IN BANKRUPTCY

Southland Times, Issue 20585, 8 September 1928, Page 3

IN BANKRUPTCY

BUSINESS MAN’S FAILURE. ESTATE OF J. A. WESNEY, A meeting of creditors in the bankrupt estate of James Arnold Wesney, conjpany manager, was held in the Courthouse yesterday afternoon before the Official Assignee, Mr J. M. Adam. Ten creditors were represented. Bankrupt’s statement showed that the total amount owing to unsecured creditors was £1,910 5/5, while the stock in trade was estimated at £564 15/9, and book debts of £724 13/3 were estimated to produce £5OO. These assets, together with £22 10/-, brought the total assets up to £1,087 5/9, making the deficiency £822 19/8. The principal creditors were Watson and Haggitt (Invercargill) £3O 3/4, Novelties, Ltd. (Wellington) £7l 7/-, Phonographs, Ltd. (Christchurch) £7l 7/10, C. H. Williamson, Ltd. (Christchurch) £59 1/1, J. and W. Faulkner (Dunedin) £B3 1/1, Meek and Coy. (Dunedin) £76 18/10, Britannia Pram Coy. (Dunedin) £24 1/3, Hedges and Coy. (Timaru) £7B 1/2, W. Dingwall (Bluff) £65, W. J. Wesney (Otautau) £39, Commercial Bank £250, Mrs E. C. Wesney £450, C. Moir (Christchurch) £235, Sargood, Son and Ewen £75, Laidlaw and Gray (Dunedin) £4O 6/9, Williamson Jeffrey (Dunedin) £36 11/4. Bankrupt’s statement read: “I commenced business on my own account on March 22, 1922, at Invercargill, borrowing the sum of £450 from my wife to enable me to start and I then gave her what I considered a security over the stock purchased by me. I purchased the business for £953 16/2, paying £4OO in cash and I gave bills payable every three months for the balance, all of which was paid by me on the due dates. “For some time after I commenced business I did fairly well, but for some considerable time now my business has been gradually going back. When I first commenced business there were only two other firms in Invercargill in the gramophone business, but now there are nearly a dozen and this has interfered considerably with my business. “I was also agent for the Edison gramophones and was compelled to take what records were issued by them and a great many of the records now in stock were what were sent me when I first commenced business. Owing to the limited number of Edison gramophone owners in Southland the sale of records was small and this accounts for a large number which I have in stock at the present time. “Owing to want of capital I was unable to replenish my general stock and this led to a considerable falling off in business as I was unable to satisfy some of my regular customers and they gradually left me and went elsewhere to do their business, I found also that I had to give too much credit which hindered me in getting further stock, and then again the instalment system of selling gramophones was not suitable for my business on account of my limited capital. About twelve months ago my wife guaranteed my account with the Commercial Bank up to £250 and gave her house as security and I thought this amount would enable me to carry on. Unfortunately it was not enough and latterly I have been unable to meet accounts when due as I was being sued by a number of creditors 1 deemed it advisable to file so that all my creditors could participate in what assets I have left.” Bankrupt, questioned by the Assignee, said he was a married man with two children. He first found himself in difficulties twelve months ago when he should have filed. He had got very little credit since then. He had no offer to make to his creditors. The creditors decided to reject an offer of £144 for the stock in the meantime, the Assignee being instructed to call for tenders for the stock and to realize on the remaining assets. A further motion was passed that Mrs J. A. Wesney, wife of bankrupt, be admitted as an ordinary creditor subject to the consent of creditors in the north. The meeting was then adjourned.