LOSSES ON FRUIT

Dominion, Volume 20, Issue 58, 2 December 1926, Page 9

LOSSES ON FRUIT

WELLINGTON MERCHANT BANKRUPT QUESTIONS FOR CROWN PROSECUTOR A list of 113 unsecured credited and a total deficiency of £5741 ss. ffld. were revealed yesterday at a meeting ot creditors in the estate of Alfred George Wallace, merchant, of Wellington, before the official assignee, Mr. S. lansley. A large number of creditors weie represented, and Mr. A. J. Luke appeared on behalf of Wallace. Total debts were shown at <£6562 155., and assets at <£B2l 9p. 2d The principal unsecured creditors are: Anderson, Hayward and Harden (Wellington), £5l Bs.; W. Burton (Blenheim), £307 10s.; Cook Islands Native Association (Rarotonga), £9l 19s. 4d.; Cook Island Trading Company (Rarotonga), £42 10s.; W. L. Cordell (Wellington), £93 25.; M. R. Grenside (Hastings), £47 10s.; Huddart, Parker Ltd. (Wellington), £IOJ 17s. Bd.; E. Jeffries (Nelson), £142; J. Jones and Co. Ltd. (Sydney), £4O 10s. 7d.; R. V. Law (Hastings)..£62 7s. 6d.; Moody, Annand and Co (Timaru), £lO3 Is. lOd.; Morgan Williams (Kaiapoi), £9O 2s. 3d.; Morton and Luke (Sydney), £220 Bs.; H. McGaviston (Motueka), £lO2 155.; R. S. Menzies (Wellington), £5B 16s. 6a.; N.Z. Loan and Mercantile Agency Co. Ltd., £l5l Us. 9d. : NZ. Farmers Cooperative Association (Ashburton), Al--' 9s. 5d.; N.Z. Paper Mills Ltd., £l3l 3s. 4d.; Ngatimoti Fruit Packing Group (Orinaco), £536 25.; R. S. Paltper (Christchurch). £62 16s. 3d. : Pyne, Gould, Guinness Ltd. (Christchurch), £Bl 6s. 2d.; Radley and Co. Ltd. (Auckland), £54 Ils. sd.- Isaac Robinson (Christchurch), £B6 12s. 9d.; Mrs. M. E. R. Rogers (Nelson) £B3 Ils. 5d. : Southern Union Insurance Co. (Wellington), £l2O Us.; C. H. Tucker (Nelson), £B5 10s.; A. P. Sutton and Son (Rangiora), £67 ss. 9d.; Turners and Growers Ltd. (Auckland), all J 18s. iod. : Wright, Stephenson and Co. Ltd. (Ashburton) £5O 10s. 3d.; C. G. Piggott (Svdney) £455 155.; W. H. Price Ltd (Svdney), <£657: H. B. Everett (Umukuri). £lOO 3s Id.; Producers Pj 8 ’ tributing Society (Sydney), £37j 5s- Id.; Horatio Everett (Umukuri). £163 14s. 9d. : Waterhouse Bros. (Pakowhai). £IW 6s. 9d.; Tui Fruit Co. (Tasman), £62 19s. In his sworn statement bankrupt said that in March, 1921, he took over the fruit business of the Fruitgrowers Federation, of which he was then manager. The business, which was then in Blair Street, progressed very satisfactorily and gradually grew to large proportions, and he decided, on the recommendation of two bank managers, to make a trip to Rarotonga, California, British Columbia and Fiji, in the interests*of the business and to secure further business. That was in 1923. Before departing on that trip he negotiated with Messrs. Townsend and Paul to erect a new building next to their premises in Allen Street, and. he took possession of these premises in 1924. Believing the upper floor would let readily, be built offices for the . use of the business at the rear of the buildifig, expecting to lease the balance. Unfortunately, however, he succeeded in letting one only, and the balance of the floor remained unoccupied for two years. He lost approximately £8 per week, amounting in all to about £BOO, on that vacant floor space. Following on his return from California, an embargo was placed on importations of fruit from that country, owing to an outbreak of foot-and-mouth disease, and no fruit or produce had been admitted to New Zealand until this month. His commission and profits on Californian fruits until the placing of the embargo would average £750 to £lOOO yearly. The Wellington rate of commission had been reduced from 10 per cent, to 7} per cent, two years ago, this also affecting his earnings very considerably. He purchased fair quantities of Island fruit from time to time, and these tradings proved unfortunate from May to December. 1925, when heavy and continuous rains affected the ‘market and values. In a venture with Island fruit two years previously he had cleared £lOl6 profit. Last December, anticipating reasonably improved conditions Tor Christmas trading, he purchased extra quantities cf bananas, costing about 14s. at Wellington, which were difficult to sell at 7s. to 7s. 6d per case on arrival. Also, for the first time tn 18 years, Canadian apples -usually worth about 20s. per case and costing about 17s.—sold at Bs. to 12s. 6a. per ease. In December last he imported Sydney oranges, and was, he thought, the only loser of these, through the fruit being rejected here by the Government inspector. Bankrupt had ? so , jt, on New Zealand apples which he had bought. Recently he had endeavoured to dispose of the business as a going concern for £3OOO, and had also endeavoured to secure extra capital in the business, but neither effort could be carried out satisfactorilv. For * n ™ e pa . s h® * la d tried to dis- ?" s r ! h ° f i h ? u x se P TO Perty to bring further cash into the business, but . , far no sale had been effected. The value of the property was about £3OOO, and mortgages and rnnt r d-d pay ? W l totalled £1750° Bankupt did not attend race meetings, nor had he ever neglected his business for even a tew hours.

In a supplementary statement, bankrupt said that the house property had ? 0W dl8 J»,e«l of for £2150. a‘ truck tor £290, and the business for .£3OO. In reply to Mr. Tansley bankrupt said he was a married man. His furtiiture had been bought by his wife as far ns he could recollect, but he supposed he had supplied the money originally Ho had not kept a trust account, his reason being that he had just followed the method of the Fruitgrowers' Federation. Cross-examined- by Mr S. A. When, who was representing Morton and Luke, C. G. Piggott, and W. H Price, Ltd., bankrupt admitted receiving five consignments of goods, valued altogether at about £647, from W. H. Price during July, 1926. None of these consignments had been actually paid for, and A u B n st 4 Price had cabled asking Wallace to state his position. v Mr. Wirem And the same thing happened with Piggott’s? Bankrupt admitted that by August 10 both were unwilling to fulfil more orders. Mr. Wiren: When you sent the two orders to Morton and Luke on August 23, you knew you had no possible chance of paying them ? Bankrupt: Well. I had an offer for the business then. Questioned concerning the amount of money he drew from May 31 to December 10, 1925, bankrupt denied that he drew £340 for personal use. He had spent £5O some time before that on his house. Mr. Wiren: You just went on the same way. Bankrupt: Well, you can't get on with much less than £lO a week for a wife and family. Mr. T. C. A. Hislop referred to the time when bankrupt was issued with summonses on behalf of Piggott and Morton and Price. "After interviewing mo,” he said to bankrupt, "and after judgment had been given against you, you sent an order, and a cheque for £ll3 on September 3 to Morton and Luke. 1 suggest that when you drew that cheque you knew it was not going to be met.” Bankrupt: 1 only wanted a little time Mr. Hislop: You not only had cheques dishonoured, but I think that on two occasions you sent over unsigned cheques. Bankrupt: They may have been posted, but I didn’t send them. The Official Assignee said he thought a little further explanation should be given by bankrupt. Mr. Wiren said that the opinion of the Crown Prosecutor should be obtained on several points—the first was, why bankrupt had not kept a trust account, the second, why ho had incurred debts without a possible chance of paying them, and third, why he had sent a cheque to Morton and I,tike which he knew could never be mot. Mr Hislop-; There may also be a question of false pretences—promising a draft by the following mail—but that s not so important. The meeting agreed to refer the case to the Crown Prosecutor. The matter of disposing of bankrupt, s car to the host advantage was left in the hands of Mr. Tansley.