STARTED IN DEBT

Sun (Auckland), Volume III, Issue 687, 12 June 1929, Page 10

STARTED IN DEBT

BANKRUPTCY OF YOUNG GROCER CROWN SOLICITOR TO INQUIRE Starting with a debt of £250, a grocer of Edendale Road, John Gilbert Heileur, had to file in bankruptcy in less than a year.. 'J'ODAY, when Heileur met his creditors, his counsel, Mr. R. A. Singer, urged strongly that leniency be shown, but the meeting passed a resolution referring Helleur's affairs to the Crown Solicitor for an opinion on prosecution. The realisation of the stock was left to the official assignee. One creditor, moving that the Crown Solicitor should make. an investigation. said that the case was highly unsatisfactory. "I suggest that the case is one of hardship and ignorance,” said Mr. Singer. ‘‘This lad —he is only 24 had a bare and skimpy living from the business, and he lias gained nothing. As soon as he realised his position, he did the right thing by calling liis creditors together. “I don’t know what the creditors have to gain by going on with this. The object of the motion is apparently to punish the young man in prison because of his over-buoyancy of hope. He is married and has two young children. Is it a right and proper thing to go on with the case? It will bring ignominy ancl more expense to Heileur.” A Creditor: I believed in him, but he has not been honest with me. He should have stated his position earlier. The motion was carried unanimously. NOT ENOUGH PROFIT Heileur said that his prices did not allow enough profit, and pressure by his creditors took so much cash that he lost his . discounts. There had been considerable illness in the family. The amount due to unsecured creditors was £630, and £155 was owing to secured creditors. Considering the value of the securities, estimated at £165 and of the assets, £251, the deficiency was £370. Replying to Mr. Crowhurst, Heileur said that when he began business in August, 1928, he had borrowed £IOO from his brother-in-law. He experienced difficulty just before Christmas, and his creditors had been pressing him for two months. ‘.‘l did not advise my creditors that I had past liabilities when I began business,” Heileur admitted. Bankrupt denied that there had been extravagant living. “I had my drawings for my bare necessities,” he said, “and paid full attention to my business. I was able to meet my accounts until January.” Mr. Singer remarked that there was a. possibility that Heileur had overestimated his assets, through his inexperience. When Heileur reviewed his position in March he had estimated his assets at about £4OO. "There has been a big drop in three months,” was Mr. Crowhurst’s comment.