STOREKEEPER'S DEBTS.

New Zealand Herald, Volume LX, Issue 18553, 10 November 1923, Page 13

STOREKEEPER'S DEBTS.

LITTLE ORIGINAL CAPITAL.

DEFICIT OF OVER £800.

INDIGNANT CREDITORS.

A meeting of creditors in the bankrupt estate of Sfjnuel Mallett, storekeeper, of Taumarunui, was held yesterday at the office of the official assignee, Mr. W. S. Fisher, who presided. Bankrupt did not appear, and only three creditors were present.

Debtor's schedule showed liabilities to unsecured creditors amounting to £865. Against this were assets valued at £35, leaving a deficiency of £830. There was only one secured creditor, to whom was owing £119, upon j?. security estimated to produce £80. .> Bankrupt's statement set out that he commenced business in Taumarunui in 1920 as a milk vendor. In the middle of 1921 he decided to extend the scope of his business, and he accordingly opened a butcher's shop and a grocery store. He had very little capital, and practically all of the stock was purchased on credit:, At first the business appeared to make beadway, and he acquired the premised adjoining his shop for his grocery brunch. At this stage he was still solvent. In order to establish a connection i a the district, bankrupt then purchased heavy stocks of groceries, and sold them at prices which did not produce a reasonable profit. With the intention of catering tor outside customers, he bought a motorvan on hire-purchase, paying a deposit of £25. He soon found that his business 'was not paying, and he incurred heavy expense in maintaining the motor delivery. In July, 1922, bankrupt sold the grocery business for £245, and used the money to settle some of his debts. His position gradually became worse, and several judgment fcummonses were issued against him. To satisfy some of the major creditors he disposed of a greengrocery connection which Ke had established, and received £235. He retained the motor-van, and moved to Owhanga, where 'he conducted' a bread-delivery round. As his finances were then exhausted, and his creditors were pressing for settlement, he was compelled to file. Dissatisfaction with the conduct of the bankrupt was voiced by one of the creditors, who said that he had issued a judgment summons against Mallett last year, but failed to get any satisfaction. Mr. Fisher said bankrupt seemed to have ignored his creditors, and should be compelled to make an explanation. A Creditor: Ther. Is not much hope of a dividend, but we should at least secure his attendance at a creditors' meeting. Mr. Fisher : I will oppose his discharge if he does not d-jplay a little more concern for his creditors.

A resolution was carried that MaTlett should be req: ired to attend a meeting of creditors on Thursday.