BANKRLPTCY.

Nelson Evening Mail, Volume XLII, Issue XLII, 15 June 1907, Page 2

BANKRLPTCY.

MEETING OF CREDITORS. A meeting of creditors in the bankrnpt estate of Ernest Oliver Craig was held at the office of the Deputy-Official Assignee (Mr W, Rout) yesterday at- , tevncon, In addition to the D;O;A., ! there were- present Messrs Otto (re'p'rei anting Hoare and Co.), Karslen, Everett, Booh, Fihuey (Bond, Finney and Co.), Lewis (Sargood, Son, and Ewen). Mestf's E. B. Moore represented Messrs George, Doughety and Co. i (Wellington), and Messrs .Coles and Co. (Auckland); and Mr C. R. Fell appeared tor Messrs Healy and Son. Mr Machell (Adams and Harley) appeared for the bankrupt. Ernest Oliver .Craig, being sworn, said he was a bootmaker, and had been in Nelson about six; years. About four years ago lie Started ih business for himself as a boot repairer, in Bridgestreet, and had continued ever since. When he started business he was solvent. Eight years ago, in Wellington, he was bankrupt, and paid 6s 4d in the £, and obtained an . unconditional discharge. He afterwards paid 20s in the £. When he commenced in business for himself he had no stock of ins own, but held, about £60 ct.£7o of Mr Bowden's atoek, getting half profits on sales. That arrangement continued for three months, when Mr Bowden removed his stock. Mr Bowden held a lien over the goods. I» October 1903, Mr Healy, considering he had ben badly treated, said he would not see him stuck, and placed between ±-oU ahd £70 worth of stock in his shop. Bankrupt was to receive half profits f.-om Mr Healy, and witness sold on an average profit of 35 per cent. A fire occurred at his shop a month or six weeks after Mr Healy put in his goods, bankrupt having about £60 insurance on that stock and plant. He received £35 from the insurance company, and this he gave to Mr Healy, Setting a refund of £10, the amount allowed on bankrupt's furniture. The £25 was to be shared between bankrupt and Mr Healy, and he received credit for £12 10s. It was thought a ijood thing by bankrupt and Mr Healy to have a salvage sale, and iJSU ■vorth of boots and shoes were removed from Mr Healy's to bankrupt's shop, and they had a sale, selling a great deal of stuff. What was not sold was retained by him and eventually sold. At this stage the D.O.A. read a statement signed T>y bankrupt regarding his business relations with Mr Healy, in which it was stated that the goods disposed of at the sale carried a proht ?t I about 30 per cent., and the proceeds bankrupt deposited, daily into Mr Healy's account. Bankrupt was supposed to receive half these profits, but he had never received them. In connection with this sale, bankrupt incurred certain expenses for advertising, gas, rent, etc., which he paid, debiting Mr. Healy with his proportion. At the conclusion of tho sale Mr Healy replenished his shop with stock, and in January, 1904, he did not carry any stock that did not belong to Mr Healy. He continued to sell on Mr Healy's behalf, and from time to time paid money to Mr Healy on account of sales." At the close of 1906 he got out a statement showing all the goods that Mr Healy had obtained from him. After some delay Mr Healy presented his statement, which showed that he (the bankrupt) owed Healy £200. In April last Mr Healy presented him with another statement, making his case £200 better. They did not have a clear understanding up to the time of the fire, after which Mr Healy suggested that he (bankrupt) should put him inwith the other creditors. This bank- | rupt refused to do, as' he did not consider he owed Healy anything. His cash ; takings for the fortnight before the fire were just on £70, and he considered his pros pec ta then had never been better. The value of goods obtained by Healy from him was £1823 7s lOd, and the value of goods he obtained from Healy was £1612 12s 7d, leaving a balance in his favour of £210 15s 3i> Continuing his evidence, the bankrupt said (hat at the time of the fire last month his stock he estimated would be worth from £1000 to £1100, but Mr H. Moore, who was sent by the insurance companies, valued the stock at £627. His insurance was £200, and he was to get £210 insurance, £10 being for fittings. His cash takings at the shop were about £100 a month. His profit on sales and repairs would be perhaps £32 a month — had been that for the past two years. He could have continued all right had it not been for the fire. He had been to Takaka, where he had particularly gond results in a sale. His house and private expenses were, roughly, £3 a week, and he paid £2 15s in wages and 15s a week for rent. He was a sober man, and was not a gambler. At the present juncture he had no offer to make, as he wanted to know what his liabilities were. Mr Fell said Kc Healy's account was in order, and should be admitted. It was not sufficient for the bankrupt to say he did not owe the amount. The D.O.A. thought it would 'oe better to wait until an accountant had been through the bankrupt's accounts. The suggestion was generally approved of. On Mr Karsten's motion, it was resolved to allow the bankrupt £3 while the accounts wcoe being gone through. On Mr Moore's motion the meeting then adjourned for a week.