BANKRUPTCY OF A BOOT IMPORTER.

New Zealand Herald, Volume XL, Issue 12457, 30 December 1903, Page 7

BANKRUPTCY OF A BOOT IMPORTER.

11 MEETING. OF CREDITORS. ll fUBTHER INFORMATION WANTED. I : jieetincs of creditors in tho estate o i'-V • J»rucs MEETING. a Queen-street .boot im FURTHER information wanted. meeting of creditors in tho estate o James Sutherland, a Queen-street boot im I-; porter, who was recently declared bankrupt I - was held at. the official assignee's office yes || rday afternoon. The official assignee (Mr I Gerard) presided, and there were also res en ' ilia following gentlemen, who represented the different creditor companies -.—Messrs. J. I Watts*(Auckland Gas Company), T. Hodgsor 1 '' (Northern Boot Company), G. Lewis (G. If Lewis and Co.), F. Winstone (W. and E. I E. J. Davis (Warren and Strong), I \V. T. Davies (W. T. Davies, Limited), A. I H.'Walks 1- (G. A. Coles and Co.), H. C. Tews- § j e y ' (Sargood, Son and Ewen), and W. J. I Scott (T. W. Boare and Co.). Mr. Skelton | (instructed by Messrs. Devore and Martin) j. appeared for the bankrupt. jjp The principal creditors, all of whom are I unsecured, are:—G. A. Coles and Co., £448 I 10s 10a; W. T. Davies, Limited, £3/0 6$ 8d; t Northern Boot Company, £179 03 9dj T. I W. Hoare and Co., £156 l?s sd; and G. | Lewis and Co., £42. Tho total liabilities ; , amount to £2705 I s 3d, while tho total as--1 sets aggregate £17 00 12s 9cl | In his statement, which was read, tho , bankrupt stated that before purchasing the Golden Eoct depot in Queen-street, in i'ebruI cry, 1902, he was in charge of tho D.I.C. boot department in Wellington. Mr. Davios (representing G. A. Coles and Co.) and Mr. F. Jagger (a partner of G. A. Coles and Co.) called upon lwm while he was in Wellington, saying that the} _ had a business for sale in Auckland belonging to a Mr. Harry Collins. He examined the business for himself, taking stock, etc., with the result that he purchased I i'd that month, February, 1902, tor £liss. lie entered into an agreement to pay £200 down I and the balance in .€SO per month instalments. £10 borrowed the £200 from a friend jn Wellington, and paid it over. He at ones saw that the business needeu improving, and so borrowed £350 from tho saino friend to make improvements, whioh he did, but ho had since paid most of the moneys back. He got more assistance from the same friend, and he had recently a summons from him claiming £100. hen ho commenced the business it was only making a profit of some £10 per week, but since then he had increased its earning capacities to £80 and £90, and" had his credit not 'been shut off ho was sure he would have pulled through his troubles. The loss was to be accounted for in many ways. He had to get clear of bad fittings, goods, etc., which he had to sell at greatly-reduced prices. The fittings and fixtures were sold to him at more than their noticeably the partition wall down 1 the shop for £100. He estimated his assets at about £1500 and his liabilities at £2000. Mr. Gerard said that the total value of the stock in the shop was £1140 14s Bd. Mr. To Wiley moved and .Mr. Davie* (seconded, and it was carried, "That tenders, to close in 14 days, be called for the stock." Some discussion ensued as to whether the creditors were entitled to any compensation oh the amounts that had been spent bv the bankrupt upon the premises, but Mr. A. H. •Walker (for Messrs. G. A. Coles and Co.) said tltafc he could not enlighten them upon that -po;nt until he saw the lease, winch he would show to Mr. Gerard in a few days. He said that he and his partner would notstand- in the way if the creditors could get * substantial and suitable man to take up the lease. . Messrs. Coles and Co., Mr. W. T. Davios, and Mr. T. Hodgson were appointed to. conMr with the official assignee in the matter of assets, and also in accepting the most euitable tender for the stock. The bankrupt, being examined by Mr. Gabriel Lewis, said that he commenced business in February, 1902, with but £30 of his own. At the time of his getting his itJtse Messrs. Coles and Co. knew that of the £200 with which he started £100 was not his own. It was only in Juno, 1903, that fee first took stock, and in consequenoo of his losses, which then amounted to some £400, he called a meeting of creditors and asked for six months' extension. At that meeting he told- his creditors that his liabilities at that date, as far as he was aware, were £128, and upon that statement an extension wa3 given him. When he started business he commenced to sell his own goods at a loss of about 30 to 40. par cent., but on his new gooas.he made- an average profit of 25 per cent, 011 colonial goods and 30 per cent on imported. His total losses on the old stock were between £400 and £500, while his profits on his new stocks since then amounted to £1700. That left him a total profit of £1200, but his working expenses during the 20 months-amounted to £1574. - The sales had averaged about £300 per month for the last six months. To Mr. Hodgson: His disbursements were partly made, by cheque and partly by cash. Since July last ho had only drawn £3 per week, but prior to that he "had drawn from £3 10s to £4 per week for himself. Mr. Gerard: I understand that you are • : ; .a racing man, are you not ? Bankrupt: No, I am not; that is just where many people make the mistake. Do you frequent racecourses ?—I go sometimes. What have teen your total expenses there ?—About £20 in all, and I have only had £5 back out of that. Continuing, bankrupt admitted that Mr. Foster had drawn up a profit and loss account since July last, so . that it might be submitted to Mr. Charles Grey, whom he 'flxpeoted to go "into . partnership with him. Between January 1, 1903, and June 15 last he had borrowed £150. £100 of which he had paid back. He admitted that his banking account during that time increased £600 above that. He.could not account for tho by exchanging cheques with his friends. When he called his creditors together in July, 1903, he told them that hi 3 total deceit was £128, but he did not know until about a week after that it was some £400 about that. He could not account for the further deficiency of £500 sinco then, and did not know how it had come about. Mr. Hodgson: Have you the cost price of • your goods marked upon them ? v Bankrupt: Yes. You also have the selling price marked upon them 'Yes. • Now how is it that you say you have only been making 15 per cent, profit' when the . selling prices marked there show 42 per cent, profit ? Some of the figures must be wrong; now, which is it '! — have' not sold any goods lately for tho prices marked upon them. Mr. Gerard (to bankrupt): I am afraid, Mr. Sutherland, that you have admitted enough here for me to make a public examination. It is a very serious affair. (To the creditors): I suggest to you that you should allow Mr. Sutherland a fortnight in which to find out whore those heavy have gone to. If not satisfactory, a public examination can then be held. Mr. Tewsley moved, and it was carried, "That the bankrupt be given 14 days in which t© explain where the deficits went to." The meeting then adjourned till the 12th Pro*'