CHEMIST'S FAILURE.

New Zealand Herald, Volume LXVII, Issue 20596, 21 June 1930, Page 15

CHEMIST'S FAILURE.

BUSINESS AT HAMILTON.

DEFICIENCY OF £BOO SHOWN.

PREMISES DAMAGED BY FIRE.

[Br TELEGRAPH OWN CORRESPONDENT.] . HAMILTON, Friday. <

A total deficiency of £BOI 7s 2d was shown in the schedule of Oswald Ernest Coombridge, a chemist, of Victoria Street, Hamilton, who met his creditors before the official assignee, Mr. V. R. Crowhurst, in Hamilton to-day. The amount owing to unsecured creditors was shown as £llO4 3s lOd, and the assets as £302 16s Bd. Bankrupt, in a statement, said he commenced business at Hamilton in May, 1928, with a capital of £3OO advanced by his'brother. It'cost him practically all this'amount to fit up the shop, and an Auckland firm started him with about £3OO worth of stock. He then purchased a second-hand car and employed a traveller on commission, but the car was subsequently wrecked in an accident. The Auckland firm which had advanced him the stock pressed for payment and insisted on his paying cash for further orders. Borrowed from Father-in-law. In July, 1929, continued bankrupt, he borrowed £IOO from his father-in-law to pay urgent accounts. Early in December, 1929, the shop and contents were badly damaged by ' fire, water and smoke, and the shop was practically closed for five weeks. • After the fire he decided to sell the business, said bankrupt, receiving a verbal offer of £IOOO, which would have paid the creditors in full. The negotiations, however, fell through. In April of this year he was forced to sell the business for £4OO. After the sale he approached his rreditors with a view to paying them the net proceeds rateably between them, his brother agreeing to stand aside in respect to the £3OO which he had advanced and the £IOO which he had guaranteed bankrupt's father-in-law. Three of the creditors refused to accept the offer and he was eventually compelled to'file. Bankrupt said he was unable to produce his books, as, with the exception of the bank pass book, they were destroyed by the fire. Custom In Outlying Districts. Questioned by the official assignee, bankrupt said be had engaged the traveller in the hope of obtaining custom in the outlying districts. The plan would

have been successful if the car had not been wrecked. The business had never paid its way. Prior to the fire he considered that the increased business over the Christmas period would just enable him to carry on. Bankrupt said he had had an interest in a cordial manufacturing business which it was proposed to start, bankrupt to be retained as manager at a salary of £6 a week and a quarter share in the profits. This scheme fell through when his creditors forced him to file. The meeting passed no resolution. The official assignee intimated that bankrupt's estate would pay between 4s 9d and 4s lOd in the pound.