TAILOR FOUND IT HARD TO CARRY ON.

Star (Christchurch), Issue 17878, 21 June 1926, Page 9

TAILOR FOUND IT HARD TO CARRY ON.

HE TOOK OVER TOO MANY LIABILITIES. A meeting of creditors in the estate of John Bell M’Clymont. tailor, was held to-day. Mr A. W. Watters. Official Assignee, presided, and eleven creditors attended. The unsecured debts were set down at £391 15s 6d, and the secured debts at £892. The securities were valued at £llsO, leaving a stirplus on them of £258. The assets, stock-in-trade £34 ss. book debts estimated to produce £l3 18s, and surplus of securities £258, a total of £306 3s. The deficiency was £BS. 12s 6d. The principal unsecured creditors were:—Miller and Hearn, merchants, £7B 17s sd; R. Jamieson and Son, woollen merchants, £46 10s 2d and Davies, £2l 15s 2d; Stewart Beckett and Co., accountants, £22 15s: J. W. Baird and Co., woollen merchants, £27 Is sd; J. Hodgson, £63 12s 4d; Ackrovd Bros., agents, £25 5s 2d. The principal secured creditors were:—New Zealand Government, £642. estimated value of security £950; IT. Hepburn, 94, Tuam Street, engineer. £250, estimated security £2OO, second mortgage, over the same property, and chattel security. Bankrupt stated that in September. 1921, he became a partner in a tailoring business with Mr Nixon. They carried on Jintil March, 1923, when the partnership was found unsatisfactory, and he decided that he could do better on his own account. He agreed to take over all the existing debt? and to pav Nixon £23. The debts then were £406 14s Bd. The creditors agreed not to press if he could guarantee 20s in the pound on April 20, 1923.. About a month after starting on . his own account, he had paid £IOO reduction of the debts. Between that elate and September 23, 1925, he made further payments, amounting to £l7O, He had reduced the debts of the partnership by £270. These payments drained his resources, and he was forqed to obtain credit. While paying the partnership debts, he got into debt on his own account. His credit was stopped. During the past twelve months, he had practically carried on on a cash basis. He had to get a substantial deposit on a suit when it was ordered, in order to buy the materials. That seriously cramped the business. He attributed his bankruptcy to the fact that he took over too big a liability in releasing Nixon, and was too anxious to repay the old creditors and start with a clean sheet, and consequently was paying away all his profits. A creditor said that the total sum owing was £579 7s lOd. Mr Cowlishaw, for the bankrupt, said that £IOO was owing to the Repatriation Department. The Official Assignee said that he .could not see any chance of a dividend. Three years ago, bankrupt was in a rather bad position, and he did not seem to have improved much. He was carrying on from hand to mouth. Obviously there, was nothing in the estate for the creditors. Mr said that, If bankrupt had been able to continue as during his first month, he would be all right. It was agreed that the furniture should be returned to the bankrupt, subject to the chattel security. The meeting was adjourned sine die