MEETING OF CREDITORS.

Timaru Herald, Volume CXXXIV, Issue 18832, 21 March 1931, Page 19 (Supplement)

MEETING OF CREDITORS.

GARAGE PROPRIETOR PAILS. A meeting of creditors in the bankrupt estate of Herbert Webb, garage proprietor, Pleasant Point, was held yesterday afternoon. The Official Assignee, Mr W. Harte, presided. Mr Raymond appeared for Mrs Kennedy and the landlord, Mr L. A. Woodward. Mr Browne appeared for Browne’s Motor Body Works, Temuka. Mr O’Connell represented bankrupt. The schedule showed a deficiency of £3lO/17/4. Assets were £59, consisting of stock-in-trade and plant £4O, and book debts £2l/4/2, estimated to produce £l9. Total debts were £369/17/4, all owing to unsecured creditors. There were no secured creditors.

Following were the principal creditors:—Timaru: Amuri Motors Ltd., £2/14/-; Horwell and Osborn, £3/11/-; Para Rubber Coy., £34/3/10; South Canterbury Electric Power Board, £7/18/6; Central Trading and Agency Co., £5. Christchurch: J. J. Niven & Co., Ltd., £7/11/5; Peter Kennedy, £l4/4/9; A. S. Paterson and Co., Ltd., £xo4/2/ll; L. A. Woodward, £SB/10/-; Gilmore Oil (Joy., Ltd., £2O; Vacuum Oil Coy., £10; Pleasant Point: Post and Telegraph Department, £2/3/3; Oswald Jones, Ltd., £3/19/-. Temuka: Browne’s Motor Body Works, Ltd., £3l/11/0. Dunedin: Stanton Bros, and Co., £3/7/10.

Bankrupt stated that he started In business at Pleasant Point on November 23, 1929, in premises belonging to Mr L. A. Woodward, of Christchurch. When he took possession of the premises he had £IOO in cash, out of which he had paid £4O for the plant and £6 for a month’s rent in advance. For the first six months I had enough work to keep me going most of the time,” bankrupt continued. “From then on their was an increasing slackness in business. The takings from the business fell off to such an extent that I could not meet accounts falling due and, as legal proceedings had been taken against me by several of my creditors, I decided to file my petion in bankruptcy. While I was at Pleasant Point I lived carefully and kept closely to my work, but I realise now that there was never enough business offering to justify my opening up. I had to depend chiefly on the farming community for my business, but, on account of the general depression, there has not been the business offering from the farmers.” In the course of examination by Mr Harte, bankrupt said he was now of the opinion that there had never been enough business in Pleasant Point to warrant the establishment of the business. He had sold his car for £lls, and there was yet £lO of that amount to come to him. His share of the sale was £ls, the balance going to Dominion Motors, the buyer having taken over the hire-purchase agreement. Bankrupt said he had no extravagances and had done everything possible to conduct the business successfully. Mr Harte: It has been suggested that you have made trips to Mount Cook. Bankrupt: I went only twice, and that was on Sundays, when there is no business to be done in Pleasant Point. The trips did not cost me anything, as passengers I took up with me paid for the petrol. Bankrupt denied Mr Raymond’s suggestion that he was in the habit of going to Lake Alexandrina on fishing excursions. The only fishing he had done was in the river near Pleasant Point. Although he had a job to go to, bankrupt said it was not a lucrative one, being on a farm, and he could make no offer to his creditors. “I am just wondering if, in the circumstances, bankrupt is not guilty of an indictible offence,” said Mr Browne after bankrupt had admitted misrepresenting the position to him. Mr Harte: I am not prepared to say that. He had told a lie to you, thr is all. He was going to carry on as long as his creditors would let him. Bankrupt denied that he had any Intention of letting his creditors down. Mr Browne: “You let me down. You received money that you should have given tame, and did not do so.” Mr Harte: “Those who pressed hardest got paid and the more generous creditors were left.” Bankrupt said he had come from Auckland, not knowing the South Island or the Pleasant Point district. He had not known until he took over the business that the previous proprietor had also gone through. “It is a poor lookout for the creditors,” commented Mr Harte. Bankrupt admitted that he had been wrong in carrying on so long. As soon as he got a position with a decent wage he would endeavour to pay something. He recognised the moral obligation. The estate was left in the hands of the Official Assignee.