“RUINED BY SLUMP”

Sun (Auckland), Volume II, Issue 372, 5 June 1928, Page 15

“RUINED BY SLUMP”

BANKRUPT TAILOR SCHNEIDEfAAN’S FAILURE The vicissitudes of a series of tailoring ventures extending over nearly a quarter of a century were recounted this morning in the office of the official assignee, Mr. G. N. Morris, when Max Jacob Schneideman, bankrupt tailor, met his creditors. He was represented by Mr. Gold- j stine. Under instruction of the assignee, Mr. R. Bagnall appeared for the Anglo-French Manufacturing Co., a concern in which Schneideman had been recently interested. After ascertaining from bankrupt that he had no assets, Mr. Morris deferred examination for a few days. He intimated that Mrs. Schneideman would also be examined. Bankrupt’s finances showed £531 owing to unsecured creditors and £2,087 owing to secured creditors. The value of securities was shown at £2,000. The deficiency was therefore £6lB. INVOLVED STATEMENT In a statement debtor said he came to New Zealand about 24 years ago and worked in Auckland as a tailor. Two years later he went into business with his brothers and worked with them for six years. Selling out his interest he went to Wellington, w\here he did well. He then went to Australia and lost practically everything. Returning to the Dominion he started a manufacturing business in Auckland in 1916 and was successful. Two years later he formed the concern into the Empire Costume Manufacturing Co., Ltd., with a capital of £6,000. ITe put in £2,500 cash and his wife £SOO cash. Things went well for some years, and in 1920 his private assets, including his interest in the business, were valued at £B,OOO. The boom period then fell off, and business started to go back. He found himself with a very big stock, valued at about £IO,OOO, but the value dropped from 25 per cent, to 50 per cent, in a few months. “I then decided to open retail shops, and this proved my downfall,” said Schneideman. Branches ■were started in Auckland, Wellington and Christchurch but heavy losses were suffered.” In order to assist the business he virtually gave a house property for the benefit of tbe concern. A debentureholder in the company drew out of it about £4,000 and went to England. As the business continued to go back during the slump period he called a meeting of his creditors and was allowed to carry on under commission. PROPERTY TRANSACTION Bankrupt detailed pi'operty transactions by which he hoped to assist the declining business. His wife had a little money and it was then decided that, if they could purchase the Auckland shop they could carry on and make a living, as they thought conditions in Auckland would improve. Arrangements were completed in April, 1927, the price being £1,500, of which his wife found the £SOO deposit required. The concern was formed into a company styled the Anglo-French Manufacturing Co., Ltd., the capital being £1,500, made up of the £SOO deposit paid by his wife. Creditors received a debenture for the balance of £I,OOO. The company carried on for some time and paid its way, but showed no profit. About £SOO was paid off debentures. A fire in January resulted in heavy loss. About £SOO of stock was damaged and only £l4O was allowed by the insurance company. They had been depending on Easter and winter trade to pull them through, but hopes were not realised. A receiver was put in and they had to quit the business which was liquidated voluntarily. Schneideman said he had lost everything he had and was now penniless. He had no assets of any kind and had put all he had into the business.