UNUSUAL PRACTICE.

Star (Christchurch), Volume LXVI, Issue 20281, 16 April 1934, Page 7

UNUSUAL PRACTICE.

Bankrupt Gave Credit to Unknown People. The Official Assignee (Mr J. H. Robertson) at a meeting this morning of the creditors of James Arthur White, of 62, Huxley Street, commented on the fact that bankrupt had often sold petrol from his petrol station, to people whose names he did not know. Other debtors, he had known by name, but he did not have their addresses. Bankrupt admitted that it was an unusual practice. Bankrupt’s statement of accounts showed the total debts to be £774 9s 2d. Assets, which comprised book debts, £6O; stock in trade and goodwill, £277 14s 6d; and furniture, £3O, were valued at £379 8s sd, leaving a deficiency of £395 0s 9d. Bankrupt, in his statement, said that he became manager of the Sydenham Service Station in 1927. In March, 1929, he leased the station and the Cashel Street station from the owners, National Service Stations, Ltd. In the first j'ear he made about £3OO, and in the second about £350. After that profits fell off, and accounts began to mount up. He sold his interest In the Cashel Street station for £SCO. His wife had suffered an illness for a year, causing heavy expense. On February 17, he sold the Sydenham station for £250. He attributed his failure to the low retail price of petrol, and the loss cf business due to competition, to high overhead expenses and general fallingoff in turnover, due to the economic depression. As a result of questions asked by creditors, it was disclosed that bankrupt had been in *he habit of taking money from his till, without entering the amount in his books.

The meeting was adjourned to enable further enquiries to be made.