BANKRUPTCY.

Sun (Christchurch), Volume I, Issue 45, 30 March 1914, Page 5

BANKRUPTCY.

A JOINER'S ESTATE. A. meeting of creditors of Fred Haigh, joiner, of Cashel Street, Linwood, who had been adjudged bankrupt, was held in the office of the Official Assignee (Mr; G. A. Smyth) this morning.

Bankrupt was represented by Mr G. B. Ritchie, but he was also present in person. Mr O. T. J; Alpers appeared for the petitioning creditor, Mr H. J. Otley, whose claim —£195 11/6 —was the largest. Mr A. F. Wright represented the secured creditors, Topliss Bios., whose claim was £3l.

The list of unsecured creditors showed liabilities amounting to £372 15/10, and of secured creditors £95. The estimated value of securities was put down at £135, leaving a surplus ou that account of £4O. The stock-in-trade was put down at £251, and book debts estimated to produce £4O and other items brought the list of estimated assets to £351 15/6. This left an estimated deficiency of £2l 0/4. Bankrupt's sworn statement was: — "I am a married man with two children. About four years ago I assigned my estate for the benefit of my creditors, and believe they received 10/in the £l. I then continued business on my own account, and up till a year ago I consider I was solvent. I then entered the undertaking business, and I had to get plant together, and that cost me about £l2O. My creditors started pressing me about three or four months ago. I then laid my position before Mr H. J. Otley, who requested a lien over my machinery, plant, and book debts. I ascertained my position by estimating the cost of my plant and the amount of my unpaid book debts. I consider that the greater portion of my receipts were paid into the bank, and I drew most of my accounts by cheque. I drew for personal expenses 35/- per week, other sums for the maintenance of my house and family, my total drawings on these accounts not exceeding £3 per week. I attribute my failure to dull times and losses by bad debts. I have not lived extravagantly, have no assets other than those scheduled, and they are set out at fair market value. I have no expectations .from any source. A creditors' petition in bankruptcy was filed- by Mr H. J. Otley,/ind an order made on it. "I have not previously been bankrupt." Replying to Mr Alpers, bankrupt said he had assigned his estate to creditors twice before, although he had stated in his sworn statement that he had only assigned once. The first assignment was about nine years ago, but he had no idea what he paid in the £1 then. The business was taken entirely out of his hands. ;

Mr Alpers: You assigned a second time in September, 1908, and paid 8/8. Is that right? Bankrupt: I don't know. The creditors took over the matter and appointed trustees. .

The Official Assignee: When did they receive this 8/8?

Bankrupt: I was never informed. The Official Assignee: .. Didn't you make it your business to enquire? Bankrupt: I was told by one of the creditors that it was about 10/-. Mr Alpers: In or about October 1912, when indebted to Mr H. J. Otley to some extent, did you give him what purported to be a balance-sheet in this rough way? Mr Alpers produced a sort of balancesheet drawn up on an envelope. ; Bankrupt: Yes. Mr Alpers: You showed your assets at £331 7/-?

Bankrupt: Yes, that's my writing. Mr Alpers: But over and above that you had machinery valued at £231 2/9, so that you had assets valued at £562 9/9, and you showed liabilities estimated at £221 13/2.

Bankrupt: Yes, that's probably correct.

Mr Alpers: So that less than three years after you paid 8/8 in the £ you were worth £340.

Bankrupt: Yes, that's right. I had had a pretty good run of business. Mr Alpers: In a period of about fifteen months between your making the statement to Mr Otley and your calling your first meeting of creditors £340 went?

Bankrupt: No. I put the machinery down in Mr Otley's statement at cost, but in making out my schedule I estimated what it would fetch in a forced sale.

Mr Alpers: Have you a pony and trap?

Bankrupt: No. Mr Alpers: Where is it? Bankrupt: It was my wife's property, and she sold it. Questioned about the matter, bankrupt admitted that he had offered, without prejudice, at a preliminary meeting of the creditors, to hand the pony and trap over to the estate if he .were let off bankruptcy. " Under extreme pressure, '' he explained, ' l l said that probably my wife would hand over the pony and trap, but my offer was refused." Bankrupt added that about £33 was received for the pony and trap. His wife got the money to pay for the turnout partly through her own industry and by saving. Mr Alpers: Has your wife any means of her own, any private income? Bankrupt: No. Closely questioned, bankrupt said he supposed the pony and trap were bought with money obtained from him. He thought they were bought about three years ago. With the money she received for the sale his wife met a bill which was owing on the trap. To Mr Alpers: He had a motorbicycle, on the hire purchase system, but he could not say how much he had paid on it. It was elicited, however, that he had paid £22 on it, and there was £26 owing. He had not included it in his assets because Adams, Ltd., told him it belonged to them and could not be put on the list.

Mr Alpers: The Official Assigiiee will correct Messrs Adams's views. The Official Assignee undertook to enquire into the position regarding the pony and trap and various other things. Speaking of the position generally, the Official Assignee he had taken the trouble to go through the bankrupt's books, but it was simply impossible to ascertain bankrupt's position from them. All that bankrupt had kept in the way of books were ; his bill-heads and his banking bopk. There was no record of what business he ilid. He simply made out a bill and kept a duplicate. When the bill was paid he marked the duplicate "paid," but seldom put any date. There were many unmarked bills which Haigh said had been paid. Owing to the uncertainty of the accounts, it. could not .be told which of the sums bankrupt had received had been baiiked. No one could tell from the books where bankrupt's, money went. He seemed to be in a muddle in his accounts all through. In-

deed, bankrupt's books were no books at all, and it was no good wasting any time on them.

After further questioning and discussion, the meeting decided that the books should be submitted to the Crown Solicitor, with a view to obtaining advice as to whethej a prosecution would lie against bankrupt for a breach of the provisions of the Bankruptcy Act. The realisation of the assets was left in the hands of the Official Assignee and Mr Otley.