PASTRYCOOK FAILS.

Dominion, Volume 3, Issue 875, 22 July 1910, Page 9

PASTRYCOOK FAILS.

PUBLIC EXAMINATION ASKED. About fifteen creditors attended tho preliminary examination conducted yesterday by Mr. A. Simpson, Official Assignee, into tho affairs of Edward Wilfrid Jacob, pastrycook, who-filed a petition in bankruptcy on July 15. Mr. M. Myers appeared 011 behalf of a number of creditors, and bankrupt was represented by Mr. F. P. Kelly. The claims of unsecured creditors wero stated at ,£443 Gs. Gd., and of secured creditors at .£IBO 15s. 7d. The total assets, including book debts .£8 10s., cash-in-hand .£2 ss. Gd., and furniture .£B, amounted to .£O3 15s. Gd., leaving a deficiency of ,£37!) lis. The security in respect of secured creditors was stated at .£133 Is. Gd. Tho principal unsecured Creditors are: H. Stanbridge, .£B3 lGs. Cd.; New Zealand Farmers' Distributing Company, ,£C>O 14s. lOd.; G. Thomas and Company, .£3B; !(. and E. Tingey, .£2B os. Gd.; Hall and Roberts, .£2O 4s. 5d.; Gas Company, .£22 lis. lid.; Thompson Brothers, .£2O Os. 9d.; Ellis and Minion, ,£l7 14s. 5d.; Thompson, Lewis, and Company, ,Cl 5; Townsend and Paul, ,£]2 lis.; Reed and Frederick, ,£ll. In his statement, bankrupt set forth, 'inter alia, that lie had not filed of his own free will, but had been compelled to do so by his creditors at a meeting held 011 July 11. When he found that business was falling off, 110 suggested that they should allow their claims to stand over, so that he might'make such weekly payments as wero in his power. His present position was due to keen competition, to bad workmanship in the bakehouse, and to his being under-capi-talised when he took up the business, lie commenced on April 11, 5910, with a capital of .£l2O, borrowed from Mr. J. W. •jack. On this he gave a bill of sale 011 certain plant, fittings, thrje horses, and two carts. Tho assignee remarked that it was rather strange that a man could go into business with a capital of only 13s. lid. to his credit. Oil getting Mr. Stanbridge to sell the business, bankrupt had immediately borrowed >£120 on what he had bought from Mr. Stanbridge beforo he had paid for it in full. He paid .£IOO and evidently put .£2O into his pocket, or into the, business. Mr. Myers explained that the creditors did not know of the bill of sale until most of the credit had been obtained. Examined by Mr. Myers; bankrupt stated, inter alia, that he had told two of his creditors, Sharland's and Harrison, of the bill of sale to Mr. Jack, but none of the othei-s so far as he could recollect. He had also obtained goods on credit from produce merchants, who were unaware of the existence of the bill of sale. Ho had not anticipated any downfall like this. He-had stated to Sargood's that 110 had a capital of ;£l2O. lie was nercr asked by any other creditor about his capital as far as ha could remember. He did not think he told Sargood's that tho capital he had was borrowed. lie gave a cheque for ,£IOO to Mr. Stanbridge on April 11, and signed a bill of sale to Mr. Jack on April 20. He had been ablo to seo week after week that things were going to tho had; but did not inform his creditors lest Mr. Jack should compel him to close down. He did not think his creditors would have permitted him to obtain any further credit had they known the position of affairs, but they might have given him a chance. Questioned by his own solicitor, bankrupt said ho had been practically at the mercy of his pastrycook. There . was 110 intention oa his part of delaying registration of tho bill of sale. lie .had not been asked by his creditors whether his capital were borrowed or not. A resolution. was passed to the effect that the bankrupt should be submitted to a public examination, the assignee signifying his unqualified approval of tho step. It was agreed that Mr. Myers should assist tho assignee in filing necessary documents in Court, and iu watching tho interests of creditors.