BANKRUPT ENGINEERS.

New Zealand Herald, Volume LX, Issue 18585, 18 December 1923, Page 7

BANKRUPT ENGINEERS.

BUSINESS AT D EVpN PORT. "UNSUCCESSFUL PARTNERSHIP.. « QUESTION OP SHOP WORK.- . A meetiif# of creditors in the bankrupt estate :of Hcsband ■ and • Coleman, engineers, Devonport, was held at the office of the official assignee yesterday, Mr. W. S. Fisher presiding. A statement furnished by F. B. Husband showed that the sum of £403 was owing to unsecured creditors, with assets valued at £227, leaving a deficiency. of ; £176. . Husband stated that last June, he took . a position on wages in order to lessen expenses, and an audit taken at that'time showed the firm to be solvent. ' ■ * ' ' t The" principal feature of yesterday's meeting was the examination of ' Cyril Arthur Coleman, who had furnished no formal statement. Coleman stated . that he had a considerable amount of engineering experience at the Government works at Cockatoo Island, Sydney, and after coming to New Zealand, was for two years in business at Te Awamutu. This venture was unsuccessful, and he assigned the business to his creditors. He entered into partnership with Husband last December, when they purchased a garage at, Devonport. Coleman put no money into the business, but attended to the mechanical side, and knew very little of the books. The figures submitted by Husband as showing the firm was solvent when he left the business in June were correct. Business was falling off at that time, however, and it decreased still further, expenditure being increased by rent for a building not jn use, and by necessary electrical installations. - In August, Coleman engaged an accountant to go through the books, , and, valuing the stock and plant at £170, found there was a small credit balance. , The official assignee questioned Coleman's valuation, which was based on what the stock had cost, stating that an indei pendent valuer had estimated it at £85. This, he said, might not have been the ! full value of the stock, but was probably aU it would fetch at a forced sale. In reply to Mr. Fisher, bankrupt said his reason for not taking his creditors into his confidence sooner, , was that business always picked up wheri summer set in. He had also expected to receive financial help which did not materialise. He had done his best to improve the plant when he( found he was in . difficulties, and so add to the assets. One of the creditors stated that businss had gone back £150 from the end of August until November. After deducting the sales of benzine, it appeared that . bankrupt had done only about £20 worth of work in the shop during September. - ( Another creditor asked that the fullest investigation of affairs should be made. "It is something disgraceful, the number of bankruptcies in the . trade," ho said, " and if there is anything not over and above-board, it should be brought to light." .. . J .;. '- " The meeting wa% adjourned in order that a complete statement of accounts and of work done from June to date of bankruptcy might be obtained.