IN BANKRUPTCY

Taranaki Daily News, Volume LIII, Issue 289, 26 April 1911, Page 7

IN BANKRUPTCY

wouu a.iu ;:emba. | A meeting of creditors in the bankrupt estate of James H. Wood and Michael Zemba, bootmakers, was held at the offiee of the D.0.A., New Plymouth, yesterday afternoon. Mr, J. S. S. Medley, D.0.A., presided, and there were were present: Messrs J. D. Sole (manager Arch. Clark and Sons), Geo. Ramson (Manager Sargood, Son and Ewen), Hal Goodacre (Egmont Boot Co.), W. C. Weston and Burke. Mr. J. C. Nicholson represented Messrs George and George, Hoare and Co. and W. 11. Nash (all of Wellington), and Mr. A. L. Humphries, represented Messrs J. Hunter and Sons, Sydney.

A detailed list of creditors was not available, but the statement of assets and liabilities was as follows:—Liabilities: Unsecured creditors, £1824 12s sd, with estimated liabilities £25—£1849 12s fld. Assets: Stock in trade at New Plymouth, £850; book debts, £122 15s 84 (estimated to preduce £6O 17s 7d); claim on Norwich Union Fire Insurance Co., £436 7s 6d; shop fittings, £39 3s fid; cash in hand, £l3 3s -3d; total, £1407 13s 10(1. Deficiency, £441 18s 7d. Bankrupts' statement showed that for some years prior to starting in business they had both been working at their trade as bootmakers. About October, 1908, they decided to start business, together in New Plymouth. Thev had very little capital,- only about £22 each, and their tools. Their takings were good, and, as far as they could judge, they were doing well, so in July, 1909, they took larger premises, and increased their stock. They had continually to borrow money and work on bills to keep the business going. Later on, when business became quiet, they decided to open temporary premises in Hawera, and endeavor to get rid of some of their surplus stock. They opened ia Hawera in May and again in October. The Hawera premises were stocked with goods taken from the New Plymouth shop, and were mostly destroyed by fire, which occurred on December 10 last. They had about £9BO to £IOOO worth of stock in the premises in Hawera, which was covered by a fire policy in the Norwich Union for £SOO, but they had not yet been able to get a settlement with {he company. Creditors had been continually pressing them since the fire, and one creditor recently obtained an attachment order on the insurance moneys for £4O and costs £9 odd. They, in conjunction with some of their largest creditors, had made every endeavor to arrange a composition with all the creditors, but as some of the creditors would not agree to that and were taking further action, they were forced to file. During the period they were in business they both worked hard and made every endeavor to make the business a success. They attributed their present position primarily to the fire at Hawera, and the subsequent action of the Insurance Company with regard to a settlement. The only amounts drawn by them out of the business had bien £2 a week as wages, and any expenses incurred in travelling. Messrs Govett and Quilliam, solicitors, wrote in connection with the claim against the, Norwich Union Insurance Co. (hat they had been acting for certain of Hie creditors in endeavoring to get a settlement. The full claim was for£soo, and against this an attachment had'been obtained for £4O and £9 costs. The company, however, offered £334 7s 2d in full settlement of the claim, which amount they said had been agreed to"by arbitration. It was contended, on behalf of the bankrupts, that the arbitration only referred to the value of the salvage. The D.O.A. said that if bankrupts had stuck to their original idea of cobbling and carrying a small stock they would have been in a better position. They, however, incurred liabilities which their turnover proved insufficient to pay. In regard to the insurance, he pointed out the position as conveyed in Messrs Govett and Quilliam's letter. He also stated that an attepmt had been made at composition, but some of the creditors would not agree, and bankrupts were forced to file. The attempt at composition was unfortunate, as it only meant more expense. Bankrupts were then sworn, and, in reply to Mr. Nicholson, stated that nine months ago George and Doughty sent a man to interview them. This man looked through their books. They told him the amount of stock in hand, and he told them they were quite solvent. They did not tell George and Doughty's representative at that time that* they had £BOO surplus asests over liabilities. Discussion took place on the question of the insurance policy, and whether it j would be advisable to move to set aside the previous arbitration proceedings, which, it was shown, would niean more ' legal expense and probably leave very little for the creditors. It was unanimously resolved, on the motion of Mr. Ramson, seconded by Mr. Goodacre. that the D.O.A. push the claim against the Insurance Company to the utmost, and that Messrs Govett and Quilliam be appointed to act in the matter.

It was resolved to call for tenders for the stock, and to wind up the estate as speedily as possible. The question of tools bomjr handed back to bankrupts was left in the hands of the Assignee. Both bankrupts denied that they had any private estate.

Mr. Nicholson stated that the Wellington creditors, whom he represented, and whose claims amounted to £322, would submit a motion requiring the books for the last six months to be scrutinised by a public accountant. As, however, he held no proxy, he could not move in the matter.

The D.O.A. remarked that the hooks had been gone through by Mr. H. Baily, and that he himself would also check them carefully, and that Mr. Nicholson, if he desired, could move at « future meeting in the direction indicated.

The mcctini thett adioar.ncd till Monday, May JS. "'