BUSINESS FAILURE.

Putaruru Press, Volume VII, Issue 289, 23 May 1929, Page 1

BUSINESS FAILURE.

DEFICIENCY OF £146. Examined by Creditors. An unsuccessful second-hand shop venture at Putaruru was responsible for the examination of Horace Moyle, of Morrinsville, before a meeting of his creditors. Bankrupt’s schedule showed debts totalling £156 17s 4d, which, with book debts estimated to produce £2O, left a nominal deficiency of £146 17s 4d.

Bankrupt, in his statement, said in June last he commenced a sec-ond-hand business in Putaruru. He had entered into an arrangement with the Rotorua Furnishing Company to receive new furniture from them to be sold on a 10 per cent commission basis. When he found that things were not paying he returned the stock to the company. All that stock in the shop, which was his own property, he consigned by rail to Mr. Cochrane, auctioneer, Rotorua, to be sold. These goods had never reached their destination. He later discovered that he should have sent them to Cockerel —not Cochrane. He had confused the name. Since Christmas he had done only 12 weeks’ work. Judgment was obtained against him by the Cfficial Assignee in connection with the bankruptcy of Sarich. Fe had consented to the payment of £1 a month, and being unable to keep up these payments, a warrant for his arrest was issued. He was compelled to file to avoid arrest. He attributed his failure to unemployment since Christmas, and the impossibility, from 12 weeks’ wages, to meet the urgent claims of his creditors.

Mr. McCaw, for Moyle, said it was plainly evident that bankrupt w-s a man with no business ability who had no intention cf defrauding the furnishing company. Mr. McDowell, who represented “fie Furnishing Company, interposed that the deficiency of £2O in the book debts did not coincide with the amount outstanding. His clients were not satisfied with bankrupt’s behaviour and would certainly oppose his discharge under the circumstances.

The meeting concluded with the assignee remarking that before he facilitated Moyle’s discharge he would require bankrupt to satisfy him that he was not in a position to make any payment to his creditors.