Creditor to Oppose Bankrupt's Discharge

Manawatu Times, Volume LIV, Issue 6620, 5 August 1931, Page 9

Creditor to Oppose Bankrupt's Discharge

UNLESS LIABILITY SATISFIED AFFAIRS OF DRAPER INVESTIGATED. A .motion, that bankrupt’s discharge bo opposed until satisfactory arrangements had been rnado in regard to his liability, was carried at tho conclusion of a meeting yesterday afternoon of creditors in tho estate of Charles Henry Young, of Palmerston North, draper. No assets were disclosed in bankrupt’s financial statement and only one liability—£Bl3 9s 9d duo to Cashworths, Ltd. (in liquidation). In his personal statement bankrupt set out that he had commenced the business’ of Cashworths, Ltd., two and a half years ago without capital of his own, the small capital involved being borrowed. For the first 15 months trading had been good, general, conditions haying been favourable, dairy products bringing good prices and the railway deviation works being carried on. During 1930 conditions ; changed and trading became increasingly difficult. Being short of capital accentuated the firm’s difficulties and cramped buying and advertising, and on Juno 19,1931, the company went into liquidation. The firm really - should have faced tho situation earlier and saved loss. He had evacuated the business with no personal assets whatever and would have to make a completely fresh start.

Under questioning by the D.O.A. (Mr. C. E. Dernpsy) bankrupt stated that the liability was for money borrowed. He had been drawing a salary of £350 a year and it had been arranged that the money he had borrowed should bo refunded out of profits from tho business. He had been boarding and had no furniture. His wife had been sent £2O a month up till Juno this year. He denied that he owned a motor car; the one the D.O.A. had seen him driving be-' longed to a Miss Morton. He did not provide any of the money for the purchase of the car, although he had negotiated the proceedings. Miss Mor- r ton still owed portion of the purchase price.

To Mr. R. Y. Collins (liquidator for the company) bankrupt said that £2OO of the money borrowed from tho firm had been used in the repayment of capital, £65 in tho payment of income tax for tho year ended March, 1929, £175 in the repayment of mortgage overdraft, and the balance represented £3 a week over two and a half years the firm was in business. The bulk of tho money had been taken out while trading conditions were good. No payments had been made into the bank since December last; his living expenses during that time would be £5 a week. He did not know what his chances of making good the deficiency were; he would have to start afresh. He had paid for some of the benzine used in Miss Morton’s car. He did not own a wireless set; this was the property of Miss Morton. He could now see that if the £BOO odd had not been drawn

out of the business the firm might have had a better chance towards the end. In reply to the D.0.A., Mr. Colliii3 said that the total liabilities of Cashworths, Ltd., were £3243 8s sd, the total assets (excluding bankrupt’s withdrawal of capital) £1689 2s 7d (estimated to produce £881) in addition to which there was £2OO of uncalled capital, which now had been called up. The company had a capital of £SOO, in which bankrupt’s interest was one share. This year the capital had been increased, but the additional shares had not been allotted. The carrying of the previously-men-tioned resolution concluded the meeting.