BANKRUPT BUTCHER MEETS CREDITORS.

Star (Christchurch), Issue 18641, 19 December 1928, Page 9

BANKRUPT BUTCHER MEETS CREDITORS.

LOSSES SUSTAINED BY AKAROA TRADESMAN.

A meeting of creditors in the bankrupt estate of Robert Charles Jarden, a butcher, of Akaroa, was to „ r as f' The Official Assignee, Mr A. W. Watters, presided. The deficiency was shown as £-78 19s 7d. The assets comprised stock in trade £46 os, book debts £4OO (estimated to produce £350), motor-cycle and sidechair and spares £SO. The total debts amounted to £725 4s 7d, all of which was due to unsecured creditors. The principal unsecured creditors were:—Pyne, Gould, Guinness, Ltd., £37 15s lid; Akaroa Mail, £34 18s 7d; A. S. Hammond, £7B 13s lOd; Ronald M'Kay £59 10s; New Zealand Loan and Mercantile, £2B 17s Id; D. Lizzard, £2O 10s; A. F. Leonardo, £252 6s; J. E. Armstrong, £3B.

Bankrupt, in his sworn statement, said that in August, 1927, he commenced a butchery business at Akaroa, putting £lB6 into the business. He based his prices on Christchurch quotations, and the business increased. lie did not know he was insolvent till just before he filed. He attributed the failure to lack of business knowledge, the difficulty in getting outstanding accounts paid, and to not having a proper system of fixing prices, especially when he had to pay high prices for

In reply to the Official Assignee, bankrupt said that he had not banked all his takings. When he w-ent into his position in April the book debts totalled £3OO. He was then a little ahead of things. The Official Assignee said that of the total of £4OO debts, some of the amounts would be reduced by contras, and on account of the fact that some of the accounts had been paid. The total of book debts would be much below £350 when the matter was actually settled. Replying to Mr Amodeo, who represented two Akaroa creditors, bankrupt said that he had had cheques returned from the bank soon after he started in business. He bought 51 sheep in October from Mr Leonardo, and seven heifers in November from Mr Leonardo.

Mr Amodeo: Did you say you had posted a cheque?— l gave the boy a cheque to post, and then I found there was no money in the band, so I didn’t post it.

Was that the first time you inquired of the bank?—Yes, the very first. When Mr Leonardo sold those sheep to you, did you give him any idea that you wouldn’t be able to pay for them?—Yes.

Did you, before you bought the sheep?—No, I asked him for a month afterwards.

Did you ever have a balance-sheet? —No.

Mr Amodeo said that baknrupt had lost £4OO in a little over twelve months. He thought that bankrupt should be taught a sharp lesson and that he should not be allowed to be in business.

Bankrupt said, in reply to the Official Assignee, that he did not have a cheque, payable to Mr M’lntosh, returned from the bank just before he bought the sheep from Mr Leonardo. Mr Amodeo asked that the bankrupt be put on oath. This was done. During the meeting, inquiries were made by telephone and it was stated that bankrupt bought sheep and cattle from Mr Leonardo on October 7, and that Mr M’lntosh’s cheque was dishonoured on October 23. Answering further questions, bankrupt said that he banked all the takings except wages and a few shillings for groceries. Mr Cuthbert, who represented the bankrupt, said that it was lack of business ability that caused the bankruptcy. Bankrupt took on the venture and got credit, and it was only a few weeks back that he had realised his position. Mr Amodoeo moved and Mr G. Pettigrew seconded that the matter be referred to the Crown Solicitor to see whether, in his opinion, a prosecution should be laid. The motion was carried, Mr Holmes, of Meares, Williams and Holmes, refraining from voting. The Official Assignee said that he did not think that the Crown Solicitor would give a cerificate for prosecution and personally, the speaker did not think that it was a case for prosecution, although he thought that the discharge should no* be granted.