TAXI VENTURE FAILS.

New Zealand Herald, Volume LXV, Issue 19952, 22 May 1928, Page 13

TAXI VENTURE FAILS.

BANKRUPT TOBACCONIST. BUSINESS AT TE AWAMUTU. COMPETITION AND CREDIT. [BV TELEGRAPH. OWN CORRESPONDENT.] HAMILTON, Monday. An unsuccessful taxi-car venture was given as the cause of the bankruptcy of Samuel Henry Dwen, tobacconist and taxi proprietor, Te Awamutu, who met his creditors to-day. Mr. J. H. Robertson, official assignee, presided. Bankrupt's schedule showed debts totalling £2146, of which £726 was due to unsecured creditors, and £1420 due to secured creditors. Assets were valued at £2571. A nominal surplus of £435 was disclosed. In a lengthy written statement, bankrupt said he had been carrying on business as a tobacconist in Te Awamutu for 21 years. In 1915 he employed a returned soldier as a taxi driver. The man was not a success so he took over the car himself and put an assistant in charge of the shop. He purchased several cars and employed men to drive them. Competition became keen and he was compelled to put off several drivers. He sold two of the cars at a loss. The tobacconist business fluctuated a good deal, and two months ago lie realised it was not paying. Bankrupt stated that he owed his brother £2OO which went into the tobacconist's business a few months ago, and that he owed his son £74. This money was spent on painting his house. Book debts in connection with the taxi business were numerous, and he admitted he had been lax* in this respect. He also admitted that the shop had not been looked after as it might have been. In answer to the assignee, Dwen admitted that ho had been unwise in allowing credit to natives and others for taxi hire for a period extending over several years. He did not go into his position until two months ago, when he first realised he was not making headway. Several local residents were permitted to go behind the counter and help themselves to goods, but he knew and trusted these people. He denied, however, that the system employed in the shop was lax. Bankrupt estimated the shop and saloon turnover at £SO a week. He took an average of £lO from the taxi service. The official, assignee considered the position was unsatisfactory. The business was apparently paying a year ago, and suddenly money, began to be lost. Bankrupt denied permitting bookmaking in his saloon. He also denied having held wild parties in the saloon, and that he had sent remittances of money to friends. Bankrupt was requested to submit a detailed statement showing his receipts and payments during the last twelve months. The official assignee's action in selling the business for £175 was approved and he was asked to realise on the remaining assete.