BROKER'S BANKRUPTCY.

New Zealand Herald, Volume LVIII, Issue 17828, 8 July 1921, Page 4

BROKER'S BANKRUPTCY.

LOSSES IN THE BUSINESS.

PROPERTY TO BE REALISED

The first meeting of creditors in th« bankrupt estate of Arthur Roy broker and commission agent, of An k land, was held in the office of the official assignee yesterday afternoon. Mr. T<Me attended a< solicitor for bankrupt.

The schedule showed that to unsecured \sas owing £1340 1.5s 9d, and assets were estimated at £2075, leaving a nominal surplus of £734 6 S 3d. Practical!? the only asset is a property on Pah Road Epsom, which was valued at about £5540, and on which £3500 is owing. This valui tion, however, was based on the assumption that the property should be subdivided, which would involve making 600 ft. of road and arriving at an a<-re£ men*- with the adjoining owner. The creditors refused to consider the question of subdivision, one stating that it would cost £100 a chain to make the ro3d, and they considered the position from the estimated value of the property sjld is ,± residence—£37so to £4000.

In his statement the bankrupt stated that about February, 1920, he was lent £500 for the purpose of clearing up o::e or two liabilities in respect to the pui chase of the Pah Road propertv, etc.. !t had been intended that the lender of this money should join him in partnership. The debt in respect of which Messrs. A. S. Paterson and Co. had made him bankrupt had been incurred toward the er.d of March. 1920. With the proper appiica. tion of the loan of £500, and subject to ihe busi ness continuing satisfactorilv, ihere seemed to be no possibility of bankrupt being unable to pay the " com panv While bankrupt was absent the man in question had filled in certain blank cheques Brewer had left., contrary to his wishes and instructions. The money was not returned to the business as promised. In the next few months, during which his books were kept by an accountant at the request of the petitioning creditor, i* o* amount he owed the firm wis reduced by £400. He then took into part.ners.hip Mr. 11. R. Fisher. This turned out to be a mistake, expenses being heavy and his partner, through illness and absence, being unable to do much for the business Through the markets dropping and a combination of circumstances he was unable to keep up his payments to the company. During the bankrupt's examination. Mr. H. R. Fisher said he had lost some hundreds of pounds as a result of his partnership with Brewer, most of the losses being during a period when ha wa s m hospital. It was stated that a loss of £649 had been made between September and January, this sum including the cost of opening a Christchurch office. Ihe official assignee, Mr. W. S. Fisher, cross-examined bankrupt in regard to his booK-keeping, and took exception to r? n \ trom accou nt books being sent In Bankrupt explained that his custom had been to tear out the pages at the end of each period and to continue with the remaining portion of the books. The meeting decided to take steps toward tho realisation of the property.