IN BANKRUPTCY.

Nelson Evening Mail, Volume XLIII, Issue XLIII, 16 September 1909, Page 2

IN BANKRUPTCY.

ESTATE OF J. MoDONALD, The first meeting of creditors in the estate of James McDonald, of Nelson, hairdresser, a bankrupt, was held at the office of the Deputy-Official Assignee (Mr Wm. Rout) yesterday afternoon. The following creditors were present or represented :— H. Saunders (represented by Mr E. B. Moore), E. W. Dee and Sons (Mr W. Dee), Sargood, Son and Ewen, Ltdi (Mr G. Williams), Joseph Nathan and Co. (Mr Kinihurgh), Bond, Finney mid Co. (Mr R. Ppn*}). Mr A. C. Maginnity appeared for the bankrupt. ._..... . .:, TJie Deputy-'Official 'Assignee statfed that the list filed by bankrupt showed £263 due to unsecured creditors, with a deficiency' of £72 17s. The stock and fittings were valued at £177. The bankrupt, on oath, examined by the Deputy-Official Assignee, stated that he was 27 years of age, and a single man He was a hairdresser by trade, and -had traded on his own account for

about IQ mpnthg. A written- statement by bankrupt wa» read ns follows:— "I came to Nelson about 1904 from Blenheim to work for Mr Bockmann, for whom I worked f'.T about four years. When I left his employ about 18 months ago I toolctlie shop in Hardy-street, where I have been caJiTying on business as a hairdresser and tobacconist. I had about izd in cash, but no other (roperty. Mr Saunders suggested 'to me Hint 1 should take the shop and commence business. lie supplied .all file Pilings, ciiairs, etc , but no definite arrangement was tnen made as to when 1 was to pay him for the furniture. 1 paid nothing on tne furniture for about 12 month*!, when ho nsked met to pay Sf_m(-tl>in-r ru, BB'J } paid him £10, and £1 a week thereafter'. The original amount owing on the furni. ture was about £68, but I have duce dit to £32. I paid rent for the shop (£1 10s a week) tn a weekly i*-iwi-cy: and lately I have been p.iyng Mr Saunders £2 10s a week (*KI «* T-S«t (Wd £\ oi) the jiir.mti*':e). I liave Jlvfajte had a boy "assistant to whom I paid 12s 6d a week! With regard to the stock, I obtained thftt on credit. '1 he different mevphants I hiive dealt w ' 1 ' 1 R *'j set out in t"he list oi unseoured creditor 1 * About a month ago Benjamin and Co. and Nathan and Co. commenced to press me, and issued summonses and got judgment against me, and put the baillift' into possession; and as a. sale of the stock was advertised by the bpi!*" I went bankrupt to nrolgct my oUiei; ereilitoH.*' 'T. tiied 'to bori-ow oh my life pplicies, t)pt could' not arrange the matter jn time, I aUnhu'e my {josii'ivu {o' si'irttlng \vhh tpo little c'apinl and o'yeis'tpclking, and to -pressure temg brought hy my creditors, My average weekly B*tneiises ftn*v)«iited to 'abont £4 10s a week, and I paid .instalments to my creditors. The valuation of. stock has been made by Mr Bockmann, but does not include my razors and bicycle." The Deputy-Official Assignee said that the bankrupt evidently had a most el?---was'dufcult |o make up a*ny statement of the (ftklqßsj'But'he Kiid" made *up Bomeof the weeks, and these showed average Weekly takings in the saloon of over £4and in the shop of over £7. Further examined by the D.0.A., bankrupt stated that Ws life was insured in ajl for £850, in. tl^su Miens., »-lii* premiums- amclu^tiinj W'^IIQ '& ye«r, Ono creditor only was pressing hiin, and he filed to protect the other* creditors. The D.O.A. pointed out that bankrupt had gone to the bad £90 'in the 1? months he w;ia. in liji§!j)f;3j. In" reply to {lurtlhe'r questions, bankrupt stated tiat he liftd not neglegted his business. He may havo gone away from his shop for a couple of hours or so in the afternoon or morning while things were slack. As the ordinary run of young fellows went, he considered t.Tiat '"-J^Vif i'*M l f- a i , "I Mi- Riniiilnngh questioned bankrupt as to the cost of running his saloon, and rhowed that there had been a leakage of over £1 a week. The D.O.A. asked bankrupt to explain. RanUt---.pt deiljeil th^t he liad been, careless, and said that he could throw no light on the discrepancy. He also stated that his hotel expenses would amount to about 7s 6d a week. The D.O.A. said he had received aa offer for the ftocl; from Mt Boc_l*miiiin' of' £120. If this offer "was accepted the estate would pay about 6s 8d in the £„ there being some preferential claims (rent and filing fee advanced). After a discussion with Tegard to the insurance policies, etc., bankrupt- agreed to raise £2Q on the?n poljcieu, whitJi, in the opinion "of the Dltl.A., \v<>uid enable the dividend to be 7s 6d in the £. ; bankrupt also agreed to accept a bicycle (valued £7) and took of trade (valued fit -85 7s), in full ssvlsfaotion of the £25 value allowed under the Act. The offer of Mr Bockmann was accepted, and it waf resolved to recommend bankrupt for his immediate discharge.