MATAMATA BANKRUPTCY.

New Zealand Herald, Volume LX, Issue 18533, 18 October 1923, Page 11

MATAMATA BANKRUPTCY.

AGENT AND DEALER FAILS.

CREDITORS DEMAND ACTION

The adjourned meeting of the creditors of Geoffrey Laurence Mahon (Mr. Leary), agent and dealer, of Matamata, was held yesterday afternoon,, the official assignee, Mr. W. S. Fisher, presiding. There were eight creditors , present. The official assignee stated that in his opinion the utmost that -could be paid was 2si 6d in the £, although it had been delieved that bankrupt possessed a property which would yield a further dividend ot Is 6d. The claims proved totalled £2058. • The auditor in his . report stated that. Mahon bad not kept his books well or completely, but they were clear, and lie believed that bankrupt had the ability to keep them properly. Bankrupt commenced business almost three years ago, and at the end of 1921 a nominal surplus of £770 was shown. By the end of 1922 bankrupt's affairs were "in a fairly bad *tate, of which he was quite aware, and there was no excuse' for his having carried on business after that date. Insufficient capital, too narrow a margin of profit and erratic > book-keeping had all contributed to hip failure.

" Private - expenditure for slightly over two years and a-half amounted to £1243, continued the auditor, and this was surely 100 much for a man . in bankrupt's financial position. In spite of this he allowed himself to drop back at the rate of about £680 per annum. ' Bankrupt, examined, admitted he had started without cnpital, but also without any appreciable debts.' : He had expected something from his father's Estate, but nothing came of it. V Creditors alleged that bankrupt had obtained credit by telling firms ci the expected legacy. They pressed for, punishment as an example to those inclined 10 indulge in loose trading. A resolution was passed requesting the official assignee to lay the facts before the Crown Solicitor with a view to prosecution. ->.''; ;■; r.-- .*■::' .'■•■•: -