BANKRUPT GARAGE OWNER

Northern Advocate, 17 April 1931, Page 9

BANKRUPT GARAGE OWNER

DEPRESSION BLAMED IN PART. EXAMINATION THIS MORNING. A bankrupt garage proprietor of Kawakawa,. Niccoless Henry George Mimro, who attributed his position jointly to illness, the general economic depression and a fire which destroyed his garage, was examined by the Official Assignee, Mr. A. L. Tresidder, at the Whangarei Court yesterday morning. Bankrupt’s schedule showed unsecured creditors £713 6s 4d,. secured creditors £74 12s 7d, less estimated value of securities surplus to contra £265 7s sd. Stock in trade was estimated at £2O, book debts were estimated to produce £IOO, cash in hand £66 Os 2d, furniture £9O, property £2O and surplus from securities in the hands of secured creditors £265 7s.fid. The deficiency was £2Ol 18s 9d. Bankrupt was represented by Mr. Williams.

In a written statement, bankrupt said lie commenced business, in Kawakawa; about seven years ago and then 1 had £SOO in cash. The business did ' well for a time and was gradually be- J ing worked up. About, throe years ago he had a severe illness and after this could only do light work. He had to employ additional labour, and owing to lack of personal, attention the ness had slipped back considerably. His assets tyere at this stage well in excess of liabilities, and he considered that he-could pull the business together. . The slump was a further set-back.' He was still able, however, to ultimately pay all his creditors, and his assets were in excess of his liabilities. On January 11, 1931, his garage was totally destroyed by tire. The plant , and fittings were covered by insurance, but a considerable portion of the loss was not covered. He estimated his total loss at £445, as of his assets only £265, balance of the insurance moneys and book debts, now remained. On March 6 he wrote to his creditors advising them of the position and endeavoured to arrange a compromise. As a local creditor would not agree, he was compelled to file. He attributed his position to three factors (1) his illness, (2) the general depression and (3) losses occasioned by him in connection with the fire.. Since the business was burned out bankrupt said he had been practically unemployed, except for odd jobs. At the time of the fire he carried roughly £7O worth of spares for one particular make of car, oil about £4O, tyres about £6O, and general stock. jje did not think it was overestimated. The insurance , company paid him £3lO instead of £350. It disallowed £lO on the value of a lathe in the shop. It was only after the lire that ho realised he was insob ent, and the real reason was that he was underinsured. It was on March 5 that he knew the full amount the insurance company would pay, and he got in all ' his accounts from creditors by that that, with the exception of one. He know lie was insolvent and therefore instructed his solicitor to advise his creditors of the position, and asking whether he should file, or if the creditors would agree to a composition. Two creditors had obtained judgment against him prior to this notice reaching them, and after receiving it inL stituted attachment proceedings. On " yiarcli 27 one of these creditors obtained an attachment order on the insurance company as sub-debtors to the | total, of £35 4s. On March 30 the 1 other creditor obtained an order ab- , £ vdute on the insurance company for

£2O Ids 7d. There was- a balance at the Court in Auckland of about £2ld, which was available for the estate. One creditor was prepared to refund its amount in the event of a composition. Bankrupt w*as closely questioned in regard to his banking accounts. He could not explain why the receipts in the cash book were less than the amounts paid out. He admitted his cash book had not been kept properly. At this stage the meeting was adjourned so that bankrupt'could produce further records, -