MEETING IN BANKRUPTCY.

Hawera Star, Volume XLVII, 2 November 1927, Page 9

MEETING IN BANKRUPTCY.

TOBACCONIST’S FAILURE

Adjudged bankrupt on October 25, Edward William Joseph Frost, formerly engaged as a tobacconist at Hawera, attended a meeting of his creditors this afternoon. The D.O.A. (Mr R. S. Sage) presided, while Mr G. iMeyriek (representing Messrs Johnson and Co.), Mr K. Tvrie (W. D. and 11. O. Wills) and Mr 11. G. Apscy were the only other creditors in attendance.

'Bankrupt was represented by Mr. Geo. Chuck. Mr L. A. Taylor appeared for Messrs Griffen Savage and Co. and Morey and Morris. The financial statement showed total debts amounting to £972 2s 8d against which were assets estimated to produce £SSG 5s (id, leaving a deficiency of £SS 17s 2d. Bankrupt had no interest in the stock in trade of the business, the assets comprising book debts of £l9 11s 9d, owing in respect of former business at Inglewood, cash £3S 5s Gd, furniture and tools £3O and a house at Waitara valued at £BOO. The only secured creditors were the Commissioner of Crown Lands, whose debt of £425 was secured as a first mortgage on the house property and J. Johnson, of Stratford, who had an unregistered agreement from bankrupt to give a second mortgage of £llO over the property. The list of unsecured /creditors was as follows: Cook and 'Co. (New Plymouth), £35; iStalrmand and Phillips (New Plymouth), £8; A. B. Donald and Co. (Auckland), £7l 10s sd; Asliey and Co., Ltd. (Hastings), £65 3s sd; Aulse brooks, Ltd. (Christchurch), £3O 19s 7d; A. C. Foddy and Co. (Palmerston North) £3l 12s 7<i; Fox drivers, Ltd. (Christchurch), £8 9s 2d; Dainties, Ltd., (Christchurch), £ls Is 9d; Griffin 'Savage and Co. (Wellington), £l6 4s 7d; Kiiong Chong (Aramoho), £ls 18s; Dr. Adamson (Waitara), £7 7s; Morey and Morris (Waitara), £7; W. D. and 11. O. Wills Hawera), £57; Johnson and Co. (Hawera), £l6 6s. Other liabilities comprised £23 arrears of interest on mortgages and £2B fine imposed by the Magistrate Court on October 27. When the statements were read by the D.0.A., ho stated that bankrupt wished to amend the amount of the second mortgage from £llO to £l5O. This proved the siioject of inquiry by Mr Taylor at a later stage, it was then explained by counsel and bankrupt that the entry had originally been made from liiemorv, but when further investigation was made it was found that the debt amounted to £l5O instead of £llO. “On or about March 22, 1926, I'took over I'rom C. W- Raynor the business -of Inlite-rer and eonre-ctioner at Rata Street, Inglewood. 1 was financed for this purpose by J. Johnson to the extent of £325. Oi this sum £175 was repaid bv promissory notes sold to Johnson about August, 192"/., leaving a balance due to him of £l5O. in, June-, 1925, l isold out this- business to Mrs A. Sutherland for £425, receiving cash £250, and the balance by four promissory notes above referred to, payable with interest each year jin J.unis. Johnson accepted tlie promissory notes on account of moiueyis due to him. by me as stated. ' ‘‘l came to Hawera in June, 1927, with debts owing by me for fruit and confectionery. 1 took over the tobacconist business in Union Street from the then owner, F. Corrigan, paying m> purchase money, but accepting responsibility lor /stock taken over b\ me and valued at £l3O. 1 roefir.ved no share in the piofits of the- business, but was paid a salary as manager by Corrigan of £lO a week. Further stock has since been purchased in my name from W. D. and H. O- Wills -and Johnston and Co. J first began to get into ■serious difficulties early in August last, when various judgment summonses were taken out against me. “I then offered to my three largest creditors. Leary and Co., ,subsequently •satisfied, Apsey and Go., and A. B. Donald, Ltd', tlie promissory notes 'previously mentioned. Mr Apsey: “I received no offer of promissory notes.” Continuing, bankrupt's statement said that- Leary and Co. only were prepared to accept the promissory notes. “I therefore sold the promissory noto.s to J. Johnson, and received' from him cash on account £6O, with which I satisfied Leary and Co-, paying them. £65. T have -since repaid the # £6O advanced I by Johnson. The various judgment summonses mentioned above came on for hearing on October 12 last, and in default, of my appearance, judgments j were entered against me. On October ! s 1 sold mv interest- in the tobacconist’s ’ business in Union Street—that is my intere-st in the -stock only, to T. Bowen for the sum of £2O. Of this -sum £6 wa-s paid by me in the filing of my

petition on October 22. the balance being used bv me for household and ,perisonal expenses. I have had no employment since October 8. last.” Bankrupt attested the -statement on oath. and was submitted to a searching examination by .'Mr Taylor. (Proceeding).