MOTOR BUSINESS FAILS.

New Zealand Herald, Volume LX, Issue 18519, 2 October 1923, Page 5

MOTOR BUSINESS FAILS.

UNLUCKY COUNTRY VENTURE.

BANKRUPT'S AND CREDITORS

BOOKS TO BE EXAMINED.

■'J. A;: meeting of creditors of the bankrupt firm of Forrester and Gordon, motor 'engineers, ■ of Pukehuia, near Dargaville, was; held yesterday before ■ the official assignee, Mr. W. S. Fisher. , Only- two creditors were present, '■'. and •'■ the elder bankrupt, Colin Marshall Gordon, did. not appear. \ The statement :of the other partner, Allan Douglas Forrester, showed that the liabilities incurred totalled. £662, of Which £422 was owing to unsecured creditors; '. The only assets are '. book , debts estimated \to produce £150, and the- proceeds of the sale of the , machinery, which total £28. ■ • ; -" ; .:'::/.;; : ";" :

Forrester stated that he and. Gordon had entered into partnership early in 1922 with a capital of £175, and had .bought a garage, paying a small deposit: ' Shortly after commencing business, a motor-car was purchased on . the deferred payment system. The car had since been returned to the original vendors, as payments could not be maintained. All the . mechanical, and repair work was done by Forrester, and Gordon 'attended to the work and kept the books. The business; at first appeared to show a small profit, but considerable difficulty .was • experienced -in collecting detys. ';••'.; . On being examined by Mr. Fisher; the bankrupt stated that in his position as mechanic he was out of touch with the financial aspect of the, business, and did not fully realised the position "until shortly ✓"before the filing of the petition. >He had left the books in his partner's hands, and was not aware that they were in difficulties .until the creditors . began to press them. "Ha had; been connected with the motor trade for eight years. The garage work had kept:him fully occupied, and he could not understand how the business had failed to make headway. Early in April of the present year, it i became apparent that the garage could riot be carried on, and the partners agreed to close the business and sell the equipment. Forrester left at the end of the month, on th& understanding * that Gordon-.' would close the premises and immediately dispose of the machinery. Gordon, however, carried on the business on his own account for nearly three months. • - Tho stock when sold realised only £28, although Forrester, stated that when he left the workshop the equipment, was worth £150. The books had been handed to an accountant.; : !■■' ■',

The official assignee remarked that >it appeared that the books were very incomplete, and Gordon should be asked to, explain the situation to the creditors. "It was hard to understand," he said, "how such a small business with such an apparently small expense account had- managed to incur liabilities amounting to over~£6CM). in the short "Space of 11 months." : ; A creditor suggested -that, as both bankrupts were now in employment,,and had no dependants, they /were'. able ■? to" make substantial, restitution from their wages: y Forrester stated that he would undertake to pay 5s in the £. - ' ~".* '. ■ - Mr. Fisher said that no settlement could be made until the creditors had received Gordon's statement, v and the 'books had been examined. \ \ , '

. It was decided that la. second .meeting shoulfd be held, which Gordon, would be requested, to attend. . . > : - '■•'■''' : :': < v:; . : ' .■•^Wi:''-