SERVICE STATION FAILS

Waikato Times, Volume 111, Issue 18639, 18 May 1932, Page 6

SERVICE STATION FAILS

PRICE-CUTTING BLAMED. VENTURE AT HORA HORA. CREDITORS DISSATISFIED. Price-cutting in Hamilton and th>j surrounding districts and the_ depression generally were the principal reasons given for his failure by Henry Robert Gage Fenton. petrol station proprietor, of Hora Hora, at a meeting of his creditors in Hamilton this morning. The official assignee, Mr V. R. Crowhurst, presided over an attendance of eight creditors. The schedule showed liabilities to unsecured creditors totalling £439 7s Id, and assets £l2O 16s sd, leaving a deficiency of £3lB 10s Bd. The assets included £IOO, a half-share in a seoond mortgage, and book debts estimated to produoe £2O 16s sd. In his statement bankrupt said that he started business at Hora Hora in 1929 in a tent, with one petrol pump. The money which lie made was put into the business in buildings. Trade became better, and the bank allowed him a floating overdraft of £2OO, but lalor they withdrew the overdraft* over certain securities, and closed on his overdraft, which left him in an awkward position. To overoome this he got a first mortgage of £250 on his business, whoch assisted him for a time. Then the slump came, and this, together' with price-cutting -jin. Hamilton and surrounding districts, affected trade to such an extent that he had to cease business. Slokness in his family was a contributing' factor in his failure. Examination of Bankrupt. Examined, bankrupt paid that he! commenced business with £6O as capital, including £SO which was advanced by his father. Trade started to go back in 1931, due in a large measure, he thought, to the fact that there were fewer people travelling. In November of last year he disposed of the business for £750, of which he received about £6O after commitments had been met. For three months he was an out-patient at the hospital, and this, oombined with living expenses, absorbed the £6O. In the* three years in which he had the service station he made about £770. His wife was a partner in the business, and had an interest of £IOO in the second mortgage of £2OO over it, in return for her services. A creditor drew bankrupt’s attention to the statement which he made In June, 1931, to the effeot that his assets were in the vicinity of £ 130 Q, and his liabilities £l2. This appeared to be oontrary to fact, as the property was mortgaged and he owed money to various oil companies. The assignee said that it would perhaps be advisable to get into touch with bankrupt’s solicitor regarding Mrs Fenton’s interest in the second mortgage. Dissatisfaction with bankrupt’s answers to several questions was expressed by creditors. The assignee thought that bankrupt should prepare a full statement of his receipts and expenditure, and in the meantime he would go into the question of Mrs Fenton’s interest in the business, and would discuss certain matters with bankrupt’s solicitor. The state of affairs was most unsatisfactory, and an adjournment to enable further investigation would be in the best interests of the creditors. He agreed to adjourn the meeting for three weeks.