LENT HIS GOOD NAME.

Hauraki Plains Gazette, Volume XXXVI, Issue 4845, 26 June 1925, Page 3

LENT HIS GOOD NAME.

MANAGER’S MISFORTUNE. INVOLVED IN BANKRUPTCY. The misfortune of an employee who incurred liabilities unwittingly as a result of permitting his employer to use his name for business purposes was disclosed at the office of the Official Assignee (Mr W. S. Fisher) at Auckland on Tuesday, when Louis Arthur Nevin, shop assistant, of Paeroa, appeared as a bankrupt in a country grocery failure, that of A, W. Green, of Karangahake. The liabilities totalled £146, owing to unsecured creditors.

In a written statement bankrupt said'that he was managing the business when it was purchased byGreen in June, 1923, from its former owners. He continued to manage it. The business was wholly conducted in his name, as he was well and favourably known. He recieved £6 a week. That arrangement continued until December, 1924. when it was terminated by agreement, Green undertaking to indemnify bankrupt against any claims that might be made by creditors with whom he was dealing on his behalt. Bankrupt considered it perfectly safe leaving the business in Green s hands, and he considered the creditors were protected, as Green owner, in addition to his equity' in the business, a farm at Karangahake. “I have no creditors other than those who might claim against me in connection With the business at. Karangahake,” stated Nevin. Mr Fisher: Did you know Green had practically no. capital of hie own when the business at Karangahake was purchased ? —He had £l2O, and he borrowed the remainder of the purchase money. What, arrangements did you make with Green as the result of which the business was carried on in your name instead of his ’—He put the suggestion to me becasue my name was better known.

Didn’t you realise you Were incurring a liability in agreeing to that - No\ not at the time. , About how much did Green draw out of'the business while you were there ?—He drew £lOO in August, and two sums, £lOO and £ls’, in December.

One of the creditors commented that the bankrupt had certainly been very foolish.

Mr Fisher, in agreeing with this view, said that bankrupt considered the business solvent to the extent of £319 when he left at the end of December. Green went bankrupt on June 5, and, after giving full credit for all the assets connected with 'the business, had come in with liaibilities of £475. Apparently in six months’ working he had gone to the bad to the extent of nearly £BOO.

“It is a case of misfortune to tne bankrupt,” Mr Fisher remarked. “He acted foolishly. There is no sugges-tion-of his having done anything that was at all dishonourable. He left the business perfectly solvent and believing that all his liabilities ceased.” A resolution of sympathy with the bankrupt, with a request that the Official Assignee facilitate his discharge, was carried. The meeting also resolved that a thorough investigation should be made of the books of A. W. Green, and a report placed before a future meeting.