THE BANKRUPTCY OF ROBERT NEAL.

New Zealand Herald, Volume XXIV, Issue 8082, 24 September 1887, Page 3

THE BANKRUPTCY OF ROBERT NEAL.

Robkbt Neal, grocer, was examined yesterday before the Official Assignee, and made the following statement on oath:—l commenced business in Qaeen-street, Auokland, as a grocer in Decemoor, 1876, with a capital of £700 and a partner with £400. This partnership was dissolved about 1879. In the year 1877 I sold property in England which realised £1257. This went into the business. In 1832 1 solii property at Epsom, the proceeds being £464, and this money also went into the business. In the year 18S3 Mr. F. Rowe, who had previously been in my service, came back to me, patting into the business the sum of £200, with the understanding that he should have interest for the money invested, and a small share of the net profits in addition to a salary. It was a mere verbal arrangement. He has had interest but no share of profit, and the principal, less a contra account for groceries, etc., still remains in the business. From the commencement business has been carried on <vith variable success. . In June, 1885, my year's balance-sheet showed that I was in a holvent position, and that after allowing for bad and doubtful debts and liabilities (the latter including about £900 of borrowed money) and interest, there remained a credit balance of £900 to the good. At stocktaking, etc.. ou July 7, 1886, I found a deficiency of £46, having during the year lost all my capital. My brother John then lent me £200, and afterwards sent me a cheque for £600. and in October of that year I put in £320 more by the sale of property and a legacy. My losses have taken place during the last two years, and are due co the extreme competition in trade, large bad debts, expenses in moving to Wellesleystreet, and loss occasioned thereby. There was also a considerable loss occasioned by the conduct and -sale of the branch shop at Arch Hill. (Statement of losses put in.) I was in hopes of retrieving my position by reducing expenses and economising generally, and was under the impression that my affairs were improving, but on stock being taken in August last, I found that my deficiency way £1208, the valuations being ba,»ed on cost prices. No doubt, if forced, these values would not be realised, and the result would be a much larger deficiency. On consulting my brother (J. W. Neal, of Napier) and the manager of my bank, 1 was advised to call a meeting of my creditor*. That meeting took place on thd 7th instant, and a statement of my assets and liabilities submitted, and an offer made on my behalf of a composition of 9* in the pou:<d by promissory notes at two, four, and nine months. A resolution was carried appointing certain creditors*to investigate my affairs and report to an ad« journed meeting. On the 9th the adjourned meeting was held, when 25 out of my 44 creditors attended. The inspectors appointed—Messrs. C»rr and Phillips—reported that my offer of 9s was a fail- one, upon which a resolution was adopted that my offer be accepted; the banks and my brother's claims, amounting to £2585 15s 6d, to await their dividend until all the other creditors had been paid. Messrs. Hermann Brown and R. A. Carr to be inspectors under the deed of composition. Subsequent to the meeting, one of the creditors, who had not been represented there, refused to accept the composition. After exhausting every means to bring about an amicable arrangement, 1 waa advised by my solicitors to declare myself a bankrupt on the 21at instant. This action has been the means of depre-

dating the buuinsss, and I am not now prepared to make the tame offer. My book* have been properly kept all through, and are at the present time closely posted up. The whole of my liabilities, amounting to £9122 9s sd, except bank's claim pi £1719 17s 6d, are. unsecured. The assets Are estimated as follows Stock-in-trade at the Wellesley-street and Karangahape Road shops, £2500; book debts, £1137 19» 7d ; fixtures, etc., and horses and carts, £338 ; sundry shares, £16 10s; and freehold land. £70; total, £4062 9» 7d. Deficiency, £5059 Ida lOd. The household furniture has belonged to my wife for twelve years. To the best of my belief I have disclosed everything X possess. I bare put into the business altogether £2071 of my own money, and £700 belonging to my wife's trustees.