AUCTIONEER'S BANKRUPTCY

Dominion, Volume 11, Issue 183, 23 April 1918, Page 4

AUCTIONEER'S BANKRUPTCY

MEETING OF CREDITORS.

A meeting of creditors in the bankrupt estate of George Edward Blake was lield in the office of the Official Assignee yesterday morning. The Official Assignee (Mr. S. Tanslcy) presided, and there were eleven creditors present. Bankrupt was represented by Mr. R. E. Flaws. lu a written statement_ bankrupt declared that ho had been in business in "Wellington during the past four years as an auctioneer and land agent, trading under the style of Blake and Co. About February, 1917, he added to his business of an auctioneer, etc., that of furniture manufacturing, which latter had been his principal source of livelihood. Business was fairly good up to Julv 1917, when it dropped, and sinco then it had gradually decreased and he had got into financial difficulties. Ho ceased to be a licensed auctioneer and land agent at tlio end of 1917, and carried on tJio furniture business only. He attributed the falliug-off of business to the shortage of goods, the high price of material and labour, competition, and the increased cast of living. Pressure put upon him by several made it necessary for him to seek the jfc-otection of tho Bankruptcy Court. He was a widower and had to support six children, ' whose ages ranged from five to fifteen. Tho financial statement submitted disclosed a deficiency of .£OOI 7s. Id. Amount owing to unsecured creditors was showu as ,£721 Is. Gd., and other liabilities under vendors' accounts .£l3B ss. lid. The assets comprise stock-in-trade at 53 Lower Cuba Street, .£233 15s. -Id.; stock-in-trade at 50 Lower Cuba Street. .£10; book debts, ,£1 175.; storage accounts, .£9 Ss. The principal unsecured creditors aro: Jl'Eldowncy Bros., .£335 ss. <d.; A. A. Corrigan and Co., .£7l 35.; Brailsford and Co., .C 49 Us. Id.; Zealandia Woodware Co., .£3l 3s. 2d.; Te Aro Woodwaro Co., ,£32 10s.; Wellington Pul> lishing Coy., .£2O Bs.; "New Zealand Times" Co., .821 17s. Gd.; and Hurcourt and Co., ,£3O Gs. Bd.. The Official Assignee slated that an independent valuation of the stock placed it at .£l5B. There was a serious aspect in that bankrupt had apparently sold goods on behalf of vendors and had no money with which to meet those ac--C°Bankrupt, under examination, said lie attended, the last Wellington and Nelson race meetings. Ho had been betting in small amounts during the past three months in tho hone of getting out nf debt, but had only succeeded in getting deeper. In the past fihreo months he had lost about .£IOO. He sold his piano aild other furniture intending to uso tho money in his business; lio was, however, greatly worried, and hoped to recover his position through his. betting transactions. Ho denied having told Mr. Hart that his loss was solely due to following racing. He had no, record of the amounts ho had lost in,betting, but iilloy were only small amounts. Ho bet heavily-at the Nelson' meeting because somo creditors were pressing him, and ho thought ho could relieve the position. In answer to . the Assignee bankrupt said he was doing nothing now. He could not make an offer. Ho was a young man and would pay all his creditors us soon as he could. On further examination bankrupt Admitted that lie hnd lost £100 at. horseracing within the last two months. The Assignee said that the bankrupt i had placed himself in. a serious position. Ho had sold goods and failed to account for them. The vendors on whose behalf those goods were sold would now rank as ordinary creditors. '*

Several creditors who expressed themselves as. being very dissatisfied" urged that: a. full investigation of the books bo made.

The Official' Assignee stated that, the proceedings :liad not disclosed any breach of the Bankruptcy Act. Bankrupt stated lie had never kept a trust account. According to the Auctioneers and Land Agents Act every auctioneer must keep n trust account, the penalty for failure being-two years' imprisonment.

Tho Assignee said ho could put the whole matter beforo tho Crown Prosecutor, and the creditors decided that any futuro proceedings should bo left in the hands of the Official 'Assignee, to act in the best interests of' tho creditors and the public. The meet ins then adjourned sine die.