BANKRUPT BUTCHER.

Shannon News, 19 May 1925, Page 3

BANKRUPT BUTCHER.

LLVL\ iUND WELLINGTON f BUSINESSES. ; The first meeting 01 creditors in the estate of Joseph Lemmon, butcher, of « 119 c Willis Street, was held in Wei- < iington yesterday. f Bankrupt submitted a statement« showing that his liabilities amounted \ to £1149 7s lOd, and his assets to £1258, leaving a surplus of assets 1 over liabilities of £IOB 12s 2d. 'ahe j principal asset.s were;—Scales, £SO; cash register, £SO; motor van, £100; wall scales, fittings, tubs, etc., £SO. The amount owing to unsecured creditors was shown as £542 13s 6<J, the principal creditors being: Wellington Meat Export Co., Ltd., £322 8s 4d; Nelson Tannery Co., £140; Abraham and Williams, £72; Dr. Martin, £B7. Prior to entering into business on November 1,; 1924, bankrupt owed £606 14s 4d, the chief creditors being: W. V. J Pearce, Rangiotu, £360; New Zoala,nd Loan and Mercantile Agency Co., Ltd.," "£129 Os 4d; Thomas Hillam Ohau, £75; J. Crystal, Eoxton, £3O. BANKRUPT'S STATEMENT.

Bankrupt, in his own statement, explained that after being in business for some considerable time in Levm, he started in business as 1 a butcher in Willis Street, Wellington, on November 1, 1924, with a capital of about £2OO, together vyith plant valued at about £350. He expected to receive more cash to put into the business by the sale of his Levin business, but owing to unforeseen circumstances was unable to do so. The amount of money he owed was not ail contracted in Wellington. The sum of about £6OO was contracted while iu Levin. There were assets to the amount of £J2O still in the shop as improvements and fittings. Approximately £385 represented the debts during his five months' business in Wellington, and those included meat, poultry,- body- on van, insurance on same, etc. He bad to pay one month's rent, £26, prior to commencing business, lie attributed his failure in business to the high price of meat, which rose from time to time, heavy> rental, loss by climatic conditions, and heavy working expenses, with fluciuating business, lie was compelled to close on April 1, 1925. Jf he coul.i have realised his assets immediately lie would not have been compelled lo close his business "mitii ids creditor; had been paid off. About February he came to the conclusion that the business was not a success, and from that date he had paid cash for practically everything that lie purchased.

The Official Assignee (Mr S. Tansfey) presided, and there were also present:—Bankrupt and his solicitor (Mr W. B. Brown), Messrs H. \V. Ferrar (Wellington Meat Export Co.. Ltd.), T. K. Henderson (Dr. G. W. •Harty), W. O. Kelly (builder), C. Muiiro (xN.Z. Bacon and Meat Packing Co.), and W. G. Sloman (Levin). Other firms repiesented were Messrs H. Dore and Co., Briscoe and Co., and R. A. Newbold. ASSETS OVER-VALUED.

• The , Official Assignee said that he did not think that bankrupt's assets, apart from the property, would realise £IOO. The m itor- car, which bankrupt valued at £IOO, was not worth mure than £lO, ;is it had been badly damaged in an accident. The book debts, which bai krupt valued at £200; were worth v x ery little from what he r had learned at Levin. He was of opinion that the value of the assets could be cut down by half. Mr Munro said- that the Wellington creditors when bankrupt started in business were under the v - impression that he had assets at Levin. The Official Assignee: He started here with £<#o of liabilities.

Mr Munro; Yes; but we did not know tliat at the time. In answer to a creditor, bankrupt stated that his turnover for the first week lie started business in Wellington was £OO. ll went up as 'high as £l5O, but dropj cd to £35 the week before he closed down. Mr Munro pointed out that during his trading in Wellington bankrupt had purchased £I4OO worth of meat, which, he had sold for £ISOO. He did not see lnw he could possibly have carried on. There must have been more money somewhere. A WANGANUI PROPERTY. Mr Sloman questioned bankrupt regarding a pioperty which Mrs Lenhnon possessed in Wanganui. bankrupt said that the property belonged to his wife, who had capital of her own. Mie had milked cows, and saved a certain amount. He used to send his wife sums of money in cash and by cheque to Levi* while be was in business in Wellington.

Mr sloman allied if the property m Wanganui had not been taken in exchange for a pioperty bankrupt sold at Levin about twelve months ago.

Bankrupt said he did not know the details of the transaction. The property was in lus wife's name, and she had negotiated the purchase.

Mr Sloman: liMhis Wanganui property was purchased with bankrupt's money it belongs to the creditors. The Official Assignee: Undoubtedly. In answer to a question, bankrupt denied that an employee had converted a cheque to his own use. A creditor slated that bankrupt and the employee 'in question had since been seen together. Mr Munro said that creditors were never severe on business men who got into difficulties through hard luck. What they objected to in the present case was that the bankrupt had repeatedlv broken his word. It was agreed to adjourn the meeting in order that the Official Assignee could havi« time to go- through the hooks and ascertain the poeitton regard ins the Wanganui property.

An Ashburton telegram says that Mr W. M. Dawson reports successful receipt by means of a'special receiver of wireless test messages sent out bv the United States fleet for obtaining data on the capabilities of short waves. Both sides of the conversation between J-he flagship Seattle and the naval research laboratory at Bellevue have been copied in several instances.