INDENTOR OF FOOTWEAR.

Otago Witness, Issue 3882, 7 August 1928, Page 77

INDENTOR OF FOOTWEAR.

CAUGHT BY THE SLUMP.

BANKRUPTCY PROCEEDINGS.

CHRISTCHURCH, July 31. “Had the bankrupt had another fortnight he would have been a wealthy man to-day,” said Mr J. Mawson Stewart at a meeting of the creditors to-day of Archie Mitchell, an importer, of 15 Naughton terrace, Kilbirnie, Wellington. Mr Stewart said that in 1922 the bankrupt had been given a lot of orders by reputable firms in Christchurch. He went to Australia and bought about £40,000 worth of footwear. Just then the slump came, and the orders .vere cancelled. HL Mitchell had another fortnight he would have bee'n a wealthy man to-day. Mr Stewart added that he well remembered selling, with Mr Tosswill, £40,000 to £50,000 worth of footwear for Mitchell at 5s in the £l. “As soon as the slump came any reason at all was good enough to cancel orders,” he said. The deficiency was shown at £2992- 5s 2d. The amount owing to unsecured creditors was set down as £3339 18s 9d, and the amount due to secured creditors was £364. There was also cash in hand totalling £lll 13s 4d, and a property at Osborne terrace, New Brighton, valued at £6OO, less a mortgage of £364. The unsecured creditors were Arthur Berry, Strayen road, Riccarton, £1573 14s 9d; William F. Evans, 254 High street, Christchurch, £650; Robert B. Holmes, Hastings, £250; Ernest D. Johnston, Palmerston North, £130; Herbert Gresham, 747 Colombo street. Christchurch, £9B; and North Big River Mines, £ll3. The only secured creditor was Messrs Ford and Hadfield, to whom £350 was owing. Prior to the slump of 1922 the bankrupt was the largest shareholder in Messrs A. Mitchell and Co.. Ltd., said Mitehell in his sworn statement. Through the slump the firm w'as wound up. He commenced in business again as Indentors (Footwear) Ltd., and carried on until October, 1925, when Mr R. J. Penrose and his son made arrangements with him to form a new company, to be called Messrs Mitchell, Penrose, Ltd., which was to acquire the assets of Indentors (Footwear) Ltd. The new company had £5OOO capital, of vhich 2500 shares we > held by Mr J. Mawson Stewart, who was winding up the affairs of Indentors Ltd. In November, 1926, he held a private meeting of creditors, and made an offer to pay at least £lOO per annum until all the creditors were paid in full. This offer was accepted by all, including Mr Arthur Berry, the petitioning creditor, who agreed to act with Mr Stewart as a trustee. Mr Berry had been paid back £2OOO of his original loan and interest at the rate of 10 per cent, per annum. The official assignee (Mr A. W. Waters) said that besides the assets set out in his statement the bankrupt held some mining shares which might be worth something. The total amount owing to creditors would be in the vicinitv of £4OOO.

In reply to a creditor, bankrupt said that his debts in December, 1925, were about the same as they were now. Mr W. T? . Evans moved—“ That it be a recommendation to the official assignee to facilitate Mr Mitchell’s discharge.” Mr Stewart seconded the motion.

Mr E. A. Lee, who represented Mr Berry, moved that the matter be held up pending Mr Mitchell making a direct offer.

The official assignee ruled the amendment out as a direct negative. The motion was then carried, the only vote recorded against it being that of Mr Berry. No other motion was put, and th e meeting concluded.