MEETING OF CREDITORS.

Otago Daily Times, Issue 21147, 3 October 1930, Page 13

MEETING OF CREDITORS.

PHILIP SCHNEIDEMAN’S AFFAIRS FAILURE CAUSED BY ILL-HEALTH. (Special io Dails Times.) AUCKLAND, October 2. A meeting of the’ creditors of Philip Bchneideman, tailor, formerly of Auck- £ bat now of Christchurch, was held r> acting official assignee (Mr G. W. Brown). , T ke . bankrupt was hot present, owing to iJI-health, but he submitted a written statement as to the cause of his failure, dule aS ° customary financial scheAfter a lengthy discussion the creditors decided to adjourn the meeting in order that the bankrupt's accountant may be examined. After that it will be for the creditors to decide whether Schneideman shall be brought to Auckland for examination, provided the state of his health permits. • The bankrupt’s financial statement showed a deficiency of £1567. The claims of the unsecured creditors amounted to * *n an( * 106 e the secured creditors to £405, the value of securities being estimated at £l4O, The only asset shown was stock-in-trade, valued at £4O. There were about 60 creditors. Schneideman, in a written statement, eaid that he came to New Zealand 23 years ago, and joined his three brothers in business as tailors in Auckland, receiving a salary of £6 a week. About 12 months after he joined the firm, the business was converted into a limited liability company with a capital of £6OOO, which was later increased to £IO,OOO. Ihe business was a successful, one-until the outbreak of the war in 1914. Owing C general suspicion that the members t be firm were of German nationality, the public withdrew their patronage, but later in - the war this wrongful impression was overcome, and the business prospered to such an extent that the turnover rose to the neighbourhood of £BO,OOO. Later, however, a slump came, and the company was caught withi £60,000 worth of stock which fell 50 per cent, in value almost overnight. The rent was increased from £25 to £55, and a debenture, holder put in a receiver. Eventually it was agreed that the company should go into voluntary liquidation, In March, 1927, some friends started his brother and himself in business in Auckland and paid them £lO a week each as managers. This business was successful at the outset, but the trade depression set in, and in the course of eight months a loss of £IOOO was suffered, and the business was closed. He then got a temporary position with another Auckland firm at £lO a week, but that position lasted only three months. Subsequently he took-a furnished flat, sold his furniture, and on the proceeds, amounting to about £2OO, he started in business on his own account as a tailor in Queen street. Just when there seemed a prospect of getting successfully established he suffered a further breakdown in health. A later venture proved, a failure, resulting in a loss of £4OO. His affairs were left in the hands of an accountant, who called a meeting of his creditors, at which it was decided that he should file his petition in bankruptcy. He attributed his failure to his bad health.