INGLEWOOD INSOLVENCY

Taranaki Daily News, Volume LII, Issue 200, 28 September 1909, Page 4

INGLEWOOD INSOLVENCY

AX' UNSATISFACTORY STATEMENT. FAILURE OK A CORDIAL MANUFACTURER.

A meeting of creditors in the estate of Herbert 11. Curtis, cordial manufacturer. of Inglcwood, was held in the olliee of Mr, J. S. S. Medley, Deputy Oflicial Assignee, yesterday afternoon. Mr. J. Quiliiam represented the petitioning creditors, Messrs Sharland and Co.. of Auckland. Other creditors present were Mrs. Sutherland, Messrs 11. B. Cur tis, T. Nielmlls (NicliolU and Son), F. -Spunlle {Kpnrdle Bros, and Allen), A. C. Nicholls. S. Huston, and A. Lile. Mr. Spurdle held proxies for Messrs G. Gudgeon, Rolston, Sutherland Bros., A. B. tlamlin and Cro.ssman and Son; and Mr. Lile for Messrs Humphreys, Martin, Whitehead, Vickers and Stevens, and Jos. Drake. Mr. A. H. Johnstone appeared for the bankrupt and Mr. T. S. Weston appeared witli the D.O.A. The D.O.A. said that so far the bankruptcy had been very unsatisfactory. The bankrupt had put in a statement showing liabilities considerable ( £103) and assets practically nil. The bankrurt asserted that iie had been in business as

a cordial manufacturer. but 'tlml the business did not really belong to him. "The bankrupt contracts debts to this amount and then comes before yon with assets consisting of book debts estimated to produce £2 17s. and a bicycle valued at i'2. I have never had such an unsatisfactory statement put before inc n all my experience." The case seemed, he said, to want a bit of enquiry. The unsecured creditors' accounts amounted to £193 Is lid. The assets were as iust stated, so that the liabilities exceeded the estimated assets of £4 17e by £IBB 4s lid. The largest creditor appeared to be H. B. Curtis, the bankrupt's father, who had "proved" for £sl 4s, but now submitted an amended claim for £OB. The next largest creditors were Sharland and Co., the petitioning creditors. Mr. Medley said that as soon as the bankruptcy was declared he personally visited Inglewood and saw the bankrupt. The latter stated that the business did not belong to him at all. Then the father appeared on the seen?, and said the business was his, and it always had been his since he bought it from Stewart. ITe had only lent it to his son. The hooks in the estate were very unsatisfactory; in fact, he could almost say there were no books. There was one attempt at book-keeping, but it would be very difficult to make anything out of that. Tin* bankrupt was open to prosecution on a charge of not keeping proper books. The bankrupt's own statement was to the effect that he started in busings as a cordial manufacturer on June Ist, 11)08. He had had no business experience in this 0,. any other line. From the start, owinir to his ignorance of business methods, he lost money. He was tinfor. tunate in striking an unfavorable season, and afterward#? in having opposition in the town. But in the past four months his position had been improving, and he would have done better had Sharland and Co. not placed him in this nnforhi-

nate position. Examined on oath by the D.0.A.. the bankrupt said that he had no capital when he went into thy business. TTo had previously bee?i on a sheep run His father bought the business complete, as a going concern. Bankrupt paid nothing for it, paid no rent, but was to have all the profits for himself. He was to work the business for himself, but it didn't belong to him. The business was carried on in hi 3 fathei's name, Tfis creditors all knew that it was his father's business, and that banknipt was only running it. He had no banking account. He kept a record of what he had paid away. He couldn't say how much he made in a week, for he had never counted it up. The average takings would probably be about £4 a week. The D.0.A.: flow did you manage, supposing you had a bill fo r €ll or£i2? Did you save up two or throe weeks' and pay. or not pay at all. perhaps? Bankrupt: 1 used to have Bergin's cheque, and pay out of my pocket. to>. lie added that none of his creditors pressed him. The D.0.A.: T thought T noticed that one or two had summonsed you? Bankrupt: Only Airs. Sutherland. TTe continued: ITo had bought chemicals ami £32 worth of bottles from Sharland's. He had a lot of these bottles vet. but they were mixed up amongst other bottles, except for one case out in the shed. He supposed that the bottle would be his if lie paid for them. There were no more bottles there now than when he started. None of the chemicals now on the premises had con* from Sharland'-. His father's claim far £OB was a correct claim.

Tht' D.O.A. hereupon intimated that hp would defer further examination uni.il another day, seeing that it would take a very considerable time. The creditor* could ask their questions now. Mr. (Juillinm vxamined the bankrupt. In reply to questions the hitter said he didn't know exactly when 'hi* father bought the business." but it was just hefore he (bankrupt) started in it. He didn't know what was paid for it. The business had always been carried on in his father's name. As owner of the sheep-run he had been able to keep himself. The money paid him by his father in 100.) had bven wages for working at homo. About that time he took two weeks' holiday to go on tour with n, hockey team. Hi* father debited him with two weeks' wages at ,C 1 10s. It was included in his father's claim. Mr. Quilliam: Then your father wants the creditors to pay A' 3 in respect of your holiday? Did you know about it? Bankrupt: Yes.

Mr. Quilliam: Js it correct? Bankrupt: Yes. Mr. Quilliam: Do you tllink it fair? Bankrupt: No. it's not fair to ask the

creditors to pay that. Mr. Johnstone: They're not being ask ed to pay it.

Mr. Quilliam (to bankrupt): Your father has proved against the estate, and wants to draw out of the estate £3 because you went for a holiday. Is that it?

Mr. Johnstone said it wasn't unfair to put it that way, Mr. Quilliam saw nothing unfair in his statement of the case. If the estate paid 20s in th<> £ the creditors would have to pay this money.

The D.O.A. said that bankrupt must answer the question.

Ttanknipl: It is not a fair charge, and it was never intended that way.

Further questioned, the bankrupt said the statement of his debt of £6B to his father was quite correct. Ife had no idea, though, wltfn the account started, ffe knew his fathe r had often paid his bills for liim.

Mr. Quilliam: Your father's claim shows that you were indebted to him to the amount of C2lO when yon took over the business. J s that correct? Xo answer. Mr. Quilliam: Come, you ought to re member. It's not a small item. Bankrupt said he didn't owe his father .C2lO then. When he took the business from Stewart he owed him COS. and a little more besides. Tip didn't owe him any moif. or any less now. Tn the lint answer, bankrupt said the debt grew during the course of his business. He had put in n sworn stniement lhal he owed his father .CM. That was only a rough account. Tie had seen his fallr" s Hfconnt for COS. The item crcditii.g linn with ,C 3 for C'avanagh's keep was explained. His father was paying bankrupt wages, and deducted 8s a week fro-n his wage of Jills for C'avanagh's keep. Tie worked for his father for 30s a week for some time. He didn't know how lon/. He neve r worried about it. Mr. Quilliam: You lob the creditors do the worrying, ell? Mr. Quilliam showed that on the account his wages were shown at 25s a week for a year, £OS. Ho didn't know why the ciphering wae altered to 30s a week, and £7B. It was quite plain that the statement had been altered. The business was run ilfhis own name 'or a time, but when he got into straits his j lather took it over. He took evervthing Mr. Quilliam: No, not even-thing. He didn't take the liabilities. He left vj.i those. It was a very fair division otherwise.

Bankrupt .said that when liis father took over the business the arrangement was that he should run the business, and that everything over the current expenses was to In* paid over to the creditors. His father was to keep the books.

and "carry on the business for nic, but lie had nothing to do with it." Dur:ig the past four months hi 4 had kept books, or. rather, his father had, for himself. Witness bouglit tlic chemicals and bottles from Sharland's, The bottles were still there, or a considerable number of Uiem. They were "out all over the country." They belonged to him. lie had not given them to his father, nor tiuld ihciu to him. He didn't include tile bottles in his assets, because they had been paid for. To Hie D.0.A.: The bottles don't belong to me. tfhuy are my father's. I had to replace-what T had at the start. .1 broke all my father's, so I gave him these.

Mr, Quiliiam: The position is that you were heavily indebted, and your father swooped down and collared the lot. Bankrupt: lie didn't collar the lot. He had bought the machinery, and it wis his own. I was only working it. The signature 'il. Curtis" on the order-book was meant for his signature, at first. Later it was for his father. His name was H. Curtis, 100. The signboard at the place of business was "11. B. Curtis." That was erected only a few months ago, when his father took charge. He had received perhaps ,t!10 from his father in the past four months. The money hadn't been paid to him personally, but he thought it had been paid to his creditors. The .statement in the books that Ui-.* takings were .C 23 Us Od in the fir>t month was correct. lie kept no cashbook. lie marked "settled" against tile book accounts when tliev were paid, but he kept 110 record of how the money was disbursed. The business had been his father's sill through. No, it was not the business, but the plant, that was his father's. The business belonged to bankrupt.

Mr. Quiliiam: You sold the stuff, and got money for it. Whose was the money ?—Mine.

You're quite clear upon that? —Yos. The bankrupt further stated that he could not make up a statement of receipts and expenditure from June, 1008. He could not show what cash "he had received since the business was taken over from Stewart. Later on, he gaii he would be able to make the statement from his order-books. 'Mr. Huston considered that £4 a week was too low an average for the receipts from the business, 111 anstver to Mr. Lile, he said it was not true that he had said in reply to a would-be purchaser that "the business wae too d good to sell." lie had said that it was a good business, and that he did not want to sell. Mr. Lile remarked that he knew something about leinonade-making, and Curtis must have made a lot of stuff out o{ the £l6 north of sugar shown in NichoJU' account. There was a big profit m the trade.

Bankrupt: There's not much profit in it.

Mr. Liler "Don't tell me that. I'm toooldabird for that." He added that there was good profit at Is a dozen bottles, and bankrupt had got Is 6d. Jn answer to questions, bankrupt stai* ci' that the bottles purchased by him from Mr. Lile were now in thi/ stock held by his father. lie got no consideration for passing over the business to his father. The latter merely said tliat he would take the plant back and pay off what debts hp could out of the profits of the business.

The 110.A.: T see you are wearing a fine gold chain. Have you a gold watch, too? Lot us see It. Oh, I see it'? a silver watch. You have too gold riii"*, too, and a gold tie-pin. Did you have all those when you went in the business?

Bankrupt questioned the right of the 0.0.A. to question him concerning his personal effects, but eventually said they had been given to him as presents whilst he was in business. He had not included the m in the list of assets. He had not made any compromise with any of his creditors, but had told several that he would pay them in full whatever tho '■'OMilt of these proceedings. He didn't want to beat any man for his money. Mr. Quilliam suggested that a resolution he passed calling on the bankrupt to make a statement of his recepUs and expenditure. It seemed to him that a public examination would be necessary. Mr. .lohnstonc undertook to see that all the assets were delivered up to the D.o.A. Tt was quite dear, he said, that this man should never "have been in busiMr. spurdle suggested that as the hour was setting late, and Inglewood creditors had lo catch the train, the meeting should be adjourned, and t'«e adjourned meeting hejd at Inglewood, where most of the creditors were. Upon the D.O.A. suggesting that there might be insufficient in the estate to pay the expenses, the Inglewood creditors would guarantee to provide a room for the meetinir.

Mr. Quilliam said the creditors shou'd not l"se sijrht of the possible prosecution of the bankrupt for not keeping proper hook>. I| would be a positive scandal :t" a caM> like thi«s were allowed to pass. Mr. Johnstone said that he could show on re-examination that this was not the fraudulent thing it looked. A numn»r of the statements made could be'easily explained. Mr. Quilliam: The facts that this man poes into business, comes out with no thiiinr. while his father gets all the assets. wj|| take a good deal of clearing

Mr. Medley said that if there were going to he a public examination ultimately. it was waste of time to have an adjourned meeting. But the bankrupt could hardly come to a meeting showing all those liabilities and no assets and expect to go scot free. Mr. Quilliam said he was quite sure that his clients would insist on a piblic examination.

Mosm s Xicl*plls and Kpurdlc thought it only fair to give bankrupt's counsel a chance lo explain, as he said lie cou'd do.

The D.O.A. remarked that he was not satisfied with the father's claim. lie might throw it out, when Mr. Curtis, senr., would have to apply to the S.i prenic Court to have it re-instatcd.

"Eventually it was decided to adjourn to Ingleivood. on a date to be fixed by the Deputy Ollicial Assignee.