Bankruptcy of Newton Fairs and Co.

Hawera & Normanby Star, Volume XX, Issue 2432, 20 May 1893, Page 2

Bankruptcy of Newton Fairs and Co.

-«. *_ A meeting of the creditors of Newton Fairs, hitherto trading as " Newton Fairs ana C 0.," a bankrupt, -was held on Tbnret day, at the omae of the Deputy Qffioitl Assignee. There were present : Messrs MeNiven t Button, Milford, Major, Hendy, Smarr, Cook (of Cook and Gray, representing various Wellington creditors), W. At Parkinson (representing Innes and Go.}, Slater (representing Christoburoh Press) and Foy. The Deputy Official Assignee read a Bworn statement by bankrnpt confirming previous statement to private meeting of creditors, which latter set out that in November, 1891,. He purcbased a bnoinets at Wavetley and paid a deposit of £50, which be forfeited, rather than go on with the bargain, and that thereupon he bought the business of G. O. Hawke at Hawer*. for £1000. The statement proceeded :— "My wife assisted me to purobase the business by advancing me £1000 out of her own private money received from J»r father's estate. I soon discorered^Ml* the stock was not of tbe value I para for it by about £300, and that the businesi was not of snob a paying nature as I had been led to believe.". After, relating that he bad purchased a bouse in Haweri and added to it, on which be estimated he had lost £100, and that he had aho lost £30 by etarting a business at Eltham, he proceeded:— "In October last, Mesarß Hay man and Go. pressed me for the payment of their account, amounting to £148. which I settled by the payment of £65 in cash and endowed P.N'e. Shortly after, Messrs Collins and Go., of Auokland, issued a writ against me, as also did Messrs MoArtbnr and Go. and Myers and Co., all of whom I bad to satisfy. I still thought my 6tock was ample to satisfy everybody and leave me a surplus. I placed the business in commission agents' hands for sale. On February 6th, I took stock; and tbe balance sheet then prepared showed that I had a surplus of £680 108 after paying all my creditors other tban Mrs Fairs ; or, in otber words, tbe business showed a loss since starting of £319 9s 2d. Shortly after taking stock, I arranged with a -party to take tbe business over at cost prioe of stock, bnl owing to his having previously entered into a bond not to start business in Hawera, tbe negotiations fell through. At the end of March, being heavily pressed by rcy creditors, I concluded arrangements to sell the business to Mr D. N. Scott at valuation. I estimated that the valuation would come to between £900 and £1000, which would enable me to satisfy my creditors. A valuation deed was Bigned, and the valuation made, which amounted to £691 0s sjd, thus not coming up to my expectations by about £300 I consider the causes of my present position, to be the excessive prioe given for the business in the first instance, overstocking, the unprofitableness of some branches of the businesSi lo6S on house property, Eltbam business, bad debts, and lastly the low valuation received for my stock when selling out." The statement to tbe assignee prooepded : — " The whole or nearly all of the £1000 received from Mrs Fairs went<ioto the business pur* obased from Mr Hawke. This bneineßS was carried on by me under the style of 'Newton Fairs and Co.' I alone con* stituted the firm ; my wife was not in any way a partner in the business. The only acknowledgment my wife holds of my indebtedness to her is a draft payable on demand for £1000, with bank interest. This acknowledgment was given Jby^pir shortly after buying tbe business-win Ootober, 1891. In addition to my ordinary account at tbe B»Dk of New Zealand, I also bad an account with tbe Bank of New South Wales. This was in order that tbe proceeds of tbe Eltham business might be placed to my credit, tbe Bank ■of New South Wales being tbe only bank represented at Eltham I also utilised tbiH aocount to a certain extent in jonnee* tion with proceeds of tickets sold on account of theatrical companies. The lodgment of £60 on February 20th, 1893, was the proceeds of a baggy, harness, and! borse sold to T. J. Howard for cash. Lodgments of April 17th and 25th wera amounts of aocount6 collected. My reason for placing these sums to my credit at the Bank of Nsw South Wales was in order that I might have funds avauabljf'for pressing liabilities. The paymont ofMay 1, 1893, viz, " trust account £43188 5d," is explained as follows : On March 80th, 1893. Mr M. O. O'Oonnell lent me £46 2f (Concluded on page 4.^

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