PARTNERSHIP FAILS.

Waikato Times, Volume 119, Issue 19945, 23 July 1936, Page 12

PARTNERSHIP FAILS.

CARTAGE BUSINESS. TE AWAMUTU BANKRUP‘I'S. (Times Representative). TE A\\’A.\lL"l‘L". \Vednesday. A story of adversit-ies was related in the Te Awamutu Court to-day when an examination in bankruptcy latiecting \\‘llliam Charles Kite and Edward Cooke Linton. eartage contractors, ot‘ Te Awamutu, was conducted by the Official Assignee. Mr V'. R. Crowhurst, Bankrupts were represented hy Mr S. 5. Preston. Linton was shown to have no liabilities and assets valued at 5220. while Kite was shown to have a deficiency of £339 is lid. The assets of the partnership ‘wore L'UI) 3s 10d and the liabililies £561. in a. staininonl Kite said he had been rari‘ying‘ on liusint-‘ss as a carrier for eleven years. Alto hm] ln‘t'n success—ful until two years- who when he had lnrurrerl t‘l'nisiilr‘rnlilu losses. 'l'wo trucks were oxpo‘nsive for upkeen and nine months our» lie lnul strained his book and lmtl been partially inrapitat—ed. He had joined partnership with Lindon in February or this year. but. adverse roonlrarls and. unfavourable weather had mused further losses. whet-wise he “as sure he could have met. 'his obligations. Linton stated that he had joined [Kite early in the year and it was ariranged that he should pay £4OO as 13 half ‘share out of the‘ profits. He ‘did not. know the financial status of line business as he. had not reioeivedt a flnant'lal statement. Since February‘ l 1 to May 27 he? had drawn only £SB in l wages. l i For bankrupts. Mr Preston said that ‘ understood that just prior to the bank—ruptcy the' Atlantic Oil Company had‘ tn‘kan some form of nsslznment \vhirrln he claimed was invalid The company had claimed all the book debts. but. he. believed they were the property of} the estate. The company had also} oireularised some of the debtors. but.‘ they had paid the money to Mr Pres-l ton, who was holding it for the direc—tion of the assignee. Only £IOO Book Debts. In reply to a question Kite said he had ceased business one month after the schedule had been filed. and had worked on wages since then. The partnership hooks showed only £IOO debts. He had opened an account with Harden's Stores in January, but denied that ‘he had gone there merely because he was unable to obtain credit elsewhere. ‘He had ceased dealing there when his firm had erected its own bowser. A questioner, on behalf of some of the creditors, considered the. £IOO book debts was a low figure over eleven years‘ operations, Since February he stated Kile had paid no one—although he, had drawn about. £3OO in that time. In reply, Kite said that he had been drawing about £3 per week {or living expenses and most of the balance had gone into instalments on new trucks. He had paid wages practically up to the time or the bankruptcy. To the assigned he said that the books had been kept by an accountant for a long time, but he 'had not seen his own passvbook for about 18 months. He had no record of the dealings over the last two years, but had relied on the accountant. to he'ep a proper set of books. The accountant. was not now in business. All the assets were disclosed in the schedule and he. could make no offer to the rred-itors. .\[r \V. .l. Craik, a rredttor. detailed the dealings Kite had had with him and stated that. although bankrupt had got, into arrears at times ‘he had al—ways made an effort to meet his obli—gations. Payments on the trucks amounted to £250 and this would ao—count for a considerable amount, of the deficiency. in his opinion no man had kept hette‘r renords than Kite had. The big mistake that the partnership had made was in buying second—hand trucks which had COSti them a good deal of money for upkeep. Ml- ‘Craik moved a resolution ofl sympathy and that the debtors facili—tate bankrupts' discharge“. but the' motion lapsed for want of a seconder.! The hearing was adjourned sine die.’ the assisnce stating that he would make investigations into the asignment made‘ by the oil company.