MEAT AT BELOW COST.

Taranaki Daily News, 5 September 1921, Page 7

MEAT AT BELOW COST.

A MEETING OF CREDITORS. A meeting of creditors in the estate of Alfred George Mills, butcher, of Eltham, was held at the Magistrate’s Court on Thursday by the Deputy Official Assignee (Mr. J. S. 8. Medley). The statement of bankrupt showed that there were unsecured liabilities to the amount of £1255, and secured creditors for a total of £1591, other liabilities totalling £44. Against this there were securities of an estimated value of £lBB4, leaving a deficiency of £1299. The secured creditors were: Bank of New South Wales, £145; J. Fary, £341; Commissioner of Crown Lands, £328; second mortgage on house property, £368; James Hawke, £5; New Zealand Loan and Mercantile Agency C 0.,, Ltd., £393; F. Stade, £2 10s; H. C. Mills, £7; a total of £1591, the estimated value of the securities being £lBB4 Ils 7d. The unsecured creditors included: Henry Berry and Co., £2O; W. Carncross, £2O; N.Z. Meat Packing and Bacon Co., £26; Phillips and May, £724; F. Reardon, £6l; Repatriation Department, £93; F. C. Mills, £132; and other smaller amounts to the total of £1255.

In the course of a lengthy statement bankrupt said he was a returned soldier and was still suffering from wounds received while on active service. He was also still in receipt of a pension of 15s per week. In February, 1919, he entered into a business partnership with his father-in-law (Mr. James W. Hawke) and carried on a butcher’s business in Eltham under the style of Hawke and Mills. He paid £5O for a half-share of the business. He had then £3OO in cash, a part of which he used for the purposes of the business. In September of the same year he bought Hawke’s share of the business for £lOO, of which £63 was still owing. In April of the same year a second shop was opened in Wilkinson’s buildings. In February, 1920, he purchased a house property for £725, on which he paid a cash deposit of £5O. At that time he received from his wife £132, and subsequently a further sum of £35, which was spent on furniture. He was badly “hit” by the slump in hides, estimating his loss in this connection at £3OO. In April, 1921, he made arrangements with his brothers-in-law (Messrs. Phillips and May), who owned individual farms at Rawhitiroa and Pukengahu and a joint farm on the Cornwall Road, to buy cattle for him. Since the arrangement with Phillips and May he had been supplied with practically no meat suitable for the business, tp enable him to compete with others killing good meat, with the result that his custom had fallen away very materially. It was also on their advice that he commenced giving general credit, undertaking delivery and cutting prices. In January, 1921, he opened a branch at Kaponga. Business there proved gqod, and if continued with a satisfactory supply of stock would probably have pulled him through. Bankrupt was subjected to considerable interrogation. Replying to Mr. Weir, bankrupt said he was underselling other butchers in the town by from. Id to 2d per lb during the months of May, June and July. Throughout that period he knew that he was selling his meat at a loss. Mr. Weir said the examination disclosed a most unsatisfactory state of affairs, and further the bankrupt had given no satisfactory explanation of his position. What action should be taken he was not prepared to suggest, and could not move any resolution until he had consulted some of the bigger creditors he represented. One could not help but characterise the whole thing as reckless and negligent trading. Mr. T. B. Crump stated that Mills, who had recently been receiving treatment at the Wellington Hospital, was still suffering from the effects of his wounds, and would have to retuurn to Wellington almost immediately for further treatment.

The Deputy Official Assignee said the best thing that could be done would be to hold the matter over and give bankrupt an opportunity to make an offer to his creditors.

It was decided that the assets available be realised to the best advantage.