A BANKRUPT'S POSITION

Dominion, Volume 11, Issue 157, 22 March 1918, Page 6

A BANKRUPT'S POSITION

SLEKPING PARTNER IN DIFFICULTIES. A meeting of the creditors of Herbert William Bear, flax-cutter, of Levin, had been called for yesterday. morning by the Official Assignee (Mr. S. Tansley), but no creditors attended. The bankrupt, represented by Mr. A. H. Hindraarshj presented a written statement of his. affairs.. - ' Bankrupt said that in September, 1916, he entered into an agreement with John Robertson, then carrying on business as a cycle agent at Levin and Voxton. He paid £200 for a third share of the business,. and signed a deed of partnership giving Robertson' sole charge and management of the business. Subsequently lie provided other sums amounting to £45. Early in 1917' Robertson informed him that the business was in a bad way, aud that the creditors were willing to accept 10s. in the pound, provided he could find a sum of £400 in cash. Robertson said he thought that Mr. F. C. Remington, of Levin, would advance that sum on the business. Then Robertson sent him some papers to sign, and these he found to he a deed assigning the business to F. C. Bemington and G. G. Kelly, retaining Robertson's services as manager. Bankrupt thought the terms unfair,'and went to Robertson for an explanation. Robertson said it was a friendly arrangement, to give tho partners another chance to carry on the business. He signed the papers reluctantly. Then, in July, 1917, Robertson was dismissed from the managership, and' Remington and Kelly took over the business. Subsequently various creditors brought actions against Robertson for debts. ■ The .bankrupt had not at any time taken a share hi .the conduct'of the business, his sole connection with it being his investment of £245 as a sleeping partner. But he now found himself liable for the debts and handicapped by his position.. The list of unsecured • creditors was given as follows :-F. C. Remingion, chemist, Levin; G. G. Kelly, cycle asent, Shannon; aud the Motor Supplies Ltd., Wellington. The bankrupt -stated he could not give information as to the amount of the liabilities, a3 he had no knowledge of the business. He had been working lately on the roads. He had put £245 into the business, and had received nothing. Ho thought he would be able to pay £2a in twelve months. • The Official Assignee stated that lie would communicate with the creditors, and' ascertain their view of -the position. '