CONFECTIONER'S LOSS.

New Zealand Herald, Volume LXIII, Issue 19320, 6 May 1926, Page 12

CONFECTIONER'S LOSS.

DEBTS CAUSE BANKRUPTCY. START ON BORROWED CAPITAL. ft BUSINESS AT TAUMARUNUI. Details of an unprofitable confectionery business at Tauinarunui wore recounted to the official assignee, Mr. W. S. Fisher, at an-adjourned meeting of creditors yesterday. The estate was that of Allan Wackrow, represented by Mr. Ferguson, and there wer-V about eight creditors present. The first meeting was held at Taumarunui in April. According to the schedule, the liabilities totalled £1298 and the assets £1225, of which £750 represented the value of the stock. An independent expert valuation, however, put the worth of the latter at £477. There was one seemed creditor, whoso claim was for £3BO.

In his statement., bankrupt said he purchased a confectionery and greengrocery business at Taumarunui in May last for £259,- being the value of the stock. He then had about £47 left. The weekly rental was £2 15s. For tho first three months the enterprise did well, but with the coming of spring and summer business fell off. Bankrupt went out and hawked fruit and vegetables, while his wife attended to the shop. Then in the New Year he received 12 judgment summonses, and was obliged to file his petition. For a while he worked for a Taumarunui contractor, but he was now without employment. Examined by the official assignee, bankrupt said ho had no previous experience in the confectionery business. He started with £3OO borrowed from his father. One of tho creditors computed that bankrupt's loss since the time he started the business was £l6 per week. A small committee of creditors was appointed to act with tho official assignee in realising the assets. The committee was also authorised to consider tho bankrupt's conduct generally. A BANKRUPT PLUMBER. TRANSACTIONS IN LAND. Unprofitable dealings in land were alleged to be the cause of the bankruptcy of Daniel James Townsend, plumber, of Kingslan'd. The case was heard before the deputy-official assignee, Mr. G. N. Morris, at a meeting of creditors yesterday. Mr. Biernaf'ki appeared for the bankrupt and Mr. Wyatt for the second mortgagee. The schedule showed the sum of £209 owing to unsecured creditors and £Boo to secured creditors, for whom there were securities amounting to £9OO. Assets totalled £75, leaving a deficiency of £134. Bankrupt explained in his statement that a debt war first incurred in 1919 with the purchas"* of 100 acres at Pollock, in the Waitnrn, district, Manukau. The price was £325. of which £25 was paid as a deposit and the balance taken out in a mortgage to the petitioning 'creditor. Bankrupt subsequently ascertained that the Government valuation of the land at that time was only £4O. In 1921 he exchanged the property for a section in tho Franklin district.'on which there was a mortgage of £IOO, and later he had exchanged that property for a motor truck. His house he had bought three years ago frr £IOOO, paving £l5O as deposit, leaving a £oso Government mortgage and a £SOO second mortgage. Interest to the amount of £8 15s was owing on the second mortgage. Mr, Biernacki said it was a _ case of absolute misfortune, and that if bankrupt were left, alone he would, find the money.

Mr. Wyatt also offered bankrupt his sympath\. ' The meeting lapsed as there was not. a quorum.