MANY CREDITORS ATTEND INQUIRY INTO BANKRUPTCY.

Star (Christchurch), Issue 18442, 18 April 1928, Page 5

MANY CREDITORS ATTEND INQUIRY INTO BANKRUPTCY.

NOMINAL SURPLUS SHOWN BY H. FRASER. There was a large attendance of creditors at a meeting held to-day in the bankrupt estate of Hugh Fraser, a produce merchant, of Addington. Mr A. W. Watters, official assignee, presided. * The amount due to unsecured creditors totalled £678, while the amount due to secured creditors was £920, for which there were securities of an estimated value of £1250, leaving a surplus of £330. The assets totalled £1260, being comprised of stock-in-trade £4O, book debts estimated to produce £2OO, unpaid purchase money £225, furniture, office fittings and motor-car £465, surplus on the secured debts £330. There was a surplus of assets over liabilities of £5Bl 2s lOd.

The principal unsecured creditors were: —Dixon and Welsford, butchers, Christchurch, £35 12s: W. J. Bowman, engineer, Riccarton, £66 16s lid; D. H. Brown and Co., Ltd., Christchurch, £32 13s 6d; Tench Bros., motor engineers, Christchurch, £B7 17s 2d; A. P. Martin, Christchurch, £42 7s; J. C. Chamberlain, farmer, Ellesmere. £45 10s: Wood Bros., millers, Christchurch, £45 7s 8d; National Mortgage and Agency Company, Christchurch, £39: Ford Motors, Canterbury, Ltd., £3B 8s 4d: W. O. Downey, farmer, Prebbteton, £42 Is 3d; and A. T. Palmer and Co., Ltd., Addington, , £4O. In his sworn statement bankrupt said that he started in business at Jerrold Street, Addington, in the middle of 1926. He then had £6O capital. At the beginning of 1927 he started in a store owned by Wood Bros., for which he paid £8 13s 4d a week rent. At that time he had £3OO in capital. He was then employing two men. Out of his £3OO he had to pay £llO in satisfaction of certain debts. When he commenced business in Wood Bros.’ store, said bankrupt, in amendment’s to his statement, his capital consisted of equities in a section, a house, a motor-car and cash amounting to £3OO. The equity in the section was valued at £2OO, the equity in the house £2BO, the value of the furniture was £2OO and the equity in the car £IOO. His debts amounted to £l5O at that time, making actual capital about £9OO. The unpaid purchase money referred to by him was in connection with a section which bankrupt had sold. The official assignee said that it was probable that the amount of the surplus on the secured debts, £330, would have to be deleted, as well as the unpaid purchase money on the section. Book debts would not probably realise more than £l5O, the stock was only worth £2B, the office fittings £l4 and the motor-car £SO, making the actual assets £242. The only other item was the house furniture, which was set down by bankrupt at £3OO. In reply to questions, bankrupt said that his turnover was £I7OO. His gross profit was £465 and out of that came £240 for wages, £lO4 for rent and he had bought more furniture. The wages were paid to two men he had working for him. A creditor: What about the 2000 acre place at Taihape you were going to sell? Bankrupt: I never said that. A creditor: You did. Another creditor: You told me that too. A third creditor: That’s what vou told me. “Money Left Him.” Bankrupt said that he had had money left to him from a relative in the North Island in January or February, 1926. This w r as used to commence business in Wood Brothers’ store. Mr Wanklyn: On January 11 last you must have known what the position was?—l knew the business wasn’t paying, but I didn’t know it was so bad. Mr Wanklyn: When vou got £56 worth of stuff, oats, barley, and all that, from Mr Chamberlain, -what prospect had you of paying him?—l would have paid him when I sold it. Yes, and what about all the Other people?—That was my trouble, I was paying off creditors whenever I got any money.

Another creditor: Did you not tell me last October that the business was increasing so much that you had to give your books to a firm of public accountants to keep?—Well, I had so many accounts going out .” “Going out or coming in”? asked the creditor amid laughter. A creditor: You’re not trying to conceal anything?—No. I’m trying to show everything. The Official Assignee: You understand what will happen if you try to conceal anything?—Yes. The Official Assignee: It makes it bad for you if you can’t give these explanations. In reply to Mr Tench, bankrupt said that he had no anticipations of more money coming from the North Island. “Not a Gambler.” “Yes, I have had bets on horse-rac-ing,” said bankrupt in reply to another creditor. “I’m not a gambler, though.” The Official Assignee: What is the extent of your gambling?—Have you lost as much as £lO in one day, Mr Fraser?—No, I haven’t lost £lO in one day. “What is the extent of your betting then?” asked the Official Assignee. “I've lost £2 or £3 in one da}”,” said bankrupt. “Have you lost £5 in one day?” asked Mr Watters. “Well, yes, I will say I have,” was the reply. “Have you lost £SO in a year?” was the next question. “No,” yaid bankrupt. Mr A. G. Gray said that he had had a fair amount to deal with Fraser on behalf of Mr W. J. Bowman. He held a cheque for £6O which was dishonoured. He was of the opinion that Fraser was honest, but was an absolute muddler. “I think it only fair that, with the knowledge that I have of the .muddled affairs of bankrupt, to say that I think he is honest.,” added Mr Gray. Mr Godfrey said that Mr Gray had summed up the position very accurately. During the past few months, seven warrants had been issued and four committal orders had been made. Right up to the dav that he filed, he was still so optimistic that he was trying to get more capital. “T agree with most of what has been said.” said the Official Assignee. - “I think it was a case of misplaced optimism.” On the motion of Mr Dunstan, it was decided to have the bankrupt’s furniture valued and that a further meeting of creditors be called to discuss the position.