FRUITERER’S BANKRUPTCY

Taranaki Daily News, 26 August 1930, Page 6

FRUITERER’S BANKRUPTCY

EXAMINATION OF BOOKS ORDEREjD CRITICISM OF WITHDRAWALS.; The action of Arthur Stanley Rogers, scedsmau and fruiterer, Hawera, who was examined in bankruptcy by the De-puty-Official Assignee, Mr. R. 8. Sage, J.P., at Hawera yesterday, in drawing out.of his business £154 more than his supposed net profits, was. severely criticised 'by the creditors at the fijeeting. Bankrupt’s statement disclosed a’deficiency- bf .£ll7 Is/:4d.,. the-amount owing to unsecured creditors being £5lO 7s. 3d. and to secured creditors £1365 2s. Id. The estimated value of securities was £1463 14s. Id., stock in trade and fittings £2OO, book debts £96 6s. (estimated to produce £9O) and cash in hand £5 Bs. The larger unsecured creditors were: Bannantyne and Hunter (Wellington), £8 Bs. 2d.; B. David (Hawera), £9 12s. 6d.; B. H. Just (Palmerston North,’£ll 13s. 2d.); Brown Bros and Geddes (Auckland), £l7 Os. Bd.; Scobie and Co. (Palmerston North), £lB 55.; Laery and Co. (Wellington), £l4 10s. 6d.; M. T. and R. M. Phillips (Stratford), £8 Is.; Cock and Co. (New Plymouth), £7; J. M. Menhie (Auckland), £lB ,12s. lid.; H.B. Fruitgrowers (Hastings), £lO 15s. Gd.; Webbs, Ltd. (Hastings), £lB 7s. Tld-.;„ Apsey and Co. (Hastings), £5 ■'l3s.-- lid.; Hawera Gas Co., £8 13s. 5d.; A. J. Pople and Son (Auckland), £57 Ha, 4d.; Heards, Ltd. (Auckland), £9 15s. 7d.; J. H. Watson (Aramoho), £l2 7s. Gd.; W. Parkinson and Co., Ltd., £57; Harrops, Ltd., £7 Is. Gd.; Duncan and Davies (New Plymouth), £5 os. 4d.; W. :E. Cook (Christchurch), £7 6s. 9d.; Bennett and Sutton (Hawera), £5 65.; H. G. Good (Wellington), £4 Us. 4d.; Coopers, Ltd< (Wellington), £B5 7s. Gd.; Egmont Box Co. (Hawera), £2O 25.; Eltham Argus, £10; S... Moore (Hawera), £4O. The secured creditors were:—Adam Hannah (Hawera), £600; B. C. Lysaght (Hawera), £400; A. Blair (Hawera), £lOl Bs.; Commercial Bank (Hawera), £263 14s. Id. In his statement Rogers said he had started business six years ago on capital secured by mortgage over his stock and fittings. After 3% years he had tried to procure more capital, as he had to give more credit and carry larger stocks. He approached the solicitor for the holder of the existing security to see if he could procure a loan on the security of a second mortgage on his house property. That was promised, but instead of it being carried out he was forced to give the mortgage as an additional security to that over his. stbtk and fittings or he would have been made to file. This action had put him no further ahead with finance, but a~. personal friend had guaranteed him at the bank for £250 with his life policies as part security to the bank.

He ’had been ill-advised to put a fruit department in the business, this having been a failure owing to wastage and unfair competition with fruit lorries on the streets. His seed department had declined in the past three years owing to weather conditions and all kinds of trades selling seeds as a side line. The floral department had been paying its way, but the profits had been absorbed in the fruit and seed department. He had been trying to form the business into a company, in which event he should, given good weather, have been able to carry on successsfully. During that period his wife had assisted by mortgaging her furniture for £lOO to help the business. He considered his failure due to the very high rent he was paying, together with the poor entrance to his shop, to the unfair competition in fruit and to the seed trade , being ruined by all kinds of trades selling seed's. His business had cost him his- house property and his life insurance policies, which were his . only assets other than the ’ business itself. He considered it- fairer to his creditors under the. circumstance's to file in. bankruptcy rather than continue in an unprofitable business obtaining still further credit. He regretted the position which, under the circumstances, could not be avoided, and he could not make any offer to his creditors as his landlord had taken .charge and distrained on’the whole of the stock and fittings for. s overdue Tent.,- - Bankrupt was represented by Mr. T. A. Kinmont. ' « In answer to Mr. P. O’Dea,- Rogers said he considered three months, ago that he was financial. Mr. O’Dea: You have gone back £ll7 in three months. “Business is frightful in Ilawera,” replied Rogers, “and I could not buy much stock. I did not file three months ago because I considered I could carry on and pay my creditors. I do not think my wife or her parents will assist me if I am allowed to carry on the business.” Mr. Sage stated the position disclosed by the books was that during the past four years bankrupt’s drawings' were £154 more than his supposed net profits. He had drawn over £(500 out of the concern one year. “That is an appalling thing,” said Mr.' A. K. North. “Many a business man would be glad to receive half that amount.” While bankrupt’s books had been kept well it was apparent that he had neglected to take into account all his sundry creditors. In answer to Mr .W. A. Hewitt Rogers said he had started on the business with no capital. , His turnover had been about £l2O a month, and he had carried about £4OO stock, -.j -

In moving tijai bankrupt’s Itooks be ex- > amined by an accountant approved by the I D.O.A. and .under-. Mr. Sage’s supervision I Mr. Hewitt .sla,ted that commercial people should set an example in such matters. He felt .strongly that business men should live within' their means and deal with, their creditors reasonably. The motion wais.,carried and the meeting adjourned sine die., PERSONAL ITEMS. Mr. C. J. O’Dch, of the Ohura High School staff, is spending his vacation with his parents, Mr. and Mrs. J. J. O’Dea,- Av^k- > c ' i; ‘-'' ’ ■ ■ ■ 3,-.: i; lOlv’iJ/3 ft I. . ' 1 ; .