BIG DEFICIENCY.

Star (Christchurch), Volume XLIV, Issue 457, 19 May 1932, Page 7

BIG DEFICIENCY.

Restaurant Business Proves Failure. CREDITORS' MEETING. (Special to the “Star.”) TIMARU, May 19. A meeting of creditors in the bankrupt estate of Elwood Cuthbertson, restaurant owner, of Timaru, was held at the office of the Official Assignee at the Timaru Courthouse to-day. The Official Assignee (Mr W. Harte) presided over a large attendance of creditors. Bankrupt’s financial statement showed unsecured creditors amounting to £IO7B 15s Bd, which, added to a deficit of £274 8s 3d on securities and a contingent liability of £240, left a total indebtedness of £1593 3s lid. Assets were shown as: Stock-in-trade £SO and book debts estimated to produce £25, resulting in a deficiency of £lslß 3s lid. The following is the list of unsecured creditors:—Dr C. S. Fraser, Timaru, £3O; A.M.P. Society, Timaru, £ls; JSouter, Timaru, £3 15s; Ballantyne and Co., Timaru, £2O; Ireland and Co., Timaru, £10; J. Shea, Old Bank Hotel, Timaru, £l6 10s; C. G. Snow, Timaru, £10; J. C. Oddie, Timaru, £ls; Timaru Motors, Timaru, £42 8s sd; J. Simpson, Timaru, £3; F. Williamson, Timaru, £2 2s; W. Smith, Timaru, £3 3s; Todd, Oamaru, £l4; J. Fraser, Racecourse Hotel, Riccarton, £10; South Canterbury Jockey Club, £5; Blackie, Dunedin, £4; Mrs Brough, New Zealander Hotel, Wellington, £10; P. Hayman and Co., Ltd., Dunedin, £10; Maling and Co., Timaru, £10; Timaru Brewery, £2; Timaru Gas Company, £2 9s; Timaru Borough Council, £7 18s 3d; Foden and Co., Timaru, £3; Timaru Herald Company, £5; Ilott’s, Ltd., Christchurch, £2; Mrs Jenkins, Timaru, £3 10s; G. Exton, Riccarton, £5; King, Landsborough, £2; Nestles, Ltd., Christchurch, £4 18s; Stanton Bros., Ltd., Dunedin, £4 8s; Timaru Steam Laundry, £3; W. Walsh, Timaru, £5; S. Lobb, Timaru, £9O; W. Cartwright, Timaru, £150; Trist and Small. Christchurch, £l4; C. V. Kirke, Markham Flats, Timaru, £5; V. Lurajud, Timaru. £100; Bing, Harris and Co., Timaru, £47 10s; A. Lindsay, Timaru, £5; J. Gilmore, Timaru, £2; 11. Roderique, Bluff, £23 10s; J. Fraser, Timaru, £7 10s; J. Toynbee, Timaru, £4 7s 6d; Ellwood and Son, Timaru, £80; A. E. Seager, Timaru, £4 10s; E. Nye, Timaru, £1 Ss; R. Sloan, Timaru, £6; W. Smith, Timaru, £3; Penrose and Drummond, Dunedin, £180; Dunnetts. Ltd., Timaru, £10; M’Farlane and Co., Timaru, £2 10s; Pyne, Gould, Guinness, Ltd.. Timaru, £3; Dunedin Jockey Club, £l4 10s 6d; Waimate Jockey Club, £7; Canterbury Jockey Club, Christchurch, £2; Greymouth Jockey Club, £5: Kumara Jockey Club, £2: Oamaru Jockey Club. £1 : Southland Racing Club, Invercargill, £10; M. Ilogan, Washdyke, £3 18s;

J. Mulligan, Washdyke, £4. Total amount, £IO7B 15s Bd. In his statement bankrupt said he was a married man, twenty-two years of age. He had been brought up by his father, a widower, in a good financial position, and from the time he left school he had looked after his father’s interests and had authority to incur credit on his father's and on his own behalf, especially in connection with racing, which bankrupt conducted for •his father with varying degrees of sucPnrchase of Restaurant. Late in December, 1931, he was induced to purchase a restaurant in Timaru for £I4OO and to take a lease of the premises at a rental of £390 a year. The finance company, which nad been advancing him moneys during the past nine months, and of which the vendor of the business was a shareholder, advanced the necessary money to enable this purchase to go through and charged him a premium of £SO. He took possession at the beginning of February of this year, but the takings soon convinced him he had paid too much for the stock-in-trade and that the rent was excessive. He tried to build up the business but several old creditors began pressing for payments of their several accounts, several of which he was compelled to meet. The worry entailed by the business, and pressure from his creditors caused his health to break down, and he was advised by his doctor to go away for a holiday. In March his best racehorse, Shortly, which was just showing good form and earning place money, died of internal trouble. At the end of April he went to Auckland for a holiday, but soon after his arrival there he was arrested on a private information for the conversion of a car. He attributed his present position to heavy depreciation in value of property, and the consequent fall in values he obtained on the realisation of several properties, and of the advantage taken of his inexperience by persons with whom he was dealing; also the depreciation in value of his father’s estate and the heavy premiums, interest and costs he was compelled to pay when he borrowed money in 1931. He estimated that the purchase of the restaurant resulted in the loss of well over £IOOO. He had no means of earning more than sufficient to support his wife and himself and he regretted that he was unable to make any offer to his creditors. At present he was unable to find work of any description.