In Bankruptcy.

Manawatu Herald, 18 February 1904, Page 3

In Bankruptcy.

The following is a resume of the statement submitted by E. J. B. Osborne, of Foxton, debtor, to his creditors. He commenced business in Foxton twenty-two years ago. About twelve years ago he lost heavily in a flaxrailling concern and had to make a composition with his creditors. He bad to file but the bankruptcy was afterwards annulled. In February, 1902, his bouse was destroyed by fire. He did not lose much by the fire itself but it affected his drapery business, people, debtor stated, considering he would advance the prices of his goods. The credit system, also, reduced the profit from the business, debtor having to purchase on bills instead of for cash. For a year after the fire goods were bought on bills from merchants, and then to reduce the bills be sent quantities of goods to different auction marts, and they were sacrificed. Bills, owing to the decline of business, were renewed every month. In August and September of last year debtor entered into negotiations with Mr T. Fleming, of Levin, to purchase the business and stock. In October an agreement was drawn up under which he was to buy the stock on the "premises, the bulk at cost price and the balance at valuation. This amounted to £1575 The terms were that all the cash received in connection with the business, after deducting working expenses, was to be paid to debtor in reduction of the purchase money. Also, that the proceeds from the drapery business were to be applied to the same purpose In March, 1903, debtor sold the Shannon business, and having completed arrangements for the sale of the Foxton business he went to Ahaura, having handed both businesses over to Messrs Fleming and Dunckley respectively. Debtor alleged mismanagement and neglect by Mr Fleming of the Foxton business, which, debtor alleged, Mr Fleming left after being in charge for four weeks, during which time he greatly increased the expenses, made it impossible for debtor, when he returned, to meet the December bills duo to warehousemen, who began to press for payment. Debtor endeavoured to compromise, but after some negotiations one firm presented a 1 creditors’ petition against him on

which ah order of adjudication was made.

The first meeting of creditors in the estate was held at half-past two, in the D.O.A.’a. office, Palmerston N.j yesterday afternoon, and by previous arrangement, adjourned to Wellington, to be held on Friday morning at the Officidl Assignee’s office, at 11 o’clock.