PUBLIC INQUIRY IS DEMANDED BY CREDITORS’ MEETING

Manawatu Times, Volume LV, Issue 7296, 5 August 1930, Page 5

PUBLIC INQUIRY IS DEMANDED BY CREDITORS’ MEETING

Not Satisfied With Bankrupt’s Statement SOME SEARCHING QUESTIONS A meeting of creditors in the estate of Arthur Collinson, bankrupt, was held at the D.O.A.’s office, Palmerston North yesterday afternoon and after the statement had been submitted, and bankrupt examined, it was resolved that bankrupt be publicly examined. There were present: Mr. I l '. Litchfield (acting D.0.A.), the, bankrupt and his solicitor, Mr. J .AV. Eutherfurd, Messrs, T. A. Hastings (representing C. M. Hastings), E. V. Spear (representing Messrs. Barraud and Abraham, Ltd.}. W. E. Byers, J. B. AVither (representing AV. G. AVilby), F. Cox, J. Loijisson (representing Dixon's, Ltd.), P. H. Singh, P. T. Jamieson, T. J. Killiek and Mrs. Butcher. Bankrupt’s Statement. The bankrupt’s statement said ho came to Palmerston North 1(3 years ago and got employment with a monumental mason and was employed by him till the bankruptcy. His wages were £7 per week. Four years ago he purchased the confectionery business in Cuba street, paying £250 for plant, stock and goodwill. He had no valuation of stock or plant made. There was a mortgage to the Repatriation Department for £l5O. He borrowed £l2O from Mrs. Butehor, giving her no security. Ho had no cash of his own at that time. The stock, which was of home, made sweets, turned out to be useless aud had to be destroyed two weeks after ho took possession and he had to purchase new. stock on credit. Bo mo of the plant was useless and he had to ’p urc h as ® new pl an t to replace it. and spent over £IOO in new fittings for the shop. The premises wore in a very bad condition and he had to incur considerable expense from time to time to make them habitable. The rent was £1 a week. Plaintiff concluded: “I have never caught up these preliminary expenses and 1 can seo now that there never was a possibility of paying the rent and making up the arrears. “Since I took possession of the shop I have had continuous expense for medical expenses. My wife and three of my children have been to hospital. One child was ill for nine months and under the doctor throughout. Another was six weeks in hospital. Another child had infantile paralysis and also suffered from rheumatic fever. The accounts for medicines and doctors' fees have been a constant drain on me and I have had to spend a considerable amount on special foods ordered for the children. The only money I have spent on myself was £62 10s to purchase bonds in Hemplands, Ltd. I do not drink or gamble.. The only suit I have purchased in six years cost mo £3. I have a wife and five children to support. I am now out of employment and can make no offer to my creditors. I knew in May that my position was bad and made immediate efforts to sell out. I expected to sell easily and had a prospective buyer at £550. The condition of tho premises prevented him buying. I considered that if this sale, or a similar one, had eventuated, I could almost have cleared up the whole position.’’ Bankrupt Examined. Bankrupt was subjected to a lengthy examination. In answer to Mr. Hastings, he stated he had been discharged from his employment and had applied for a position at New Plymouth some six months ago. In answer to Mrs. Butcher, bankrupt stated he had had a nook-keeper for the first six or eight months he was in business, after which he kept the books himself. He did not have a balancesheet drawn up till tho end of May, 1030. In answer to Mr. Byers, bankrupt said he had never been in business before.- He only took stock in 1930. Tho stock was insured for £2OO. He only had one banking account and uld not bank his wages. The doctors’ expenses during three years would be about £2l, which had been paid out in cash. AVhilo his daughter was in hospital he had had to pay out about £1 a week for special food. His wife also had to have special medicines.

To Mrs. Butcher: The rent of tho shop was £1 a week. His house rent was free. He had had a farm in the youth Island, but his in. terest in it was lost about 19 years ago through a solicitor becoming bankrupt. He denied having told Mrs. Butcher when he asked her to guarantee him, that he had money invested in the South Island. Mr. Wilby was backing him for £SO at that time and prior to asking Mrs. Butcher for the guarantee he had asked Mr. Jones, Mr. Wilson and Mrs. King. On May 7, 1930, a Mr. Hall had inquired for the business. Bankrupt denied having bought a gramophone from a friend for £lO, but admitted having represented that he had done so in order to effect a sale for that friend. In answer to Mr. Spear, bankrupt stated that he did not gamble and had been to only two race meetings in his life, tho second about 13 months ago when he lost about 30s. He did not remember telling Mr. Gibbins that his stock was worth £250 and his plant £250, but remembered telling Mr. Spear in January that the stock and plant were worth £l5O and from £2OO to £230 and in March that they were worth £IOO and £l5O. In answer to Mr. Litchfield, bankrupt stated that the sales as shown in the books were correct, also the purchases. He hadn't the slightest idea what his gross profit should have been. His wife handled all the takings which Were banked. Bankrupt further stated that he had lived on his wages and had not drawn any money from the shop. Further questioned by Mr. Kpear, bankrupt stated that he did not let an;/ of his creditors know that he had borrowed money from Mrs. Butcher or that the Repatriation Department had a mortgage over the plant. In answ'er ,to Mrs. Butcher, bankrupt