A GEOCER'S FAILURE.

Otago Daily Times, Volume 13696, Issue 13696, 12 September 1906, Page 3

A GEOCER'S FAILURE.

ORUSHED BY THE COUPON SYSTEM. A meeting; of creditors in tho estate of Campbell M'Naughton. labour agent, of Dunediii, was ho'.d at the offlco of the Official Assignee (Mr C. C. Graham) yesterday afterncob. Representatives of tho. following unsecured creditors were present:—Hackerras and Hazlett (£l9 -Js 3d), Scott. Bros. (£22 13s •Id). Neil! and Co. (Ltd) (£3B 2s lOd), Ncilson and. Muir. It. Wilson'nad Co., W. M'Connell. Mr Elmslie (representing;the,'bankrupt) was present, as was also the bankrupt': The statement of affairs showed. Total. d,ebfs, £143 3s Hid; assets, £77 15s 4d; 'deficiency, £65 8s Gd..' Included in the assets were- Stock-in-trade, £35.19s 2d; book debts.- £10; cash (in tho hands of Mr A. C. Uanlon), £11 10s 2d; furniture, £'20.'

The bankrupt accounted for his failure by Ihe statement that between November, 1903. and January, 1904, he was out .of'work. As » last resource he purchased a small grocery business in Dundas street. The stock was valued at £10, which amount was lent to hinT by a relative in order to give liim a start, and Messrs Mackeiras and Hazlelt agreed to supply him with goods on the usual tenn,s. When his first account became'due he was unable to pay it, mid had to borrow from his relative.another £10.. The business never paid, and he soon, found thai it cost him more to.live than he was earning out of the business. However, in tho hope that tho business might bo made to pay, ho ■ still struggled on. In February of this year, there being no improvement, he, put the business in the market for.sale. Messrs Mackerras and Hazlott took possession in July, and, he believed, sold it to.someone else; they sent him a credit, note for the amount oI stock taken by theiu. In consequence of this he called a private meeting"of his creditors. This .was.ho'.d on 3rd. August, and the following resolution was unanimously carried:

" That ilie" estate bo handed to Mr Hanlou to realise-, aud divide between the creditors pro tfttti, the amount to be received by the creditors in full satisfaction, uprbi tho understanding that Messrs Mttckerrnsl and Hailett handed over the amount realised from stock by them—£ls 19s 2d,—if not, M'Naughlon to file." Messrs Mackerras'irad Hazlett refusing to hand over the value of the stock, he had no option but to tile.

Messrs Muckerrus and Hnzlolt's representative submitfed a statement made by the bankrupt to Mr-Mackerros in May last. This statement—admitted by M'Xaughton to have beon wade—was to the effect that he had at that Utile sufficient, with stock and book debts, to show u surplus of £33. Bankrupt's explanation of this was that ho had evidently considerably over-valued his slock.

Messrs Xeill and Co.'s representative stated that in August last M'Xanghton made that finii nn offer of J>lfl, and staled thai bis book debts were sufficient to enable .hint to pay all his creditors 20s in tho pound. This statement bankrupt denied having made. .

Mr Emslio ponded out that subsequent to the statement made io Muckems and Hazlclt by M'Kanghton, tho Intler' collected £25 cl tho book debts, and paid (his s,uni over to that firm, reducing his debt with them from -£75 to £50; he also collected-and paid away a second i'2s. and there was still a considerable sum owing. Bankrupt remarket l , that bis business went down steadily utter the introduction in tho grocery 'trade of the coupon system. The Official Assignee said he would have the bankrupt's books thoroughly investigated, am \ would consult with the creditors

in rogatd lo the advisability o( calling another meeting. Tho estate • would, he thought, realise- 03 in the pound. The meeting was then adjourned sine die.