CHINESE BANKRUPT

Sun (Auckland), Volume III, Issue 876, 21 January 1930, Page 10

CHINESE BANKRUPT

BOOKS REFERRED FOR INQUIRY OVER £SOO DEFICIENCY The disposal of over £SOO worth of goods bought from one City Market firm within 15 days was a point raised this morning tit a meeting of the creditors of Chan Ah Lain, a bankrupt Chinese fruiterer, of Newmarket. AU Lun, who traded as C. All Lam and Company, was questioned mainly in English, although the official assignee. Mr. A. W. Watters, -asked several questions with the assistance ol' the interpreter, Mr. Ah Kew. Bankrupt had kept his principal account books in Chinese, and the meeting eventually agreed to have an investigation of these conducted. Mr. Watters said he had been informed that it would take three weeks to supply the result of the examination in English, but it was proposed to have the inquiry cover a year only. There was a deficiency of .£513 2s 4d in the finances of the bankrupt. The liabilities, unsecured, reached £727 3s 4d, and the assets, including £S6 Gs 7d cash in hand, were £214 Is. A shop in Newmarket was opened by the bankrupt in March, 1925, with a capital of about £9O, and later, he subleased a shop and fittings at Three Lamps. As lie began business practically in winter, trade was slack and the business did not pay its way. He anticipated that the summer takings would more than compensate for the winter deficit. In the summer he lost heavily when lie had to throw stocks of strawberries out. Luring Christmas, 1928, another Chinese fruiterer began business at Newmarket, and an Indian opened a few doors away several months later. Sometimes, lie had to sell fruit below cost owing to the competition. Later, his trade was affected when a tram stop was shifted away from his shop and the takings, both in winter and in summer, declined, lie was paying debts by instalments, and the Three Lamps shop was showing a loss of £3 to £4 a week. Late last year he began to supply country customers, and this made necessary the purchase of large quantities of goods at auction. Just after New Year he was forced by a creditor to pay all the money in his possession, and so had to file. Lor the firm listed as the principal creditor, it was stated that Ah Lun’s account came to £535 within 15 days, and the firm had three dishonoured cheques of the bankrupt. The assignee mentioned that he had examined a partner, who had placed £750 in the business and had lost money. Mr. Watters advised Ah Lun to have the books done in English, otherwise the bankrupt would have to convince the court that he was not able to set out his books completely in English. This would be difficult, because the debtor had prepared a statement properly in English. Replying to questions, Ah Lun said his takings had not been above the ordinary, and he had not gambled. He denied that he had told a firm that he was owed £4OO by a Whangarei firm, and other amounts elsewhere. The assigne adjourned the meeting, and a report of the inquiry will be presented to creditors at a later meeting.