BANKRUPT SEEDSMAN

Otago Daily Times, Issue 23201, 27 May 1937, Page 5

BANKRUPT SEEDSMAN

MEETING OF CREDITORS A meeting of creditors in the estate of Robert Stephen, seedsman, of Dunedin, bankrupt, was held before the official assignee (Mr J. M. Adam) yesterday. The bankrupt, who was represented by Mr W. Allan, said that he began in business in May, 1923. His business was successful until the effects- of the depression became evident in 1931. The employees of the Hillside workshops were his best customers, and when 700 men were put off in batches during that year, he suffered a severe loss in business. In addition, unemployed men who had been his customers went to the relief depots for their requirements, which were supplied below cost prices, since the depots were subsidised from the Mayor's Fund. If bankrupt had closed his business in 1931, he would have come out all right, but he kept going in the expectation that things would improve. Also, he had an accident with his car, which was not insured. When his wife had to go to hospital all of his surplus cash was needed. He decided to close his business at the end of 1934. He then went to Waipiata, but had to spend six months as a resident there before he could participate in the gold subsidy scheme. This brought in £1 8s 6d a week and later. £2 a week. Out of this and the little gold he got he liquidated some debts and kept up the interest payments on his house, with rates and insurance, which worked out at about £52 a year. He tried to sell the house, but was unable to do so. When he did not succeed at Waipiata, he came back to Dunedin and was now on sustenance. The total debts amounted to £245 and the assets were assessed at £ 625, giving a nominal surplus of £3BO. The unsecured creditors were W. Hewitt (£26 19s 2d), Moncrieff and Stewart, Ltd (£6l. 4s sd), Andrew Clarke (£52 Is Id), A. Mitchell (£54 17s 6d), and W. H. Adams (£SO). To the assignee, bankrupt said that he had incurred no debts since he went out of business. His motor car was free, and his house had been on the market for a year and nine months at £llsO or a near offer. The assignee said that the creditors would not reasonably expect bankrupt to pay anything off his debts while he was on sustenance. The question whether he should have let his house while it was on the market for sale was one of judgment. Bankrupt had had offers for it but none of them was on a cash basis. The assignee read an offer that he had received, but it was rejected by the creditors. It was decided to sell bankrupt's car, to invite tenders for the house and, if nothing satisfactory were received, to offer it by auction. The assignee remarked that there was every likelihood of a reasonable dividend.