AGENT'S BANKRUPTCY.

New Zealand Herald, Volume LIX, Issue 18173, 19 August 1922, Page 11

AGENT'S BANKRUPTCY.

CREDITORS DISSATISFIED, SECOND FAILURE SINCE 1913. FURTHER INQUIRIES DESIRED. I A meeting of creditors in the bank- • rupt estate of James Thomas CasTey, of • Auckland, indent agent, was held yesterday at the office of the official " assignee. Mr. W. S. Fisher presided. Liabilities. were shown to be £1956 6s > 6d, all owing to unsecured creditors. The i assets were placed at £449 \Bs 2d, the chief items being book debts, £310 9s i 8d and furniture and fittings, £138. There was thus a deficiency of £1506 18s 4d. 1 In a signed statement, bankrupt said • he commenced business as a soft goods broker in Auckland in 1915. About three years ago be became agent for a Sydney firm and acted in that capacity till last November. The firm was then indebted to bankrupt to the extent of £960 for commission and part expenses. Of that, sum £260 was paid and bankrupt was, compelled to accept the agencies of «>me American firms as payment for the balance. These firms now owed him about, £300. Owing to the depression in the' soft goods trade during the last two years and the instability of the market bankrupt had been unable to make .sufficient sales to carry on. He attributed his failure to these conditions, to the loss of the commission mentioned and to laok of capital to tide over a period of stringency. Examined by the official assignee, bankrupt said he started purchasing goods on credit about 1916, when he was in a good position. He had half-yearly statements prepared by a book-keeper, but could not now find any, of them. About 18 months ago bankrupt discovered he could not pay his debts and explained his position to the largest creditors. He had no fixed amount of withdrawals, but paid accounts as he received the money. Since May, 1920, his withdrawals amounted to £648. During the last two years he had purchased no goods on credit for trading purposes. He admitted he had been through the bankruptcy Court in 1913He had subsequently received his discharge. The official assignee said certain matters required explanation. This was the second time tho bankrupt had failed to meet his obligations. He had started business without adequate capital and, in July, 1920, he had found he was £1300 behind. Instead of meeting his creditors at once the bankrupt had waited two years and had very little to show in the ■way ,of assets. " ) Dissatisfaction was expressed by some of the creditors in regard to the bankrupt's statement, which they considered gave no satisfactory explanation of where the money had gone. A resolution was passed that upon funds becoming available the official assignee have the bankrupt's account books investigated with a view of ascertaining how the present deficiency had been brought about.