BANKRUPT BROKER

Dominion, Volume 21, Issue 113, 10 February 1928, Page 7

BANKRUPT BROKER

FOB TRADE LOSSES. .With his assets given as £438, and his liabilities as £1,842 4s. 8d„ lan Mackay, a broker, of Wellington, on Wednesday faced a meting of creditors in the presence of the Official Assignee (Mr. S. Tansley). The principal unsecured creditors are:— B. Tulloch, Featherston, £29; N. Gow and Co.. £lB 10s.; T. P. Hoare, £9O 45.; New Zealand Loan Co., £35; George and George, £l6 Bs.; T. E. Shiel, £46 6s. 6d.; Dr. Doctor, £16165.; L. J. Maule, £43 5b., all of Wellington; also R. S. Black, of Dunedin (who was not represented at the meeting), £l5OO. The assets were stated to be:—Office furniture and fittings, £10; book debts. £lB5. estimated to produce £100; surplus from securities in hands of secured creditors. £328, making a total of £438. Bankrupt’s filed statement showed that tn November, 1922. he commenced business as a land and estate agent on his own account, at the same time undertaking the buying of opossum and rabbitskins as a broker, on a commission basis. This latter business was then only a sideline, and he was operating only in a small way. In the latter part of 1923, as the skin business was doing well, he took in a partner to look after the laud agency, while he devoted his time to buying skins. As the result ot an unfortunate business deal he lost £5OO, and was forced to borrow that amount to pay off his liabilities. The skin business propered. and bankrupt moved to larger premises. He then financed another man to the extent of £l5O, the greater part of which was still, owing to him. The partnership was dissolved for various reasons, and he borrowed £250 by guaranteed bank overdraft to buy out his partner. Until November 1924, he continued on his own account, employing salesmen. A. limited liability company was then formed, bankrupt receiving u goodwill of £5O. The business prospered until about September, 1925. when he discovered a serious loss of skins had taken place. The company was liquidated in February, 1926, and he took over some of the company’s liabilities, including £2OOO deficiency in skins, owing to It. S- Black, of Dunedin, and a motor-car valued at £205. This car was damaged in an accident, and traded for another, which was later seized for non-payment of instalments. By August, 1926, he had reduced Black’s debt to £l5OO. Since then he had been engaged by R. S. Black on a salary and commission basis. From August. 1926 he had been earning, as to salary and commissiou, only enough to pay living expenses. Asked if he was still carrying on. the land agency business, bankrupt stated that he had not taken out a license for this year. Bankrupt’s solicitor explained that his client owned real estate at Taita, but this was now in possession of the mortgagees, secured creditors. The sale of this property was estimated to produce £328 surplus to go to the unsecured creditors. but one unsecured creditor who was also a fourth mortgagee, said that in all probability it would not realise enough to pay him. It was decided by the creditors present that this property at Hutt be abandoned. Asked by a creditor for a fuller explanation of the loss of the skins referred to in his statement, bankrupt's solicitor (Mr. B. Egley) stated that while bankrupt was away travelling a large number of skins were lost from the store, and this loss was only discovered by bankrupt when he returned. He could not attend to the clerical work and travel too. Asked what his present position was with R. 8. Black, bankrupt stated that he did not. know what the arrangements would be for the present 5;e ai l« 1 T)V 1 t ' he could produce a letter from Mr. Black stating that he was quite willing to wipe out the past and let him stilrt afresh. It was decided that the Official Assignee should keep in touch with bankrupt, and come to some agreement as to pay* ing the creditors, which he was quite willing to do, if he could raise funds. The meeting was adjourned sine c ic.