PARTNER OR EMPLOYEE?

New Zealand Herald, Volume LX, Issue 18389, 3 May 1923, Page 9

PARTNER OR EMPLOYEE?

MOTOR MECHANIC'S AFFAIRS. GREY LYNX BANKRUPTCY. • A well-attended meeting of creditors in the bankrupt estate of James Alders Kean, a motor mechanic, trading as J. A. Kean and Company, at 221, Great North Road, Grey Lynn, was held yesterday, the official assignee, Mr. W. S. Fisher, presiding. Bankrupt's schedule showed liabilities amounting to £1327 lit- >, 2d, and assets of £1616 19s 4d, givir- ?.n apparent surplus of £289 0s 2d. The amount due to unsecured creditors was £1314 19s 2d, anß to secured creditors £839 3s 2d. The book debts, amounting to £333 Is 6d, were estimated to produce £250.

The official assignee said he had had the stock-in-trade, machinery, tools., and motor-car, valued by an expert, who gave the value at £4-11 5s 7d. as against the bankrupt's estimate of £665 2s lOd. Under examination, bankrupt stated that he started in business for himself, four years ago, .with about £20 capital, and two and a-half years later removed to Grey Lynn. He then had £609 in book debts, much of which he had collected, and he did not owe more than £250. Replying to a creditor, bankrupt said he had made an arrangement with a man to enter into partnership, and although no deed of partnership was signed, he had introduced that man a? a various people. The man was to put £500 into the business, which was understood to be coming to him from his father's estate, but the money never materialised. Bankrupt paid him £5 a week and drew a like "sum weekly. Bankrupt, alleged that the nian had admitted he was a partner, and he used to order goods in bankrupt's name. A creditor stated that they wanted to see if they could draw the man in as a partner. Bankrupt denied that'' he had been drinking heavily. He also denied that he had a racehorse. He had been offered a half-share in one. bin had refused it.

The official assignee said he could not help suspecting that bankrupt's position was partly brought about through neglect of the business.

Discussion arose in regard to * garage on bankrupt's premises. He stated that he held the premises on a verbal agreement, with 15 months still to run. To deal with negotiations arising out of this matter, a committee of two creditors was appointed to act with the officii assignee and to report later*