“USED PARTS” EXPERT BECOMES BANKRUPT

Sun (Auckland), Volume II, Issue 360, 22 May 1928, Page 13

“USED PARTS” EXPERT BECOMES BANKRUPT

LACKING JN_ CAPITAL NOTHING FOR CREDITORS “it is fairly obvious that lack of capital has been your chief trouble,*’ said the Official Assignee, Mr. G. N. Morris, to Frederick Slater, bankrupt garage proprietor, who appeared before his creditors this morning. Slater has traded under the style of Used Ford Parts, Ltd., Garfield Street, Parnell. His financial statement showed a deficiency of £313. His total debts amounted tc £598 and the assets consisted of stock and book debts, £285. Accounting for his failure Slater said he began business in Garfield Street. Parnell, about a year ago, with a capital of £3O. Business was brisk from the start. He later employed three men in turn, each lending £IOO capital. These were paid back in part, and were the principal creditors. Believing his business could be increased by moving nearer the city he transferred his stock to a depot in Albert Street. Business was very erratic, and the depot never paid. He attributed his failure to loss on the depot and to slackening off of trade at Garfield Street during the last few months. Questions by the assignee Slater said he did not go into his position when lie opened the Albert Street depot, neither did he consult his accountant at that time. He could not say whether he was solvent, but his largest creditors were satisfied that the move was a good one. The debtor was criticised for drawing £2OO out of the business during the last six months for personal purposes. lie explained that he did rot keep a check but drew money as he wanted it, and so lost tally of his drawings. Part of the sum, he believed, had gone in sundry expenses in connection with the business. “I think myself that the opening of the Albert Street depot was not justified, and was more or less a gamble, but his largest creditors were cognisant of his position, and there is nothing to be said about it.” “There will be practically nothing for your creditors out of this,” said Mr. Morris. Slater expressed his intention to wait for his discharge until he had paid something off his liabilities. The meeting was adjourned sine die.