"LIVED IN THE CLOUDS."

New Zealand Herald, Volume LXI, Issue 18894, 17 December 1924, Page 14

"LIVED IN THE CLOUDS."

PORK BUTCHER'S FAILURE.

'unsuccessful ventures.

ORDERS SUDDENLY STOP.

The bankruptcy office was filled to capacity yesterday morning at a meeting of creditors of Leopold Conrad, pork butcher. Mr. W. S. Fisher, the official assignee, presided-

The amount owing to unsecured creditors was set out as £1167 14s Id, and. to secured creditors £344 16s Bd. The estimated value of securities was shown as £400. The total assets were stated to be £588 8s 6d, made up of stock-in-trade £20, book debts £53 5s 2d, plant, ceo, £480, and surplus from securities £55 3s 4d, making a total deficiency of £579 5s 7d.

Bankrupt attributed his position to a sudden stoppage in the demand for orders, and also to unsuccessful shop ventures. He stated that in August, 1923, he undertook to supply a small goods establishment in Queen Street with all its requirements, and in order to do so bad to considerably increase his plant, and hands. Ho continued to supply the now customer until January, 1924, when orders were suddenly cancelled. At that time lie commenced business in a shop in Customs Street, enabling him to retain his staff and plant. After paying for alterations and advertisements lie carried on there for six months, but did no good. He held on, thinking things wotjld improve, but they became worse, and, he was compelled to close. During the whole of tho time from August, 1923, to the time of closing the Customs Street shop, his wages account was very high. He worked very hard and never spent money recklessly. Loss o;i Shop Supply.

Mr. Fisher put bankrupt through an extensive examination. In reply to questions, bankrupt stated he had had wide experience in the pork butchery trade, having been at it all bis life. Before he commenced supplying the Queen Street shop he carried on business in Karangahape Road. Before be went in to the supplying venture ho knew he owed money. "He valued his plant at much more than £480, the amount of the value placed on it. Mr. Fisher: Do you not think you have been living in the clouds ?—Yes, I have lately. Bankrupt stated he had no arrangement in writing with the man he agreed to supply in Queen Street. Mr. Fisher: If you do those sort of things you have to pay. You realise hi* is under no obligation to you ?—Yes. Bankrupt said he lost about ill per week over the Customs Street shop. The takings started at £40 a week and went down to £17 and £18 a week, owing to the alleged bad position of the shop. Heal Position Not Known.

Mr. Fisher: Why did you keep on when you knew you were losing ? — I really thought the business would improve. I did my best. Did you make out any balance-sheet when you entered into the Customs Street shop ?—No. Then you have not known your real financial position since you have been in business ? —Practically, no. Creditor: Wo all understood you were going along well in Karangahape Road until you made this plunging Queen Street speculation. Bankrupt afro admitted that from Angust to October of this year he carried on business in a shop in Victoria Street, but stated it was a dismal failure.

Mr. Fisher criticised bankrupt for not having brought cash books along with him showing his financial transactions. They could do nothing more until they were produced. Bankrupt promised to supply them. It was finally decided that the official assignee should be empowered to procure the services of a competent account ant to go into bankrupt's position and report to a committee of creditors. A quantity of hams and a piano are to be disposed of at the discretion of the official assignee.