JEWELLERY FAILURE.

New Zealand Herald, Volume LXV, Issue 20058, 22 September 1928, Page 16

JEWELLERY FAILURE.

LOSS BY FIRE BLAMED. INABILITY TO MAKE OFFER. .V Te Aroha jeweller, William McCullay (Mr. K. A. -Sneddon), who recently filed in bankruptcy, met his creditors in Auckland yesterday. A fire last February in which lie lost stock worth between £llOO and £I2OO, and received only £6OO in insurance, his own recent illness and trade depression, which particularly affected the jewellery trade, were the reasons given by him for his failure. The schedule showed £424 owing to unsecured creditors, and assets amounting to £231, leaving a deficiency of £193. Bankrupt's statement showed he came to New Zealand from Scotland in 1923 and started in tho jewellery business at Paeroa. The business fell off as a result of a false "boom" and strong competition, and he moved to Te Aroha in April, 1927. At that time his stocks were worth £I2OO. and he owed £6OO. When he was ordered into hospital last Juno his daughter endeavoured to carry on, but she could not undertake watch repairs. The official assignee. Mr. G. N. Morris, pointed out that by his trading as "McCullay and McCullay," his daughter, who was really his clerk, had allowed herself to lie held out us a partner in the business. Bankrupt saiil ho had tried to get extra insurance on his stock, but the insurance company would not give it. The premises had been on fire threo times before. He had no safe-room. His daughter received no wages at all. He could not propose anything unless one of his creditors should give him a position. 1 he official assignee said bankrupt's mistake had been to attempt to carry on after the fire, although he had done so on solicitors' advice. A creditor expressed tho view that bankrupt's discharge should he held up for a time, and the matter was left in the hands of the official assignee. A committee was appointed to look into the matter of stock.