UNSATISFACTORY

Bay of Plenty Beacon, Volume 10, Issue 87, 27 January 1947, Page 5

UNSATISFACTORY

BANKRUPT’S ACTION OFFICIAL ASSIGNEE’S COMMENTS A creditors’ meeting in the bankrupt estate of Vernon Henry Kemp, a salesman, of Whakatane, who was adjudicated bankrupt on January 8 last, was held in Whakatane last week. Debts owing to unsecured creditors were shown at £IOO6. In his statement, bankrupt said that in 1944 he had instituted a .simplified form of book-keeping for farmers in the Bay of Plenty and Rotorua districts. During the same period, he was employed as a salesman on commission and also engaged in the sale of imitation jewellery .on his own account.

Sometime in the same year, he purchased a motor car for £429 and printing material for about £175. The Auckland solicitor who held security over the car took possession of it in 1946, and £135 was still owed to a printing company. Bankrupt said he had been ill periodically and since May, he had been practically unable to work. He had been forced to file as the result of a judgment summons.

The Official Assignee, Mr H. B. Reid, stated that just prior to the meeting, he had received telegrams stating that numerous farmers in the Galatea and Murupara districts had employed bankrupt to assist them with income tax returns, and had paid deposits of £5, without having had the work done. These farmers included 11 members of the R.S.A., who had taken action through their president.

Although bankrupt said he had had dealings with 180 farmers and that he had fulfilled his obligations to most of them, it appeared he had of affairs and to date, bankrupt had given no indication to those farmers of how he proposed to have their accounts completed. The books and papers belonging to those farmers were apparently held in Auckland by bankrupt’s landlord for non-pay-ment of board, and these would have to be recovered.

Mr Bruce Scott, of Auckland, had evidently given great assistance to bankrupt and had lost heavily as a result. He had written to bankrupt in very plain terms and desired to have the uncompleted returns done through some other, source. Bankrupt had pleaded illness as an excuse but he had made no endeavour to communicate with the many farmers who relied on his word to attend to their accounts and income tax returns. His bona fides would be judged by his actions, rather than on his manner and words.

The meeting would be adjourned sine die to enable Auckland creditors to attend a meeting, probably ..in the city.