ANDREW, SONS' AND CO.'S BANKRUPTCY.

New Zealand Herald, Volume XXXIX, Issue 12074, 18 September 1902, Page 7

ANDREW, SONS' AND CO.'S BANKRUPTCY.

) THE SWORN STATEMENT. Yesterday, before the official assignee (Mr. i John Lawson), Wm. MeCabe, partner in the > firm of Andrew, Sons, and Co., 'bus pro- , prietors, etc., made a sworn statement in 1 bankruptcy on the firm's behalf. He said he 1 was associated in partnership with Frank ' Andrew, Henry Andrew, John Andrew, J Frank George Andrew, and Harold C. Fen- ' ton, in March, 1899, under the style of Andrew, Sons, and Co. Grig alter the other ' Jus co-partners retired from the business until April, 1902, when D. C, Fenton and himself s were the only members left, and they had carried on the business since that date. The 1 only payments made to any of the retiring partners wer» £50 each to F. Andrew and H. Andrew. In March, 1899, the assets of the ; business consisted cf certain coaching plant, etc., taken into the business bv the Andrew ; family on premises at Otahuhu 'and in Elliott--1 street, and other coaching plant, etc., bought from Wm, Paterson. The value of the stock taken into the business by the Andrew family was £2871 18s 6d, and the purchase price of stock bought from Paterson was £5979 5s lOd. •This latter amount included the goodwill of the business, which was valued at £500. In (he purchase of Paterson's stock the firm paid a deposit of £500, and gave'a bill of sale over the stock purchased to secure tho ■ balance. Towards the end of 1899 the firm purchased a .small plant belonging to one Todd, for which they paid £500 in cash. On December 15, 1900, they bought out the business and plant of Mrs. Parker for £916 Is lOd, Mr. Paterson finding the money and taking a bill of sale us security. This bill of sale lie understood covered the whole of the firm's then plant, and was expressed to be made in consideration of tho sum of £+729 5s lOd then owing, and £902 18s lid thou advanced for the purchase of Parker's business. About October, 1899, being in want of money, Mr. Paterson guaranteed the firm's account at the Bank of New Zealand to the extent of £2500, receiving as security a bill of sale over the plant taken into the business by the Andrew family, and valued at £2571 18s 6d. At the date of the firm's bankruptcy they owed the bank £257* 2s 3d, and he understood that Mr. Paterson had since paid the amount. hen they bought over Paterson's plant it required renovating, and from March 20. 1899, to' December, 1901, they spent fully £1400 in repairs, etc. In addition to that they made the following payments to Mr. Paterson:—March 20, 1900, £750: March 20, 1901, £300; April 13, 1901, £200; May 20, 1901, £100; .Tune 17. 1901, £150: July 2, 1902, £100: total, including the £500 paid for goodwill, £2100. Besides this they paid about £1000 for interest to Mr. Paterson and the bank. On October 1. 1901, they sold part of their plant and business to Wise and Company for £1000. Mr, Patersop consented to the sale and received the whole of the purchase money. The sale included 53 horses, five 'buses, four trsjis. harness and a. lot- of sundries. On May 20, 1901, they sold a further part of their plant and business to Andrew and Lloyd for £641 0s 6J. -• Mr. Paterson consented to the sale and received the whole of the proceeds. The sale included eight horses, steam engine, chaffcutting plant, etc. A parr of this plant was covered by the bill of sale given to secure the bank overdraft, but none of the proceeds were applied towards reduction of same, although the firm was -paying 6 per cent, to the bank and only 44 per sent, to Mr. Paterson. On December 1, 1901, the firm sold a further portion of the plant and business to F. T. and 11. R. Andrew for £57?, 10s. Mr. Paterson consented to the sale and received the whole qf the proceeds. This sale included 20 horses, four 'buses, one brake, two buggies and a lot of sundries. The whole was covered only by the bill of sale to secure the overdraft. On May 5, 1902, they sold tTieii liverv plant to George Lorain for £1293 15s 6d. Mr. Paterson consented to the sale and received the whole of the proceeds, but as the firm was in arrears in rents and interest they only-re-ceived credit for £1130 5s 6d, as against the bill of sale. He understood the firm's position with Mr. Paterson to be as follows: — Debtor to purchase price, £5979 5s lOd; Parker's business. £902 18s lid: total, £6882 4s 9d; creditor by cash, £500: payments on account, £1600: Wise and Co.. £1000: Andrew and Lloyd, £641 0s 6d; F. G Andrew and another, £522 10s; G. Loram. £1130 5s 6d: total, £5443 16s. This left a balance of £1438 8s 9d. In addition to this there was also Mr. Paterson's liability on the bank guarantee, which, on September 8, 1902, amounted to £2574 2s 3d, and was then paid by Mr. Paterson to the bank. Mr. Paterson also guaranteed payment of a total sum of £350 to Messrs. J. B. Macfarlane and A. S. Paterson, and also held a promissory note from the firm for £50 for money paid by him to Andrew Bros, at, the firm's request. This would fall due in a month's time. They also owed Mr. Paterson £458 16s lOd for horsefeed. For some time past the firm had felt that their connection with Mr. Paterson had become so involved that they consulted their solicitors with a view to having everything put on a satisfactory footing. Application was frequently made for an account, and this was promised, but not carried out until after Mr. Paterson had served upon the firm a formal demand under his bills of sale and taken possession of everything, which he did on September 5, 1902. As a matter of fact Mr. Paterson put a man in possession before the demand was served upon them. (Demands produced). When Mr. Paterson guaranteed the bank overdraft he made it as a condition that the firm's books should be kepi by Mr. Fordyec, his clerk, at a salary of £4 "per week. This position was continued from October, 1839, until June, 1902, involving an outlay the firm would otherwise have saved. The firm had in all 43 unsecured creditors, whose total claims amounted to £1761 10s 7d. Their assets consisted of stock-in-trade, £3280 19s; book debts, £305 5s 7d (good for £200); office furniture, etc.. £31; leasehold premises, £50: total. £3611 19s. With regard to the securities held by Mr. Paterson, under which was owing £4012 lis, there seemed to be no doubt as to how much thereof he would have a first claim for on realisation of the securities. Since the firm commenced business thev had only had a bare living out of it, their actual drawings not having exceeded £2 10s each pel week. The first meeting of creditors will be held at the office of the official assignee on Friday afternoon next at half-past two o clock.