IN BANKRUPTCY.

Manawatu Herald, Volume XXXI, Issue 488, 2 October 1909, Page 3

IN BANKRUPTCY.

THE CASE OF C. T. EASTON

A meeting ot the creditors of Charles Thomas Easton, butcher, of Foxton, was held in the office of Mr G. J. Scott, the Official Assignee, at Palmerston, on Thursday last, at 2 p.m. There were only three creditors present, Messrs G ower, Coley and Webster, the latter representing Messrs Murray, Roberts and Co. Mr H. Cooper appeared for the creditors, and Mr L. E. Reade, of Foxton, for the bankrupt.

Questioned by Mr Cooper, Easton said that he had commenced business in 1901 with no capital and owing nothing. He went out of business in July last year when Easton and Co., comprising his father and brother, took over the butchery business and paid him ,£IOO for three horses, a trap, and some machinery. Bankrupt intended to pay his debts out of his book debts, and owed his father when he went put of business, but there was nothing in the ledger to show this debt. He had been practically bankrupt for about four or five years. He borrowed £6OO from Murray, Roberts and Co. about five years ago, but when he got this he did not tell the firm that he was to all intents and purposes insolvent. He had also borrowed from Mr Gower and gone through about of this money also. His books did not show to whom he owed money, but only those who owed money to him. He kept no cash book, and rio record of cash coining into the shop during the day, but if a man paid an account it was entered in the day book. Alter paying out small amounts the balance was banked, but none had been banked since about the beginning of 1908. About this time a great many judgment summonses were issued against bankrupt, and the police came along twice a week to try to collect them. In one week alone be had nearly worth of judgment summonses taken out against him. In July of 1908 he had held a private meeting of his unsecured creditors. He had paid Mr Gower’s debt with the money he had obtained from Messrs Murray, Roberts and Co,, and since then he had incurred a further debt of ,£4OO with the same man, and now owed about Since he had borrowed the money from Murray, Roberts and Co. he had gone back a further He did not inform that firm of his financial situation because he was not asked, and all his hides, skins and tallow were sent through the firm to help wipe off the debt, and thus it had been gradually reduced while he had charge of the business. Bankrupt still worked for Easton and Co, and gives up possession of his house next week. In 1901 his father had guaranteed for him to commence business on. Mr Scott: “Bankrupt has certainly shown no business acumen from start to finish.” Bankrupt: “I have been trying to collect the book debts all along. I can make no offer to my creditors.” Mr Scott; “This is the most slip-shod bankruptcy that has ever come under my notice. I have been engaged in several sick bankrupticies, but this is the sickest of the sick.” * Mr Coley proposed that the meeting be adjourned till Thursday week at 10.45, to give bankrupt a chance to fix matters up, and make an offer to his creditors. Mr Gower seconded and the motion was parried.—Before the motion was carried the D.O.A. speaking to the Bankrupt impressed upon him the advisability of making an offer which would be accepted by his creditors. If the offer were refused, he (the D.0.A.) would take a hand in the proceedings.