BANKRUPTCY.

New Zealand Herald, Volume XXIV, Issue 8064, 4 October 1887, Page 3

BANKRUPTCY.

DEBTOR'S EXAMINATION. G. W. Owes. —George William Owen, bankrupt, was examined yesterday by the Official Assignee,' and deposed that he had been in business in Auckland for 28 years, In 1870 lie had £4000 capital, but in 1874 the destruction of hi- warehouse by fire reduced his capital to £3550. in that year he entered into partnership with Mr. Dewar, who put £2100 iuto the business, and in 1832 their capital oad extended to about £11,000, or at the rate of £800 a year beyond expenses, They considered that an increase of capital would result in a great expansion of profits, and they therefore floated the Auckland Agricultural and Mercantile Company, with a subscribed capital of £62,000, their stock-in-trade, goodwill, warehouse, and entered in vessels being sold to the company at a valuation agreed upon. Instead of cash, they received 5000 shares paid up to 20a each for the goodwill, with a promise that, those shares should not be transferable for five years. Those shares had no value, as the company weut into voluntary liquidation before the live year* expired. trie and Mr. Dewar had taken 5000 shares each in the company, ana they had sinepaid in to the company all their capital except four lots of land, worth under £100. The total liabilities of the old firm at that date were £1117, showing a substantial oredit surplus including the contributions of the company, of over £10 500. The company was not a success, owing to the decline in the value of merchandise, bad debts, and tbe total oollapse of the shipping trade. In January last ho bought the stock and trading plant of the company valued at £8920 on credit, and the book debts amounting to £906. His new business would have been successful nut for the contingent liability of calls. In July the liquidators of the company resolved to call up the balance of the capital, and as he knew that be could not possibly contribute anything more, he almost ceaxed to buy on credit, and finally called a meeting of his principal creditors. Ho sub mitted a balance to them, showing a profit oil the eight months' transactions of £280. The creditor* undertook to endeavour to make a compromise lor the balance of bankrupt's liability for calls, but found that this couH sot be done without the assent of the shareholders of the company, and some of them objeoted. Being unable to meet the calls, therefore, ho was compelled to seek relief in the Bankruptcy Court.