Bankruptcy Follows Radio Shop Robbery

Sun (Auckland), Volume II, Issue 357, 18 May 1928, Page 13

Bankruptcy Follows Radio Shop Robbery

OFFICIAL ASSIGNEE PROBES YOUNG MAN’S FAILURE “I am extremely suspicious about the burglary at your shop. It happened at a most opportune time. Radio goods are the last things in the world anyone would want to seize—they are too hard to get rid of. I believe you knew this bankruptcy was coming and that is why you decided to start keeping books six weeks ago.” Such was the view of the Official Assignee, Mr. G. N. Morris, after he had probed searchingly into the busibers, aged 20, who was summoned to bers.aged 20, who was summoned to met his creditors this morning. Bankrupt had started out as a radio dealer in 1926, and had opened a shop first in Dominion Road and latterly in Newmarket. Practically from the start he had lost money, but not having kept books for the greater part of his trading career, he was unable to say what his position was at any time. He and his father had signed cheques conjointly, the parent had negotiated and signed a bill of sale and creditors were always under the impression that the father was a partner, yet the debtor flatly denied the existence of any such business relationship. Bankrupt’s schedule revealed a deficiency of £228 10s. lie owed £498 to unsecured creditors and £SO to secured creditors. His assets totalled £320, consisting of stock valued at £222 and the balance in book debts. DEBTOR'S EXPLANATION Explaining his failure, Chambers said he started in business in Dominion Road in 1926 under the style of Radio House. He had a capital of £BS lent by his parents. Business being successful, a youth was engaged. His first set-back was a loss of £3O over a stall at the Winter Show. A further £75 was advanced by his parents as well as £3O from his solicitors, who accepted a bill of sale over his stock. About six months ago business began to fall off. Chambers then decided to open another shop in Newmarket. Trade improved until burglars broke into the Newmarket shop, removing stock valued at over £IOO. Had the burglary not occurred debtor believed he would have recovered liis attributed his failure to losses resulting from the burglary, general business depression, and undue competition by the auction sale of radio secs at greatly reduced prices. He neither gambled nor drank. BANKRUPT EXAMINED “What made you start keeping books in March?” asked the assignee, beginning a long series of questions. “We found that things were getting slow, sir, so we decided to see how we stood.” He admitted that it would be impossible to draw up a statement of his receipts and expenditure for the period he was in business. He did not think it was necessary to keep books. “That being so, you were not competent to go into business,” observed Mr. Morris. Asked how he explained his contention that his father was not a partner although he had signed cheques conjointly with his son from the start, Chambers said that his father had so acted in order to keep an eye upon him. Although the father had no power of attorney to transact business for his son he had sigrned a bill of sale over the stock in the first shop at Dominion Road Pressed upon this aspect bankrupt maintained that the stock had always been his own. Then he gave a bill of sale over stock that did not belong to him?” said Mr. Morris. Chambers was questioned at length on otliei’ points in connection with the alleged partnership. A creditor said that he once refused to charge goods to bankrupt, knowing him then to be a minor. He had always believed father and son to be partners. “I do not doubt that the father can be brought into this, if it is worth while,” said the assignee. “He is a taxi-driver and has a car which is being paid for on a hire-purchase agreement. Beyond that he seems to have no assets.” THE BURGLARY Questioned about the burglary, Chambers said it was committed toward the end of April between S and 10 p.m. The front door of the shop had been forced and the goods presumably carried to a wc Uing motor. He visited the shop sa >rtly after 10 the same night, and immediately reported the robbery to the police. “You are a young man and single,” said Mr. Morris, “and you are not going to get your discharge until you have paid your debts.” Bankrupt said he proposed to work day and night to effect this, and mentioned paying £1 a week until his liabilities were settled. The assignee instructed the youth to submit weekly statements of his earnings as soon as he found employment. It being understood that the father would probably be called for examination, the meeting was adjourned sine die.