BANKRUPT FRUITERER.

New Zealand Herald, Volume LXIX, Issue 21114, 23 February 1932, Page 11

BANKRUPT FRUITERER.

START WITHOUT CAPITAL. "A HOPELESS BATTLE." [BY TELEGRAPH. —OWN CORRESPONDENT.] WHANGAREI, Monday. A meeting of creditors of Leonard Cyril East, fruiterer, of Whangarei, was held to-day, the official assignee, Mr. A. L. Tresidder, presiding. The file showed £932 owing to the State Advances Department, the security being valued at £9OO. The unsecured liabilities were £305 and assets £46, leaving a deficiency of £259.

The bankrupt stated that he purchased a fruit business in February, 1931, for £ll3, on which he paid no deposit. He was obliged to purchase fruit on the credit system, and he considered that this fact and excessive competition were the causes of his failure. His drawings were less than £3 weekly. The recent fire damaged his premises and stock, and with two judgment summons following it he was compelled to file. He admitted that he had issued several cheques at various times knowing that there was no money to meet them. The official assignee said that evidently it had been a hopeless battle to carry on from the beginning. Bankrupt should have placed his position before the creditors some months ago. The assignee commented on the bad practice of issuing cheques with the knowledge that there were no funds at (he time in the bank. However, there was no evidence that the bankrupt had lived extravagantly, and his books had been kept properly. The meeting passed a resolution that the report of "the official assignee should contain the creditors' disapproval of bankrupt's course in trading without capital and not disclosing his true position some time ago.