A CYCLE DEALER'S FAILURE

Hawera & Normanby Star, Volume LVI, Issue LVI, 21 July 1909, Page 6

A CYCLE DEALER'S FAILURE

EX-HAWERA RESIDENT'S DIFFI-

CULTIES

Herbert Christian, cycle dealer, Hastings, and formerly of Hawera, has been adjudicated a bankrupt. At a meeting of creditors held last week bankrupt's position was stated to be as follows : — Assets: Stock in trade £30, book debts £92 2s 3d O= 'a mated to produce £60;, cash in hand £2 10s, furniture £20 j total £112 10s. Liabilities: Unsecured creditors, £597 10s 6cl. Deficiency, £485 0s 6d. The personal statement was as follows : _«i started business in Foxton in June, 1903, as a cycle agent with £100 capital and a loan of £200 from my father at 5 per cent. I sold out the following June and removed to Hawera, where I stayed six months. Finding I could not make the business pay I removed to Hastings in January, 1905, and got on fairly well until the winter of 1907, when trade declined until October. Then I sold the lease for £60 to pay pressing accounts and took another shop, where I stayed until January, 1908, when I got burnt out, losing considerably over £100. It also cost me £35 removing to new shops, fittings, etc. As I found trade insufficient to meet expenses, last October I decided to leave the shop with my wife and take a billet, with the intention of selling out my business. I obtained employment at the Hawke's- Bay Timber Company's mill in October, 1908, leaving them in November to go on the Wanganui river service, where I stayed until May, 1909. Owing to the slack times I was put. off, and am now out of work. Mrs Christian carried on business for me from October to February, and no opportunity to sell out' occurred. I sent part of my wages towards paying expenses of shop, no . less than. £22 being paid, also costs of filing, out of my salary of £11 per month. Stock to the value of £85 was removed from the shop to our residence and was destroyed by fire, together with our furniture, excepting £25 worth, which had been sent to Wanganui. I attribute my failure to fires, and, for the latter nine months, to bad trade, caused by the depression in the money market." The bankrupt, examined o« the state; ment, said he paid interest to his father. Ho -paid all his debts when he sold out in -Foxton. He had then £88 19s in cash and some bicycles. The Hawera business just paid, and when he left he had £4. Started in Hastings with very little cash, only £4 17s, but he had a stock of bicycles. He owed some current accounts. He was more than solvent. His old ledger was burnt in the first fire and the cash books were burnt in the last fire. The lease he sold for £60 was on his first Hastings shop,' and had a considerable time to run. He removed to Station street, paying 80s a week rent. This shop was. burnt in January, 1908. He lost all his stock with the exoeption of £90. He got £175 insurance, and he started anew in Market street. Did not give his wife an assignment. Left Hastings in October last year, when he had heavy liabilities, which, apart from the £200 loan, were £240. He was not then solvent. His wife closed tho shop in February, 1909, moving the stock to their house in LyeJl street. This house was burnt down in March, 1909, and everything destroyed. The stock was not insured, but he had £100 on the furniture. The insurance company paid him £47 7s. The value of the stock was £187. Was paying £2 a. week to Mr Scott, and this was paid up to date.

To Mr White (counsel for Reynolds and Co.) : Lost a little money in Foxton, about £80. Left there with a stock of about £280. "Started in Hastings with a capital of £280, and employed an assistant at 2os a week, the shop .rent being 18s per week. He made money up to January, 1908. At the time of the first fire his liabilities were about £650. His assets would be about £ d lo. Lost money in a stationery business which he started. From January, 1907, to January, 1908, reduced his debts by £200. The £175 insurance re-

coived for t4ie Station street fire he paid out to some of his creditors. While he was away his wife lost money. She called his creditors together in December last, when she made an offer of 17s 6d in the £. She told him the creditors preferred to realise upon the stock by auction. He kad not paid all money received into the btok, as he paid wages otit of cash. .The auction sale at his shop was a failure.

Mr Clarkson said l»e oould not understand how a considerable amount of furniture had been sold for £12. Mrs Christian told him positively that bankrupt never .sent her money. The creditors had been badly hoodwinked. Bankrupt's wife had made statements to him that she had money out at interest, and, with the proceeds of the sale, the creditors would be paid the compromise. He fchougjhJ> they had no recourse against her unless she were made a bankrupt. Tho only person they were concerned with was the bankrupt. He had no ria;ht to leave his business in the hands of a irresponsible person, and that required exx^lanation. The statement made by bankrupt was entirely unsatisfactory. < The bank-book showed that the business was a good one. Th'o following resolution was carried : "That the bankrupt be asked to prepare a fuller statement of his business transactions and submit it to • the deputy official assignee, and. if not satisfactory to him, that the creditors be written to for authority to tender expenses to Mrs Christian and subpoena her to attend a further meeting of creditors. "