BUSINESS IGNORANCE LEADS TO BANKRUPTCY

Sun (Auckland), Volume II, Issue 380, 14 June 1928, Page 13

BUSINESS IGNORANCE LEADS TO BANKRUPTCY

ASSIGNEE'S ADVICE CONTRACTOR’S FAILURE “Most of the people who come here would never have to appear if they had more business knowledge. I should strongly recommend you, when you get your discharge, to take a few lessons in book-keeping before commencing business again.” This was the advice of the Official Assignee, Mr. S. N. Morris, after hearing an explanation of the business failure of Stephen Osborne Stone who was summoned to meet his creditors this morning. Bankrupt started seven years ago as a contractor at Brown’s Bay. He had no capital and had commenced business in modest fashion with one horse. Business, most of which had been done for the Waitemata County Council had increased and the plant had been improved. Two trucks had been bought, the repair bill of the second contributing largely to the failure. Stone said that prices last year had been cut especially in cases where tendering was necessary. What jobs had came his way had been scattered as far as 40 miles apart and in some cases cost as much as they were worth in wages alone.

Since filing bankrupt had. with the assistance of the assignee, found work that was expected to improve his position substantially.

Bankrupt’s schedule revealed a deficiency of £2BB 37s lOd. He owed £143 16s 9d to secured creditors and £7lB 6s lOd to unsecured creditors. His assets totalled £427 18s consisting of plant valued at £192 and book debts amounting to £235 18s. There was also £1 10s lOd from the unsecured creditors’ account.

A committee was appointed to assist the Official Assignee -in the administration of the estate and to facilitate bankrupt’s discharge.