“MIXED UP.”

Taranaki Daily News, 26 August 1922, Page 7

“MIXED UP.”

AN INVOLVED ESTATE. ELECTRICAL FIRM’S BANKRUPTCY. PRICE-CUTTING BLAMED. “I don’t think I’ve ever come across a business that is so mixed up,” said the Deputy Official Assignee (Mr. J. S. S. Medley', during the course of a meeting of creditors at New Plymouth, yesterday, in the bankrupt estate of Harry Patterson and Charles Banks, electrical contractors. New Plymouth. About ten creditors were present, whilst Mr. C. H. Croker represented • bankrupts, who traded under the name- of Patterson and Co. According to bankrupts’ statement, un-secured-creditors amounted to £799 14s 6d, secured creditors £319 ss, less estimated valuer .of securities £227:—a total of £B9l 19s . r 6d. -On the assets side were shown stock-in-trade £l4B 18s 6d, bdok debts (£233 4s 9d) estimated to produce £l4l 2s lOd, cash in hand £25 12s 10d.—a total of £315 14s 2d, leaving a deficiency of £576 5s 4d. . In response to Mr. R. H. Quilliam (representing a creditor), Mr. Croker said Banks was not present, as he had a position in a theatre at Petone and was unable to get away owing to illness on the staff, but would probably be able to attend any subsequent meeting. LIST OF CREDITORS. Following is the list of unsecured creditors’,’ as shown on the bankrupts’ statement: Jellyman and Forbes, New Plymouth, £7 0s sd; Rollo and Millar, New Plymouth, £2 16s; Rudge and Co., Ltd., New Plymouth, £8 14s 3d; Bass Bros., Wellington, £l4 10s lOd; Turnbull and Jones, Wellington, £9O; British General Electric,Co., Wellington, £3 18s 2d; Anglo-Oriental Trading Co., Auckland, £l3 9s Id; Tolley and Sons, Ltd;,. Wellington, £47 8s 9d; Harris, LangLtd., Auckland, £6; Owen Rayner, Ltd., Auckland, £23 16s Id; Maling and Co., Christchurch, £59 19s 8d; Electrical Equipment Ltd., Auckland, £BB 2s 2d; L. B. Webster, New Plymouth, £22 19s; Newton King, Ltd., New Plymouth, £7 19s 9d; Electrical Construction Co. of New Zealand. Auckland, £25 17s 9d; Distributing Agency, Ltd., Christchurch, £l2 3s sd; P. R. Baillie and Co., Ltd., Wellington, £5 12s lOd; J. E. Nixon and Co., New Plymouth, £5 9s; H. Ward and Co., New Ply-' mouth, 4s 6d; Carrick, Wedderspoon and Co., Christchurch, £1 16s; . Roch and Lealand, New. Plymouth, £1 14s; Trustees of George King (deceased), New Plymouth, £l7 9s 6d; John Abbott, New Plymouth, £3 0s 8d; J. P. Hardware Co., Ltd., New Plymouth, 15s sd; Boon Bros., New Plymouth, £5 3s; Welsbach Light Co. (Aust.), Wellington, £1 19s; Bellringer Bros., New Plymouth, £l2 12s 9d; Taranaki Herald, New Plymouth, £3; A. B.> Waldie, New Plymouth, Us Id; Smart Bros., New Plymouth, £22 18s 6d; Holden and Roberts. New Plymouth, £2 ss; J. B. McEwen and Co., Ltd., 17s Id; ,F. 11. Robertson and Co., New Plymouth, £4 Is 6d; New Zealand Acetylene Hardware Co., Wellington, £49 18s 3d; The Lees Electrical Supply Co. (in liquidation), Wellington, 7s 6d; Arnold George, New Plymouth, £7 9s; Mrs. L. Patterson, New Plymouth, £6 10s; Darby and Hannan, New Plymouth, £3 10s 8d: Powhall Rubber Co. (in liquidation), Wan* ganui, £1 8s 8d; Arnold and Co., New Plymouth. 6s 9d; Teed and Co., New Plyi moqth. 3s 3d; New Plymouth Borough i Council (electrical department), £l3 15s i 3d; V. P. Portman and Co., Wellington, ; £lO 9s 9d; W. F. Short, New Plymouth, i£! ss. 9d; “8.K.” Bookshop, New Plyi mouth, £2 7s; Barnett Glass Rubber Co.,

Ltd., Christchurch, £29 13s 4d; F. Sulli- ; van. Auckland, £2 15s; W. and A. Ambury, Ltd., New Plymouth, 17s 9d; Ridd Co.. Ltd., New Plymouth, 6s 3d; G. Goldsworthy, New Plymouth, £ll 10s; H. Wise and : Co., Dunedin, £2 Is lOd; G. W. Rowe, New Plymouth. 14s 6d; Eberlet and Morgan, , New Plymouth, £2O; Repatriation Department. £120; a total of £799 14s 6d. Under the list of secured creditors appeared Mrs. L. Patterson (under a bill of sale). New’ Plymouth, estimated value of security. £227, amount of debt £319 ss: Mr. Croker said he was not able to give i the exact amount, but had made up the • amount given with Patterson. Mr. S. J. Holden, trustee, reported that i he estimated the present value of Messrs. ' Patterson and Co.’s stock at £4B, Miss Mas- ! ters at £lOO 18s 6d—a total of £l4B 18s 6d. A further letter from Mr. Holden stated: • ‘Mf; Banks left New Plymouth about May 8, 1922. He sold goods t\ the value of £l5 6s 4d, for which £4 12s lOd is still outstanding. I have completed three contracts, the amount outstanding against these contracts being £l9» 14s Bd. Another contract I also completed, but I could not send an account, as I could not find out the price arranged. For cash sales and accounts I have collected £32 18s 7d and paid out £7 Bs, leaving a credit balance at the bank of £25 10s 7d. The three contracts above mentioned cost £l9 4s 4d to complete. This amount has been paid out. Goods to the value of £22 16s 4d have been sold frdm Miss Masters’ stock. This amount has been paid to Mr. Croker.” The D.O.A. explained that the bankruptcy referred to both partners’ private estates, as well as to the firm’s estate. REASON FOR FAILURE. The following is the statement made by Mr. Harry Patterson, on behalf of the firm of Patterson and Banks: “Mr. Charles Banks and I commenced business in partnership as electrical contracts at New Plymouth in October, 1919, and for about IS j months we did exceptionally well. From then onwards the business of the firm began to fall off, owing to a number of other similar firms starting here, and so causing us to do work at the lowest possible price, and thereby, with the high cost of wages and material added, practically cutting out all remuneration for the work done. '' In order to obtain any work we had to make this drastic cut in our charges, on the assumption that the quantity of work would make up for the lowcost; but this did not eventuate, as the other firms continued to lower their prices, and finally the majority of them had to give up altogether and we were then in such a position that we could not recover ourselves. I attribute the present state of our affairs partly to this and partly to the fact that when we commenced business the new hydro-electric” scheme was to be completed in a very short time, and in anticipation of this we obtained stocks of electrical material which would be used only with the increased power. The new scheme is not yet completed, and consequently we have been carrying these special stocks at a considerable loss, as it was quite impossible to realise on any part of them for some time. Finally, in an, endeavor to place our ; selves on a more sound financial footing, we let some of it go at a loss. We commenced business with a capital of £375, of which I contributed £250 and Mr. Banks £125. In accordance witht a deed of partnership which we had. Mr. Banks was to •eceive one-third of the profits, while I

was to’ receive a weekly salary of £4, after one year increased to £5, and two-thirds of the profits. The arrangement was made in this manner, as Mr. Banks did not take any active part in the business, while I supervised the work of the men employed, and, if necessan-, worked wjth them. The present state of capital account is that the firm owes me £l5O 5s sd, while Mr. Banks is indebted to the firm to the extent of £6O 6s lOd. This indebtedness to the firm by Mr. Banks is due to the fact that certain persons who. had contra accounts against Mr. Banks personally took the amount owing them off accounts due to the firm.”

The statement of Patterson’s private estate showed the amount owing to unsecured creditors £25 0s 6d, secured creditors £546 16s 7d, less estimated value of securities £5OO, a total of £7l 17s Id. Assets were shown at book debts, estimated to produce £l4 18s 6d; property, £225 ; a total of £239 18s 6d, leaving a -surplus of £l6B 18s. The list of unsecured creditors was given as: 'faranaki Hospital Board, New Plymouth, £6 16s; Standish and Anderson, New Plymouth, £6 7s 6d; Mrs. E. Patterson, New Plymouth, £9; W. Crosher and Sons, Ltd., Auckland, £2 17s; a total* of £25 0s 6d. The list of secured creditors as given by bankrupt was: Commissioner of Crown Lands (estimated value of security £590), amount of debt £546 16s 7d, mortgage over pronerty and advances to build house and interest. Banks’ statement in connection with his estate was not obtainable. After a lengthy discussion, Mr. R. H. Quilliam moved that Mr. F. C. J. Bellringer be appointed supervisor to act with the D.O.A. Mr. Ewing (Smart Bros.) seconded, and the motion was carried. A vote of thanks was accorded to Mi’. Holden for his services, it being pointed out that he had acted entirely without remuneration. The meeting was then adjourned sine die.