BANKRUPT GROCER.

Timaru Herald, Volume CXXXIV, Issue 18831, 20 March 1931, Page 5

BANKRUPT GROCER.

MEETING OF CREDITORS. ESTATE OF C. W. G. HOME. A meeting of creditors in the bankrupt estate of Charles William Grummond Home (Mr A. D. Mcßae), was held in the Timaru Magistrate’s Courthouse yesterday before Mr W. Harte, Official Assignee. The creditors represented were Ellis and Howe (Ml* Ellis), B. Watson, Timaru Shop Fitting Company (Mr O’Meeghan), Turnbull and Rule (Mr P. W. Rule), Milne and Bremner (Mr J. Knott), C.F.C.A. (Mr Leslie), R. Wilson and Co. (Mr W. I. Tait), H. J. R. Somerville, “Timaru Herald Co.” (Mr R. Cole), and L. Black. The amount owing to unsecured creditors was £833/12/2, while the stock in trade and property was estimated at £756 10/3. Of this latter amount book debts were represented by £262/1/10, estimated to produce £2OO, cash in hand £235/10/3, property £2Bl, and stock as per valuation, £35; leaving a deficiency on paper of £39/12/5. The list of unsecured creditors over the amount of £5, was:—Turnbull and Rule £102; R. Wilson and Co., £2OB/15/3; Timaru Shopfitting Co., £133; Bay Service Station, £6/7/11; A. Mclver, £2l 13/10; W. D. and H. O. Wills, £l3/13 Caroline Dairy Co., £3O/5/-; John Edmonds, Ltd.. £lO/2/-: W. Little, £l3 15/10; J. J. Clark, Ltd., £ls; B. Watson, £67; Milne, Bremner, Ltd., £7/5/2; A. G. Knowles, £10; Alpine Dairy Co., £l3 19/7; John Stevens, £6/14/-; John Cock, Ltd., £8; Arthur Yates and Co., Ltd., £l3/17/5; A. J. White, Ltd., £lO 0/11; Canterbury Central Dairy Co., £ll /10/2; H. J. R. Somerville and Co., £6/17/11; C.F.C.A., Ltd., £6/1/6; R. S. Griffiths, £24/7/10d; J. Ballantyne and Co., Ltd., £B/2/1; “Timaru Herald,” £5 17/6. Bankrupt’s Statement. Bankrupt in his statement said that he had been in business on his own account in Timaru as a grocer for the last six years. In September, 1930, he sold his grocery business at the corner of Wilson and Church Streets, to his father, Mr W. E. Home. The freehold property was purchased by his father, subject to the existing mortgages, and the stock-in-trade, plant and fittings were taken over by him at valuation. He received £9OO in cash on account of the purchase money, the balance of £620 being payable at two months’ notice. He then decided to commence a new business on his own account, relying on the balance of purchase money from the sale of his other business to meet the required capital outlay. A tenancy of the shop premises in Stafford Street North was taken and he commenced business on December 15th, 1930, as a small goods specialist. He had incurred a fairly heavy liability in fitting the premises up for the class of business he had taken on and in stocking up. During the holiday season the returns from the business were good, but there was a considerable falling off after the holiday rush was over. The balance of the purchase money due to him from the sale of the other business was not available as he required it, and on that account he was unable to meet the claims of different creditors who were pressing for settlement of their accounts. The mental strain consequent on this development and the falling off of the returns from \ the business worried him considerably. He had been working at top pressure over the holiday season in an endeavour to get well-established, but was unable to make sufficient headway to enable him to meet the more pressing claims. To obtain relief from the constant worry he decided to pay a visit to the north. On his return to Timaru he had been served with a creditor’s petition under “The Bankruptcy Act,” and acting on legal advice, he decided to consent to an order of adjudication in the interests of the general body of his creditors. He was prepared to give every possible assistance with a view to realisation of his estate to the best possible advantage. Under Examination. Examined by the Official Assignee, bankrupt said he had been arrested in Auckland on the petition of the Timaru Shop-fitting Company, the allegation being that he was about to leave New Zealand, having left his place of residence. He was brought back here at a cost of £4O. The Assignee at this stage explained to the creditors that the cost of escort was a first charge on bankrupt’s assets. Bankrupt had admitted since then that the facts set out were correct. In reply to the Assignee, bankrupt stated chat when he sold his business in Church Street, he received £9OO in cash, and £450 was received on his behalf by Mr Inglis. He had paid away £775 in the liquidation of accounts. On October 30th he considered that he was solvent, after paying all debts. The Assignee: “You had cash in hand and money coming to you amounting to £I7OO. You were in a better posi-

tion than a great many businessmen?’ Bankrupt: “Yes.” The Assignee: ‘How do you arrive a 4 ycur present position?” , Bankrupt: “Falling off in business.’ f The Assignee: “Your living expense.' should not have exceeded much ovei £100.” Bankrupt: “No. nothing like that.’ The Assignee: “All your debts incurred in going into the new shop have not been paid.” Bankrupt: “Yes, some were paid. The money that came in I paid out ” The Assignee: "You paid money by cheque, which did not go to your creditors.” Bankrupt: “Yes. I paid everybody as well as I could, until I got so worried I did not know what to do.” The Assignee: "What were your tak--15?” * n new S^lOJ3 f rom December Bankrupt: “Roughly from £4 to £5 a day.” The Assignee: “About £2O a week over the Christmas holidays?” “A Falling 1 Market.” Bankrupt: “During January the takings dropped right down, arid if I took £3 or £4 a week I was lucky.” The Assignee: “And your wages account was £3 10/- a week?” Bankrupt: “Yes.” The Assignee: "Now on the 25th of February, when you went away, how much money did you take with you?” Bankrupt: “I took £75.” The Assignee: “And you spent that in a fortnight?” Bankrupt: “I had to pay £2O in fares and that left me £55.” The Assignee: “Supposing you paid £4O, what became of the £35? You were sure that you were solvent in October and yet you know you had issued cheques which were returned.” “Did His Block.” Bankrupt: "It was because of my financial difficulties that I went away. A man did his block and did not know where he was.” The Assignee- “It was not your block, it was the £75 belonging to your creditors. The creditors think, and I think, you had more than that amount when you went away. In any case, you dissipated £75 belonging to your creditors.” Bankrupt: “I thought the £450 Mr Inglis was holding for me would be taken to the bank. If that had been done, it would have been all right.” The Assignee: “It would not. Do vou realise you owed £BOO to your creditors?” j i

Mr Inglis (to bankrupt): “After winding up your estate you will be £2OO short.” Bankrupt: “Something like that.” Mr Inglis: “Why did you tell a certain person in your employ that you had a roll of £2OO in notes when you were going away?” Bankrupt: “That is imagination on his part. I said no such thing.” Mr Inglis: “How. much did you owe when you left the Church Street shop?” Bankrupt: “I don’t know, but I have a shrewd idea it was £800.” Assessing Amounts. Mr Inglis: “Since then you incurred an extra £4OO worth of debts. When you started the new business you had £9OO in cash. £6OO worth of book debts, £75 for your truck, and £BO takings' from the new business, making a total of £1575. Your position is that there is £755 in cash since the middle of OctI ober not accounted for.” Bankrupt: “I have not got it. I can’t tell you where it is. You have got me beat. I will admit I have been spending money, but I have not spent anything like that amount. I have not got any money away.” A creditor: “He paid £IOB on his car.” Mr Inglis: “That leaves £6OO odd to be accounted for. What have you done with it?” Bankrupt: “I don’t know.” Mr Inglis: “It is up to you to give your creditors an explanation.” The Assignee: “Your creditors are entitled to an explanation, Mr Home.” Bankrupt: “I absolutely deny that anyone is holding any money for me.” ( Mr Inglis: “Where did you tell that man in your employ you were going to?” Bankrupt: “To Dunedin.” Mr Inglis: “What was your reason for saying that?” Bankrupt: “I didn’t tell him, I told the girl.” Mr Inglis: “Why did you tell them that?” Bankrupt: “Because I knew they would go home and say I had gone to Dunedin, and I thought I would go up north.” Mr Inglis: “I am not satisfied with your explanation yet. Actually you have spent £9OO, including £l5O you borrowed from a finance company.” Bankrupt: “If I have spent £IOO, that is as much as I have spent, apart from the £75. If I had the money I would like to see my creditors get it, but I have not got it.” The Assignee: “It is a bit late to say that now.” “£9OO in Four Months.” Mr Inglis i ‘'Practically £9OO has gone

in four months, and you cannot explain It.” Bankrupt: “All the money I spent was In drink, and I could not possibly spend £9OO in four months on drink.” Mr Inglis: “You borrowed £l5O from a financial firm and paid back £190." Bankrupt: “I only found out later that I could have got the money cheaper elsewhere.” The Assignee: “There is £6OO not accounted for.” Bankrupt: “If there was any money lying about anywhere I would only be too pleased for the creditors to get It ” The Assignee: “I don’t think you have been honest with us over the money that you took with you to Auckland.” Bankrupt: “That is wrong.” The Assignee: “You had onlv 11/on you when you were arrested In

■ Auckland. I don’t believe you know what you had. You were in no frame ■ of mind to know when you arrived back here. The arresting bailiff said that your companion pulled out a roll of notes, and you said ‘that’s my money.’ ’ Bankrupt: “That is not correct. I paid the fares coming back.” The Assignee: “Personally, I don’t believe you.” Mr Inglis: “Were you searched when arrested?” Bankrupt: “No.” Money to Companion. Mr Inglis: “When did you hand your money to your companion?” Bankrupt: “In Wellington.” Mr Inglis: “How much?” Bankrupt: “£50.” Mr Inglis: “And you never handled it again.”

r Bankrupt: “I got a pound or two as : I wanted it.” : The Assignee: “And you passed that j remark, ‘that’s all I want’? I don’t ; think Mr Home you were responsible when you came back. Do you re- : member saying, ‘if I miss the Mararoa, I will get the Niagara’?” , Bankrupt (laughing): “No. It was more like catching a fishing boat. What could I do in America with £50.” The creditors authorised the Assignee to realise on the assets to the best advantage. Mr Mcßae, addressing the creditors, said the bankrupt had had a lapse, and he was desirous or rehabilitating himself. He was assured by his client that he had hopes of paying his creditors 20/- in the £. He thanked the creditors for the considerate treatment extended to bankrupt, and expr^aed

the wish that his (bankrupt’s) hopes would be realised. This terminated the proceedings., FREE OF PILE TROUBLE. Among the testimonials on file for Zann Double Absorption Pile Treatment is the following: ‘I am pleased to inform you that I am now free of the Pile trouble of which I wrote you. After using little more than half the quantity you sent me I have been free of the complaint.” Write for generous Trial treatment enclosing nine penny stamps. Address: Zann Proprietary. Box 952, Wellington. Booklets and stocks of “Zann” obtainable from L. J. Williamson (late Baxter’s Pharmacy), Prescription Chemist, next Bank New Zealand, Timaru.