BANKRUPT STOREKEEPER

Taranaki Daily News, Volume LIV, Issue 318, 6 July 1912, Page 6

BANKRUPT STOREKEEPER

PUBLICLY EXAMINED. The affairs of Elliot Hume, a bankrupt storekeeper, formerly in business at Alton, worn publicly examined in the New Plymouth Courthouse yesterday, before Mr A. Crooke, S.M. Mr C. H. Weston appeared for the Official Assignee, while bankrupt was represented by Mr J. E. Wilson. Examined by Mr Weston, Hume said that for fifteen or twenty years- before he commenced business in Alton he had done no work. He had followed no occupation for the reason that he lived on a private income. When he started business in January, 1911, he had exhausted all his private means, but his wife helped him to the extent of lending him practically £OOO. He purchased Besky's grocery business at Auckland for £I7OO of which £llsO was for the stock, £450 for the shop and he did not know how the balance was made up. He paid for that by raising a loan from Levin and Co. of £4OO, by giving a second mortgage to Besky for £SOO, by paying him £4OO cash, and by giving him promisory notes for £4OO. He took the stock at Mr Besky's valuation, and in his (bankrupt's) opinion fie now considered that valuation was excessive to the amount of £350. He also thought he gave too much for the shop, which was ■ subsequently valued at £250. Ho had no back debts when he started business. A little over a year later he assigned his estate, which showed a deficiency of | about £IOOO, the claims against his estate amounting to a little over £3OOO. His assets realised about £1134. His staff at one time was never more than three. He resided in a house close to the store, for which he paid 10s a week. 1 He 'had two children and he had a serj vant in the house, who received 10s weekly. His wife paid nothing towards his household expenses. Ho could not say from his own knowledge whether there were any bad debts. As far as he knew there were very few. The alleged peculation of a certain individual was in no small measure responsible for his bankruptcy. All the books he had kept were handed to the Official Assigne. He frankly admitted that he did not\ keep the books properly. No books whatever were handed over to him by Mr Besky at 'the start. The books as kept by him were not sufficient to disclose the whole of his financial position. As a matter of fact they only set out a small portion of his business, as compared with j the whole. He did not think an acjcountant could have ascertained his position from his books. One of his employI ees kept his books for a time. The fact j that all the books required in the busij ness were not opened up was duo to the neglect of one of his men, to whom the j work was entrusted. Prior to three 1 weeks before his assignment he had no inkling of the fact that he would have to assign. As early as November he knew he was in difficulties. In October I he was sued by Besky and others, and judgments were satisfied oy him. To j meet his liabilities he was obliged to borrow from a Mr Locker and Mrs Williams ] and he was obliged to ask his wife to j guarantee the notes. About this 'time '• Levin and Co. said they would not give j him further supplies without his wife's [guarantee. At that time he had no i money available at the bank. His total book debts at that time amounted to I about £600! In October he and one of | his employees discussed the value of {the stock, which the latter estimated at '£lßoo. He thought himself it was j worth from £I2OO to £I4OO. He only j contracted about £BO of book debts after November. His wife had proved in the estate for two promissory notes for £37 10s each, dated on January 23, 1912, in .return for their cash face value. His wife had also proved for another promissory note which he had endorsed. The whole of the money obtained by means of promissory notes was put into the business. His wife brought practically no movables to Alton with her. She did not bring personal effects to any value with her. In January, 1912, his wife j received from Dunedin some nine or ten eases of personal effects, consisting \ of clothes, books, ornaments, a little silver and a few other articles enumerated. Everything that was in the house before January 12 belonged to his wife, who bought it from Mrs. Besky. With ■regard to the property which came from Dunedin, she had insured it for ten or 'twelve years for £BOO. When he assigned his estate, his wife packed up jthe whole of the furniture and effects ( and conveyed them elsewhere. Amongst the goods there were none belonging to himself or his estate. He was at present living at Patea. To Mr Wilson: Before he started at Alton, he had not had any experience in a shop-keeping business.' He did not [personally arrange the mortgage: of ■ £450 with Levin and Co. It was sim- ' ply taken over, not negotiated by himj self. He had had very little experience lof book-keeping. When, he took the business over he expected to rely upon others to keep the books. He was seriously ill when he came to Alton, and wasnot better yet. He had been under medical advice ever since. He was perI sonally attending to the store for about I six months, after which time he was too unwell, being confined to 'his house. Accordingly, he relied upon his staff to carry on his business. There was a time when he was not expected to live. His estate was assigned at the instance of his creditors. Mr Besky was now in I posssession of the store and its contents.

Re-examined By Mr Weston, bankrupt affirmed that the bankruptcy was caused on account of his illness. His trouble was that lie was not able to look after the business himself. Bankrupt emphatically denied that he was addicted to drink. Shortly before his assignment he -disposed of a large number of empty bottles which had accumulated prior to his coming to Alton. Further examined by Mr Weston, the [ bankrupt swore that no liquor, in fair'ly largo quantities, came to his house l at Alton. He had no objection to either of the medical men by whom he had been treated, telling the Official Assignee the nature of the complaint lie was suffering from. On the application of Mr. WiTson,.llisWorship then made an order to the effect that the affairs of the bankrupt had been sufficiently investigated.