STRANGE STOREKEEPING

NZ Truth, Issue 1018, 30 May 1925, Page 2

STRANGE STOREKEEPING

Nearly £900 Deficit

"Unjustified," says the Assignee.

Chinese are not the only people who start new business when owing money on previous enterprises, according to the facts revealed at the, bankruptcy meeting of Stanley Hartnell, a storekeeper, of Puru. Bankrupt's schedule showed liabilities amounting 'to £1301, and assets were set forth. at £406, including stock-in-trade, £348, showing a nominal deficiency of £895. The bankrupt stated ' that he had a fruit business r at Thames, for three years, but sold out m 1921, when his debts were about £150. In September, 1922, he started business at Puru, when he owed £180. . " , '■■

In reply to a question by a creditor as to whether. --he did not know it was an offence under the/Bankruptcy Act to buy goods when he had no reasonable prospect of paying for them, bankrupt said he had hoped to pull up m the summer; It was essentially a summer, business, and he had found it a hard struggle m the winter. Two sections' on which the Puru premises were built belonged to his wife, and he had borrowed £200. While at Puru he borrowed £240 from his Avife, and he still owed her £90. He admitted that his wife's sections., on which the shop was built, had increased considerably, m value since' March, 1923. *He had bought a motor lorry and motor 'bus because they were essential to the, business, and he had recently bought a motor-car— for the same reason. Opposition killed the mtotor 'bus part of the business.

The principal creditor arose m his wrath and declared that he did not like the look of bankrupt's position at all, and that he was going to in^sist upon a very strict investigation. "I don't ithink it a fair thing," he protested, "that a man should order £350 worth of goods, and, almost before the debt is due, call a meeting of his creditors." This meeting was called at Thames.

T'he Official Assignee said that bankrupt should have realised before the end of last January that he should pull up, and his heavy purchases ,bn credit then were quite unjustified, as his creditors had to bear the brunt of his failure. The meeting carried a resolution demanding* a strict investigation of, bankrupt's t aff airs.