Angry Creditors Assail Bankrupt

Sun (Auckland), Volume II, Issue 571, 25 January 1929, Page 13

Angry Creditors Assail Bankrupt

FRUITERER’S FAILURE A BIG DEFICIENCY "I his is the bankruptcy case in my experience. People wno give credit have a right to be a 9 a '" st men of this " d ; Mr - c - D - Mclndoe, speak- ,* 'or a creditor of Ivan Richard Leonard Brown, bankrupt fruiterer and confectioner, of Whangarei, at fan'd eetm9 ‘his morning in Aucki oo!.l! f n , ” creditors unanimously agiteu iu u resolution that Browns "Z I r “ should be referred to the Crown | 'TU f, 1,1111 a v *c'v to prosecution. ! heard “I?*', ei-ienue 1 "over n t a , h exasive answers to ques- . ’ I AIr * Mclndoe said, continuing s cuiKiumnu tion of Brown’s behaviour. „ it , Vv “«ver seen a business career itn such doubtful features. Brown y* lov%t -‘ ci money when his position was simply hopeless.”

! .V 1 t l .V 1 > rupL was subject to a long, ; *■ remng examination from his tlie deputy official Mr ’ V - 11 • Crowhurst. He ,V -,\* nsc creditors, to whom a. 1.147 12s was owing, and £470 was < uu to secured creditors. The estimated value ol the securities was £542 17s, ; leaving a surplus of £72 17s. Stock in trade was valued at £216 Is 6d and Pkint and lutings at £413 Is. Brown nacl only Us 6d as cash in hand, ana nis total assets were £702 9h. 9 ave his deficiency as 3s, Mr. Crowhurst explained to the meeting that the deficiency was expected to amount to nearly £I,OOO by the time the position was investigated fully. A committee was see up to realise the assets. AY lien Brown began business in a partnership in October, IU2O, he had [ t- I ' J capital, bLit £6U of this was borrowed irom ins mother. The pur- : chase price was £ 75u, but only £l5O of tins was paid in cash. When the first j promissory note for £ 2uo fell due it! could not be met, and by October, 1927, ! the deficiency was £350 in addition to: £ 4UO due on promissory notes. I thought the btisineas could be ■ pulled together with a loan, so I took ! over the business, which was really insolvent then, in October, 1927,” Brown said. When Brown was married, his | Vvito bought the furniture. It was i destroyed by fire later, and some of the insurance money went into the trading I account. Brown found his position ; ; hopeless in October, 1928, and ne filed : jin bankruptcy on January 16, 1929. Badly Kept Books "My partner's husband kept the books tor the time in a sort of a fashion,” Brown said to - the assignee. "The system was not reasonably good.” The books had been discarded but they had not been destroyed. Brown said that 1 some of the pages had been torn by him from a ledger. Mi*. Crowhurst: For what reason?— I did not think they would be any use. Brown said he had hoped to pick up over Christmas. Several creditors were not satisfied because Brown had not reviewed his finances at times when trade was falling behind. Brown admitted to a questioner that his father had given money lo his wife. Jt had gone into the business although he had not wanted it. A motor truck had been transferred to the father as payment for his wife’s debt, although there was a bill of sale on the vehicle. It was not until five or six months later that Brown sought to bo-released from the bill of sale from the man concerned. Several creditors said that Brown bait obtained credit when he knew he was hopelessly insolvent in October last year. The assignee said that the credit from Auckland business people alono was £350. That Brown had written to an Auckland firm in December stating that his credit had not been stopped when he had admitted at the meeting that his credit had been stopped lay Whangarei merchants in November was another point that brought the ire of a creditor’s representative. Brown, who is only a young man, said in his statement that he had made ! every effort to make the business j attractive.