A BUSINESS TANGLE.

Gisborne Times, Volume XXVI, Issue 2290, 8 September 1908, Page 3

A BUSINESS TANGLE.

THE AFFAIRS OF A BANKRUPT. A COM PLICATED. POSITION. [Punas* Association.] WELLINGTON, Sept, 7. Richard Ayres, a herbalist, of Island .Way, appeared before tlip Official Assignee (Mr. Simpson) at a meeting of creditors this morning. The statement of liabilities showed unsecured creditors £IOO 3s 3d, secured creditors £2345 4s 7d, other liabilities £IBOO. The assets’ were set down as £2704 15s od, comprising property (£100) and surplus from securities in the hands of several creditors (£2604 15s od). Tho bankrupt estimated that there should be a surplus of £7OB 12s 2d. Tho principal unsecured creditors were :Keene and Reid, contractors, £3O; Mrs Mary Ann Wright £SO. Tho chief items on the secured list were the National Rank of Now Zealand £395 4s 7d, Annie Luke £IOO. the Equitable Building and Loan Company and J. Drysdalo £2050. Tho bankrupt, for whom Mr. A. Dell. Brandon jun appeared, stated that ho once hold two businesses, one in Cuba Street and the other in Berlmmpore. On June Ist, 1906, lie sold the Cuba Street business to E. O. Ayres and Company for £1257, of which £4OO was to remain in tho business in the name of his son Wilfred Alexander A.vres; the sum of £4OO was to be paid in cash; £350 was to be paid in December, 1906; and £lO7 was to remain as purchase money for his Berliampore business. Previous to his selling, he had given his soil, Edgar Charles Ayres, of Dunedin, a £4OO interest in the business. E. C. Ayres and Company borrowed £BOO from Young’s Chemical Company. for which Mr. Joshua Bell senr and himself became responsible. Mr. Bell and himself also guaranteed an overdraft- of £2OO (since reduced to £151) for E. C. Ayres and Company. Subsequently this film got behindhand with payment to Young and Co., and bankrupt gave a note of hand as a guaranteo. Young and Co. obtained judgment against him for the goods supplied. He was unable to .pay, and was served with a bankruptcy notice. In consequence of this lie filed his petition. The £750 which he received for his business was all used, except £SO, in the payment of various liabilities. When lie sold his Cuba Street business lie gave his Berhariipore business to his daughter, Margaret Ethel Ayres. The house in which he was now living and the furniture belonged to his wife.

Examined by Mr Young (representing the company), the bankrupt said that when he retired from business in 1906 he was “worth” about £2OOO, in addition to the value of the business. He believed then he had enough to keep him for the rest of his life. Mr. Young lengthily . examinee! the bankrupt about the relations between him and E. C. Ayres and Company (formed by E. C. Ayres, W. Ayres, and Bell). Bankrupt was willing to hand over to the creditors all -proprietary rights which he had in the medicines. The Assignee remarked that the business was very complicated, and would require much sifting. TW Hon. C. 51. Luke submitted thatwie bankrupt seemed to be doing his best to unload himself for Hie benefit of bis creditors, and Air. Young replied that this was exactly what the creditors were trying to find out.

Replying to Air. Myers (representing Air. Joshua Bell, a contingent creditor), the bankrupt stated that after he had sold out he worked two days a week for tbe new company, at first for £1 a week and later for £1 10s (three days a week). It was decided to adjourn the meeting for a further examination of the bankrupt, and Ayres was ordered to produce documents which would assist in the unravelling of the tangle.