BANKRUPT'S EXAMINATION.

Taranaki Daily News, Volume LV, Issue 281, 19 April 1913, Page 2

BANKRUPT'S EXAMINATION.

TIIK CASE OF D. S. FOX. In tlio Supreme Court yesterday David S. Fox, late of Ilawera, was publicly examined in connection with Ins hank l'uptcv. Mr. 11. .T. Quilliam appeared for the Deputy Official Assignee, and the bankrupt was not represented by counBankrupt said he was formerly a trroeer at llawera, where lie commenced business in July, 1008, with a capital of €4O He wns iuljutlicatetl banUiupt on liis'own petition on November 18, li)l' The deficiency was £370 los 4(1, the result of four years' trading. In March ini-2, bankrupt approached Ilatrick & Co.. through Mr. Thompson, for a loan of' £3OO. Mr. Brookman inspected the store, and the money was advanced. He sent Hatrick & Co a statement, and received a letter from the firm later on in March saying that the head office was not clear regarding his financial position. In reply he sent them a correct statement, showing a surplus of assets over liabilities at that date of £3G2 F.i"ht months after that date he became bankrupt. If that statement were correct he would have got to the bad in eight months to the extent of £738 los 4d. The statement made on March !) was merely a guess at the situation. He had no idea at the time that it was not correct. There was no representative of Ilatriek's present when he made the statement, when Hatnck s advance of £3OO was made, he was already indebted to the firm in the sum l of £IOO in promissory notes. The stock was valued at £3OO. He told Messrs Brookman and Thompson, who both wrote the original and valued the stock, that his hook debts were £3oo and his liabilities £360. He told Mr. Brookman that he believed his monthly turnover was nearly £3OO. He was grateful to Hatrick & Co. for the loan of £3OO, and after the loan was paid

he wrote saying lie would endeavor to. repay them three-fold. His financial position'must have been misrepresented to Hatricks when they'made the advance. He did not remember telling Hatrick & Co.'s representative, in order to induce thein to lend him £3OO, that he intended to buy Archangc's business. In his statement of March 0 he showed his creditors at £350. The proved claims on his bankruptcy amounted to £BBS, showing an increase of liabilities in eight months of £5-25. This was in addition to a sum of £l3O borrowed from Mr. O'Dea on the security of some cattle over which a bill of sale was given. Of the £3OO from Hatricks £IOO was retained by I them for p.n.'s due. The balance of the money was used to pay current trade debts, including Hatrick & Co. He was to repay Ilatricks at the rate of £ls per montlf and interest at 8 per cent. He made either three or four payments. When he filed lie owed Hatricks £317 1 7s. According to the assignee's report his estate paid a dividend of 4s in the . £l, with a prospective dividend of Is 3 in the £l. He kept a bill book, ledger

and a monthly account book. He did not keep a proper cash book. The books as kept by him would not show his financial position. In.July, 1011, a statement was prepared for" income tax purposes, and this showed that he was then about £SO to the bad. Two months before his bankruptcy Mr. Brookman was supplied with figures for a statement, which was prepared partly from bankrupt's information and partly from Mr. Brookman's observations. He thought the account showed a surplus of assets over liabilities of £193. Three days before his bankruptcy another statement was prepared in the same way, but hp did not know the amount of the deficiency shown. Prom his statements of assets to the assignee he unintentionally omitted to disclose certain shares in the Taranaki Petroleum Company and in the Winter Show. He afterwards told the Assignee of the omission. On rare occasions lie had betted with bookmakers, but his bets did not exceed 10s ones. At the present moment, bankrupt was out of employment, but he thought he could easily find some work. An order was made that the affairs had been sufficiently investigated, arid the examination closed.