A PLUMBER’S BANKRUPTCY.

Manawatu Herald, Volume XLVI, Issue 2705, 8 March 1924, Page 3

A PLUMBER’S BANKRUPTCY.

MEETING OF CREDITORS. The adjourned meeting: of creditors in the bankrupt estate of Arthur Tollison, plumber, Foxton, was held in the Town Hall supper-room yesterday afternoon, at 2.30 p.m., presided over by Mr C. E. Dempsy, D.O.A. The following: citizens were present: Messrs E. R. B. Holben (Holben and Kirk), J. K. Homblow (Manawatu Herald), P. J. Jack, R. N. Speirs, William Trueman (Borough Council), G. T. Woodroofe (Awahou Auctioneering: Co.) W. D. Bauckkam, G. Tyer (Barr and Iyer), H. G. Potts, F. Rimmer (Motor and Engineering Co.), J. M. Thomson, M. B. Bergin (representing 0. Jacobsen, C. H. Withers and several other creditors). The bankrupt was represented by Mr Hollings. The following is a list of creditors: —Holben and Kirk (Palmerston North) £45 15/11, C. H. Withers (Palmerston N.) £43 6/-, T. H. Ballinger and Co. (Wellington) £5, Veitck and Allen (Wellington) £l2 15/-, J. M. Thomson £l9 0/11, R. N. Speirs £l4 14/4, H. G. Potts £37 6/1, 0. Jacobsen £7 15/6. D. W. Robertson £92 7/-, Foxton Motor and Engineering Co. £4 2/7, M. E. Perreau £ls, W. D. Bauckham £lO 14/-, Barr and Tyer £3 14/-, R. T. Betty £2, Dr. Wyllie £8 8/-, Johnson and Sons (Dunedin) £5, Manawatu Herald £lO, T. Hunt £7 15/P. ,T. Jack £7 14/2. The secured creditors were Awahou Auctioneering Co. £167 19/0 (estimated value of security £SO). Repatriation Department advance on furniture £SO (£47 now owing). Assets: Stock in trade (under mortgage to Awahou Auctioneering Co.), £SO, Book debts £45 15/6, estimated to produce £l4; furniture, under mortgage to Repatriation Department £SO. The total liabilities were £466 17/6, showing a dediciency of £356 17/6.

The bankrupt was sworn and liis statement read as follows: —“I started business in Foxton in June, 1922. Business was slack and I had sickness, myself and my family. I did not earn sufficient to keep going, have not been extravagent. 1 account for my present position as follows: Want of capital sickness, and slackness of work. When discovering my position I called a meeting of creditors and asked them if I should file. They did not wish me to do so and agreed to give me three years, tune to recover myself, but one creditor, Holben and Kirkj pressed and made me bankrupt.” Mr Holben explained liis reasons for the action, he had taken which he said, would be justified in the course, of the proceedings. BANKRUPT QUESTIONED BY CREDITORS In answer to the D.O.A. bankrupt said he was a married man with two children. . Before starting on his own account he was.working for wages. He had no capital when he started in business and had not paid for the tools to start with. To Mr Holben: Agreed when he got credit from Holben and Kirk to pay for supplies monthly as he had plenty of work. Had kept books of account hut had not employed an accountant. The last contract he took was in October, which he finished in January, the wages in connection with this contract being paid by Mr Woodroofe. Remembered giving an order to Holben and lurk to receive payment from the owner of the property, but collected it himself and paid other accounts. Took out a postal order for £2O in favour of Holben and Kirk’s solicitors but withdrew it afterwards. Mr Woodroofe started paying bankrupt wages about the end of October, was not sure what stock he had in hand when Mr Woodroofe started paying him wages. To Mr Bergin: Valued his furniture at £SO and owed the Repatriation Department £47. The advance was spent on furniture, Mr Jack agreeing to supply it all for £SO but he subsequently sent in a further account above the £SO for £7 14/2 which was still owing. 1 valued the furniture at £OO, not £SO as previously stated. There is no money owing me outside the trade debts. My brother Albert Tollison, of Hastings, owes me about £ll2 allotment money, collected whilst I was at the war. None of this had been repaid although he promised to do so by instalments. Did not know if his brother had property. Had not signed away his interest in his mother’s property at Hastings, in which his father had a life interest.

To Mr Speirs: Did not spend much in drink while in business. To Mr Woodroofe: Was in debt when you took over and had several contracts in hand. Admitted the debt of £ll2 for material supplied. Admitted giving orders on two contracts, but was in debt to one of those upon whom an order was given. The total value of the contracts was £l5O. Promised to pay the money from these contracts but used the money for other purposes. The list of creditors given when you took over-was from memory and showed £157 15/-. My list to the D.O.A. shows £351 18/6. You threatened to sue me. Cannot remember what 1 did with the money.

To Mr Bauokham: Can trace all the money I received in business from the books but cannot say how it was disposed of. To Mr HoUings: My brother’s debt was for soldier’s pay collected on my behalf and not accounted for. My brother is not in a position to account for it. I have my kit of tools away from the shop. To the Town Clerk: When I started business 1 was a single man but not doing well and my prospects did not seem any brighter when I got married. . -«■*-•**

To Mr Hollings: When I found myself getting into difficulties I called my creditors together and my position was explained by you. It was then put to the creditors whether I should file or not. They agreed to give me three years to recover. I thought I could do it although it would be a struggle. My solicitor advised me to file hut I preferred to carry on. Holben and Kirk were not present at that meeting but were advised of the resolution but instituted bankruptcy proceedings. Several creditors interjected that they were not notified of the meeting. To Mr Holben : Was iu business for myself about 18 months in Foxion and during that time turned over about £BOO. Mr Holben: You seen to have done very well. Continuing, bankrupt said he had not paid anything on the machinery and there was no money outstanding on contracts. To Mr Bergin: Had it- not been for Jacobsen promising to put £IOO into the business would not have incurred the debt to Holben and Kirk. Jacobsen was to come into partnership and the money was to be expended on materials but he backed out. I never offered him anv security. T told Holbeu and Kirk that. Jacobsen was coming into partnership. This was when Jacobseu started to work for me. Money owing to Jacobsen was for wages. To Mr Speirs: All the creditors were not present, at the meeting held. My solicitor lias the minutes of the meeting and will hand them over. Tn answer to other questions bankrupt said he was not a licensed plumber but Jacobsen was a licensed drain layer. Bankrupt employed a licensed plumber. The books would show the wages paid to employees. Did not keep a bank account. After AH Holben had briefly addressed the creditors the D.O.A. adjourned the meeting sine die.