IN BANKRUPTCY.

Hawera Star, Volume XLVI, 27 April 1927, Page 3

IN BANKRUPTCY.

HAWERA FRUIT COMPANY

J. E. AND E. SMITH

At the meeting of creditors in the estate of John Edward Smith and Ella Smith, held in the office of the D.O.A. (Mr It. S. Sage) yesterday afternoon, the following creditors or creditors’ representatives, were present: Messrs H. Hodge (Pa.tea Refrigerating Co.), \V. G. Walk ley, P. S. Rabone (Messrs A. B. Donald Ltd. and Slaters Ltd.), R. P. Morrissey, R. Muir (W. A. Parkinson and Co.), C. W. Allen, J. C. Smith.

Mi* J. Houston, appeared for 'fch-e bankrupts and Mr 11. G. Brodie for Mr C, W. Allen.

John Smith stated, in reply to Mr S. R. Veitoh, that he had* a motor car when he came to Hawera. He sold it, and the balance- over expenses (about £2O) went straight into the business. With the exception of Mason, Cha,mIvers and Co., the debts had all been contracted during the past six years. Mr R. P. Morrissey asked why, when the estate was assigned, the Hastings debts and that to Mr Allen were not disclosed to the creditors.— John Smith replied that he considered the Hastings deht-s private ones. He should have disclosed the debt to Mr Allen. To Mr Rabone, John Smith said that he bought apples for cool .store with £350 borrowed from Mr Allen. He lost half of these apples, and 1 considered that this had a good deaf to do with his failure. He opened a separate hank account with the £350, and paid the proceeds derived from ness. Mr Ra.hone asked how bankrupt could have, lost money on fruit bought hv £350 which was used as a; .separate account, the proceeds of which were paid into the business. Bankrupt said he had not regarded the matter in that light before, and was at a. loss to explain the transaction further.

Mr H. Hodge, of the West Coast Refrigerating Company, said that the blight, called “flesh collapse” was very prevalent the year bankrupt cold stored his fruit. The company handled 900 odd cases of bankrupt’s fruit. The speaker could not say what condition this particular fruit was in. To >Mr Vejtch: There was no disclosure made to. Mi' Veitoh, or to the creditors, of the two separate accounts.

In reply to Mr W. G. Wa.lkley, bankrupt stated that his profit depended on the purchasing price., but he had tried to make- it 33 1-3 per cent.

Mr Walkley said that- the accounts showed that, over a. period of six months, the cost of landing fruit in the shop was £1467 and the sales £l6lO. This did not show even a. 10 per cent profit. Bankrupt said all sales were banked. T.he tosses were all due. to fruit deteriorating. # The D.O.A. said he had no data, to demonstrate it, hut he doubted whether the trustees had l>een able to show a profit on the business while they were running it. Mr Rabone said while the business was under the trustees it showed a. profit till December. Then there was an inexplicable drop of £2OO over the six weeks’ business.

Mr W. G. Walkley said that these losses of £33 per week for six weeks seemed extraordinary. Tt seemed impossible. with a shop with stock of about £SO, that such a loss could: he sustained, by deterioration of fruit. Mr Veitch said that a week was the turnover from December on. The bad fruit did not justify the loss over the six weeks. The D.O.A. said the balance-sheet for six months when the business was in t.he hands of the trustees showed that there was a. loss.

Mr Rabone' said that though the balance-sheet was for a term of six months, the period over which the loss occurred was six weeks. The D.O.A. asked John Smith why there was a serious diminution during the last six weeks of the operations of the business.

Bankrupt said it was due to losses on. fruit. He could: not nail down the losses to particular, transactions. He could; not see where the loss> of £3O a week could occur.

Mr Veitch: Bankrupt (John Smith) did the ordering. Twice a month he (Mr Veitch) inspected the accounts. To Air Dodge, bankrupt said he had no recollection of telling his questioner —when the company said it would, assist him with the storing of bis fruit—that he had no obligations in Hastings and' left there with a clean sheet. Air Hodge: It was in your shop. All- Rabone said he had been instructed on behalf of Alessrs A. B. Donald Ltd. to press for a; public examination.

The D.O.A. asked the creditors what they proposed to do with the cash the bankrupts possessed. Tools of trade or furniture to the value of £25 might be retained, but cash could he ordered to be paid to the D.O.A. It was resolved, on the motion of Mr Rabone, seconded by Mr Pledge, that Mrs Smith be allowed to keep £ls in her hands. On the motion of Mr Allen, seconded by Mr McAnerin. John Smith was permitted to keep £lO.

On behalf of Messrs A. B. Donald Ltd.. Mr Rabone moved for a nublic erammat-ion of debtor John Smith. The motion lapsed for want of n seconder, and the meeting adjourned sine die.