Insolvent Drapers

Taranaki Daily News, Volume LVI, Issue 218, 14 March 1914, Page 5

Insolvent Drapers

MORKYsAND MOORE. OF XBW TLYMOUW, ( FIRST MKETINU OF CREDITORS. There was ui> attendance of eleven creditor* or their representatives at the meeting in the office of tlic Deputy-' ** Uli'.ciai Assignee (Air J. S S. Medley) yesterday, inutile bankrupt-, estate of Morey and Moore, of New Plymouth, drapers. Mr JL.Bewley represented the hank- * rupts, and Messrs. Ci. Urey and D. Hutchen appeared for creditors not proseat. . BANKRUPTS' t STATEMENT, • The written statement of baakraats was as follows:—We commenced kiwi- ■ ness in our present premises iu King' Street in 1901, as cash drapers, aractically withou(j capital. This meaat ft very ha'/.ardous' undertaking, but byiard work and strict attention to busiaeas we managed to keep the concern goiag. Of course, we had to do a lot of country canvassing, and in the small towas, lor - business to enable ue to meet our engagements as they fell due, and thi» entailed heavy expenses. This work we were doing although, unfortunately, suff feriaf from very bad health, but it was ambition and dogged determination to make a success of the business that carried us through. About two years a»o we found it much harder to keen the grip of the trade, owing to much keeaer opposition, and doing, as wt, did, practically a casht business. On top of this, our health was not so good as it might have been, due, of course, to the strenuous time we had gone through. Then the novelty of being in a back street began to wane, ami another big''disadvantage was losing nearly all -we eatek ': trade ebtaina.be in the main street. No- • ticing the conditions altering we decided to cope with the difficulty by opening a branch in Hawcra, which,.however, did not "rove as good a proposition a* we expected. We made a loss there «f- -- £193 10s 9d for the sixteen months' trading. In addition to this loss, we fond that our returns in New Plymouth had gone back £2OOO in twelve months. These two circumstances will a good Dortion of our deficiency. Tkea came the strike and the shortness of ■ money, wbich dislocated trade and seat a lot of our cash customers to the credit stores. Then the batik stopped day tit- . 'conimddation." Added to Mils, tw*» lad seasons in the Inst twelve months nad resulted in our obligations to the merchants becoming congested, which meant frequent renewals of our paper, and eon"sequentlyextra i expenditure. Things did not seem to irrmrove, and we were compelled to call a meeting of our creditors. The unsecured creditors were:—A. Clark and- Sons (Auckland), £387 15s 3d; Ross and Qlendining (Wellington), £317 2s lid; Sargood, Son and Ewen (Auckland), £313 14s 2d; Butterwerth Bros. (Dunedin), £226 14s lOd; Bing, Harris and Co. (Wellington). £219 18s sd: Get. Doughty and Co. (Wellington), 1209 2» ■ 3d; Macky, Logan, and Co. (Auckland), £2Ol 15s 8d; Abbot, Oram and Co. (Well- ' ington), £l4l 3a 7d: Fore Street Warehouse (London"), £l2O 5s 8d; Abkotj. Foote and Sons (Auckland) £2B (Is 3d; 'Copestake, Cramuton, and Co. (London), £2O 17s 2d; James Fleming (Christehurch), £ls 9s fid: Wellington Woollen Company, £5-4b fid- McDonald- and: (Wellington), £2 153 3d; McEldow.iey and Co. (Wellington), £2 8s; O. W. «rson (Auckland), £1 8s 6d: E, Whittle (New Plymouth), £100; A. Reakes (Hew •, Plymouth), £4O; Mrs G. Tisch (New Plymouth), £2l, for rent; Dailv News (New * PlymouthJ, £2O; Gas Company (Nfw Plymouth), £1 3s 9d; West and Dow (New Plymoutn), £4 ss;-Wait(W,l«n--ing Mail, £2 sb; T. Averv (New*?!*-, mouth), £2 12s fid; Kawhia Settler, » (Is; Hallenstein Bros. (New Plymowtk), ' 13s 4d; McLeod and Slnde (New Ply- ■" month), £3 7s 6d: Ilectric Light D* ( portment (New Plymouth), Ms Mdj rates, £ll 7s 8d; S. B. White and Sons (New Plymouth), £1 14s sd; Shuttle- , worth, (New Plymouth), £1 15s 2d;Parkinson .and Co. (Hawerai. £3O 17s 'Mi / Herald and" Budget (New Plvmouth}, C lO 5s 2ds Hawcra Gas Company, 3s; fl. .T. Smith (New Plymouth), £72 »s; total, £2572 48. Secured creditors-«Tatnnaki:Land and Building Society (New PlymottthJ.,fi&» i ("estimated value .of security MOO); j Mortgage L. and A. Company, £BS; A. | *. Watkina (New rivmoutto.-fill [f& 8s); Stanley J. Smith (New Plvmoath), , £l5O 9s (£B9 4s); total, £43(5 flu, . The personal statement of the kaak- * riipt, FT "Moore, showed a surplus of lto. and that of ,T. O. Morey a deficiency pf i ; M 18s'2d. '" -

TV statement of the firm's finances j 011 the bankrupts' figures jvere as- WTowSr-- creditors,. £43(4"Ps; . t less estimated value of securities £742 • \ 12s. leaving a surplus of securities £BOB * 3s. Against these liabilftie gtliei'S Were: f i Stock £BBB 13s lid. fitting.; etc., £75 V Ifls. hook debts £2l 1/6 lid,"surplus frojp securities £3OB 3s. Thin left' *• | defieiepcy of £1270 !)s 2d. > ' ■CURIOUS CREDITORS. 't. ' The t).P.A., in a brief comment, stat- ■ ? ed that the business had once showed u turnover of £ISOO per annum, Jfbich ' should.'show of about "21?jper cent. This profit, however, sooaiell! i away, and hardly any Btock was Bold. ! He had, since the firm was adjudicated , ! bankrupt, put in a majt to' run the " - ■business. On Saturday the taking Svcre over £l6, on Monday £6, and ~ they had a-veraged £4 per day since. ' i. Mr. Scott: With only one man and; % r an assistant. . f Mr. W. C. Weston: And with ao ad-; ; vertising!. Mr. J. D. Sole:: And yet on.the pre- ' vious Saturday, under the firm's wan- j agement, the takings were only £7! j Mr. Pike: Was there any redaction i . ia prUest The D.O.A: No. Several creditors then expressed Hur- / prise at the fact: that the businesa' seemed to show tiller takings tkaa ' when the bankrupts were running it. The bankrupts stated that tqkiaga always fluctuated. Mr. George Ramson: You admit that you were making 25 per cent two yearn ago, and that you have since lost at the rate of £750 per annum. Yoa Bust , have known where all that money.'weat. * f Mr. Weston remarked that the valae of the land was over-stated. Mr. Weston asked when' stock wa» \ last taken prior to the recent stscktaking. The bankrupt Moore said that it was , on September 7, 1012, when there was »'* ' deficit of £lB3. / Mr. Bansom: And yet you told n# f tliat you had a surplus! j j Bankrupt,: I think my stoekinktl|g| ' was correct, but I was too "unwell t0 . ' check it over. ■ • . ■ Mr. Rait«om: Why did vou'tiot <a| a halt then J ' Mr. Weston stated that.'there been no attempt; by the bankrupts to ascertain their true position. The bankrupt Moore Said He. had. frsa away for 12 months. . j

Mr. Scott: Why did you tell me in November last that your assets and liabilities were equal? Bankrupt: I thought they were. Mr. Scott: Five months ago you must have known it was untrue. You said then that your firm's liabilities were about £I4OO or £ISOO. Now you have jumped them up to £2BOO. Why is that? Bankrupt: I was just guessing when I told you that. Mr. Scott: Guessing is not business. Hiuikrupt: I was not in charge of tin- New Plymputh business. Mr. Morey was. ' Mr. Sole: At the same time, Morey gave me particulars of stock which showed no margin to work on, as I told him. Mr. Ramson remarked that the firm lost £750 per annum for two years, yet five months ago they said they thought they were solvent.

CONCERNING A CHEQUE. Mr. G. Grey said he would like 10 know the origin of a cheque for £43 drawn by Morey and Moore, which he produced. The bankrupt,Mnrev said he had intended to send 'it' to Wanganui, but instead had it discounted by Mr. W. Williams, of New Plymouth, the hotelkeeper. He. then'paid Mr. Williams commission to'bo'ld back the cheque until he was ready to meet it. Mr. Grey:. So >vl)en you drew the cheque on Novernber 17, 1913?, you were' not in a position (u meet it? Bankrupt: No, it was not that. I could have pajd.it,, but 1 wanted ro bring the money into tile business. . Mr. Grey: Were you aware of this transaction,. Mr. Moore! Mr. Moore: I signed a cheque which Mr. Morey said fie wanted to pay a loan in Wanganui.- He said ■ that the negotiations had fallen through. 1 thought he,, had destroyed the cheque Mr. Grey asked the. bankrupt Morey what he did with the cash and where iie entered it. Bankrupt: On the ■ date in question I banked .£l3 and £11), and on the Tuesday following,,- £G. We did not always "bank all the money in ham!'. Mr. Weston: When did you bank last? .....'

Bankrupt: On .tfovetaber 18 we banked; £29, and on December 8, £l3. The D.O.A:' The-. £,13. was drawn out on the same day. , , • . ; Mr.,Gxey,: ; , The. two sums together only just cover the amount, and they were paid in oil different.- dates. , Bankrupt: ,1 .might'have banked part of it,,and paid the rest' to creditors. I am not in-a position, to tell you aB the details, but you. will find my statement correct. .••„ • Mr. Scott:; Dul.yqir pay it into your own'account? MUDDLED. AFFAIRS.

Bankrupt: I haven't got any private account. Later on'"he'-said,that ho had intended to send the cheque to Wimganui, but instead got it discounted. Continuing, he saidl "For the 'past 15 or 18 months I have been unfortunate. I have been over-indulging,'and though I have struggled hard, my affairs have been muddled. .■■•-.'.

Mr. Sole:' What' Baluriev were the bankrupts drawing? ■'!'>■ " ■ The bankrupt M6ore': £3 per week each, with an occasional additional draw when we wanted 1 it.* "' ■■ ■■

The bankrupt Morey: I overdrew my account. T don't want to hide it.

Mr. Sole: On October Ist, 1912, veil drew £lO3. '■■'■■ i :

Bankrupt: So.'- Thdse I.O.Ui's in the cash-box were spread 'over a period. Mr. Sole: .Then ifcheboofc; arc not reliable? '

Bankrupt Moore:; Yea.- The 1.0.U.'s represent cash uhtilthey are redeemed. From''time to time" tlie> wore redeemed or charged' tfr his iicc'bunt. Mr. Sole: What are'the'debts to Mr. Whittle of £100: anil Mr. Keakes of £4O? • . ■ .. i

Hankrup.t: They are for,money lent. I don't know wheat. - , Tlu>_ bankrupt-Morey:' The debt ro Mr. Whittle was contracted l.f months ago. and to Mr. Reakes 12 months ago. The money went inWthe business. . Mr. Sole: - Wncn von found you were going back, did you take any steps to cut down expenses? Bankrupt: No. Mr.'Moore was away, and I have told yon of my.condition. The bankrupt Moore said lie did not know his partner was in, the state he described. '

A creditor: I' don't think anyone did. He always' seemed a keen buyer: Bankrupt: My family can testify to ft. "; . * A creditor: Surely it must have been noticed if it was so? ' Bankrupt: Well, then, I don't want the matter to-enter 1 Into; my position at all. - ; Mr. Ramson-:- I hope the.'bankrupt is not going to- screen himself in tnat war. ' Bankrupt: T withdraw! my statement. Am I not giving you all the' information I can ? ■ ', . A creditor; If he was unfit to do business, it is a reflection' on all of lis that we did not see it. . Mr. Weston:. Mr. Morov put me off very cleverly some'months ago. SOME PERTINENT QUESTIONS. Mr. Ramson: WelU if that was not the fault,"Where did the loss come in? The bankrupt Moore:: If you figure the turnover at ',€3070. vou miist take expenses at< £1370. Mr. Morey held three "2s ll'il rooms" in olio year, .so that meant a low profit to clear. Mr. Role: That is 31% per cent expenses. A turnover of £4OOO at a cost of £I2OO. ft is hardly possible. Questioned as to the Hawera branen, Moore said, that it cost £1! por week. At one time the turnover wa< £4O per week.- He was going "to -explain that he had' opened various brandies, when his partner interrupted him. The bankrupt Morey: It is'- a very painful question, Mr.'Moore, but von went from Hawera to Kawliia, Rah'otu and Waverley, making various trips in two years, and never showing a profit on any of them. Ts not that so? His partner stated that he had a loss of C2O at Kawliia. but a profit at other places. He travelled overland with an assistant, and sent his stuff

by boat. Conditions had been against him. Mr. Pike: You deliberately made these trips at a loss. RANKINU—AND OTHER MATTERS. After some further discussion, in which the subject J the strike and Christmas trade w.i« prominent, a question was asked as to tho December banking. Morey said that £l3 was paid on December 8. Mr. Sole: And drawn out the same day. Bankrupt: Mr. Moore paid £22 into the Bank on the same date. Creditors: It's not, ; n the bankhook. The bankrupt Moore: I paid in £22 on December 8. The bank-book was investigated, but the entry could not be found. Bankrupt: It's must extraordinary. The bank must have mi.de a mistake. I will get the pay-in slip from the shop. In reply to a question the D.O.A. said he thought he could make up a statement from the books. The trouble wat the 1.0.U.'5, and a shortage of £22. Questions were then asked concerning Morey's drawings and loans. Mr. Weston: There is a private loan from S. J. Smith. What became of tht proceeds? The bankrupt Morey: It went into the business. The bankrupt Moore: There is an entry of £135. Bankrupt Morey: I paid £ls to Smith for a loan of £135 for a month Mr. Weston: It paid him badly. Further questions and search as to the £22 said to have been paid in on December 8 were fruitless, and bankrupt said there was a mistake and be would see into it. The D.0.A.: What was Mr. Smith's loan for? ' The bankrupt Moore: It was a private loan to Mr. Morey, and was paid into the business. , The £l3 paid in and drawn out was paid to Gilmour and Clarke in discharge of a loan.

THK PARTNERS' DRAWINGS. Mr. Scott asked: What were the respective withdrawal* from the buoiiicss by the two partners in the past year? llankrupt 'Moore said he drew £l4-! I!>s 10d, and also £3 per week for the past 16 months.

Much discussion then ensued as to what had been drawn by Morcy. 1.0.U.'s of his were produced, totalling £lsl 2s, Bankrupt also detailed amounts paid out for goods, and mentioned his salarv of £3 per week.

Mr. Scott had been figuring, and remarked : "So, for 18 months you drew out £7 I'Ot per week. That's pretty solid, .considering the state of the business!"'

■ Bankrupt: I should like to wait tintil to-morrow before admitting that. Mr. Sole: But they are your own figures!' . Bankrupt: Can't you give me credit for having- put some of the money into the business? Smith's loan went into- it.

Mr. Weston: It .was merely robbing Peter to pay Paul. The money was borrowed against the firm's securities. : Bankrupt: If J got a chance to go into the figures, T may be able to put a diileront complexion on thorn. Mr. Weston: We don't want that. What we want is more assctß.

. Mr. Ramson: It's no use talking. You are only making it worse. The D.0.A.: Dp you agree to Mr. Scott's figuros, Mr. Moreyt Bankrupt: It's hard to say nyw, Mr. Scott: Five hundred, j an! eighteen pounds, including salary,' fn lb' months!

Bankrupt: Well, then, you can take it at that!

Mr. Weston: .Can you offer any proposal for repaying jour 1.0.U.'s for £151?

Ban!; nipt: Well, T. illicit have nude an offer, but unfortunately I am quick-tempered. I 'wanted to go to Aiirklniid in order to have something to put before you. but Mr. Ramson told me I imi.-t be :it this meeting. So 1 did not {*o. Mr. Ramson: .Vou said you would hi back by to-day, and I told you to go, , Mr. Weston: He has been humbugging us about an offer for ten days. At this stage, Mr. Bewley, on behalf of the bankrupts, asked for one week's adjournment to allow of a proposition being formulated: This was agreed to. It was decided that it would be better to call tenders for the flto»k than to keep the business running'. The D.O.A. was empowered to attend.to this, and with the assistance of Mr. Hugh Bailv. or anyone else, he thought fit, to examine the books und prepare a statement for next meeting. Messrs. J. D. Sole and 0. Ramson were appointed a committee to assist him generally.