A BANKRUPT JEWELLER

Dominion, Volume 8, Issue 2281, 15 October 1914, Page 9

A BANKRUPT JEWELLER

MEETING OF CREDITORS SOME POINTED QUESTIONS The adjourned meeting of creditors in tho bankrupt estate of William James Phillips, watchmaker and "jeweller, of Taumarunui, was resumed m the Official Assignee's Office yesterday,. Mr. O. Zachariah (Acting-Official Assignee) being.in the chair. A fresh statement of the bankrupt's accounts, prepared by Somerville and Co., of Taumarunui, set down the liabilities at £654 10s. lid., the assets at £495 16s. 4d., comprising stock in trade, £431 10s. lid., plant and fittings £40, and book debts £24 ss. sd. There was thus an estimated deficiency of £158 14s. 7d. Tlie bank, pass book showed that there was. nothing to credit, while the books before tho meeting were nothing more' than diaries with accounts of tho takings. Tho profit and loss account, covering tiro period of bankrupt's business operations showed a profit of, roughly, £250. Creditors present at the , meeting were not prepared to accept the statement furnished by Somerville and Co., and it was suggested at the outset that tho accounts would havo to bo' looked into again. The bankrupt, under examination on oath, attributed his position to an "unfortunate" transaction in purchasing from Pratt and Co. tho assigned stock of one Chilcott, and to the fact that he was too easily influenced by traveller His sales had fallen off considerably since the war. A share of his father's estate, to which he was entitled, been assigned by him to'llis mother in April last. Mr. Van Staveren Why did you write to us, on June 29, to say you hoped to get a good amount from your father's estate,-when you had already . assigned it ? Bankrupt, upon being pressed on this point, admitted that it was to gain time. Mr. Hyams: You deliberately made a mis-statementP Tho bankrupt replied that he reckoned, on being able to borrow from his He was not legally ■ entitled to any money from tho estate at any time. Mr. Hyams: Then you told a deliberate lie when you wrote that' letter? Bankrupt: Well, if you put it that way, I did'. In answer to further questions by Messrs.-Van Staveren and Hyams,. tho. -bankrupt said that he actually started business in January 1913, but ho was positive that none of his present debts were incurred prior te tne last nine months. His average takings had been about £1.5 per week until tlio war broke out. Then. they fell away considerably. He could not' account for the ilifierenee (as shown,in the books) between his takings and-his business expenses and household expeuses. He Had no money now, and the only cash paymeuts he had made wero for necessaries, and, articles of furniture. Tho value of the furniture would bo £50 or £60.

Mr. Hyams suggested that tho _'nvoicos should ha produced to a Wellington 'accountant, who could go into the accounts again. Mr. Van Staveren: I don't think there is any necessity for that. It seems clear that the bankrupt has !iflt-.n incurring debts without any prospect .of. paying them, .and I think ho had better be publicly examined.

■ -Tlie bankrupt's wife, who was present, was then questioned, and after hearing her it was decided to place (he beaks and invoices in the bauds of a qualified accountant, to see if anything could be made of thfcui, and .te call: for tenders for the stock. A- valuation of the furniture is to bo obtained in Taumarunui.

Mr. Zachariah suggested to the bankrupt that it might help matters if bankrupt's mother withdrew a claim she had lodged, and that could bo treated as a set-off against the money which bankrupt' had assigned to her. The creditors did not desiro to bo hard on bankrupt's wife in dealing with the furniture, and some allowance might be made.

The meeting was adjourned until a date to be fixed, the bankrupt being-in structcd to render any assistance necessary to the accountant'examining the books.