BANKRUPTCY CASE.

Manawatu Herald, Volume XL, Issue 1805, 23 March 1918, Page 2

BANKRUPTCY CASE.

A SLEEPING PARTNER’S TROUBLES. A meeting of the creditors of Herbert William Bear, flaxcutter, of •Levin, was called for Thursday} at Wellington, by Mr S. Tahslcy, Official Assignee, but lapsed as no creditors were present. A written statement made by bankrupt showed a peculiar position of affairs. Bankrupt said that he had entered into an agreement on 16th September, 1916, with John Robertson, then carrying on business as cycle agent at Levin and Foxton, whereby for the sum of £2OO he received a one-third share in the business, and afterwards signed a deed of partnership giving him sole charge and management of the business. About the end of December his partner advised him that the business was not doing well, and early in January bankrupt advanced £3O, and later a further sum of £ls. When Robertson again wrote to the same effect, bankrupt answered that he knew nothing of the business, and left it entirely to him. Ills partner told him a little later that he had come to an arrangement with his creditors to pay 10s in the pound, providing he could liud the sum of £4OO in _ cash. Subsequently he signed papers assigning the business to two others who had made advances to Robertson and who later took over the business. Since then creditors had brought various actions at law against Robertson to recover certain sums of money, of which bankrupt knew nothing, but which he knew his partner was unable to pay, and it was through hearing that one creditor had stated he had the power to put him (bankrupt)' through the Bankruptcy Court that he iirst realised that he was also responsible for the sums which he, too, was unable to pay. The list of unsecured creditors was given as follows: —F. C. Remington, chemist, Levin; G. G. Kelly, cycle agent, Shannon; and the Motor Supplies, Ltd., Wellington. Bankrupt was unable to give any indication whatever as to the amount of his liabilities, for, as was pointed out by Mr A. H. Hindmarsh, who appeared for him, Bear had been really a sleeping partner. Bankrupt had put £245 into the business, but had not drawn a penny out, expressed his willingness to pay 5s in the pound at the end of twelve months, and the matter was, adjourned pending enquiries by the assignee.