RUN OF BAD LUCK

Evening Post, Volume CXIII, Issue 28, 3 February 1932, Page 13

RUN OF BAD LUCK

JEWELLER'S FAILURE

DECLINING TRADE

A story of a succession of business and domestic misfortunes which placed him in his present, position was told by Arthur Ernest Morrison; a manufacturing jeweller of Wellington, when he faced a meeting of his creditors yeajterdajv before,-the Official ■ Assignee^ Mr. S. Tansley. After the bankrupt's msition^had ibeen ,fully examined it ■ was'agreed that it was an exceptional run of bad luck- that had accounted for his insolvency,1 the, only criticism made ■being .that possibly he had been' too. optimistic of the future of the trade in which he was engaged. ~/'. , Only three of tho '■ wero represented, at the- and as tfyere ..was some uncertainty ■ as: ;to 'whether the'principal croditor, who was represented by a soHeitor,"had received notice.of the meeting in time to iallpw- him to prepare a detailed account !of the amounts,owing'to him, it was ■decided to adjourn the: meeting sine die. 'In the meantime" the bankrupt was advised by the Official Assignee to apply for his discharge. .. ■ The' amount owing to unsecured creditors was £272 18s 7d,; and tosecured creditors £355.' In addition there was £200 owing to Mr. L. J. Brabin, for work allegedly done over a long period, and a similar amount •which>was still to .bo subscribed towards the capital of-,-the N.Z. Art' Souvenirs Co., Ltd.j in which the bankrupt Svas interested; 'Included in the .-£355 owing to secured creditors was '£300 owing to Mr; li. 3\r Brabin Sunder a given by him when Morrison raised a loan from the State Advances Office, which took out debentures under the Art Souvenir Co. for that amount. The' total liabilities were £967 18s 7d, and . the only assets. were book debts estimated to produce £2 4s, leaving a deficiency of £965 14s 7d. In his sworn' statement, the bankrupt, who was a returned soldier, said that he purchased a manufacturing jeweller's business from Mr. Brabiu for £500 in 1921. For about two years the business did fairly well; then it commenced to go back, until finally the depression had made it impossible for him to carry on. His wife had been-ill for two years anci had then died, with their two-year-old son,.and the hospital and other expenses connected with this misfortune came to about £700, which he had paid. He supplemented his ordinary business by making art souvenirs, and in 1928 the N.Z. Art Souvenir Company was floated, but two of the shareholders withdrew after, paying only half of tho £400 worthy.of shares they had taken out, ihariding-their interests over to him. 'Further losses were caused by an unfsuccessful; attempt to enlarge the business by going in for displays, and by being compelled to shift to different ;premises.V, Changing fashions caused this 'jewellery trade to fall away, pin '»:,supplementary statement the bankrupt.:. questioned the amount of £200 owing to Mr. Brabin for work done. He had never had a statement firom Mr. Brabin concerning it, ; and shortly after he took over Mr. Brabin's business Mr. Brabin opened in adjacent premises . and expressed a desiro to help him.1 They had done work- foi each-other, and he had thought thai the services performed were reciprocal particularly as the ..work done by Mr, Brabin was durag,!pthe first three oi fouryears of; his.- business, wh"en.:,he ha^ done.;.s£bout, £130 , jworth\of vworkifo] Mr. Brabini He' admitted that possiblj he owed something to Mr. Brabin, bui he thought an account for £200 wa! rather high.

Counsel for Mr. Brabin said that his client was not worrying about the and wbul3~opp'6se"^lie* "Tianlirifpl 's" discharge until something was paid off it. His motion that Morrison's discharge be opposed until the amount had been paid lapsed through want of a, seconder, and thej'pffieial Assigneo adjourned the "meeting;' i_2 ■> ■''; •$ ' '