IN BANKRUPTCY

New Zealand Times, Volume L, Issue 11652, 17 October 1923, Page 7

IN BANKRUPTCY

CABINETMAKER’S ESTATE OBSERVATIONS AT MEETING OF CREDITORS. SOME CRITICISM. A meeting of creditors in the estate of Thomas B. Stothard, cabinetmaker, of 67, Riddiford street, was held yesterday. Mr S. Tansley, Official Assignee, presided. Bankrupt was represented by Mr P. 11. Putnam, and Mr E. P. Hay represented Derbyshire (N. 25.) Ltd. In his statement bankrupt said he started business as a cabinetmaker and furniture dealer in 1921, with a capital of £4OO. Of this £350 was applied in purchase money for the business and stock. Ho managed to make a living until October, 1922, when he had to go into hospital, since when he had been in ill-health, and had been able to do little work. He then contracted influenza in June of this year, and at the same time lost his wife, after which he gave up Ids business, and endeavoured to sell it as a going concern. In September he sold up by auction, the net Tetuim being £136, out of which he paid expenses in connection with his wife’s death and other expenses, leaving a sum of £25. The statement showed that there was a total amount of £255 7s 13 d owing to unsecured creditors, while the orly asset was the sum of £25, which was handed to the Official Assignee. “MIGHT GO TO ENGLAND.” Bankrupt admitted that there was yet in the auction rooms a sideboard valued at £l7. He had a. lease of his premises, but the lessor had taken the premises over again. One of the creditors had advanced him money to return from Auckland. This was conduct money on a judgment summons. He decided to file while he was in Auckland, and afterwards accepted tho money to return. He did not toll any creditor that he was going to Auckland. He did not tell anyone in Wellington, but he remarked that later he might go to England He had always talked about going to the Old Country when he could manage it. He could not account for anyone thinking he was leaving Wellington for England when he went to Auckland. He did not get the cash out of the sale of the business he expected or he would hare been able to pay his accounts. Bankrupt said he only kept one book, showing his takings and disbursements. He had a rough day-book, but he had destroyed it. Out of the £136 he received for the auction sale ho paid £42 10s for the headstone for his wife’s grave and £6 9? for tiro enlarged photos, of her. This was shortly after his wife died.

Mr Hay: That is £49 for things that were absolutely unnecessary ? Bankrupt: My wife was the biggest creditor. She put the £4OO in the business.

You considered it proper to spend this when you knew all these creditors were unpaid?—Yes. “DID NOT CARE WHAT HAPPENED.”

Bankrupt also stated that he <sid not care what happened when the stock was auctioned, and took no account of it. He did not care what happened now. The assignee had occasion to remark that bankrupt must answer questions, and.not be cheeky.

Bankrupt said his trip to Auckland, with his child, lasted for a fortnight, and cost about £2O, in addition to £5 5s he got in Auckland to come back. He could not account for £lO he spent on the trip: He went there to try and get a home for his nine-year-old girl. He went to Auckland without telling the landlord that he was giving up the premises. Two of the creditors stated that bankrupt had told them he had a Government position to go to at £S 10s weekly. Bankrupt denied this.

A short time after this the official assignee remarked that the creditors were getting nothing out of this meeting. PROSECUTION URGED.

Mr J. W. Davys (Derbyshire (N.Z.), Ltd.) said there was a tremendous amount of crooked bankruptcy going on, and the creditors might submit that this was one case where there might be a. prosecution. There had been several bankruptcies lately where there had.been utter crookedness. He mentioned one case where a man filed, and afterwards hawked his stock round Wellington trying to sell it for himself.

Mr Tansley remarked that the prosecution rested with him. They could submit their case to the department. There were five prosecutions pending now, and if the creditors desired, this case could be named before the Crown Prosecutor for a certificate. The matter was finally left to the assignee, with a suggestion that a stepdaughter and others should be interviewed with a view to further petion.