IN BANKRUPTCY.

Stratford Evening Post, Volume XXXII, Issue 1, 11 December 1911, Page 6

I N BANKRUPTCY.

MEETING OF CREDITORS OF

A. E. BURGESS

A meeting of creditors in the bankrupt estate of A. E. .Burgess, bootmaker, Stratford, was held ni the onice of too Official Assignee (Mr. A. Coleman) this morning. There were present:—Messrs. Thomson (representing the debtor), JO. G. Foster, G. Ransome (Sargood, Son and Ewen and 11. T. Batson and Co.), and Mr. Fookes (representing Mr. S. G. Burgess, sen.j. in his sworn statement debtor said that he started in business in Stratford on June Ist, 1009, as a bootmaker and boot and shoe retailer. Before that he was a joiner by trade for six years, and had Had experience in the boot iinc before that. _ He started his business witii a capital of £4OO, and Messrs. Sargood, Son and Ewen supplied him witii stock to the value of £375, on an open account. Ris first year’s turnover was £1814; 3s, and tho second £1393 16s sd. Up till last Christmas business seemed fairly good, but since then had been I falling off, especially during the winter. On taking stock last June, however, he appeared to be £229 6s 8d to the good, but since then had found ho had unwittingly omitted several bills in iris liabilities. Becoming unable to meet all his promissory notes several of liis creditors took Court proceedings against him, and proceeded on their judgments. When last month he became aware that he had made a mistake in his June balancesheet, and that bis position was not as good as he thought it, he consulted his solicitor. By his advice he prepared corrected balance-sheet, and also one at the present date, showing that ho was now some £220 to the bad.- Having ascertained bis true position, and one of the creditors having commenced distress proceedings, he called a private meeting of iiis creditors a fortnight ago, and was than requested to file. Had he known his true position last June, he would then have consulted his creditors without delay. He found it was useless to keep on. His schedules filed with the Official Assignee showed a debit balance of £7O odd. The difference between that amount and tiie £2OO deficit shown in the sheets submitted to his creditors last month was accounted for by his making allowance for the value of a second mortgage, which his largest creditor, Messrs. Sargood, Son and Ewen, held over his wife’s property, and also an allowance for goodwill of the lease of the shop. The statement of affairs showed that the only secured creditor was Messrs. Sargood, Son and Ewen, who hold securities to the value of £l5O on a debt of £358 13s Id. The following is a list of the principal unsecured creditors

Bankrupt’s total debts -wore £S4S 2s 3d, while his assets were £773 13s Id, leaving a deficiency of £7l 9s 2d. The Official Assignee said that he had; gathered from the creditors certain opinions, and it seemed to him that there was a feeling among some of them that a statement was necessary to explain the dilforonco between the two balance-sheets,

-'flu reply to questionsi’by the'Official Assignee as to h6w, having only a small number of bills, lie had managed to omit any, debtor said that he kept a bill book, but had probably left some of them out. He could not say what bills he had omitted. An investigation was made into bankrupt’s books with a view to ascertaining how he had managed to lose the sum of .£2OO in six months, and what bills were omitted. Mr. Foster asked debtor if lie would explain a statement- alleged to have been made to him (Mr. Foster) that he (the debtor) had lost £3O. Debtor replied that he did not make that statement.

The Official Assignee stated that he could get no explanation from the hooks as to how the losses had occurred.

“It simply means this,” said one of the creditors, “ever since Mr. Burgess has been in business he has gone to the bad to the extent of £lO or £l2 a month. He has worked hard ; his repairs show that he should have made £5 a week. We want him to show us how his has occurred.”

Mr. Ransoms, as representing the largest creditor, said the whole business was most unsatisfactory. He wanted the Official Assignee to satisfy himself in the matter.

Mr. Ransome moved, and Mr. Fookes seconded: “That the D.O.A. be instructed to realise the assets of the estate to the best advantage as soon as possible.”

Mr. Ransome moved: “That the D.O.A. investigate as far as possible the transaction of bankrupt prior to adjudication, and if necessary as a result to call a further meeting of the creditors.” This was seconded, and both resolutions were carried unanimously.

Staples and Co, Wellington S. Or. Burgess, Morrinsville Munro, Clerk and Co. Auckland £ 157 s. 6 ,d. 3 145 0 0 72 8 5 H. T. Batson, Pahnerson N 69 13 4 Yager and Co., Christchurch 21 14 8 Duckworth, Turner and Co, Christchurch 28 8 8 A. Bevins and Co., Auckland 22 7 8 Taylor and Co. ... ..i. 29 2 8' P. Walton, Auckland :... 28 8 9 Stratford Printing and ewspaper Publishing k Co. ...‘ ... » a.i;. ' • 11 5 ’ 6 Dr. Paget ... ... ’ ... 12 0 0