A TARADALE BANKRUPT.

Hawke's Bay Tribune, Volume VI, Issue 274, 4 November 1916, Page 7

A TARADALE BANKRUPT.

MEETING OF CREDITORS. A. meeting of creditors in the l>anznipt estate of Frederic Nicholas, butcher, of Taradale, was held at Napier yestreday morning. Mr. Somerset Smith, Deputy Official Assignee presided. } Mr. Currie appeared for bankrupt and there were present, Messrs Duff, Hislop, Humphries, T. Lawton, W. J. Rymer, E. Pointon and Lloyd. In o»ening the meeting the Deputy Oflcial Assignee stated that there was no personal statement frpm bankrupt, whereon Mr. Currie suggested that it be taken by evidence. B Mr. Smith (D.O.A.),.said he didn’t think personal statements were at aU reliable. Wr. Currie: What is unreliable in tins casvj Mr. Emith: Nothing in this particular case, but I refer to all case/.. BANKRUPTS STATEMENT. Frederic Nicholas said he eomipenced business as a butcher on May Ist., 1911, at Taradale without any capital, taking over R. J. N eagle’s business at a weekly rent for She whole plant. This continued for .'fifteen months, and bankrupt then bought the plant for £lOO. This money was borrowed from Mr. G. Rymer, sen., Napier. The plant consisted of three horses, two earls, tools, sausage machine, tiller, two ferine tubs and two pumps. Mr. Neaglc died, about 2-1 years after 'bankrupt took over the business, and the land waa then cut up and sold he buying the shop for £2O. He later removed the shop to a section he had purchased in Guppy’s road, prior to taking over business. He also got- money from Mr. CL Rymer to jpay Butcher for this land. Mr. Rymer then held the deeds and Cook a mortgage ever the section. Tn April. 191-4. bankrupt met with an accident to his left hand through blood-poison, being then in She hospital for ten weeks. During that time, the mortgage fell due. Mr. Stayford of Greenmemlows was left Intfcharge of the business. For about three months after this lie was still indisposed. His financial position when going into hospital was fairly good—he was able to pay iris debts. He never worked out his financial position but believed it to be *ouyd. He hadn't sufficient money in the bank to meet the mortgage but his wife raised part of it. The property was transferred to her about this time when his condition was very serious. Messrs Sainsbury Logan and Williams had the transaction on hand. This was arranged by his wife. He first noticed his financial position defective eighteen months ago, and he then put off some bands, but this did not seem to improve the business, as stock •was rising rapidly in price. The business was not slackening but money was hard to collect-. He had no standing amount iu the bank, | but it averaged £4O to £‘so daily. i Mr. Currie here stated that book-j keepers were always employed by Mr. Nicholas. | To Mr. Hislop : Bankrupt borrow- i ed £325 from G. Rymer to pay But- J cher for the section, and later bor-i rowed £lOO for the purchase of the | plant. He had been asked to make i out a. balance-sheet, when entering the hospital, but being unable to do!

it himself, mentioned it to his bookkeeper. Did not know if it was prepared according to his instructions. To Mr. Duff: In his opinion the value of the property when he went into the hospital was about £4OO. Up to that time bankrupt had not macle any attempt to renew the mortgage. He was surprised to learn that his wife had met the mortgage, as he did not know she had any money. He had not discussed the matter at all since. Mr. Duff smilingly remarked: A marvellous woman if she didn’t want to discuss the transaction with you. Mr. Currie: Mr. Duff is a married man. Mr. Duff: Yes, but it’s a very curious thing that this 4*’ ansac tion was not discussed between . bankrupt and his wife. Continuing to Mr. Duff: Witness could not make the business good owing to the small retail profit. He had been losing on his stock for a year. Mr. Duff: If you get things for nothing and sell them, you must make a profit. Bankrupt: You think you ought to but you don’t. Mr. Pointon Sere remarked that having good experience in butchering, he considered that bankrupt knew very little about the price of his stock, and his employees knew less, so the result was that the general public got it. Mr. Duff further remarked that what he concluded was that there was a leakage somewhere iu the business. Mr. Pointon: As one with experience I’ve often known of many los-. ing largely on the sale of meat. After discussion re the auditing of bankrupt’s books, it was decided that the Official Assignee make a valuation of the estate and the goods on hand, to be auctioned as soon as possible, and that the Official /Assignee investigate and find out the financial position of the bankrupt at the time of the assignment of the property over to his wife.