BANKRUPTCY OF AN AGENT

Taranaki Daily News, 25 July 1931, Page 17 (Supplement)

BANKRUPTCY OF AN AGENT

MILKING MACHINE DESIGNER S. OLDFIELD’S CREDITORS MEET DEFICIENCY OF £BOO SHOWN. A deficiency of £79-6 8.5 Id was shown in the affairs of Samuel Oldfield, agent, New Plymouth, and designer and marketer of the Ezy milking machine, at the meeting of hie creditors in bankruptcy at New Plymouth yesterday. Those present were Messrs N. B. Bellringer and J. H. Sheat (Prudential Finance Co., Ltd.), H. E. Ayckbourn (Cambrian Engineering Co.), C. H. Croker (Cambrian Engineering Co. and Mrs. A. H. Atchley), J. Shepherd, W. Kilpatrick (National Dairy Association), C. Winfield (Mr. L. Hodges), Adam (Kibby and Calgher), and A. H. Atchley. , Oldfield was represented by Mr. F. S. Grayling and the meeting- was presided over by the Deputy Official Assignee, Mr. J. S. S. Medley. In his written statement Oldfield said that at, the end' of 1928 he had started to market a milking machine designed' by himself called the “Ezy.” Until March, .1930, the machines were made by the Cambrian Engineering Company. On several occasions prior to March, 1930, Mr. A. H. Atchley had approached him with a view to procuring more capital and making the concern into a company. Oldfield said it would require £2OOO, upon which Mr.• Atchley said he could find up to £l5OO. Oldfield had then seen Mr. L. Hodges, Inglewood, and he had lent him £5OO, taking security over the stock in trade, the amount being advanced in instalments as required. Up to the end of April, 1931, a certain dmount had been repaid and approximately £397 10s was owing to Mr. Hodges. About this time he had received several letters demanding payment of principal and in May, 1931, Mr. Hodges seized four standard plants and two small ones. Oldfield considered these should satisfy the amount of the claim. MONEY BORROWED. From March, 1930, Mrs. Atchley had from time to time advanced him money and. the amount now owing was, with court costs, £777 5s lid. The total amount advanced had been £BBO and repayments of principal totalling £l5O had been made, leaving £730 for principal which, with interest and court costs, made up the sum given. Both Mrs. Atchley and Mr. Hodges had charged 10 per cent, interest. As soon as Mrs. Atchley put the money into the business he changed the name to the .“Ezy Milking Machine Company.” By arrangement Mr. Atchley kept the books, for which he received £2 a week. From time to time he drew more but any excess was credited in payment of the interest due to Mrs. Atchley. Mr. Atchley had complete charge of the books, had banked all moneys and signed cheques as secretary of the company. In order to effect'sales he was- in many cases compelled to finance tSfe deals, so he arranged with the Prudential Finance Company to discount the promissory notes taken by him in payment for‘the various machines installed. At the present time the company held promissory notes discounted for him amounting, with the loss on the sale of a motor-car, to £521 Is 9d. Of the total amount probably £lBO 15s 6d was definitely bad, but against this the company had three machines which it had taken back and which should be worth about £lOO, thus leaving a deficiency which, together with £35 2s loris on the car, made up £ll5 17s fid. In addition to the three machines that came back to the company, one other was in a ‘doubtful condition, but the condition of the other eight was, he thought, quite good. PATENT PROTECTIONS. >

He took out a patent in respect of a variable speed gear for pulsation drive, Oldfield continued. The style of the releasers was protected by a registered design and, ■ the alternating claw and the small testing releaser were also protected. He was indebted to the Na tional Bank of New Zealand, Ltd., to the extent of £122 6s Id, plus interest from March 31, 1931, and bank charges, but this was secured by an assignment of two life policies for sums of £4OO and £lOO respectively, which were in the Government Life Insurance Office. The-sur-render value of the two policies was about £l3O. This was the only-security the bank held.

Bankrupt stated that his wife owned a Willys-Knight car which was purchased in 1925. Bankrupt purchased the car but later he sold it to his wife. He put the money she paid him into the business, which subsequently failed. The money was actually paid to bankrupt by his wife about 1926. The furniture in the house belonged to his wife. For some months preceding his bankruptcy he negotiated with a view to forming a company to take over and market the milking machine, but unfortunately nothing eventuated. With the object of facilitating the formation of a company and displaying the machine for the coming year he opened a showroom in Devon Street.

He attributed his bankruptcy to the lack of sufficient capital and the high price paid for goods purchased, together with the economic conditions, which made it impossible for him to find the extra capital when required. At the end of December, 1930, his position as shown by the books indicated that his assets were equal to his liabilities, but since then his position had become worse,. due in a large measure to a branch he opened in Palmerston North not turning out as he expected. As Mr. Atchley issued a writ against him, secured judgment and issued a writ of sale, Oldfield felt his proper course was to file his petition. He had no assets apart from what he had disclosed and could make no offer to his creditors. The stock as disclosed in the schedule had been valued at a conservative figure. The stock was all in good order. He had no interest in any estate. The house he lived in belonged to his wife, who purchased it in February, 1930. The meeting resolved that the amounts owing to creditors be not published. Under examination Oldfield said his wife bought the house for £l2OO and about £145 had been paid off the purchase price. Mr. Croker: Could you get £l2OO for it to-day? He considered the property was worth £l5OO, Oldfield said. Mr. Grayling: There is a mortgage of £lOOO on it. Oldfield said there w.-’e two sections, each two-fifths of an acre. In answer to Mr. Croker the bankrupt said there was a shed on the property. One way to dispose of it would be to advertise it for sale and removal. The arrangement was that he was to get the shed rent free but he would not hold it back from the creditors. Questioned about his transactions Alnce the meeting of his creditors, OW-

field said he had sold, handed over or installed only one milking machine. He had sent the second-hand parts of a machine to Auckland and there was an account to be paid for that. One machine in his showroom had since been sold by the D.O. A. Following a discussion upon the best method of disposing of the stock, Messrs Ayckbourn and Atchley were appointed a committee to assist the D.O.A. in the realisation.

Mr. Medley said the milking machine seemed to be a good proposition. Mr. Croker: I like the touch about being about to suit the speed to the temperament of the cow. Oldfield’s' debts, all owing to unsecured creditors, totalled £2073 8s 4d, and the assets £1277 0s 3d. The assets were made up of stock in trade estimated at £917 ,I4s 6d, book debts (£355 5s 9d), estimated to produce £355 5s 9d, and share property £4.

The chief unsecured creditors were: — Anderson Ltd., Christchurch; Cambrian Engineering Co., New Plymouth; Hamilton Manufacturing Co, Hamilton; Kidd Garrett, Ltd., Auckland; McLeod and Slade, New Plymouth; D.0.A., re J. Watt, bankrupt, New Plymouth; F. H. Moore, New Plymouth; National Dairy Association, Wellington; New Plymouth Borough Council Electricity Department; Smart Bros., Ltd., New Plymouth; J. Bowater, Levin; J. Hooper, Oeo Boad; S. E. Nielson, New Plymouth; Canadian Whippet Co., Ltd., Wellington; J. Shepherd and. J. Davidson, New Plymouth; Mrs. W. R. Atchley, New Plymouth ; ’ Prudential Finance Co., Ltd., New Plymouth; Moss and Spence, New Plymouth; H. H. Johnson, Palmerston North.