POISONING BLAMED

Sun (Auckland), Volume IV, Issue 946, 12 April 1930, Page 1

POISONING BLAMED

BANKRUPT CHEMIST’S MISFORTUNE CASE REFERRED TO CROWN • Believing the bankrupt to have incurred debts without reasonable proepect of payment, the creditors of Augustus Samuel Hodgson, a young chemist, of Mount Albert, decided yesterday afternoon to refer the debtor’s affairs to the Crown Solicitor, Hodgson blamed the effefcts of a case of poisoning for ruining his business. Hq had been supplied by a wholesale firm with a poison instead of a harmless drug, he said, and the poison was used as an ingredient in preparing a number of prescriptions. A child became dangerously ill and others were affected. A writ for damages was issued against tho firm, but the action was settled out of court for £SOO. Out of this, he received £2OO. A sum of £4O was paid to his solicitor to repay a loan, £36 was used in buying Christmas stock, and costs and disbursements took tho balance. A meeting of the creditors of Mrs. Eva Blundell Culshaw Hodgson, mother of the debtor, was also called, but the official assignee, Mr. A. W. Watters, said this would lapse because there was not a quorum of proved creditors. Bankrupt reported assets to a total of £4Ol 13s, and amounts due to unsecured creditors, incomplete, £361 15s 3d. He began business in July-, 1927, and, as he was a minor, the shop was leased in his mother’s name. His mother lent him about £3OO capital; the fittings cost about £l5O and the stock £4OO. To begin 'with, business was good and the weekly takings were £2B to £3O. After six months his mother was not able to meet a promissory note for the stock. She raised a third mortgage on a house and a collateral bill of sale over the stock was given. OVER-PURCHASED Considering his prospects to be bright, bankrupt over-purchased. Depression took place .ami creditors exerted pressure. His mother raised more finance and, beside such commitments, he was paying £3 a "week in rei;t and £5 JOs to a qualified chemist who had been employed. Then came the severe effect of tile poisoning incident- While action against the firm was pending the. business declined. Almost all the debts were contracted -before the poisoning,. Hodgson pointed out. N ; Until lie filed, as a bankrupt- he had attempted to reach..a compromise with his creditors, who were pressing heavily- - - v' - . .. ' Under . examination, Hodgson said that, discounting the costs of bis personal labour, the business had shown a slight profit until the poisoning. One creditor maintained that Mrs. Hodgson was actually the owner of the concern, but the assignee did not agree with this suggestion. Mrs. Hodgson was- in the positron of a guarantor. Hodgson said he did not receive more Iran £270 of the £ 500 damages. A declared that it was absurd for £2OO or so to be taken in costs in an action settled out of court. The meeting decided to accept an offer made for the purchase of the business.. .