A GROCER’S FAILURE.

Taranaki Daily News, 29 January 1921, Page 5

A GROCER’S FAILURE.

HEAVY LIABILITIES. ESTATE OF A. J. L. MAY. A meeting of creditors in the estate of Albert James L. May, storekeeper, of Bell Block, who filed a petition in bankruptcy on January 20, was held yesterday. The Deputy Official Assignee (Mr. J. S. S. Medley) presided. Mr. R. H. Quilliam appeared as counsel for bankrupt. The general statement showed liabilities to unsecured creditors totalling* £BBB Is 9d. Stock in trade was estimated at £99 10s Id; book debts, £lO2 6s 9d (estimated to produce the full amount); tools, crockery, etc., £5; furniture, £2. Total, £206 16s lOd; leaving a deficiency of £682. The list of unsecured creditors was: B. Davies, 10/6; Ideal Knife Cleaner (Hawera), 10s <Bd; A. E. Sykes, 13s fid; Taranaki Herald, 19s; Wilson and Horton (Auckland), £l4 2s 4d; J. Tattle and Co. (Sentry Hill), £9 6s 6d; Cement Pipe Co. (Waitara.), £2 13s;’ Lands and Survey (Wellington), £37, 14s lOd; A. Yates and Co. (Auckland), £4 16s 7d; H. E. Partridge and Co., (Wellington), £l2 8s 4d; Tarurutangi Dairy Co., £3l 18s 6d; Newton King, £74 2s 3d; Brandon Haughton, £2; Pike and Waters, £7 18s 3d; H. Pote, £l3B 7s 10d; Cock and Co., £l7B la 4d; Waitara Soap Works, £1 15s; Rosd May, £314 15s 9d; Lands Department, £29 7s 6d; total, £862 *ls Bd. A further amount of £26 loaned to bankrupt by his mother brought the total to £BBB Is Bd,

Real estate property was valued at £l2OO. being his section at Bell Block. BANKRUPT’S STATEMENT In his statement bankrupt said: I went to the front with the 12th Reinforcements, and returned to New Zealand on 27, 1919. While I was away I allotted 3s per day to mv mother. I was away 3 years and 25 The amount I allotted to her was a gift, and I did not expect her in any way to return it to me. I wish to make this clear, as I understand that it has been said that my mother is in possession of money of mine. The gratuity I duly received, and spent it on myself. I cannot give any account of it; 1 clothes and living took it all. I thought of going into business towards the end of 1919, and I took otfer Mr Pote’s business at Bell Block on Nevember 1, 1919. The price of the land was £l2OO, and I took the stock and plant over at valuation. I arranged to borrow £3OO from the Repatriation Board, which was lent me on my mother’s guarantee. Later my mother guaranteed a further sum of £5O. Out of the money advanced by the Repatriation Board I received about £9O, when the business had been taken over. I put it in the hank, and used it for buying further stock. I had to be away from the shop four days a week. Two days of this time I spent with outside deliveries and two days in dealing with wholesale people. I am not a drinking man, nor a gambler, and have never been to a race meeting in my life. I lived in the shop, and as economically as possible. While I was away my sister looked after the shop. • I kept books. In valuing the stock in hand I took everything at lowest prices. I have put in Pote’s stock at the price I gave for it. The statement as prepared shows me as losing £655 4s lOd. This must be reduced by £2OO, as that is my equity in the real property taken over from Pote. To make this last statement clearer I will say that I bought the land at £l2OO. The Government only lent me £lOOO, and I gave Pote bills for £2OO. Of those bills I have paid out of the business £66 6s Bd, and I show Pote as a creditor-for tho balance. This can only be adjusted by deducting £2OO from my apparent losses. Legal expenses were considerable, and the statement I produce show them exactly at £29 10s. So that taking the figures put in as follows: Shortage, £655 4s lOd, less (as above) £2OO, less costs £29 105—£425 14s 10d.” LOSS DUE TO INEXPERIENCE. The statement proceeded: “I had no experience in business, and bad buying may have—and probably did have—something to do with the shortage. Then there was the cost of living for myself and assistant. My sister was my assistant, and I did not pay her regular wages, but probably gave her in all about £lO. Take the cost of living at £3, and add £lO wages to that, and we get a further sum of £166 Deduct this from £425 14s lOd, and you get £259 14s 10d. Extra labor—a young man for 8 weeks at £3 per week— t £24; two houses, feeding and shoeing, £1 10s per week, came to about £9O. If you subtract £ll4 fronj above it reduces the shortage to £145 14« IQd. While I was away my sister, who also has no experience, was in charge of the shop. I am confident losses occurred through her want of knowledge. Take that and my low valuation of the present stock, and you will have a very close explanation of the deficiency. There is a further sum not mentioned in my statement, due to Mrs. May—that is £6 she loaned me to file, £5 in cash, and £l5 she paid to the Repatriation Board.” (Bankrupt, on oath, answered a considerable number of questions by creditors, and in the course of the discussion it was elicited that he had never had any previous experience at the trade. Mr. Quilliam remarked that under ordinary circumstances a man in May’s position would never have been started in business. He was 23 years of age.

In neply to questions, May said he had never had any parties at the back of his shop, though he taught boxing to some of his friends on occasional week uights. Ho admitted that he was in bed at 11 o’clock one morning, but explained that this was due to his having met with an accident, in which both his legs were run over by a vehicle. He was at a party the previous night, but did not dance, owing to the accident. He attributed his failure to lack of experience Bankrupt was asked if he could obtain any assistance from his mother, and the Deputy Official Assignee asked if he had any offer to make to creditors. May replied that he was quite willing to pay the whole of the money, given time. ' The business was a good one for any man with capital. After discussion the meeting authorised the Deputy Official Assignee to realise the book debts and stock to the best advantage, and to call tenders for the purchase of the equity in the property. The meeting was then adiourned for a fortnight in /order to enable bankrupt