BANKRUPT STOREKEEPER

Taranaki Daily News, 17 August 1933, Page 6

BANKRUPT STOREKEEPER

EXAMINATION OF HIS AFFAIRS

INTEREST IN STRATFORD STORE.

OFFER ACCEPTED BY CREDITORS.

After a long examination of the affairs of Bernard John Carlyon Joyes, a bankrupt Stratford storekeeper, by his creditors an offer made by the bankrupt for payment was accepted and the creditors agreed to facilitate his discharge upon certain conditions. The meeting was held before the deputy official assignee (Mr. J. S. S. Medley) at New Plymouth and the creditors present were Messrs. R. D. Lewers, E. H. Young (Young and Moss), C. H. Wynyard (Duff and Wynyard, New Plymouth) and S. Macalister (Mr. W. Wason). Joyes was represented by Mr. G. Macallan. The deficiency was £6lO 2s.

The meeting decided to suppress details of the debts owing by Joyes.

Joyes in his written statement, said he was a draper and shareholder in B. Joyes and Co. Ltd., Stratford. In 1929 he and Mr. Wason purchased the drapery business of Mr. R. D. Lewers at Stratford. In November, 1931, the business was formed into a private company. The capital was £2OOO, to which he had contributed at various periods £3OO. He still owed the company £2OO for unpaid share capital. The company covenanted to pay the partnership debts. He and Mr. Wason also gave promissory notes to Mr. Lewers to secure the amount due to him.

The company was now in liquidation, Mr. C. H. Wynyard being the liquidator. He estimated the liquidation would yield the creditors of the company a dividend of about 10s in the pound. Mr. Lewers then had the right of recourse against Mr. Wason and bankrupt for the balance of his claim. At the present time Mr. Wason was owed £739 16s 3d. Since the company had been formed proper books of account had been kept and annual accounts prepared from them. Joyes kept no books in respect of his private receipts and expenses. His salary from the business was £5 weekly to April 22, 1933, and from that date £3 weekly. His wife had worked in the business at £3 weekly. SHORTAGE OF CAPITAL.

The company had been experiencing a shortage of capital for some time and this became more acute as the vendors* bills became due. In February, 1932, the company’s stock in trade was more or less destroyed by fire and while the insurance which was then paid enabled creditors to be, met and further credit obtained for new stocks, yet the occurence was of very little benefit to the business and actually brought a loss. The company continued trading, but when seasonable stocks were required the shortage of capital was again felt. The failure of the company could be attributed to shortage of capital, gbneral falling off of business on account of the existing conditions and the failure of the company to make profits sufficient to cover the vendors’ bills when they fell due.

As merchants restricted their, credit it. was deemed advisable in the interests of all to go into voluntary liquidation. In 1931 Joyes had been involved in a motor accident and had to pay the successful party approximately £250 as a result of subsequent litigation. Mr. J. Smith negotiated with him and paid £lOO in settlement. Mr. Smith had advanced this money and bankrupt had repaid him £9O by instalments of his salary. Joyes also paid Messrs. Young and Moss about £3O .towards costs but still owed them £9B.

He had five children, four of whom were dependent upon him, Joyes said. He had used all his salary in payment of living expenses, in putting money into the business (about £l5O since 1931) and in payment of the instalments mentioned. He had no property or assets. The furniture belonged to his wife. He was unable to make any offer to his creditors. Examined under oath, Joyes said his wife’s furniture, the value of which he estimated to be £2O or £3O, apart from a piano, was insured in his name. However, his wife had always bought the furniture. A policy had been taken for £3OO three years ago. This policy included the piano. Mr. Macalister thought Mr. Lewers should make an inspection and value the furniture. In the event of Joyes disagreeing with Mr. Lewers’ valuation, expert opinion should be called. Mr. Wynyard said that if the value of the furniture was in excess of £5O the deputy official assignee would have to decide whether it belonged to Mr. or Mrs. Joyes.

PARTNERSHIP BUSINESS.

His partnership with Mr. Wason had been formed consequent upon the buying of the business from Mr. Lewers, continued bankrupt. The stock was valued at £2660, which was the price of the business. The balance had been covered by promissory notes. All documents had been signed by bankrupt, as Mr. Wason wished to remain obscure. In answer to a question by Mr. Macalister, bankrupt stated he had the sole control of the management. The company was incorporated in November, 1931. Further questioned by Mr. Macalister, bankrupt said his statement contained a true record of his salary. He had drawn no other money. In addition to his wife, he had a son employed in the business at 22s 6d. Another son had been employed at 30s a week for two periods of 18 and six months. These were necessary to run the business. Both sons had paid a certain amount to his wife for board. Mr. Macalister said Mr. Wason thought bankrupt should have some assets. Mr. Macallan said bankrupt’s statement showed where the money had gone. He had noticed the shrinkage in turnover some time ago, but had not realised the true position until the payments to Mr. Lewers and vendors could not both be met. He had supplied figures. February, 1933, was the date upon which they had found the shrinkage so large. He had

no idea that the firm would have to go into ■ liquidation at that time. The £3OOO obtained from insurance had been disposed of to creditors. It had all been accounted for in settlements and a fresh start made on credit

Mr. Young pointed out that if Mr. Lewers had been paid the business would have had to have been closed at the time. Mr. Lewers had wished the business to be carried on. On the motion of Mr. Macalister bankrupt’s offer to pay £4 a month, up to £2OO commencing four months after taking up his position at Dunedin and that £l5O be accepted as final payment if the sum Were paid within 12 months from September 1 was accepted and in consequence of this offer the creditors agreed not to raise any question of the ownership of the furniture, bankrupt to be allowed to reclaim same, if upon valuation the total value did not exceed £lOO. If settlement was effected on these terms the creditors agreed to facilitate bankrupt’s discharge. If bankrupt required discharge before full payment in accordance with terms the creditors will facilitate his discharge provided he agrees to judgment for payment of any balance then owing by him.

GENERAL ITEMS.

Colonel Sir S. S. Allen (MorrinsviHe) and Mr. H. B. S. Johnstone (Otaio, South Canterbury), members of the Central Transport Licensing Authority, together with the secretary, Mr. A. N. Haggitt (Wellington), arrived at Stratford yesterday from Taumarunui, having travelled in a carriage attached to the goods train. They were met by the chairman of the No. 5 authority (Mr. P. Thomson) and were taken to the Stratford mountain house and the plateau in a car lent by Mr. J. C. Allen. The authority will hold a sitting at New Plymouth today. Euchre Series Ended.

The conclusion of a series of euchre tournaments held by the Stratford Friendly Societies during the past few weeks was marked on Tuesday night with a combined dance in the Foresters Hall. There was a good attendance. Messrs. P. Healy and C. Ireland were masters of ceremony. Mr. H. Waite played the music. The friendly societies card trophy, a silver cup, was presented to the Foresters’ team by Mr. B. Jeffares to Mr. Hedgman. Music at Football Match.

The surroundings of Taumata Park, Eltham, were enlivened before, and after the Waikato-Taranaki representative match yesterday by a programme by the Eltham Salvation Army Boys’ Home Band.

Work on Show Pig Pavilion. The demolition of the old pig pavilion at the Stratford showgrounds has been nearly completed and the work of laying the concrete foundation for the new building, which will measure 114 ft. by 60ft., is under way. The successful tenderer for the iron work was Bellringer Bros., Ltd., and for the timber G. Syme and Co.

Railway Crossings Improved. The Fenton Street and Regan Street railway crossings at Stratford have had a very pronounced corrugation since the laying of carrier rails, but have been the subject of attention in the past two days, and by the application of a little bitumen-treated material the surface has been made less wracking to nerves and springs.