NOT SATISFIED

New Zealand Times, Volume LI, Issue 11739, 29 January 1924, Page 7

NOT SATISFIED

WITH BANKRUPT’S BOOKS CASE MAY BE SENT ON TO GROWN PROSECUTOR. A GROCER’S FAILURE. A meeting of creditors in the assigned estate or Alfred E. Webb was held before Mr S. Tansley, Official Assignee, yesterday. Mr W. B. Brown appear ed as counsel for the bankrupt, and the only creditor present was Air Aloore, of Moore, Wilson and Co. BANKRUPT’S VERSION. In a prepnred statement Webb said that he was a married man and had three children. In August, 1022, he started in business as a grocer at Newtown. It was his first business venture. He had no capital, but a relative advanced tbe money, for which Webb wa6 to pay 6) per rent, interest. He paid £172 for the stock, £126 for the fittings and £BO for the goodwill. He took the premises for a term of five years at a rental of £4 per week. In the beginning of December lie realised the business was not paying. He got behind with liis payments, but looked forward to the Christmas trade to help him over. In that he was disappointed. In January Moore, Wilson and 00., issued a summons agaiust him to which he confessed judgment. Subsequently a meeting of creditors was called, and all but Moore, Wilson and Co. were represented. The position was put before them and a deed of assignment was approved and signed by all present. Next November Aloore, Wilson and Co. launched a petition in bankruptcy against him, and succeeded. “AfY UTTER INEXPERIENCE.” “I attribute my failure to my utter inexperience in the grocery trade,” Webb said, “and to the fact that at the time I started various stores were opening who were evidently in a position to sell their goods cheaper than I could purchase them. I have no assets, and I am unable to make at: offer.” The unsecured creditors were sa.iu to have £B7 due to them. Messes Moore, Wilson and Co. were the only unsecured creditors. Mr Brown said the composition that. Hal been arrived at bad l-e'ome abse lute, because of the lapse of the three months of time stipulated in tbe Act. The assignee differed [rom Mr Brown, and said the only thing to do was for him to procure on independent opinion. CUT-THROAT COMPETITION ALLEGED. Webb assured the assignee that he had not drunk nor gambled, and that he had looked after what business there was. Mr Brown said the failure was due purely to Webb’s inexperience and to his having set up as a grocer whon Wellington was going through the hardest time in its history for people in that line of business. He was in competition with men who were selling certain lines cheaper than he could buy them. The assignee said the books Webb presented were not satisfactory. He thought an explanation was due to Mr Moore as to what had become of tho money.

It was resolved to have the books reviewed by an accountant, with the idea of referring the case to the Crown Prosecutor.