IN BANKRUPTCY

Taranaki Daily News, Volume LIV, Issue 36, 5 August 1911, Page 3

IN BANKRUPTCY

COUNTRY STOREKKKPER FAILS. A meeting of creditors ill the estate of • George Foster, of Egmont Village, general storekeeper, wus held yesterday afternoon at the office of the D.0.A., Mr. J. S. S. Medley. The creditors present were: Messrs. Day (local manager for Messrs. L. D. Nathan and Co.), W. P. Nicoll (W. Rowe), Skelton (N.Z. Express Company), W. C. Nixon and Waters. The bankrupt was present with his solieitor. Mr. J. E. Wilson. The statement of the assets and liabilities showed unsecured creditors as follow: —Spurdlo Bros, and Allen, £1 13s 6d; 11. Weston, £10; N.Z. Express Co., £5 4s; Sush and Door Co., £1 15s fid; Nixon and Nixon, C 3; Nicliolls and Son (fnglcwood), £2 19s 9d; Hamerton and Son, £l'18s; T. Holston, £1 ss; Pike and Waters. £10; L D. Nathan and Co., £332 15s (Id; Gamlin and Luke (Inglewood), £6; total, £376 lis 3d. Further accounts of £1 5s 4d, due to W. Rowe, were put in, and it transpired that £lO was due on a Drayton computing scale. The only secured creditor was the Provident Building Society,' £194..

Assets were estimated as follow: Property. £400; stock, £88; horse, trap and shop fittings, £57 (but there was a payment of £lO due on the computing scales, which were included; in the item last named); book debts (£303), estimated to produce £160; cash in hand, £l4 17s fid; and about £ll in the bank; furniture, £lB.

The bankrupts statement was read as follows: "I started in business with about £l5O, buying the business as a going concern, giving £SO down, the balance on terms. The buildings were on a section for which no title could be found, the value of the land being £5 per quarter-acre. The land consisted of ten quarter-acre sections, more or less. I I got the freehold title after some trouble, the business then being very good. I married two years previous to going into business. In 1903 the premises were burned down, all I possessed at that time being burned. Insurance covered the stocks, buildings and furniture, but I lost considerably on my book debts, and took up creamery work agaiA for twelve months. Some time in 1004 I I again went into business. I had saved some money during my twelve months' work (about £SO), and had about ,C2s' after paying for everything in regard to losses by fire. The Provident Building Society of New Plymouth advanced £2OO on the property, the stock being purchased on bills of three months. The family being small, .and the business "being done over the counter, I went to work as engine-driver for two years, earning about £(i per month, which was 1 paid into the business. The business in- ( creased, and so did the family, and I gave up the outside work and devoted the whole of my time to the store. About nine nionthf; ago I found it rather

hard to meet obligations, but always met them. Early this year another grocery started in the Village, and to keep the business together I had to allow lo'ngeT credit to my customers. I then had a fresh mortgage drawn up with the Vrovi-

dent Building Society, and £l3O 10s Sd was paid into my account with the hank I on May I!) ( ,f this year. Even then Idid not improve my position, and wuld not reduce inv book debts or raise any more money on the property. I decided to file a petition in bankruptcy, on ,Saturday, 3ulv 22. I have a family of live children, the eldest being eleven years old and so far have no'prospects." ! The District Official Assignee said he lmu visited Egmont Village, and wis satI isfied that the assets were fairly/ estimated. The book debts contained' several large accounts, five of the doubtful or bad ones amounting to over £IOO. Some of the amounts scheduled had since been paid, lie had arranged with Mr. Foster to carry on the business until the date of this meeting, and it was for the creditors to say now how they proposed to deal with the estate. It seemed to him a case where the business should he Ciwicd on until a buyer could be found for it as a going concern, Ihe bankrupt \ vfts placed on oath, and 1" answer to Mr. Day said he had no piospects of employment, but was willing to remain and collect the debts and do the best for his creditors in keeping the business together, if that were de-< sired.

Mr. Day: \\t are the largest creditors, and 1 don't think our people would like you to be there in charge of the business.

Mr. Medley said that the creditors f should decide first what to do with the business. He thought it would be better to carry it on. Mr. Wilson said that in May, 1907 Mrs. Foster put £139 16s (Id into the business. She had not decided whether to prove for that amount in the estate or not, but it was as well that the creditors should know of it. I Bankrupt explained that his wife,! when she came into this money, merely handed him the cheque, and lie put it into the business. There was no mention of interest or partnership. His wife was not. anxious to have anything out of the business, preferring to leave the money to satisfy the creditors, unlelß inSZS wa? a surplus in which she might share, After some further questions it was decided to leave 111 the hands of the D.O.A. and Mr. Day the matter of selling the 'business as soon as possible, and to the best advantage, Mr. Day remarking that the bankrupt was the right man to manage in the meantime.

Two of the creditors present expressed tu °i_ r sympathy with the bankrupt in his iU 'd hoped he would be more iftfceefls/" 1 in some future venture.