BANKRUPTCY COURT.

Taranaki Herald, Volume XXXVI, Issue 7964, 7 September 1887, Page 2

BANKRUPTCY COURT.

Wednesday, September 1. — Before F. P.

Corkill, Deputy Official Assignee. IN BE CHARLBS CALLAGHAN, OF NSW PX.TMOTJTH, BAKEB.

Charles Callaghan, duly sworn, said : I commencec business in New Plymouth m a baker in November, 1885, having previously been ia charge of my mother's store at Pungarehu. At that time X was between twenty and twenty-one years of age. I startec with a capital of £50, -which amount x received from the trustees under my toother's assignment for wages due no me prior to the assignment. I had no other money in the business except £50 whioh my mother pat ia. I rented Mr. George's bakehouse and chop, at two guineas per week, and I aIBO paid him 3a per week xor the use of a kitchen, which forms purt of hio property. I employed ? foreman — KeveLI — at £2 per week, and a lad to drive the cart ut fifteen shillings per week. I was in tbo bakehoase most of the time, and my mother usually looked after the chop for me. For about fifteen months I continued to carry on business, but about the onu of January of the present year I transferred the business to my mother, Mru. Agnes Cnllaghan, previous to that in December, # 1886, I think, I called a meeting of my creditors, that is, of the largest ones, and they decided that I should ism'gn my book deUn — the only assets- o Mr. Morton, age at for the Timaru Milling Company, to Jfcr,

GoMwater, agent for J. and T. Meek, and to Lever & Carter. The books were handed over, but as some of the creditor? would not agree to the assignment they were returned to me. In February I transferred the business to my mother on the following terms : She took over the whole of my book debts, whioh realised £92, as per statement produoed, and for this consideration she paid arrears of rent to Mr. George (£27), about £20 of wagei, £60 odd which I owed Mr. William Humphries for groceries, and she freed me from my liability to herself tor the £50 cash which I had borrowed from her.- Mr. j Samuel had lent me £45 on the security of a bill of sale over trap, 2 horses, bakehouse utensils, glassware in shop, &c, and Mrs. Callaghan took over these things, together with the liability upon them. I transferred my business to my mother on the advioo of Mr. \V. Humphries. The whole of the debts now owing by me were owing in December last. I attribute my failure to having so little capital at starting, trad havißg suoh heavy expenses to meet. The cost of maintenance of my mother, and five other children besides myself — seven of us m all had to come out of the business. Two of the boys were earning ten shillings a week each, but that would not cover the cost of their keep. The amount of £7 5s shown in my statement as cash in hand was paid away when I filed. When I handed over the business to my mother, no notice was given to my creditors generally) but I believe Messrs. Lever & Carter and Mr. Morton were aware of the change. After my mother took over, all receipts were given and taken in her name I have ever since been employed by Mrs. Callaghan, simply getting my food and clothing for my services.