A BANKRUPT CLOTHIER.

Taranaki Daily News, 10 March 1922, Page 6

A BANKRUPT CLOTHIER.

LIABILITIES TOTAL £5254. SUBSTANTIAL SURPLUS SHOWN. MEETING OF CREDITORS. A meeting of creditors in the bankrupt estate of C. E. Carlson, clothier, of New Plymouth, who was adjudged bankrupt on February 27 on the petition of the Commercial Agency, Ltd., was held in the office of the Deputy Official Assignee (Mr. J. S.’S. Medley) at New Plymouth yesterday. A number of creditors were present, and others were represented by Mr. J. H. Quilliam. Mr. A. McQormack appeared for bankrupt. The assets in the estate were set down at £6218 Ils lOd, and the liabilities as £5254 15s 2d, leaving a surplus of £963 16s Bd. Following is a list of the unsecured creditors: Archibald Clark and Sons (Auckland) £478, Mackay, Logan and Caldwell (Auckland) £452. G. G. Jackson (New Plymouth) £139, same £7B, M. A. Moore (New Plymouth) £l3l, C. H. Croker and another (New Plymouth) £667, Lamson Paragon (Wellington) £B, Goldberg Advertising (Wellington) £5, Taranaki Daily News £3l, John Swinson Co. (Wellington) £3l, Taranaki Herald £lO, Purser’s, Ltd. (New Plymouth) £3l, Hooker Bros. (New Plymouth) 12s, F. S. Plumtree (New Plymouth) £lOO, Dr. Walker (New Plymouth) £2. Vai Duff (New Plymouth) £24, Income Tax (Wellington) £3, Mercantile Gazette (Christchurch) £1 12s, Wellington Woollen Co. £6O, Kaiapoi Woollen Co. £lO4, Samuels and Kelly, Ltd. (Wellington) £l4, Ross and Glendinning, Ltd. (Wellington) £238, Sargood, Son and Ewen, Ltd. (New Plymouth) £7. G. A. Findlay, Ltd. (Dunedin) £ll, S. Harris (Napier) £7, Briasco’s. Ltd. (Napier) £4O, J. P. Hooten (Auckland) £25, Pelaco, Ltd. (Wellington) £5, Wallace, Ltd. (Auckland) £3O, Parisian Neckwear Co. (Auckland) £B, Jas. A. Cooper (Auckland) £2, W. H. O. Taine (Auckland) £6, Brace, W’indle, Blythe Co. (Auckland) £23, P. McCrae Co. (Auckland) £l4, Arthur and Co. (Melbourne) £2O, Simister, Hoosan and Co. (Wellington) £125, Butterworth Bros. (Dunedin) £l2O, N. Corah and Sons (Wellington) £266, Lloyd, Attree and Smith. (Wellington) £425, Mclntyre, Hogg and Marsh (Wellington) £277, Woodrow and Sons (Wellington) £79, Bradbury Greatorex (Auckland) £B2, McClelland (Christchurch) £B4, Gerrish, Ames and Limpkins (Wellington) £139, J. H. Buckingham (Wellington) £387, I. and R. Morleys (Wellington) £4OB, C. H. Croker ('New Plymouth) costs estimated at £4O. Total, £5354. BANKRUPT’S STATEMENT. Bankrupt made a personal statement as follows: I commenced business in New Plymouth on or about August 16, 1920, having sold out my business in Hastings to Messrs. Dodds and Martin. I commenced business in New Plymouth with a capital of approximately £3500. I carried on business and did reasonably well until December 18, 1920, when I became seriously ill and went into hospital. Mr. Jackson managed the business in my absence, assisted by a boy. I was ill for a considerable time, about nine months, and incurred considerable expense. During my absence the recent slump in prices of mercery began to be felt, and on my return to business I endeavored by sales to reduce stock. During my absence from business several commitments of mine fell due, and my solicitor, Mr. Croker, was good enough to advance me, at the request of Mr. Jackson, certain sums to meet the same. “In October last, Mr. Croker wished to purchase a house property in New Plymouth, and requested me to give him a security for his advances so that he might raise cash thereon. I was not in a position to pay him off, as he might have expected me to do. the loan being imerely a temporary one. made on account of my illness. Nor was 1 aware of my then position, as I had not gone into it thoroughly. On the registration of such lull of sale. Messrs. Archibald Clark and Sons and Messrs. Macky, Logan and Company went into my position and requested me to take stock, which T did. A conference was held between representatives of the above-men-tioned firms, Mr. Croker, and myself, when Mr. Croker, in order to avoid inconveniencing me, agreed to withdraw his security if the above-mentioned firms would not press me into bankruptcy, and it was agreed that Mr. Croker should write the English houses asking them to release me from my commitments with them, which he accordingly did. MEETING OF CREDITORS.

“Subsequently Mr. Croker called a meeting of the English houses in Wellington. It was then, after considerable discussion over a period of some hours, definitely arranged that I should assign my estate to the Commercial Agency, Ltd., as trustee for the creditors. The terms of the assignment were fully discussed, and finally arranged. The terms were then put to the meeting, and were carried unanimously by resolution. Subsequently, on my return to New Plymouth, I duly signed the deed of assignment containing the exact terms of the arrangement made and nothing else. The Commercial Agency, Ltd., while acknowledging the terms made to be the same as the amendments made to the trust deed, nevertheless refused to have such terms inserted in the trust deed. It had been agreed at such meeting that such terms were to go in such deed. I took counsel of my bank manager, my auditor and my solicitor, and of other business men of my acquaintance in New Plymouth, who all pointed out that if I signed an unconditional assignment the Commercial Agency, Ltd., could, and would, doubtless, charge me approximately £3OO per year for three years for acting as such trustee, and, since I was the manager of the business, their trusteeship would he a most profitable sinecure. I opposed the bankruptcy proceedings taken by the Commercial Agency Company, Ltd. I endeavored to obtain a settlement with the Commercial Agency Company, Ltd., beforehand, but Mr. Ching, the representative of the company, intimated that no settlement could be made until I signed their trust deed, containing a provision that the Commercial Agency Company. Ltd., would get something like £250 to £3OO per year out of my estate. Mr. Justice Chapman, at the hearing of the petition, intimated that while there was no legal ground for his not making an order for adjudication, the case was such that an order for adjudication should not be made, and he consequently adjourned the making of such order for a period of three days, in order that a settlement might be obtained, and when later he made the order he reserved the right for either party to supercede the indication if-either party applied within

five days from that date to set the order aside.

“I have always been ready and willing to carry out the terms made with my creditors in Wellington. Mr. Croker has always been ready and willing to withdraw his bill of sale upon the terms originally arranged with Messrs. Archibald Clark and Sons and Messrs. Macky, Logan and Company, and with the creditors in Wellington, and has on numerous occasions given his undertaking in writing to do so. I have always paid twenty shillings in the pound, and, but for the pressure brought to bear upon me by my creditors, I might still have done so, and am satisfied that if the terms of the agreement made >'n Wellington with my creditors had been adhered to by my creditors I could and would have paid twenty shillings in the pound. As I am now situated, unless such deed of assignment can be arranged or my business carried on, I can make no offer. I have nothing else except my business experience andgtraining behind me.” SUPERVISOR APPOINTED. The deputy official assignee said that up to date he had been carrying on the business under the management of bankrupt and Mr. G. G. Jackson, paying each £5 per week. The lease had seven years to run at £6 per week, plus rates, the upstairs portion being let for £2 per week. He thought the bankrupt had been very unfortunate, having been ill at a critical period. At that time he had made heavy orders, and was, in the D.O.A.’s opinion, over-stocked. Mr. J. D. Sole (Archibald Clark and Sons) asked what interest bankrupt was paying on the loan of £139 from Jackson, since the interest charge was stated at £2O.

It was explained that the statement was made up on the assumption that the estate was to be assigned at a certain future date.

A creditor asked whether Mr. Jackson had any partnership or interest in the business, and bankrupt replied that Mr. Jackson was not a partner in any sense. Mr. Quilliam (I. and R. Morley’s) moved that Mr. J. D. Sole be appointed supervisor, to act with the D.O.A. in the realisation and management of the estate. In seconding the motion Mr. R. T. McQuade suggested that it be a recommendation to the D.O.A. and Mr. Sole to employ bankrupt for at least three months to realise the stock over the counter. The D.O.A. explained that the resolution would give the trustees power to either carry on or realise the estate. Mr. McCormack moved as an amendment, on behalf of Mr. Croker, that the business be carried on for three months. Mr. Jackson seconded. Mr. Sole said that the motion gave the trustees power to administer the estate as they thought fit. An amendment, as moved, on the books would look like want of confidence in the trustees. Mr. Sole said he would not act under the terms of the amendment. Mr. Jackson said it seemed to him that the position of the business in three months time might be brighter. The amendment was withdrawn and the motion was carried.