; R, and E. Tin gey Ltd.. £i 12s; Western Electric Co., £4 19>s; Wol’lii mg'ton Puibl.iiSihiiig Co., 10 s; Wlirt-* combe .and Tombs Ltd., £2 (is; A. Males and Co., £22 17s 3d; H. L. Young, £2 2s 2d; Newton King Ltd., £4(53"f0. Sid; Alice Sm.allley, £26 13s lid; Lii.lia.n Smalley, £25 7s 2d; Allan Snuallev, £lo7 15s lOd; Joan Smalley, £lO7 Iris 1 Od; Errol Smalley, £l6'/ 15s; J. R. Wallace, £lB. . Soon red crcclrtoi’s wore : Christo It cl, New Plymouth. £1500; A. W. Ogle. Waita.ra, £2259; Oontts Brow., £ < oO ; J pigndnis, Inglewood, £3894. Bankrupt’s written statement was as follows: “I have been in business m Eltham for upwards of nine years, for the first four or five years I appeared to he fairlv successful, but later I was called upon to pay back interest' on mortgages. Business has been bad, and values have been on the decline. Mv present position lias been largely brought about bv the failure of others to keen their engagements to me the burden of having purchased a large

house when things were good, my previous house coming back on my hands, and the sacrifice of stock to close the business, together with depreciating values. My hooks are all written up to date, and should appear self-ex-planatory.” Bankrupt, under oath, said he sold practically the whole of his grocery business to the Farmers’ Union Trading Co. for £1520. He carried on the remainder of his business for a number of months, selling his stock as he went along. He had been paying interest to Flood’s estate amounting to about £IOOO, and he had not been able to get bade any of this money. His house had cost him £2950, and it was now worth about £I6OO or £I7OO. There was a mortgage for £ISOO. He had bought a concrete block of shops for £2500, and had spent an additional £I3OO or £I4OO on tlie premises. He had raised a mortgage of £3OOO, but the property had now gone back to the mortgagees. Mr Weir indicated that there' was a small equity in two sections at Oxford, near Christchurch, which the bankrupt owned.

In renly to Mr Houston, bankrupt said he "borrowed about £550 of trust monevs for his business —money which was held in trust for liis children. About seven or eight months ago he had repaid £IBO of this money. Bankrupt had not paid any of his old debts since he went to Auckland. He was employed in Auckland at a of £4OO per annum, and he was paying £4 4s a week for a furnished house. Ho was a married man with five children. In renly to the chairman, bankrupt said he "had drawn £B4O from the business between March 31. 1924, and February, 1925; £292 had been used in the payment of interest and £24 on insurance. The cost of uainting his house had been £BO or £9O. Mr Howie said it appeared that bankrupt’s salary, apart from interest, had been about £SOO per annum. Mr Reeves said that bankrupt had borrowed £3OOO from his wife. The money had gone into his business, and his wife was not claiming for it. Mr Moss said he had valued the wines and spirits held by Smalley,, and lie considered that to anyone carrying on the business the stock in question would be worth £340. However, for sale lie did not think it would bring that amount.' With regard to the • shop property, the creditors passed a resolution offering to allow Messrs Coutts Bros., second mortgagees, to retain the same, on condition that they made no claim against the estate. The question of whether or not the creditors were prepared to disclaim anv equity in the house property was 'eft. over with other matters until a further meeting. The meeting was accordingly . adjourned sine die.