STRATFORD DISTRICT PAGE

Taranaki Daily News, 4 November 1926, Page 10

STRATFORD DISTRICT PAGE

(FROM OUR RESIDENT REPORTERS)

BANKRUPT CHEESEMAKERS

THE AFFAIRS OF KIDD BROS. INVESTIGATIONS TO BE MADE. .Stratford, Nov. 3. “That the D.O.A. be instructed to investigate the claim against Nathan and Co. in connection with the repayment of insurance money and cheese moneys, and that the D.O.A. be empowered to employ solicitors.” This resolution was carried on the motion of Mr. Meek, seconded by Mr. Franks, at the meeting at Stratford yesterday of creditors of Charles Vernon Kidd and George Franklin Kidd, bankrupt proprietors of a cheese factory at Huiakama. On the motion of-Mr. J. McCracken, seconded by Mr. W. J. McCracken, it was also decided to place the facts of the case before the Crown Solicitor with a view to the prosecution of the bankrupt. Mr. J. S. S. Medley, Deputy Official Assignee, presided while Mr. P. Thomson appeared for the bankrupts and Mr. N. H. Moss for certain suppliers to the factory. A number of suppliers were present, The secured creditors of C. V. Kidd were shown to be: F. J. Stewart £l5OO, plus interest £165; J. J. Hills, Auckland, £Bl2 10s 9d, plus interest approximately £56. The estimated value of the seeurties was £1665. C. V. Kidd’s statement showed secured creditors amounting to £2533 10s 9d, less estimated value of securities £1665, leaving £B6B 10s Od. The assets consisted of furniture £2O, leaving a deficiency of £B4B 10s 9d. Mr. Moss said that the firm of Nathan and. Sons had forwarded a statement to the effect that £33 4s 2d was due to the bankrupts, subject to adjustment. This would mean an increase in assets. Later it was disclosed that the proceeds ( £3) of the sale of the haystack to Mr. Carl Coulton, of Strathmore, had not yet been received. This was also to be added to the assets. BANKRUPTS’ STATEMENT. In their statement bankrupts said they started business at the beginning of last season, as proprietors of a cheese factory at Huiakama. They took over the business from their father, H. B. Kidd, together with plant, six-roomed house, five acres of freehold land, a Dodge motor-car, an International twoton truck, and approximately 60 head, of cattle grazing on the farm owned by C. V. Kidd. The total purchase money was £1250. They borrowed from the Stratford Loan and Deposit Company £750 on first mortgage on these assets at 10 per cent. Nathan’s took a second mortgage over the remaining assets for £5OO. Bankrupts had no ready cash. They opened and ran the factory for the season, but paid out too much. The payouts were Is 9Jd up to the end of October; Is 7d for November and December; 1b 6<l for January; Is for February; and Is Id for March. Up to the end of January they averaged Is 7}d (approximately). They had guaranteed no price to the suppliers. The high pay-outs were partly the cause of their trouble. Unfortunately they had not been getting advice from Nathan’s as to the pay-out. For the pay-out for May 20 they issued cheques for Is 3d per lb, which amount Mr. Hughes (Nathan’s representative) had promised. Nathan’s cheque- did. not come to hand, and consequently the bank dishonoured the cheques. On October 23 they suffered misfortune in the destruction by fire of the curing room at the factory containing stores of cheese. The insurance moneys went to Nathan’s. The curing room was not attached to the factory. They assigned the fire insurance moneys to Nathan’s on the understanding that they (Nathan’s) would pay out to the suppliers. This they did not do. The building belonged to the Public Trust and the insurance moneys for the building went to the Public Trust. Bankrupts had plant and cheese for local sale In the curing room and these were not insured. Mr. Hughes had said that if they sent up 17 crates Nathan’s would advance against these for the May pay-out. They understood a cheque for the £lOO was posted up to Mr. Hughes by his company, but he did not pay it over. The next thing was the receipt by C. V. Kidd of three summonses in the one day sometime in September. One summons was issued by A. S. Paterson and Co. for £197 for benzine and. was against 0. V. Kidd, although the amount was really owing by the firm of Kidd Bros. The other summons was issued by Meek, one of the suppliers, for £4O against both of them. Meek’s claim was confessed, and the other two judgments were entered by default. A distress warrant was then issued by Meek and returned “nulla bona.” A bankruptcy petition was then issued against the brothers and they were adjudicated. In July the Stratford Loan and Deposit Company, under the powers in the bill of sale, realised their security. ACCOUNT GUARANTEED. They understood there was a deficiency of about £.38, although they had not so far received a statement from the Loan and Deposit Company. They had not yet asked for one. Mr. Jonas Masters was a guarantor to the Stratford Loan and Deposit Company of their account with the company to the extent of £3OO. The old lorry was included in their security, but L. H. Johnson was holding it on their behalf. It was not now worth more than £lO. Bankrupts were still awaiting final account sales from Nathan’s and until these were received they would not know what the position was with them. Mr. Hughes told Kidd that the cheese (all cheese remaining unsold at the time of the fire, in the works and on the water) was sold at SJd through Wright, Stephenson and Co., but later he toll Mr. Moss that none of it was sold. They left the factory at the end of July. They understood Nathan’s offered the factory as a going concern to the suppliers at £350 and even at £3OO, hut they would not buy it. The Makahu Dairy Co 7 had since puichased the outfit for £250 for removal, which showed that it was worth much ■more to Kidd's own suppliers had they seen fit to carry on.

Had the suppliers taken over the factory as a going concern the Stratford Loan and Deposit Company, they understood, was prepared to let the'amount owing to them stand over in the meantime. PAY-OUTS TOO HIGH. Their father, H. B. Kidd, also offered to go to Huiakama to manage the factory for the suppliers or for Nathan’s at a bare wage of 25s a week until their liabilities were paid. They felt their suppliers had little to complain about as far as the Kidd’s were concerned. Up to the time that Nathan’s ceased making advances they paid out prices obtainable only on a first-class article, whereas the suppliers arrived at the factory from 7 a.m. to 11.30 a.m., and in some cases the milk was dirty and it was impossible to turn out a first-class product. They were, too, dependent on the suppliers to turn back late milk. Their own drawings from the factory would not exceed £lO for the whole season. In April last they purchased a new Victor lorry from L. H. Johnson under a hire-purchase agreement. They paid nothing down on it. The purchase price was £750, to be paid by P.N.’s spread over a period of two years, starting at May 18. As far as they knew all these P.N.’s had been met so far. They were now employed in carrying between Stratford and New Plymouth. C. V. Kidd was driving a lorry belonging to R. B. Kidd and G. F. Kidd was driving the Victor lorry. After payment of the instalments owing by R. B. Kidd on his lorry to the International Harvester Co., and payment of expenses, there was very little left and this was retained by C. V. Kidd as wages. G. E. Kidd also just made enough to pay the instalments owing on the Victor lorry and his expenses. George Franklin Kidd, the statement continued, was a single man and, apart from the equity (if any) in the Victor lorry, had no private assets or liabilities. Bankrupts regretted that they could make no offer whatever, other than what could be obtained from Nathan, Ltd., towards the recovery of any balance still owing in that quarter. They were prepared to do everything possible to help the creditors. STATEMENT OF C. V. KIDD. C. V. Kidd's statement of his position was as follows:—“About three and alialf years ago I bought a freehold property of 2434 acres at Strathmore from F. J. Stewart for £l5OO (£9 10s an acre). The livestock belonged to my father, from whom I took it over, subject to the bill of sale to the Stratford Loan and Deposit Company. One lot of interest to Mr. Stewart was in arrear, being due on May 12 last. There was also a second mortgage to Mrs. W. M. Hills for £Bl2 10s. There is a year’s interest owing to Mrs. Hills this month, plus a small balance of arrears on a previous half-yearly payment. The rates were paid, up to March last. The first mortgagee exercised his power of sale about the middle of July last. The property was put up for sale and no bid was received. The stocks were sold up by the Stratford Loan and Deposit Co. as grantees. “Prior to that my brother-in-law was on the place sharemilking. He was .sharemilking for me and supplied our factory. All I got out of the farm just about covered my share of the expenses there. My only asset is my furniture, which cost me £42 two years ago. lam a married man with a family of two small children. EXAMINATION OF BANKRUPTS. Under oath bankrupts were examined by Mr. Moss. They said the suggestion that they should start the factory came from their father. They had started in order to protect the suppliers, whom .they thought would not have got the bonus on the last season’s supply otherwise. Mr. MoSe later remarked that the brothers had been put in to run the business because the suppliers would supply them when they would not supply the father. C. V. Kidd, to whom the questions were addressed, further said Nathan’s, Ltd., guaranteed the father’s account at the bank and hie father had made the arrangements with them. The only cheque ever paid to the father was one for £7O. One of the brothers had given his father blank signed cheques. They were paying out for their father’s old debts, adding the amounts to the monthly cheques. The blank cheques given to the father were used to pay old debts, the amounts varying from £4 to £l3. “Did you make any arrangements with Nathan’s?” asked Mr. Moss of C. V. Kidd.—No, except that Nathan’s sold the produce if they could and if not it was consigned. We did not know what happened to the produce. In February they had a statement from Nathan’s but up to the present no further statement had been received. The suppliers’ cheques on April 20 were not honoured at the bank, but formerly cheques had been dishonoured and later paid. HUGHES’ STATEMENTS. Sometime in May, said bankrupt, Hughes, Nathan’s representative, said the firm of Kidd Bros, was not in Nathan's debt and was not responsible for the £5OO (the second mortgage in bankrupts’ statements). Bankrupt would not say definitely that Hughes willingly misled' them. ‘ They were relying on Hughes all the time. He found that promises Hughes made were not kept. Bankrupt alleged that Hughes represented to him that there would bo trouble in getting the insurance on the part of the factory that was burned. It would have to be settled in London, Hughes had said. Nathan’s would be able to get it, though the Kidds might not. Therefore bankrupt signed an authority to Nathan’s to collect the insurance, being under the impression all the time that they did not owe Nathan's anything. Hughes must have incorrectly represented the position to them, continued bankrupt, though he would not say tiiat Hughes deliberately used false representations, as he might have believed all he eaid. Hughes had promised, before Mr. Moss and some of the suppliers, that there would bo no trouble over the May pay-out. The motions as stated were then adopted.

YOUTHFUL ATHLETES. TECHNICAL SCHOOL SPORTS. WINNERS OF CHAMPIONSHIPS. The sports programme of the Stratford Technical High .School, which had to be abandoned last Thursday on account of rain, was completed yesterday afternoon, the championships being won as follows: Boys’ senior championship, M. Kilpatrick, 30 points. Boys’ junior championship, R. Harkness, 19 points. Girls’ senior championship, Mary Nutting, 164 points. Runner-up, M. Townsend, 134 points. Girls’ junior championship, Marita Farquhar, 15 points. The following records were broken during the meeting: 75 yards girls’ senior championship, 9 4-ssec., Margaret Gill. 50 yards girls’ junior championship, 0 3-ssec., Marita Farquhar. High jump senior championship, A. Dingwell 4ft. Ilin., equal to record. One mile boys’ senior championship, 4min. 59 4-ssec., M. Kilpatrick. Half-mile boys’ senior championship, 2min. 12 l-ssec., M. Kilpatrick. Hop, step and jump, 38ft. Ilin. Best performance from scratch, M. Sullivan. The events decided yesterday were run off in good time and provided an interesting afternoon’s sport, the prizes being distributed this morning by the director (Mr. A. H. R. Amess), who took the opportunity of congratulating the sports secretary (Allan Dingwall) on the way he had carried out his duties. Mr. Amess also thanked Mesdames Nutting and A. Moon and Messrs. D. Glasgow, H. Trimble, C. Moore and J. Petrie for donations to the prize list. The prize list was as follows: Mary Nutting.—High jump, long jump, 220 yards senior championship. Rita Townsend.—High jump, 150 yards senior- championship. Marita Farquhar.—so yards junior championship, 220 yards junior championship, 100 yards junior championship. D. Corbet.—Long jump. Margaret Gi11.—75 yards senior championship. I. Purdy.—Hop, step and jump. Rona Field.—loo yards handicap, 75 yards handicap under 16. M. Young.—7s yards handicap. Una Lily.—Sack race. Helen . Coward.. —220 yards handicap. B. Watkins.—Second 100 yards, sec ond 50 yards senior championship. Beatrice, Walker.—Second 100 yards junior championship. M. Kilpatrick.—Bo yards senior championship, one mile senior championship, 100 yards senior championship, long jump, 440 yards senior championship, 220 yards senior championship, one mile handicap. R. Harkness. —One mile junior championship, 100 yards junior championship, 440 yards junior high jump championship. M. Sullivan.—22o yards handicap and hop, step anti jump. R. Herdman. —Bicycle race, scratch and handicap. A. Dingwall.—High jump senior championship. J. Gover. —Long jump, 220 yards junior, high jump. R. Young. —Cricket race, 440 yards under 16. A. Yandle. —440 yards handicap. A. Lindop.—loo yards handicap. C. Gadsby.-J.50 yards handicap under 14. L. Jago.—22o yards handicap under 14. W. Anderson.—Third senior mile, second mile handicap. T. Mills.—Second putting shot. C. Sangster.—Second hop, step and jump. J. Boon.—Putting shot. W. Divehall.—BBo yards junior championship. The following events, which completed the programme, were decided during the afternoon:— High jump senior championship.— Dingwall 1, Kilpatrick 2, Sangster 3. The winner jumped 4ft. Ilin., equalling the school record. High jump junior championship.— Gover and R. Harkness (equal, 4ft2Jin.) 1, D. Harkness 3. Form relay race. —Form V. (R. Town send, B. Watkins, Sullivan, Mills) 1, Form IV. B 2. Slow bicycle race. —P. Dwyer 1. 440 yards handicap (under 16). — Young (scr.) 1, D. Harkness 2, Carryer 3. Time, 58sec. Hop, step and jump (handicap).—Sullivan (scr.) 38ft. Ilin. 1; Sangster (3ft.) 2, Kilpatrick (scr.) 3. This makes a record for the school. Two mile bicycle race.—Herdman (scr.) 1, Hill (scr.) 2, Kofold (50yds) 3. Time, 6min. 40sec. Girls’ potato race. —B. Watkins 1, M. Grubb 2, V. Beach 3. One mile walk handicap.—Hale (150 yds) 1, Stewart (125yds) 2. The first two to finish were disqualified for running. A THIEF IN THE NIGHT. POLICE INVESTIGATING MATTER. A forced window, disarranged furnishings, and a trail of grass particles throughout the house were the disturbing evidence of the entry of an uninvited guest into the home of a wellknown Stratford solicitor some time last night. The fact that some unauthorised person had been prowling about the rooms was noticed on the return of the householders from an evening at the pictures, and their attention was first drawn to the entry by the trail of grass clippings on the carpets. The fact that the back lawn had been cut that evening seemed to indicate that the marauder entered the house from the rear, possibly in his bare feet, to which the lawn clippings had adhered. Further investigation led the solicitor to the conclusion that the bathroom fan light had served as the medium for a hand to be reached down to the ■windowfastening, and an entry was thus effected. Evidently the purposes of the visit was to search only for money, and likely hiding places such as the pil lows of the bedrooms, drawers, etc., had been disarranged in the hunt. Probably

the fact that the electric current was switched off at the meter prior to the occupants’ departure caused the thief some inconvenience, for so far nothing of value has been missed. When the current was again switched on at the meter a light was observed in the bathroom, indicating that the prowler had pressed the button, but naturally without the desired effect. The occupants are positive no lights were left on in the house prior to switching off at the meter. This morning the police were acquainted with the facts and are investigating.