BANKRUPT CRITICISED.

New Zealand Herald, Volume LX, Issue 18497, 6 September 1923, Page 9

BANKRUPT CRITICISED.

STARTED WITHOUT CAPITAL. SADDLER AT taumarunul; REBUKE by the assignee^ . Outspoken criticism of the actions of a saddler who commenced business with only borrowed money was uttered by the official assignee, Mr,' W. S. ; Fisher, _at the "first meeting of creditors yesterday in the bankrupt estate' of Richard. Allington Morphy, Taumarunui. •" The schedule showed £120 as owing to unsecured, creditors and against that were, book debts estimated to produce £70. Tot secured creditors £500 was owed, W»e value of the security, a house property at Taumarunui, being set down at £1020." Replying to the-assignee bankrupt said that when he started business on his own account 18 months ago he-had no money of his own. He borrowed £245. The Assignee: You must have known, that it would be a pretty anxious ■ time until you got. on your legs? Bankrupt: .Yes.. And that if you made anything, like a, failure the creditors on whom you were trading, would have to bear the toss?— suppose so. . Did that make you careful It-did. Questioned about the books he kept th» bankrupt said a book produced and < a bank book were his only records. The Assignee: Did you make it a rigid practice to pay all receipts into the bank ? Bankrupt: Practically. That is always the ; answer I get. '■ It means you did not pav all the money in. —Most of it went through the bank. Did you take stock to find out. how you stood?— 1 I-knew what I hacl and I never ordered above' my means. Did you .ever take stock ,so that you could put your assets and liabilities on one side?— No. 'I did to a certain .extent. ' You said you realised the position wa,s such that you would have to be particularly careful,- yet you never took stock ?— No reply. • . When did : your creditors start to take action?— They, all, came in a crash. It was December when the first summons was received ■Did it not occur to you then that you should set your house in order?— Yes, but I was so far back with book debts, and outstanding accounts that I could not do anything. •"' ■ : Did you see your solicitor ?—Yes,, and h« advised me to file. : You did not take his advice ?—No. If you had taken his advice there would have been something for the creditors but instead of that you go hanging on < and there is nothing for them.—l do not think there would have been much. Why did you not file when your stock was sold in May ? —I was in such a position that I could not do anything. ■ And so you hid your head in a hole. 1 After further discussion the meeting was adjourned. '■< .