COMPANY MANAGER’S BANKRUPTCY

Otago Daily Times, Issue 21357, 10 June 1931, Page 13

COMPANY MANAGER’S BANKRUPTCY

AN UNSATISFACTORY POSITION A meeting of creditors was held yesterday afternoon in the bankrupt estate of Olof Wilfred Magnus, formerly of Pembroke, and now of Christchurch, company manager,. The official assignee (Mr J. M. Adam) presided. The bankrupt owed £209 16s 6d to unsecured creditors and had no assets. The principal creditors were as follow; —J. Walker (Alexandra), £4O; D. A. Jolly and Sons, Ltd. (Pembroke), £3l 6s 2d; James Perrow (Pembroke), £ll 16s 8d; Paterson and Barr, Ltd., £l3 9s 3d; Dr A. H. Emslie (Pembroke), £lO 4s 6d; Farra Bros., Ltd., £l4; C. L. Caldwell (Omakau), £l3 Os Bd. The bankrupt, in -a letter to the official assignee dated May 25, said that his wife had had a considerable amount of illness during the past few years, and this had involved him in a large amount of expense. His father had also been ill for some time, and during the winter of 1930 he and his three children had been ill. In April of last year he had taken over the business known as the Lake Wanaka Ferry Service, Ltd., paying £249 as a deposit on 2449 £1 shares, 8 per cent, interest to be paid on the balance. He had gone into the company on the strength of the previous year’s balance sheet, which had shown a turnover of about £2OOO, and only Is in bad debts. During his 10 months in the business he had found that he had numerous bad debts, the takings amounting to only £BOO. He had decided to let the company fall into the hands of the mortgagee and had walked out with nothing. At present he was destitute and solely dependent on the unemployment relief scheme. The bankrupt did not attend, the assignee stating that he did not have sufficient means to travel from Christchurch. On his adjudication he had apparently not received the summons. At a meeting held at Cromwell it had been supposed that he had left New Zealand, but inquiries had shown that he had certainly not done so under the name of Magnus. It had also been supposed that he had a Savings Bank account, but inquiries had. shown that his only bank account was one in his own name at Cromwell, Unfortunately, an affidavit filed by the petitioning creditor had misled the assignee. Less than a month ago the bankrupt’s wife had had a motor car. After the assignee had given particulars regarding the debts, Mr J. W. Thompson, who appeared for several creditors, said that no reference had been made to the sum of £2OO due in unpaid calls. The assignee said that there was no trace of any bank account in the name of the Ferry Company. Apparently a number of the claims were in connection with the car. It was registered in his wife’s name. Mr Thompson: Apparently his wife had the assets and he paid the debts. The assignee: The position is admittedly unsatisfactory. Mr Thompson: If the car is shown to be the property of Mrs Magnus we are at a dead end. The assignee: That is so. The assignee explained that the bankrupt could not be summoned to appear before Another assignee though he could be summoned before a magistrate. It was an omission in the Act. If he could be brought before an assignee he could be questioned with respect to matters about which the creditors required information, as an assignee would know from experience what information was required. The meeting was adjourned sine die, and Mr Thomson was asked to inquire whether the creditors would find the money to pay the expenses of - bringing the bankrupt to Dunedin.