IN BANKRUPTCY

Northern Advocate, 20 June 1925, Page 6

IN BANKRUPTCY

WHANGAREI HAIRD!;! • HR '$ FAILURE.

"APPARENTLY A MUDDLER."

A meeting of creditors in the bankrupt estate of George Neville Downs, hairdresser and tobacconist, was hoid in Auckland on Thursday, Mr. E. V. Ramsey, deputy official assignee, prosiding-. Bankrupt was represented by Mr. R. D. Boyes.

The schedule showed that £1276 12s 5d .was owing to unsecured creditors and £100 to secured creditors. The assets comprised £423 in hand, leaving a deliciencv of £853 1-s sd.

Bankrupt attributed his failure to a great extent to interference with his business brought about by changes ot shops. The cost of new fittings, increased rents, and the loss of customers as a result of moving were all set-backs. In addition, his wife had suffered from illness. Every bit of the takings went through the till and money was drawn

only for necessary purposes.

Examined by Mr. Ramsey, Downs stated he was aged 25, and before starting as'a hairdresser and tobacconist at Whangarei toward the end of 1920, after returning from the war, he had had no. previous experience of the trade. At the time he took over the business he had £50 of his own money and borrowed £90 for which he gave a bill-of-sale over the stock and fittings. He carried on for 12 months before he found himself in financial difficulties. He was not sure whether he had been pressed by creditors during those 12 months.

In July, 1922, his creditors began to press him. At that time he owed about £300, so he arraanged a compromise with the creditors and paid them 12s 6d in the £. He ran the business for another 12 months on behalf of the guarantors, who found the necessary amount to enable him to pay 12s 6d in the £. Business went ahead and the guarantee was considerably reduced. His father found the money to wipe oat the debt altogether, and apart from the bill of sale he owed nothing in June, 1923. At that time his father entered into the business, and continued in the shop with him until last December, when he left because he felt that the expenses were too heavy, and his action would give bankrupt an opportunity to pull up.

In December last bankrupt's liabilities amounted to ab%ut £300, but he had every reason to believe he could pull through. Between December and March he incurred further debts.to the. extent of £300. He thought that if he could have realised his assets last December he would have been able to settle all debts.

One of the creditors stated that bankrupt purchased goods from his firm last February, and it seemed a strange thing to him that he had never mentioned he was insolvent. "You always told my traveller that your business was sound, did you not?" Bankrupt replied that he told the traveller the business would pick up, enabling him to pay for the goods.

A Creditor: Did you not hire cars to go to the beach? —I went to the beach on four or five occasions with a party in a car. I did not make a practice of it.

Another Creditor: You were understood to be the best-dressed man in Whangarei?t—That is not true. I always pressed my clothes mvse.lf, and tried to look as neat as possible. You cannot blame a man for that.

The Creditor: It is obvious that bankrupt is not a business man at ail. He should never have been permitted to conduct such a business.

Mr. Boyes said his client was apparently a muddler.

It was resolved that bankrupt's books should be thoroughly investigated, and if they are found to be an - satisfactory the whole matter is to be referred to another meeting.

In .the meantime bankrupt promised to pay 10s a week off his debts.