PLUMBERS BANKRUPT

Taranaki Daily News, 10 March 1932, Page 8

PLUMBERS BANKRUPT

DISCUSSION AMONG CREDITORS. MOTION TOWARDS DISCHARGE. A meeting of the creditors of Stanley G. Robinson and Leo G. Pope, bankrupt plumbers, Stratford, was held yesterday and carried a motion recommending that the discharge of bankrupts be facilitated. The D.0.A., Mr. J. S. S. Medley, presided over a dozen creditors. It was resolved that the names of creditors but not the individual amounts owing to them be published. Mr. Medley said he could not force the suppression of the amounts. ( “If the Press does not agree to suppress them we can go into committee and the reporters will have to leave the meetings,” said Mr. A. R. Masters. “I- have never heard of that being done, but I suppose you could do it,” Mr. Medley replied. “Usually the Press respects such a resolution.” As shown in the financial statement the amount owing to unsecured creditors was £1903 4s lOd, aud to secured creditors £39, making a total of £1942 4s lOd. On the credit side stock in trade was estimated at £495 2.7 d, book debts of £3Ol Is 2d were estimated to produce £l'so, and plant was set at £lO4 7s, the total being £B4B 10s lOd, and the deficiency £1093 14s. Unsecured creditors to whom £5 or more is owing are:—John Avery Ltd. (New Plymouth), Whitely and Co. (Auckland), Plumbers Ltd. (Hamilton), George Dick (Stratford), Masters Ltd. (Stratford), G. A. Carter (Stratford), Jones and Co. (Wellington), Iron and Steel Co. (Dunedin), Hardley Ltd. (Auckland), Union Foundries Ltd. (Stratford), Brisco and Cp. (Wellington), E. C. Ha/ton (New Plymouth), E. H. Young' (Stratford) and R. H. Robinson (Auckland). BANKRUPT’S STORY RECOUNTED. Bankrupts said they commenced business in partnership at Stratford in October, 1923, each partner providing cash and goods to the value of £6O, so that the initial capital was £l2O. The business premises comprised a very small workshop owned by Mr. Lovett, and they remained in those premises tor about six months. During that period they did very well, and found that the premises were too small for the requirements of their growing business. They decided to move to more commodious premises owned by Mr. A. W. Reid on the opposite side of the street, and they occupied those premises for about two years and a-half. The premises were situated up u right-of-way, behind other buildings, and were therefore off the main street. During tha ( t two and a-half years, the business continued to expand, and in 1925, as there appeared to be a good opening at Inglewood, they decided to open a branch business there. They took a lease of a shop, the lease containing a compulsory purchasing clause at £lOOO. Pope managed the Inglewood branch and Robinson the Stratford business, and the two businesses kept them busily employed. In 1926 there was a large amount of contract work offering, and they secured a good pro; ortion of that class of work. As Mr. Reid’s premises were off’ the main street they considered it would be an vge to havexa shop on Broadway, right in the business area, and they decided to move into Mr. E. H. Young’s shop which was being erected, and to take a lease lor five years from January, 927. They had hoped that by moving right into Broadway the business would continue to grow, but they found when they moved into the, new shop that their competitors were cutting prices very fine. At that time they were faced with the difficulty of securing stock to carry on, and they therefore convt .ed a meeting of their largest creditors in May, 1927. The meeting decided that the two businesses should be carried on under supervision, and it was arranged that all accounts for goods purchased should be treated as preferential for payment. After that meeting business continued to be satisfactory. They were aided by the advice of their supervisors, and they had a good year : t 1928. In 1929 the Stratford business showed satisfactory figures, but there was a falling off in the Inglewood business, due to the fact that competition had increaspd. It was decided to close the Inglewood branch, but they coup' only manage to get rid of their liability on the property for £B'so, so that the purchase of the Inglewood shop cost £l5O. After closing the Inglewood branch; they concentrated on the Stratford business, and the business continued to show good figures, so much so that they actually kept the current accounts paid, and made payments to the creditors interested in the arrangement made in May, 1927. BUSINESS BEGINS TO DECLINE. Early in 1931 the effects of the depression began to appear, and the business commenced to decline. They carried on, however, in the hope that business would return to normal, but the increasing effects of the depression made trading conditions difficult. They found that they could not keep some of the current accounts paid, and were advised to convene a meeting of creditors. The meeting, which was attended by the supervisors (Messrs E. C. Hayton, A. R. Masters and G. A. Carter and the largest creditors) was held in December, 1931, when there was a full discussion and a resolution was unanimously passed that the business be assigned to the supervisors for the benefit of creditors, that it be carried on or otherwise at the discretion of the trustees with f;ill power to act, they to employ such labour as they thought fit, and to call a further meeting within six months, and that the resolution passed at the meeting of May, 1927, relating to current accounts 'be confirmed and that all current accounts then owing be preferential as to payment and be paid prior to any payment to creditors of May, 1927. Following that meeting at which, as already stated, Air. Hayton was present and agreed to the resolution, a deed of assignment was prepared, and although all the largest creditors were prepared to sign, it was never completed owing to the fact that Air. Hayton refused to sign. Air. Hayton issued a summons against them for the debt owing to him. They decided in justice to the whole body of their creditors to file in baukruptcy. Apart from the partnership assets, which would be utilised to pay a dividend on the partnership debts, they regretted that they' could make no offer to their creditors. They were both married men with families dependent upon them. Air. Hayton said he was the only one who pressed for payment of current accounts according to a resolution at the second meeting. The others did not do so and several creditors had suffered through that lassitude. Air. Carter replied that Air. Hayton was the one who moved that motion. “If any responsibility falls u anybody for that resolution’s not being carried into effect it falls on the advisors, of whom Mr. Hayton was one,” said Air. Masters.

Mr. Medley said they would not have time to go thoroughly into the whole history of the business that day tnd he suggested that a committee be set up to do that.

Mr. Pierard, representing Plumbers Ltd., said he would like to hear the history of the affair. Mr. Carter read the minutes of the meeting in 1927. DISSENSION ALLEGED. “It seems to me that much of the trouble has arisen through dissension among the supervisors,” said Mr. E. H. Young. It was certainly unfortunate that payment of current accounts had not been kept up, but he believed that the majority of the businesses concerned had been fairly well acquainted with the position of the bankrupts. The argument between the supervisors could go on all the afternoon without any definite result. There was no need for acrimonious discussion. Creditors engaged in a discussion regarding the plant, but Mr. Medley said it was not taking them far. Mr. Medley to bankrupts: “It has been reported to me that lately you have been doing jobs in the town but have not paid the money into the firm. Is that right?” ' . Robinson: “I frankly deny Pope: “I have not done anything like that.” Mr. Medley: “If I bring a man to say he paid one of you for a job you will deny it?”—“We will.” Mr. Medley: “Have not you two had words lately?” Robinson: “Mild ones, but only very recently.” Mr. Medley: “It has also been reported to me that one of you took the firm’s lorry to Wellington and used the firm’s petrol.” Mr. Carter: “The parties who made these statements should be here to support them.” Mr. Medley: “They are not.” Pope said he went to Wellington in the truck but bought his own petrol. Mr. R. H. Robinson moved that the affairs be settled as soon as possible

to enable (bankrupts to secure their discharge. Mr. Carter seconded the motion and said that as far as further investigation was concerned it could be conducted by Mr. Medley. * The motion was carried and the realisation of assets was left to Mr. Medley. H.M.S. PERHAPS ENTERTAINMENT. It has been said that variety is the spice of life, and never- has it stronger application than in the world of entertainment. “Give something new and varied,” is the cry of theatre-goers. And so H.M.S. Perhaps, to be presented to the public at the town hall, Stratford, I to-night, will be something to meet the demand. The story is: Two letters are dispatched from the Admiralty, one to, an admiral to take command of H.M.S. Perhaps lying in the Victoria Park dockyard, and the other is a commission to a master painter to paint the Admiralty buildings. But the letters go astray and the master painter finds that he has command of H.M.S. Perhaps. Imagine a master painter in command of a battleship and then decide to come along and see a bright and breezy show. You will not be disappointed by the good singing, dainty dancing and rollicking comedy. The box plan is lii-.ng rapidly at Rear’s, Broadway. H.M.S. Perhaps is staged by Jack Burns,