BIG DEFICIENCY

Sun (Auckland), Volume III, Issue 794, 15 October 1929, Page 14

BIG DEFICIENCY

BANKRUPT PARTNERS DEFICIENT BOOK KEEPING From Our Own Correspondent HAMILTON, Today. The causes of the insolvency of two partners, Frederick Cooper-Smith and John Blaker, coal, firewood and produce merchants, of Hamilton, were investigated at a meeting of creditors before the Official Assignee, Mr. J. H. Robertson, this morning. The joint schedule showed debts of £435, and the assets and book debts were estimated to produce £ 80, leaving a deficiency of £272. Blaker’s statement showed that difficulties began when the overhead expense increased through the purchase of a motor truck and bad quality coal supplied in May, 1929. His partner had a serious illness and bankrupt struggled on alone. Creditors pressed and he called a meeting and undertook to run the business and pay 15s in the £l. He accepted a wage of £3 a week, but owing to his inability to carry on under starvation conditions he had been compelled to file. Neither bankrupt could make an offer. After an examination the assignee said the methods of bookkeeping of the firm were very deficient. Both bankrupts agreed that the amount they were drawing from the business barely covered their food and tobacco expenses. The assignee said that the bankrupt, Cooper-Smith, did not show in his statement his personal liabilities to the extent of about £2,000. He had apparently been speculating in land properties for years, and should have consulted his creditors before allowing 1,200 acres at Aria to be forfeited to the Crown. In 1920, before th€» slump; Cooper-Smith claimed he was worth £20,000. The meeting was adjourned, and it was* decided to seek legal advice concerning the validity of two bills of sale.