BANKRUPT DRESSMAKER

New Zealand Herald, Volume LXIII, Issue 19513, 17 December 1926, Page 16

BANKRUPT DRESSMAKER

" A SORRY BUSINESS." QUESTIONS BY CREDITORS. LOAN FROM A SHAREBROKER. The third meeting of creditors in the bankrupt estate of Mrs. Mabel Dando, formerly 1 trading as a dressmaker under her maiden name of Mabel Lawrence,, was held yesterday, the official assignee, Mr. G. N. Morris, presiding. Bankrupt, who previously had been unable to attend owing to illness, was present. Examined by the official assignee, bankrupt said she had had preyious experience of dressmaking and salesmanship, having managed a similar business for 2J, years;, making close upon £9OOO for its owner. The latter then closed down, but when bankrupt later proposed going into business on her . own account he lent her £75, With £IOO worth of furniture and fittings obtained on credit, her business was therefore loaded at the start with a debt of £175 Her friend and previous employer, from whom she had borrowed £75, later advanced her other sums until she owed him £l3O altogether, hut he took legal proceedings against her and she was compelled to repay the sum with borrowed money. Bankrupt then proceeded to explain how another woman came to have a halfinterest in the business for £4OO- She was now claiming £3OO from bankrupt's husband. The total sum owing in the estate to unsecured creditors was £6OO. A Secret Marriage. The Official Assignee: You did not disclose to your creditors that you were married in August lust. They still knew you as Mrs. Lawrence. Bankrupt: That was the name I was trading under. My second marriage was supposed to be a secret at that time. The Official Assignee: When this lady put in her £4OO you were in a rocky way financially? Bankrupt: No, I'think I was quite all right. The Official Assignee: Well, you were being pressed for money? Bankrupt: Only from that man. After further examination, Mr. Morris said he did not propose to ask any further questions owing to bankrupt's weak state of health, and he asked creditors to be as brief as possible, or he might have to close the meeting prematurely. Counsel for one of the creditors: Well, we might have a lot to say, but in view of your ruling I do not know what to do about if. . The Official Assignee: I do not mind if you handle it tactfully. Did 2Jot Know Position. Replying to counsel, bankrupt said she probably was owing another EICO when she started in business,,, in addition to the £175 mentioned. Counsel: Who is this man you borrowed from 'i Bankrupt: I think you know. A Creditor: Well, I don't know. Bankrupt gave the man's name, adding that, he was a sharebroker to. whom sue had once been engaged. . Counsel: 1 astked you at the time of your adjudication to make me a statement of your position and you gave me your liabilities. That was hopelessly out —hundreds of pounds out. You evidently did not. kno.v your position. Bankrupt:: No, I suppose I did; not. Counsel for another creditor: Some of the creditors have been paid and some have nofc. How did you distinguish between those you wished to pay and those you did not? Bankrupt: When anyone pressed ine I had to pay them. Counsel: You were carrying on business when you were hopeJessly'uniinaricial. Bankrupt: I would not have gone on if I had known I was bankrupt, bat I was given to understand I was not. Certain Creditors Criticised. The official assignee said it was evident tha.t when the lady creditor came into the business with her £4OO she was given the opportunity of examining the books though bankrupt was then hopelessly insolvent. Be had little doubt others were in the same position. Counsel: How cocoes it that Mrs. Dando owed her former employer £l3O if she made him £9OCtQ ? Bankrupt: That was what the business returned. I was working on wages. Counsel: Have we not a claim on him? I think he ought to be asked to explain the position. The Official Assignee: It is a sorry business. Quitei a number of things bankrupt has done might bring her within the law. Some dissatisfaction was expressed at the alleged action, of certain creditors in threatening bankrupt for the purpose of obtaining preferential settlement. It was stated that the petitioning creditor was partly, satisfied before the bankruptcy order was sealed, and it was suggested that certain creditors had obtained settlement of their claims by threatening to seal the order themselves. The action, designated by one solicitor as "picking the plums," was condemned by several speakers, and there was talk of "making the culprits disgorge." No resolution was passed, however, and the meeting lapsed, bankrupt offering to make regular weekly payments to redeem her debt as soon as she was well enough j to take up a new position which had been I offered to her in the new year.