In Bankruptcy.

Feilding Star, Volume XVIII, Issue 135, 7 December 1896, Page 2

In Bankruptcy.

In his statement to the Deputy Official Assignee at Marton, J. H. Kirby, bankrupt, said that when he went to Marton in May, 1896, he ha-1 about £326 in cash and no liabilities. He purchased the Mercury newspaper from the Wanganui Herald Company on the same terms as which they obtained it. Carried on the paper from 23rd May to 28 th September, when by an accidental fire tbe premisps and plant were destroyed. Made enquiries before purchasing the the paper, aud judged that he could establish it on profitable lines. The total receipts for the six months amounted to £319 12s lid, or an average of abont £12 per week, and business was improving. His trade expenses came to £85 per week ; it was not that at first, but gradually grew to that. After using up his capital be borrowed sums amounting in the aggregate to £346, at intervals during June, July, August, and September. In making tbe applications he made no special representations of lits financial position, beyond stating that the prospects of the paper were improving, which was an actual fact. Was looking forward to the extra revenue that would come in during tbe general elections, when he anticipated that the paper would earn £300 above its ordinary revenue. Had drawn out a programme for the insertion of candidates' speeches at a fixed charge. All tbe debts on the schedule were incurred prior to the fire and while the paper was a going concern ; had gone to the bad over £300. Attributed his bankruptcy to tbe fact that tbe revenue of the paper was not anything like the expenses of producing it, and saw now that he had expended a larger amount in producing the paper tban tbe revenue warranted. Since the fire he had made every effort to re-establish tbe paper. The immediate cause of his filing was the issue of a distress warrant by the London Loan Company of Palmerston North.