MEETING OF CREDITORS.

Shannon News, 28 July 1922, Page 3

MEETING OF CREDITORS.

IN ESTATE OF ISRAEL GELHOR

A meeting of creditors in the bankrupt estate of Israel Gelhor, taxi proprietor, of Shannon, was held at Palmerston on Wednesday. There were also present: Messrs. K. E. Adams, representing J. C. Milnes; J. M. Milne, J. A. Stevenson, representing A. S. Paterson and Co.; J. H. Watt; C. Fraser, representing N.Z. Loan and Mercantile Agency Co., Ltd.; and S. Gribble, representing Vacuum Oil Co.; and Miss Roberson, representing Pratt and Co.

Bankrupt, w'as represented by Mr A. M. Ongley. Bankrupt’s financial statement- disclosed the-, fact that his total debts amounted to £2633 18/5, made up of secured creditors £1550 and unsecured creditors £IOB3 18/5. The total assets are estimated at £3335, thus leaving a surplus of £7Ol 1/7. The secured creditors are Thomas Ritchie (and wife), Hastings, £1360; Stuart, Wilson and Co., Wellington, £4O; and Davis, Ltd., Hastings, £2lO. The principal unsecured creditors are as follow: Palmerston North —Para Rubber Co. £175 6/6; Barnet. Glass Rubber Co., £24 8/; Rett, and Bayly, Ltd., £33 17/; Watt. Motor Co., £66 8/4. Wellington— A. S. Patterson and Co., £lo4' 15/3; A.B.C. Vulcanising Works, £25 10/10; Vacuum Oil Co., £67'18/;' E. W. Pidgeon and Co., £4O 7/6. Christchurch: W. H. Simms- and Sons, Ltd., £64 5/. Levin—Milnes’ Garage, £46 1/. Hastings— Mossman and Co., £149. Napier—New Zealand Loan and Mercantile Agency Co., £7B 11/8.

Bankrupt in a written statement said thar until January, 1921, he was dealing in wool and skins and wool cleaning at Hastings. Owing to thefall in the price of wool the business could not be carried on at a profit and he was compelled to close down his plant, and went to Shannon. In January, 1921, lie started in business as a taxi proprietor. He was a considerable loser through the fall in wool, as he had only recntly installed a wool-cleaning plant at a cost of £IOOO, and when he closed down the plant remained idle, and he could not dispose of it. When he went to Shannon he secured a car costing £BSO from Davis, Ltd., a Hastings firm, and by way of deposit handed over a motor lorry and another car, for which he was allowed, a credit of £4OO. His liabilities in Hastings at this time, including balances owing on the wool cleaning plant (£100), would not exceed £3OO. For about three months the taxi business at; Shannon did well. In March, 1921, he procured a second car from the Watt Motor Co., Palmerston North, for £873, on bailment. Terms of payment were £5 deposit, and £95 every three months. Immediately after this the business began to fall off, .as two other firms started business at about that.time, and put three cars on the road. In June, 1921, he secured a char-a-banc for £394, for the purpose of running a Government contract to carry school children. From this on-

wards, the business fell away ra ; pidly and he discovered that some persons had been circulating a rumour that he was of German nationality. The rumour was untrue, but it did his business very great harm. He consulted a solicitor with a view

to taking proceedings against, the persons responsible, but no action was 1 taken, and his business continued to suffer. When he found out that the business could not, be carried on successfully by him, he endeavoured to i sell out. He played the business in I the hands of two Wellington firms for j sale. He had three prospective buyers : but none of them were able to arrange the necessary finance. In May

last, lie arranged to sell the char-a-banc and. one car to Messrs. Truman Bros. The price was agreed upon, but Messrs. Truman failed to obtain both the Government and private loan moneys which they anticipated being able to -secure, and the. deal

fell through. Had he been able to dispose of the business, he could have paid all liis creditors in full.

‘ Replying to questions put. by the D.0.A., bankrupt, stated that he was bankrupt in 1909, and subsequently paid all his debts in full, but never applied for his discharge. His woolcleaning plant was still at Hastings. The shed in which it was stored was

hired for 10/ per week. Davis and Co., had seized their car on July 21, although lie had filed on July 13. He owed them £3lO, and he estimated the car to .be worth £450 to £SOO. Watt and Co. had taken their car during June. There was owing £625, and of this £247 was in arrears. The char-

a-banc was still in use, and he owed nothing on it. He was getting £27 10/ per month from his contract with the Wellington Education Board, and it had another six months to run. in addition to the contract he did private work. He was a married man, his two sons were working, and his

daughter was He could not. make any offer to his creditors. He had 35 snares fully in-a Hawke’s Bay-'company . To Mr W9.U: There Was £IOO owing

on the wool plant. To Mr Adams bankrupt stated that the house and lands at Hastings was bought with his wife’s money, and was afterwards sold by her; the proceeds going on the account- of one of the cars. He had told some of his creditors that he would settle with them when the property had been sold. In a concluding statement to the D.O.A. bankrupt said that, he sold his furniture, and paid debts with the proceeds. . No decision was arrived at by the creditors.