A PETONE BANKRUPTCY

Dominion, Volume 11, Issue 207, 21 May 1918, Page 6

A PETONE BANKRUPTCY

ESTATE OF R. E. SHAW. A meeting of Hie creditors of fi. K Shaw, hawker, of T'qlone, adjourned from May 13, was held in tho rooms of the Official Assignee s 'Mr. S. 'i'unsley) .yesterday morning. Tho. creditor firms represented wero Messrs. Itoss and Glendining, M'Eldownoy Bros., Macky, Logan ami Co., Wright, Will and Co., and Bmg, Karris and Co, Tho bankrupt in his statement showed that his debts amounted to £109? 14s. and hie assets to (including stocVin- j trade valued at MO, lxiok debts estimated at ,£3OO, and a surplus of J27Q in the I hands of secured creditors). The deli- \ cioncy amounted to i:I7S Us. Bankrupt j stated that he started in business some | years ago with a capital of .£BO, and' did well until 18 months ago, though his wifo was constantly eick. About 18; months ago ho was persuaded by various | travellers from 'lie Wellington'soft-goods ■ houses to take largo stocks i.'f goods, and, further, a great quantity of goods were i delivered unordered, lie had returned a certain quantity of tho unordered goods, but kept a good deal, as he did not wish to cause ill-feeling or unpleasantness with the business houses. As the result of carrying such large stocks he had to alter ■ his system of credit by giving longer j and easier terms, and had also to lake, greater risks in order to sell the goods. I Further, the prices from the warehouses | were constantly increasing, and left him > so small a margin that at times the transactions actually resulted in a loss. During the last 18 months he had suffered from two ".ccidents, and owing to being laid up he had lost touch with many of his customers, aud in other j cases the payments had got so far behind that they had never been made up.- : In addition he had suffered a heavy loss | whilst riding to the bank in l'etone. A I Mil of £62 10s. had been jerked out of; his bag, and although he had offered ■ ,£25 reward he never recovered the money. Tho immediate causes of his bankruptcy wero overstocking, the greatly increased prices charged by the warehouses, his own and his wife's illness, and the loss of money and business duo to sickness. To try and manage ho had had to borrow money to cover immediate requirements, and in addition he had let his house and was now occupied in rabbit-trapping for a living. His wife, j family, and self wero living now in <i j wnall wharc under conditions which were not favourable to his wife's health. !

One of the creditors said that it was unlikely Unit a' warehouse would forward to anybno goods that wore not ordered. As no resolution of any kind -was passed, the assets will be realised by the Official Assignee on behalf of the creditor firms.