IN BANKRUPTCY.

Hauraki Plains Gazette, Volume XXXVIII, Issue 5146, 1 July 1927, Page 2

IN BANKRUPTCY.

MESSRS. MORGAN BROS,, PAEROA.

CREDITORS EXPRESS SYMPATHY

A meeting of creditors in the bankrupt estate of Charles E. Morgan and Albert E. Morgan, cordial manufacturers, Paeroa (Mr R- S. Carden), was held at the Paeroa Courthouse yesterday. There were seven creditors present, from whom Mr A. Finnie was selected as chairman.

The statement of bankruptcy showed that the amount owing to unsecured creditors was £216 6s 9d, and to secured creditors (National Bank of New Zealand, Ltd.) £133 6s 7d, less an- estimated value of securities amounting to £245, leaving a surplus to contra of £ll3 3s sd. The assets showed book debts £l3 7s 4d, estimated to produce £7 10s; cash in hand, £3 Ils 6d ; furniture and plant, £l4B 3s; surplus from securities in hands of secured creditors, £lll 3s sd; leaving a nominal surplus of assets over liabilities amounting to £54 Is 2d. In a written statement bankrupts said that they started business in Paeroa about 1909 with a capital of £2OO, as cordial manufacturers. The business paid them a fair living until two years ago. For the year ended March 31, 1925, net profits were £42o'. After that business fell off to such an extent that for the next year the profits were reduced to £284, and in the following year to £93 7s Id. An opposition firm at Waihi was capturing the business at Paeroa by running the cordials by motor-truck from Waihi to Paeroa, and in- the hope of picking up business, and to save freights to Thames and elsewhere, and also pick up trade on the road, a motor truck was purchased about three years ago, and a bottling plant also also installed. Both items had been paid for except an amount of £3 Is 9d due on the bottling plant. With the restoration of licenses in 1926 it was hoped that there would be a revival of business, but Messrs Grey and Menzies started in opposition at Paeroa .and the bankrupts did not receive- the trade which had been anticipated. Handicapped by lack of capital with which to bring the plant up-to-date, and also by the fact that a large supply of alley bottles had been purchased which were found to be unsuitable, matters were made worse. In October, 1926, an endeavour was made to form the partnership into a company, but owing to opposition at Paeroa at that time the persons who promised to invest capital in the proposed company failed to keep their promises. As a result the arrangements ,fell through, after the bankrupts had expended about £29 in preliminary expenses. During the last two years the liabilities had not increased, but the amount which had been drawn from the business had not been morei than £2 a week on an average. The assets had been written down to a low value, yet still showed a surplus. The failure was attributed to lack of capital and the operations of two opposition firms in- the district.

At the request of the chairman the creditors were ijivited to examine the bankrupts. As there was no response the following resolution was moved by Mr Carden and seconded by Mr E s A. Porritt (creditor) : “That a vote of sympathy be, extended to the bankrupts, and that the Official Assigneebe asked to expedite their respective discharges.”

The resolution was carried unanimously, and the meeting terminated.