BANKRUPT CAR-PAINTER.

Taranaki Daily News, 1 May 1923, Page 8

BANKRUPT CAR-PAINTER.

AX ELTHAM FAILURE. EFFORT TO CARRY ON. Walter Ernest O’Neill, a car painter, of Eltham, attended at the office of the Deputy Official Assignee (Mr. J. 8. 8. Medley) yesterday to meet his creditors, but the meeting lapsed for want of a quorum. In the statement of assets and liabilities (already published) debts owing to unsecured -creditors were shown as £399 Gs 7d; secured creditors, £620 6s. making debts totalling £lOl9 12s 7d. Assets were shown as:—Stock-in-trade £O5; book-debts (£B3 Os 9d) estimated to produce £5O; cash in hand, 4g 9d; piano, £35; property, £700; a total of £B5O 4s 9d. leaving a deficiency of £ 169 7s lOd. In a written statement, the bankrupt said that he commenced business in September, 1920, in partnership with J. W. Brookes, the capital being £7O. Brookes nad been in negotiation with a man named Emmett, of Auckland, who eventually put £350 into the ’business, but at the end of five months he wanted his money out, and tills was agreed to on the following terms: XoO cash, a Buick car valued at £2OO, and each of the partners to pay £5O in instalments. At this stage the business was only commencing to grow, and the removal of the capital made it hard, owing to their inability to pay cash for material, thereby losing discounts, while they also had to borrow small sums at high rates of interest. The business showed good prospects and they had book-debts, but not sufficient cover for liabilities. “From May 11, 1921 till November 8, 1921, the statement continued, “Brookes and I carried on, but things had got very much worse owing to the general depression. We then dissolved partnership, Brookes being paid £2O due to him as wages, and £35 of his invested capital, while I paid the cost of the dissolution. At this stage 1 did not go fully into the partnership liabilities, but I considered my best chance of making things successful was to carry on by myself. I found myself saddled with liabilities to the extent of £545 more than my book-debts, which were then £l2O. I thought I could gradually reduce my liabilities by working night and day, as there was a good deal of work and my credit was then good. I then found myself being sued from all sides and distress warrants and judgment summonses were issued against me.” The bankrupt concluded that by reason of these factors and the drop in prices, which he had been forced to accept in order to compere, he had been compelled to file. His wife had also suffered from bad-health, making a further drain on his resources. Tie had five children dependent on him, and regretted that he could make no offer to his creditors. Examined under oath by the Deputy Official Asignee, O’Neill stated that at first he had drawn £5 10s per week for the business, but afterwards no regular wages, only sufficient being drawn to pay the household expenses.