BANKRUPT GROCER

Manawatu Times, Volume LII, Issue 3537, 19 February 1927, Page 13

BANKRUPT GROCER

SUGGESTION’ OF PREFERENTIAL TREATMENT. A meeting of creditors in the bankrupt estate of John Albert Olsen, grocer, of Shannon, was held yesterday, the D.0.A., (Mr, C. E, Dempsy) presiding. Bankrupt, in a written statement set out that ho started business as a grocer In Shannon on May 8, 1926. It had been an uphill fight all the time. Just before last Christmas there were two big floods in Shannon causing the flax workers to bo off work. Thus for six weeks, ho, as a small cash grocer, suffered from this enforced idleness of his customers. His overhead expenses were far too large for the business he was doing and as ho was unable to got a reduction in rent he wag compelled to close. He had no money left and could not see his way clear to make any offer. Cross-examined bankrupt stated that £125 which he had recently paid to Mrs. A. L. Buckman, his mother-in-law, was the return of money advanced to start business with. A wireless sot, which was now erected at Mrs. Buckman’s, was originally puehased by him for her, Mrs. Buckman repaying him in instalments until now it was wholly hers. A section at Shannon in his name and on which ho had paid between £3O and £4O, had not been included in the assets as he did not hold the deeds and consequently did not think that it could be so included. Ho had a wife and two children depending on him. He didn’t know he was going to file when he repaid Mrs. Buckman. The D.0.A.: You can’t tell us that, Mr. Olson. You paid Mrs. Buckman on February 10 and filed on February 11. Mr. Davis, representing Burns. Phillip and Co., said ho found difficulty in understanding how bankrupt had failed to carry on. The business carried no bad debts and the' profits on the purchases from his firm alone should have been sufficient for him to more than met his overhead expenses. What has become of the money ? he asked bankrupt. Bankrupt “X don’t know. I can't understand it at all.” Mr. Davis: “Have you followed up horse-racing ?’’ Bankrupt: "I neither drink nor gamble.” Mr. Davis to the D.0.A.: “I think hi s showing preference to Mrs. Buckman is in the nature of a fraudulent action and the money should be recovered.” The D.0.A.; "I will take proceedings to recover it immediately.” The meeting then adjourned so that bankrupt might prepare a statement of receipts and expenses.