MOTOR FIRM’S FAILURE

Sun (Auckland), Volume I, Issue 135, 29 August 1927, Page 13

MOTOR FIRM’S FAILURE

, T HE MAN IN WELLINGTON” ■ ALLEGATIONS of fraud „ T he man who is responsible for , h , bankruptcy of these men is vet within the power of Hr assignee,” said the official asg'nee, Mr. G. N. Morris at the ’lnclusion of his examination of Hans Grau, who met the credit- • ", of the bankrupt firm of Grau , n d Hipkins, motor engineers, of Auckland, this morning. The bankrupt company consisted of Hans Grau. David Alexander Hipkins Hd Frank Geoffrey Fairfield. The firm’s financial schedule showed -deficiency of ££6o. The sum of £1,241 was shown as owing to unsMiired cred.tors, and £863, consisting „( debts to secured creditors. The value of »acuirities was given as £ 1,100 The asaeU amounted to £9BO, which ~eluded £266 as surplus of securiA written statement furnished by the firm stated that Grau and Hipkins lonimenced business in January. 1023, ia Anzac Avenue, with a capital of £l6O. They gradually worked up a successful little business in motor repairs and sales of benzine, oils, and rrres. During that mar they engaged the services, as apprentice, ot Fairheld, who was later taken into the partnership on his payment of the sum of £3OO. . The statement went on to make allegations of fraud against the directr.- of a motor firm in Wellington. A verbal agreement, it was said, was made with this man that Grau and Hipkins should sell, as agents, a certain make of car. Complications followed this agreement, and it was aliped that the representative of the Wellington company had defrauded item in respect of certain shares. Examined by Mr. Morris, Grau said that for the past 10 months the combined weekly drawings of the three partners amounted to £ls. The business had suffered comparatively small loss in ordinary trading o.her than that resultant from tho ii'tged fraudulent operations of “the mkn in Wellington.” Grau contended that his firm could have carried on with profit if it had not been for their connection with this have always found these men honest and above-hoard in their dealings’” volunteered a creditor. “and -.hey filed simply to protect their creditors.” Mr. Morris agreed. Creditors unanimously decided to permit Grau to retain furniture to the Jalue of £SO in lieu of the £25 at prewnt allowed by the Bankruptcy Act. It was further resolved- “That the discharge of the firm be facilitated, as their bankruptcy has been brought about by circumstances over which they had no control. They acted in the best interests of their creditors by filing.” , , , After a committee had been set up to consider a tender for the purchase ot the business as a going concern, tire meeting was adjourned sine die.