INSOLVENT DRAPERS.

Taranaki Daily News, Volume LVII, Issue 34, 30 June 1914, Page 6

INSOLVENT DRAPERS.

MOREY AND MOORE, OF NEW PLYMOUTH. 3 THE EXAMINATION CLOSED.

The examination in bankruptcy of Morey and Moore, of New Plymouth, drapers, which was adjourned until yesterday to allow the bankrupt Morey an opportunity of bringing information as to Smith's loan, Williams' cheque, and cash shortages, was concluded yesterday morning. Mr 0. IT. Weston represented the D.0.A., Mr A. H. Johnstone appeared for Morey, and Mr D. Hutchen for Moore.

James Charles Morey, continuing his evidence on the points raised when the examination was opened, said that as far as ho could recollect on the date he received the £135 from Mr Smith, he put £135 to his credit by tearing up a number of 1.0.U.'s he had previously given to the firm. He received cash for Mr Williams' cheque, but there was no record in any of their books except the bank book showing the receipt of it. He could not do anything else but admit that tlie money lie received from Williams went in the same way as the £135. Speaking of entries in tlie cash book on December, 3, 4 and 5, he admitted that there was a shortage in the cash of £9 18s 3d, >but could give no explanation of it. The entries on those dates were in his handwriting, except for the entries "Hawera expenses £3, and Hawera receipts £3," jvhieh were in Moore's writing. He admitted shortages on later dates amounting to £3O 3s ;10d, but could give n > explanation beyond that one entry was in .Moore's handwriting. Referring to the balancesheet pf September, 1012, he said that the balance of £3O fis 2d would be cash and bank balance alone, whereas the. amount in hand of £lCO' 18s 2d, as shown in the cash book, .would include a number of 1.0.U.'s from himself and his partner to the firm. The entry in the book was in his writing.

To Mr Johnstone: He had been in business in Ni;w Plymouth for 10 or 11 } ear.?, during the wlhole of that .time in -partnership with "Moore. The Hawera business was started in November, 1912, and during the time the firm was in business visits were (made to other towns. The Hawera business was started to iiiereaso the business. Instead, it showed a loss, as did also the interests elsewhere. Prior to the opening of the "flawera business and the visits elsewhere, the firm had prospered. The firm gave bills to merchants which were .■net with the assistance of the bank. When the bank refused accommodation, the money was -raised elsewhere. On Smith's loan of £135, for four weeks the tirm was to have paid £ls. The system .of taking money from the till and putting it in T.O.U.'s had been adopted when the firm started, and the T.O.U.'s had ibecn treated as cash, ami to charge from time to time in the ledger accounts of the partners the acnnnulaicd 1.0.U.'s as drawings. 'Hhe. .1 i:e» of the debits in the ledger were not those on which the money was ir.iwn. The Fitzroy property was '•» i:ght several years ago when the busi- :■ was solvent. The same applied to :!>.! Equitable Building Society shares. ■:i 11)1 i, the bottle shares at £1 each, -.ere bought. Baling the past three •vairs lis was sway from the h;»,hjc« tor ■ onsidcra'ble periodic intervals. The 1.0.U.'s that were liquidated by the loan of £135 were spread over a considerable jvjriod. Referring' to the Cash-book shortages, witness said that thc^cntrics

ot .December 3 and 24 were parity in l.'i.i handwiting and partly in his part-n-r'u. At the present time lie was penni'ess. The only part he had in preparing the balance-sheet of 1912 was to make up "the headings under which receipts and expenditure we're to be '■placed, and to make up some of the figures.» The stocktaking was not done by him. In a business such as his, there were items of expenditure not! entered,

in the books, but he could not remember ?nv instances of this. The examination was then declared closed.