MEETING OF CREDITORS.

Otago Witness, Issue 2892, 18 August 1909, Page 14

MEETING OF CREDITORS.

AN UNUSUAL CASE. (Feou Oxjk Own Cobbespondent.) AUCKLAND, August 9. An extraordinary state of affaire was disclosed in connection with the bankruptcy of Frederick Price, an Auckland baker and restaurant-keeper, whose creditors met to-day. Bankrupt's statement gave the amount due to unsecured creditors as £1057. % fiis assets nominally were put down at £689, leaving a deficiency of £368. His failure bankrupt put down as due to loss of contracts to the Northern Steam Ship Company and the navy, which jineant a falling off in his takings of £200 per year, and also to the fact that several tea rooms and restaurants had opened up business around him and taken away nis trade. The Official Assignee stated that the stock and plant were put down at a^ value of £233. The lease, however, was the most valuable asset of the lot. The Assignee added that an examination 6f the debts proved that bankrupt was going to the bad at the rate of £10 per week. To Bankrupt : What made you carry on so long ? ; Bankrupt : It was only during the last two years that I began to lose money. ; When the American fleet came 12 months . ago business improved a lot, and I Was ! taking more money in a day then than | I take now in a week. , The Assignee said it seemed to be a j marvellous establishment which bankrupt 1 had been running. The average number of meals supplied in his dining room per day was 75, and there were 40 meals , for employees. ' A Creditor : How long is it since you lost the shipping contracts ? j Bankrupt : About two years ago. I The Creditor : Don't you know that it is more like six years ago? Bankrupt : Perhaps ; it does not seem so long. Another Creditor : Is it not true that bankrupt has devoteed a lot of his time to horse racing? The Official Assignee : What have you* to say to that? I Bankrupt : Igo to the races occasionally. , t How much do you lose? I Oh ! it may cost me 35s or £2. | Do you always back the wrong horses? , ! No. I have not lost a penny. Two ; years ago I came home from Ellerslie > i with £200, and that has always kept I me going. * Do your books show your transactions ? No ,- I only bet with the money I take out of the business as wages. And how much is that? One pound per week. A Creditor : Did yon not go on a tour with the footballers some time ago, and visit Australia and the South Island ? Yes, I did. The Official Assignee : And what did that cost you ? It cost me £25. A Creditor : Did you work your passage? No; my fare only cost me £17 10s for the round trip. A Creditor : Out of £1 per week ? Bankrupt ; Yep. The Official Assignee : There is no doubt that bankrupt should have filed earlier. He is only £300 behind, but he has been losing £10 per week lately. A Creditor : His business has gone, j When a man fails people leave him like rats leave a sinking ship. In two years he laid out £500 on the business. There must have been money in it. It was not until three or four months ago that bo could come along and put down a cheque tor £150. j The Official Assignee : Has your monoy ' gone anywhere eke? Have you put it j into any other channel ? Bankrupt : No. My statement is cor I rect. j The Official Assignee : No, you can't ' say it is true. You state there* that you I only lost the shipping contracts two years ago. It now appears, that you lost them six years ago. A Creditor :" Bankrupt has one of the best sites in Queen street. He must j have made money. What was your posi- j tion three years ago ? Were you worth £1000 then? J Bankrupt : I cannot say, but my bank j book would show every penny. Wages and all went through the bank. The Assignee : Yes, you had a system of bookkeeping that must be admitted. A Creditor : Is the business still being carried on at a loss of £10 per week? . Official Assignee : Yes. We must keep j the business going until we decide how j to dispose of it. j It was decided to leave the matter ' in the hands of the Official Assignee, . and a committee was set up to take what action it thought desirable on behalf of the creditors.