BANKRUPT FISHMONGER

Wairarapa Times-Age, 16 December 1939, Page 9

BANKRUPT FISHMONGER

MEETING OF CREDITORS HELD YESTERDAY. ESTATE OF W. G. SEED. A meeting of creditors in the bankrupt estate of W. G. Seed, fishmonger, of Masterton, was held in the office of the Official Assignee, Mr A. D. Low, yesterday. Mr Low presided. There were present: Messrs H. H. Daniell (representing two secured creditors), H. P. Hugo (Trust Lands Trust), W. Van Praagh (Masterton Dairy. Co.), and G. A. Campbell, stationmaster, Masterton Railway Station, representing the Railways Department. Mr H. M. A. Major appeared on behalf of bankrupt.

The amount owing to secured creditors was £609, and to unsecured creditors £1440. The estimated value of securities was £866 and the estimated deficiency £7lB. Bankrupt, in his statement, said he commenced business as a restaurant proprietor in Masterton in March, 1934. He had not had any previous experience in that type of business. He did not have any capital and he paid the purchase price of £350 at the rate of £3 per week out of drawings from the business. At that time he was drawing £4 per week from the business, inclusive of the sum of £3 per week he was paying to Tozer (the late owner). He also paid interest on the balance of the purchase money from time to time in that way. In July, 1937, his partner, Cameron, got into financial difficulties and the creditor who was pressing Cameron was threatening to sell the latter’s interest in the business. That forced bankrupt into the purchase of his partner’s share and he agreed to buy his share for £4OO. To do this, he borrowed £4OO and repayment was secured by an instrument by way of security over the plant, etc. Since that time he had drawn only £3 per week from the business. When Cameron went out. bankrupt had to employ and pay for labour. His wife had worked in the business for the last 18 months and had not drawn any wages. He had banked all his takings and paid all accounts by cheque, except of course very small accounts, which were paid out of petty cash. Bankrupt attributed his failure to increased competition increased costs and irregularity of supplies of fish. When he commenced business (here were only two wet fish shops in Masterton, but the numbei was subsequently increased to four. Wet fish could be landed in the shop at 3d per lb. and after allowing for wastage (approximately 65 per cent) they were able to sell the fish fillettcd at lOd per lb. Today wet fish cost 6d per lb. to land in the shop and it. was selling at Is 3d and Is 4d per lb. The difference between'the selling prices of 1934 and 1939 did not compensate for the increased purchase price and the other increased costs generally. Hie meeting was adjourned sine die. it being decided to allow bankrupt to retain £5O worth of furniture in addition to the £5O automatically allowed by taw.