IN BANKRUPTCY

Manawatu Standard, Volume LII, Issue 245, 15 September 1932, Page 8

IN BANKRUPTCY

A FEILDING ESTATE

A meeting of creditors in the bankrupt estate of Harry Louis Simson, mercer, of Feilding, was held before Air C. E. Dempsy, tho Deputy Official Assignee, at Palmerston North, yesterday afternoon. There were present, besides the D.0.A., Messrs R. V. I Collins, E. Fuller, T. A. Doley and T. L. Seddon, the bankrupt’s solicitor. Bankrupt's written statement! was, inter alia, as follows:—“I have been in business in Feilding for the past ten years as a men’s outfitter. I had very little capital when I commenced and had to borrow to set up business. It was my practice to purchase stock on bills payable in oj months for which renewals at the bank rate were always available. During the past seven or eight, vears 1 have carried from £IBOO to in stock in this way. The merchants have always welcomed custom and, in fact, would have given me larger accommodation had I desired it. Since 1 commenced business my total purchases from the creditors now concerned amount in round figures to £24,000. I have paid in caSi £22,000 and even during tho past 15 months, in a time of unprecedented economic stringency, have reduced my merchants’ accounts by £350. However, l was expected in the present period of depression to reduce my accounts to a much greater extent and it seems unusual that when other creditors were meeting their debtors I was placed by my creditors in the position of choosing between completely assigning my estate to them or filing in bankruptcy. In May last my affairs were investigated at the instigation of my creditors by a Wellington accountant and on his figures my balance sheet showed a capital of £612 2s 4d. The stock was taken in nt a very low figure (below cost) and ample provision was made for bad debts. In spite of this satisfactory position the creditors’ answer was to send me a deed of inspectorship for signature. I refused to sign the deed, but offered my creditors ample powers of supervision and control. In fact, I offered to sign the deed if the powers of assignment and sale were deleted. I refused to either sign the deed or file in bankruptcy. Proceedings were instituted and finally nil order made upon a creditors’ petition. 1 feel 1 am justified in refusing to consent to the line of action proposed. 1 was not getting deeper into debt, but was in spite of hard times slowly retrieving my position. I am a married man with a wife and six young children to keep, the eldest of whom is a girl of twelve. My wife is in poor health and my household expenses are rendered somewhat heavy for the reason that 1 have to employ constant help in the house.” The statement of assets and liabilities showed that amounts owing to unsecured creditors totalled £2060 10s 5d ; the amount owing to the secured creditors totalled £250, the security being estimated £250. Stock in trade totalled £1599. book debts £446 0s lOd (estimated to produce £375), fittings £IOO, stationery £l3, cash in hand £477 3s 4d. The surplus totalled £554 6s 7d. Mrs Pearson, of Feilding, was the secured creditor. Tho chief unsecured creditors were: Messrs Sargood. Son and Ewen, Ltd., £391 os 2d; Samuels and Kelly, Ltd., £323 0s 2d ; Ross and Glendinning (costs included), £3Ol 4s Id: Bing. Harris and Co.. Ltd., £255 5s 10(1; Miss A. Shea, £308; Kaiapoi Woollen Co., Ltd.. £IBS 9s 4d ; Macky, Logan, Caldwell. Ltd. (costs included). £IS3 2s 6d. Under examination, bankrupt said that be was retaining the books until the business was closed down. Stock was last taken on May 4. 1932. Ho did not own a car and his life insurance policy was mortgaged at £1 per week. For the past eight or nine years Ire had drawn on an average £8 per week from the business. Since May 8 last he had drawn £6 per week. He had kept an assistance at £2 9s 6d weekly. To Air Collins, bankrupt said be understood Mr Collins received instructions to investigate his affairs about April and had reported to a meeting of creditors. Bankrupt had supplied a statement of his trading for the 12 months ending November 12. 1931, also for all immediate stocktaking. To a question by the D.0.A.. Air Collins said that bankrupt would probably have ‘-weathered the storm” if the drawings had been £6 a week and a cheaper system of working had been adopted. ’ However, the principal creditors desired the present course to be taken. To Mr. Seddon. bankrupt said that lie objected to signing any deed containing a complete assignment of his estate. If the agreement clause had been removed, lie would have signed the deeds submitted. Bankrupt added that he did not gamble, smoko or otherwise dissipate his estate. He had had a lot of expense through illness in Iris family. Mr Daley suggested that Mr Collins be appointed supervisor for the creditors. The D.O.A. said he had no objection. Tenders had been called for tho stock.

Air Collins was consequently appointed supervisor to work with the D.O.A. Air Seddon voted against the motion, on behalf of the creditors he represented. On Air Fidler's motion, a minute was unanimously passed that the creditors represented were of the opinion that the discharge of bankrupt should be expedited. The meeting was then -adjourned sine die.