BANKRUPT DAIRYMAN.

New Zealand Herald, Volume LXVI, Issue 20243, 1 May 1929, Page 16

BANKRUPT DAIRYMAN.

TAKAPUNA BUSINESS.

"HAD DONE NOTHING WRONG,*; Losses incurred in the Sunny Brae dairy business, Lake Road, Takapuna, were responsible for .(he appearance before creditors yesterday of John William Newell, dairyman. The schedule showed; £247 owing to unsecured creditors, the assets comprising book debts and cash in hand amounting to £64. The deficiency was £lB3. In a statement, bankrupt said he and his wife had had a struggle from the beginning. They took over the business in March, 1928, the purchase price being £650. Of this £350 was paid down, the balance to bo paid in two instalments of £l5O each, the first in December, 1928, and the second in December, 1929. They were unable to pay the first instalment, and fell behind with payments for rent, which amounted to £4 a week.

A motor van used in connection with the business proved very expensive, running costs being too' much in proportion to the profits of the business. Finally, the concern was advertised for sale at £650. It was sold for £475, but a little later £6OO could have been obtained for it, enabling them to meet all liabilities. Questioned by a creditor, bankrupt admitted giving away cream to certain customers at Christmas. He admitted this cream had not been paid for. " I used my discretion," bankrupt added. "I adopted this scheme with a viow to increasing my business, and I think it had the desired effect."

The deputy official assignee, Mr. V. R. Crowhurst, said as far as ho could seo bankrupt had dono nothing wrong. Every item of his expenditure seemed to bo accounted for.

Creditors passed a resolution that the facts of tho caso should bo put in tho hands of tho Crown solicitor, chiefly for an expression of opinion regarding bankrupt's alleged neglect to keop books.