WOOL DEALER’S INSOLVENCY.

Otago Daily Times, Issue 21196, 29 November 1930, Page 10

WOOL DEALER’S INSOLVENCY.

RESULT OF PAULING PRICES. The first meeting of creditors in the e ® ta te of Sydney George Alfred Smith, of Waipiata, wool and skm buyer, waa field before the official assignee in bankruptcy (Mr J. M. Adam) yesterday afternoon, Mr A. Darling appearing for the bankrupt. The statement filed by the bankrupt showed that he owed unsecured creditors £l9O 8s lid, the following being the principal ones:—Gilmore Oil Company, Christchurch, £B7 I2s; White and Co., £29Charles Hinchchffe, £l2; Ireland and Co’ £l2 Is 2d; and the Kaitangata Coal Company, £lO 6s Bd. To secured creditors he owed £676, the estimated value of th» security being £385, which left a shortage of £295. This, with the £l9O 8s lid, owing to unsecured creditors, brought his total deficiency to £485 8s lid; there being no assets. The secured creditor was Waters, Ritchie, and Co. Being sworn, the bankrupt said that the list of creditors read out was correct. The statement read was also correct. . The assignee said that the position was that Waters, Ritchie had advanced a good deal of money against the goods. They had probably over-estimated their value. . The bankrupt’s written statement was to the effect that he was a wool claeser. He bad been employed by Messrs H, Matson and Co., of Christchurch, until 1926. In April, 1926, he joined Erie M. Bishop, of Balclutha, as a partner in the business of wool and skin dealers, operating in the Clutha district. He invested £2OO in the business, and received a one-third interest in the partnership. This was carried on for three years, and in April, 1929, the ( partnership was dissolved,-and he was paid his one-third, approximately £SOO. 1 He then commenced business as a wool_ and skin dealer on hia own account operating in Central Otago. He purchased a new Chevrolet truck for £3lO from the Clutha Motors, Ltd., for which he paid cash He lodged the balance -of £l9O in the -Bank of New Zealand, Ranfurly, for the use of his business. His system was to pay cash for goods purchased at various farms, • then take delivery, and consign fhe goods to a ‘stock and station firm in Dunedin, where they were auctioned in his behalf. From May 1, 1920, to July 19, 1929, he had sold goods through the Farmers’ Co-op. Society. During this period he managed to maintain his position. After that he transferred his trading to Waters, Ritchie, and Co., and from then, owing to the continued slump in the wool and skin markets his trading resulted in heavy loss. In May, 1930, his position was,that he owed £3OB to Waters, Ritchie, and Co.-, for which he gave security ‘ over the truck—approximately valued at £250. At that period he did not. owe more than £5 in other directions. He had discussed his financial and 'trading position with Waters, Ritchie, and, Co„ and they approved of his carrying on and agreed to advance to him on consignment the actual cost' price of the goods. He traded on this basis from May 1, 1930, to October 21, 1930. Unfortunately owing to the depressed and falling markets his position gradually became worse. H'u present position with Waters, Ritchie was that he owed £675 against which they held security over the truck valued at £2OO and held wool valued at £IBO against which they had advanced the cost price on consignment. During the period named he had incurred other debts amounting to £l9O 8s lid. The greater part ox these expenses had been incurred in respect of running expenses in connection with his business but they also coveicd certain household expenses. On November 6, 1929, be married and rented a bouse at Waipiata at 15s a week. The house was vacated in October and the rent paid up to date.' Prior to marriage he had boarded at Ranfurly at £1 10s per week. From the time he commenced business on his own account he had not periodically drawn any definite sums by way of salary but he had debited his personal expenses in his business expenses account, aa shown in his books. Since May, 1930, he had paid approximately £130,’ covering these items. On marrying he purchased one suite of furniture for £24. On leaving Waipiata about the middle of October he soy his suite of furniture to Mrs Weir for £22. against which she held a counter-claim for £l3 10s, in respect to board and lodging. Certain of the unsecured debts represented cheques that he had issued in anticipation of Waters, Ritchie making the usual- advances to the bank on goods he had railed to them. , Bankrupt said that he was now working for £2 a week and found, and he could make no offer to his creditor^, A creditor: The only thing to do is to e: yf t e matters in the hands of the assignee . The assignee: He has no assets. I<; , wa s agreed to leave the estate in the hands of the assignee.