IN BANKRUPTCY.

Gisborne Times, Volume VI, Issue 278, 3 December 1901, Page 3

IN BANKRUPTCY.

t TATEMENT OF JAMES ERSKINE,

In connection with tbo bankruptcy of •lames Erskine, baker, tbe following statement lias beon mado by tbe debtor to the Deputy Assignee (Mr John Coleman) : “ I commenced business in Gisborne about the Gth April, 1870, and have continued to carry on for the past 25 years. I had no capital of my own when I started, but I was assisted by friends, all of whom I was ablo to pay off without difficulty. My business progressed and prospered till about tbo .yoar 1891, when I was induced to buy the leaso of tho land and tbe build ings in which I was then carrying on business. I paid £725, and six weeks later the buildings were unfortunately totally destroyed by fire. To add to my other mis-

fortune, I found that one of the policies of insurance on the buildings had lapsed before the fire. I lost £225 on the buildings and about £250 on tho stock. The lease I had bought had only a few years to run, and it was impossible to build upon that lease. I then made arrangements to obtain a fresh lease of tho promises, subject to substantial buildings being put upon tho land. These were estimated to cost £l2*o, of which 1 had £450 in hand from tho insurance after payment of expenses and clearing the site. Tho contractor for these buildings failed, and before the buildings were completed, and owing to this and alterations being made eventually cost me £2OOO. This was the first necessity for mortgaging my premises, and ever siuce I have had an uphill struggle. I had to finance all (except £BOO and £450) upon bills which have 1 been all gradually paid off. Another olow came when tho Poverty Bay Farmers’ ; Co-operative Association wont into liquidation, leaving mo a loser by £2OO. Then I came the fire at Wacrenga-a-hika, where I had opened a branch business. The buildings on this proporty, which I had to rein- 1 state, wero only insured for £l6O, and 1 when they wore fully reinstated, cost me s £550. All theso lossos, except assistance s from my sister-in-law, who had money of c her own, had to como out of the business. 1

Notwithstanding all those losses, had hopos that I would bo able to pull through, and I should have done so had it not been necessary to givo practically unlimited credit, and then finance on bills andotherrWiso while waiting for tho money to come in. When eight or nine months ago the millers’ combine shortened their terms, it then being impossible to roly on money coming in, I had to finance for £SOO oxtra while it was still as hard as over to get in accounts. The consequence has boon that I had to charge almost everything that I had. Creditors began to worry mo, and I endeavored to stave them off by raising money outside tho bank and paying heavy discounts, but I found that it was impossible to carry on in that way for very long, and was advisod that instead of doing that I should call my creditors togethor, explain my position, and ask for further time. The creditors met me very fairly, and agreed to give me time, and I assigned everything to trustees on their behalf. They carried on the business since then till my bankruptcy for the benefit of my creditors. Unfortunately the way tho properties wero encumbered, coupled with the fact that it was known that I was in trouble, prevented the trustees from selling to the best advantage, and although they used every effort to dispose of them at fair prices they wero not successful. I then thought, and still do, that if I had the management of tho properties in my own hands with time to realiso them, I could realise them for tho benefit of the creditors, and 1 then made an effort to raise 10s in tho £ to offer to the creditors. The creditors were, I understood, all agreeable to accept this, but, unfortunately, although friends had proffered assistance, I found the encumbrances on

the properties again in my way, and although I strained every effort to raise , tbe amount I was unable to do so. Even had I been able to satisfy my creditors at the time with 10s, I should still have felt it my duty, if the estate had realised more and if I had my health and strength, to pay every creditor in full, and I trust that I may bo able to do so still, as nothing would givo me greater pleasuro if it were in my power. As the trustees wero not able to realise tho full value of the properties, I have written them down to the - highest offers they have had, but tbe properties are worth more. Had it been possible that theso properties could be realised in open market without encumbrances, together with the book debts, I believe they would cover all deficiency. Tho immediate eauso of my filing was one of tbo creditors, who I understood was agreeable to the estate being administered by trustees, but who had previously sued me, lodging a petition in bankruptcy against me. I was then advised that for the protection of all the .creditors that my best course was to file, which I did. It is tho first time during the twenty-five years that I have been in business that I have had to tako such a course, nor have I over had to compromise for loss than twenty shillings in tho £. “ Hated at Gisborne this 2nd December, 1901.”