AFFAIRS OF A BANKRUPT

Taranaki Daily News, 20 December 1930, Page 9

AFFAIRS OF A BANKRUPT

HIS PUBLIC EXAMINATION IN BUSINESS A YEAR:’THEN FILED. STORY OF LOANS AND JUDGMENTS.

SLEEPING PARTNER INTERESTED.

The affairs of James William Moore, bankrupt dyer and .cleaner, were investigated at New Plymouth yesterday., at a public examination -before the registrar of the Supreme Court, Mr. H. Gilmore Smith. Moore filed on October 3. Debts to unsecured creditors totalled £5BB ss. 3d., and to secured creditors £75, less security valued at £25. His total debts were £638 and assets £l5, leaving a'deficiency of £623. Mr. C. H. Weston represented the deputy official assignee and Mr. J. H. Sheat the bankrupt Under examination Moore said that in October, 1929, he started business in Devon Street east. He was single arid boarded with Mr. Spedding at Westown, paying 30s. a week. Bankrupt intended to get married and Spedding moved out of the house, bankrupt remaining with the intention of buying. He denied having told anyone he paid £5O down on the house. He did not drink or gamble.

He had started business with a capital of £l5. First of all he took up dry cleanin'* and dying, and later added a Stock of mercery, purchased from Macky,. Logan’s and Sargood’s. In December, 1929, and January, 1930, he obtained shop fixtures and hat blocks from Boon Bros, for £9 Ils. He kept no books till February. At the beginning of the month his financial position was not so bad. Business was just starting to come in, though his position was not exactly sound, j He could not say exactly what his liabilities were about that time. He bought a car from Dominion Motors for £75 on tire purchase. A machine for dying was put in. In February, he thought, he, paid £3O for this from Watson’s mpney. An iron was included with the machine, making a total value of £55 10s. TOOK WATSON INTO' BUSINESS. About the middle of January he took Watson into partnership. Watsori, who was a porter at the White Hart Hotel, put £7O into the business. He'was 20 and bankrupt was 26. He had not asked Watson to come in.. He was speaking to him about the business and said he would want someone to go in with him. Watson then 'offered to come in. He told Watson he did not then know the extent of his business as he had just started, but he thought that as he became better known it would .become a good business. He said what had been paid on the machine and what wa|F owing. Watson said he would talk it over with his young lady. ’ He did not give him a list of the debts, hut if it had been asked for it would have been given. He did not tell Watson the business was insolvent because he did not think it was. He admitted that at that time the amount .of the debts was greater than the Value of he assets. Watson received a half-share in the business. He was to get half the profits as a sleeping partner. His share was not'then worth £7O, but it would have become so. Watson had since received about £l5 from bankrupt. “Watson' says you told him the plant had all been paid, for?” said Mr. Weston. .. <

“I deny that!” . “And that you said it in front of Mr. Leonard Hughes, solicitor?” ~ , “No. Mr. Hughes knew it was not paid for.”

He commenced to keep books after Watson came into the business. As far as he could remember everything connected with the .business went through the ledger. He did not put all the . cash through his banking account, or pay everything by cheque. He had receipts at home and would produce them to the D.O.A.

“What happened.to the £70?” “I could not tell you from memory, hut it would be alb in the books.” “There doesn’t seem to ,be any reference in the books to £7o.' On January 15 £lOO was paid into the bank. Would the £7O be part of'that!-” . ■ “Yes.” ' ’ WAS TO BE MARRIED .IN JUNE. On January 31. he had about £35 in the bank belonging to the business. His car did m>t belong to the business. , He intended to, be married in June. In February he went to James Lobb and gave him an order , for £lOO worth of furniture. ■ ~. “What expectation did you have of being able to pay £100?” J “At the time I did not think he wantjed cash.” ' , . ■ i “Did you mention credit?” . “No, but later on I asked him about time payment, and he said, no.” ; “You expected to get it on time pay? ment!” 1 ' ' “Yes.?’ . ’I .- ’ “When was it you began to borrow money from Miss Kopke?” ’ .* ; ( “Do I have to answer that?”

“I am afraid so,” replied Mr. Weston, “It was in June.” ■ ' < ] “How much did you borrow?” “About £4O” ' . ~ , • ;■, “You’re sure it wasn’t £200?” “Yes,” replied bankrupt. He denied telling anybody he borrowed £2OO. The £4O, which was still not repaid, went into the business in the form of pay 4 ments outwards. It shown ion the receipts side of the ledger. On June 5 'Macky Logan had £lO of it. Some of the money went to Spedding for rent, and small business accounts had to be paid. He could, not recall the names of these off-hand, but could get the receipts. ' “When did you start to borrow from Miss Kopke’s father?’ ’asked Mr. Weston, “About the end of July.” J “How much did you borrow from him ?” • ■ ■:> ' “Forty-two pounds ten.” . It was not. put through the bank or entered on the receipts side of the ledger, he said. It, too, was used in paying small business accounts. He could not indicate the ledger items now; JUDGMENTS AGAINST HIM.' He commenced to borrow from young Kopke about the end of May, the sum being £lB. Ko.pke had just started to work for him, On May 3 the Taranaki Sign Co. secured judgment against him 'for £8 I4s. 6d. He supposed, that meant he was insolvent, as he could not meet his debts as they became due. On May 17 he took his ..car to Jenkins Bros, for repairs and it had to remain there because he could not pay for it. He wrote, offering to pay Macky Logan’s £IQ by May 31, and £lO every month till the account was paid. The only payment made was £lO on June 5. . He remembered telling Mr. McQuade,manager of Macky Logan, something about his position, but he could not re- 1 member all he said. He had not said he had paid £5O on a house. What he did say was that he was buying a place and had to pay a. deposit of £5O. He did not tell him the plant was worth £l5O, or. that the stock, was worth £4O; at that (time he had no stock. He dsnied

telling McQuade various other -things. That '.interview was ' before McQuade went to see him at the shop.' On May 23, 1930, he had one judgment against him, he had lost his car and had come- to an arrangemeift with Macky, Logan. On the sariie’ date he ordered suit boxes from P. F. Burrows-for £ll 19s. He. denied telling Mr. Lepine on that occasion that the plant was all paid, for. He had- honestly believed he could pay for these suit boxes in the summer moriths then coming on. On May 31, 1930, a cheque, for £l2 ss. 6d. was dishonoured on presentment by A. E. Carter and Sons. He thought that was the first cheque of his dishonoured. On June 10 Paterson and Co. (Welliugton) secured judgment, for £2 4s. 4d. On June 12 he bought furniturefrom Hartnell and Co. for £1 18s. He actually had that money in his pocket. On the same day he bought furniture from Perreau and'W’ilson for £3 18s.; they knew Ins position and did not expect payment at the, -time. On June 19 Burrows’ boxes were,, .delivered.. It had not occurred to him that he should have offered to send them back. GOODS FROM STOREKEEPER.- .- Towards the end of June he told Rimmer, storekeeper, Westowri —when buying cutlery, crockery, and brush ware—that he was going .baching at Spedding’s house. He obtained goods worth £7 7s. sd. after telling Rimmer Mrs. Spedding had sent him. At that time he owed her £ll 155., so she would not have recommended him; - ) . On June. 27/V' S ave MoUer ' a bill ofsale over;,tfie dying.,,and cleaning machine and the;iron, with Watson’s consent. He denied it was,olily ’-then that Watson discovered there’ was -'anything owing on the machinery. In the meantime lie borrowed another £5O from Watson.- He gave Watson a note saying he would repay him £125 ir a month from June 20. “Now what chance had you of paying him £125 in a month?” asked Mr. Weston.

“No chance at..all,’.’ admitted Moore. His debts to the- Kopkes in July added still further to Jiis liabilities, he , said. His books showed, his business, was. going back. From August 4 to 30 he bought from the Reliance Printery goods worth £lO Bs., and ordered Christmas shopping lists valued ’ at‘. '£G?‘" Those lists were delivered after his bankruptcy.

On August 7 Beard secured judgment for £1 os. 6d. On Augdst.2l Macky, Logan took judgment for £42 19s. 7d. On September 4 he epnfessed judgment to Watson .( £128,135.), J. Watt', ( £4 Os. 6d.), and J.'R. Rimmer ( £8 125.j5d.), On September 11 Hartnell and Co. secured judgment for £2 6s? 6d, On September 18 T. C. List, secured judgment for £l5. ■ In June or July he borrowed £3O from Loveridge. On September 4 ho received. goods, worth £4 9s. 3d. from Wilton’s. (Wellington), to whom he then owed £5 19s. 3d. He haddold Wilton’s traveller his whole, position. Tke traveller had replied he; would see his firm and ask if it would send a supply of dyes. He did not think it was honest to. hhve accepted these goods on,, September 4. . Wanted to pay all debts. •- 'On Septemberhe’had' consulted Mr. Edmondston, solicitor,' who wrote to his creditors that he owed about £4OO, but hqd no assets... Mr. Edmondston advised him to file, but he did-not"agree to that, saying he would pay his debts in fulL On September 9 the Shell Company took; judgment at. Wellington, for £l9. 16s. Bd. In’September : his landlord took out a distress warrant; He admitted having sold the iron after the'landlord had. handed it back. He had. not.told Moller, as he thought tbe bill of sale lapsed upon bankruptcy., .- - ; r ; . “What I want'io-know is 'where al’ this money went,”:said ; X r : Weston. Moore admitted-he secured about £IC worth of goods; from Sargoods and £9O worth from Macky Logan.. He did not make any profit’on them. He would have received at least- £5O for the sale of this, stuff. He had : £ 1-25- from Vatson, .£6O from. Kopke and son, . £4O from Miss Kopke, £3O from Lbveridge and £5 from Gibson. The takings from the business came .. to £lB5. . This difinot’include the-sales’ of the drapery. He? had. r not . put '.any of •• the- money away anywhere. ;. All he had was the wages he received from the Valet Service, by whom he was now employed.