NAPIER BANKRUPT

Waipukurau Press, Volume XXIX, Issue 89, 10 April 1934, Page 3

NAPIER BANKRUPT

ASKED QUESTIONS BY SEVEBAL CEEDITORS A bankrupt named James Thomas Baker, bootmaker at Napier, was asked questions at his initial bankruptcy meeting at Napier yesterday, relative to his drawing about £6O insurance money, from which he bought a £2O radio set, paid his wife £l2 which was paid to the landlord, and a further £24 for her to pay interest on the house, which she owned. His statement that his bankruptcy was due to the earthquake, and to a fall in business consequent upon a change in situation, was closely examined by Mr W. G. Golding, one of the creditors. In addition to the Official Assignee (Mr G. G. Chisholm), there were present Mr H. B. Lusk, representing Mr Golding; Mr V. J. AV. Langley, representing Mrs K. E. Baker ;Mr A. E. Lawry, representing the Baker’s debts were sworn at £226 1/4, all unsecured creditors. His assets were £4l for stock and tools, book debts estimated to produce £25, furniture £2O, totalling £B6, leaving a deficiency of £l4O 1/4. £6O From Insurance Policy

During his examination by Mr Lusk, bankrupt admitted that in 1931, when he drew about £6O from an insurance policy, he spent £2O of it upon a livevalve wireless set, gave £24 to his wife for her to pay interest upon a mortgage on the house, which was owned by her, and a further £l2 for rent of the shop. She bought a vacuum sweeper on tho instalment system. He admitted that at the time he was unable to pay all his debts. He said his wife had a Post Office Savings Bank account, amounting to about £3O, but this she had saved from tho housekeeping money. Before the earthquake, ho said, ho was making about £3 a week clear, after paying his debts. Actually, the business began to fall off in 1928 or 1929. Mr Lusk: But didn’t you buy a bicycle for your little girl last year? Bankrupt: No, my wife paid for that. It was second-hand and cost £4. What about the vacuum, sweeper. Did she pay for that, too? —No, she put down a deposit of ten shillings, and is paying the rest at 2/6 a week. You talk about your business going back, but you were receiving large amounts of material from Mr Golding, weren’t you in 1930?—Yes, more than in previous years. How can you say the business was going back when you were buying on the average £2B worth of materials a month! How do you account for that? Do you keep your books accurately? —As best I can. Amount of Materials In response to an inquiry from the Official Assignee, Mr Golding said the trade generally allowed 40 per cent, cost for materials, the balance being left for working. Mr Lusk: You can’t explain hov/ it is that with the amount of material you were getting, and the profits you were making, your saying the business was going back. Have you bought any property, or have you any money put away? Bankrupt: I have 2/10 in tho Post Office.

Mr Golding (to bankrupt): Though you told us the business went back, how was it that last year my boy was helping you often? You must have had a lot of work to do. Bankrupt: There was a rush on. Mr Langley: Isn’t it a fact that people had to wait for their repairs? You must have been very busy. Bankrupt: They had to wait, because I couldn’t get materials. Do you suggest it is a fair thing to buy a wireless set, pay £l2 to your wife, and leave your creditors out in the cold? Do you think that’s fair? — A lot of the insurance money went to pay interest on tho mortgage. Why didn’t yon pay this 60-odd pounds to your creditors to reduce some of your debts? —The interest had to be paid. Talk of Going Home Wasn’t there some suggestion of you and your wife going home to England? —There was talk about it, but we hadn’t the money to go. Haven’t you any money “tucked away”? —No. Mr Golding: There was talk about it, all right. It was also said by Mr Goiding that the day after Baker , moved from one shop to the other, there were 45 pairs of boots awaiting repair. He suggested there was ample evidence then that Baker’s business was not so low as it was represented. Bankrupt placed the figur.e at about 25 pairs, which came into the shop the day after he filed. Mr Langley (to bankrupt): How do

you account for that? , Bankrupt: Sympathy, I think. In response to further questions, Baker said he kept a complete record of all cash takings. After further discussion, during which Baker’s books and those kept by Mr Gblding were cross checked, it was decided to adjourn the meeting till the accounts have been cheeked.