IN BANKRUPTCY

Manawatu Standard, Volume XLIX, Issue 249, 19 September 1929, Page 8

IN BANKRUPTCY

FEILDING ELECTRICIAN. MEETING OF CREDITORS. (Special to “otandard.”) FEILDING, Sept. 19. A meeting of creditors in the bankrupt estate of James Edward Jackson, electrician, of Feilding, was held today, Mr C. E. Dempsy, D.0.A., presiding. Creditors present or represented were as folloiv :—Messrs. JA. Eglinton (Manawatu-Oroua lower Board), J. E. Bass (Bass Electrical Coy.), H. L. Hindmarsh (National Electrical Coy.), A. J. Geary, Feilding (Johnston and Coy.), W. H. Clayton, Feilding, L. A. Elliott and E. Goodbehere (Mrs Sherwill, Feilding), J. H. Thompson (Feilding Sash and Door Coy.), G. J. Fitzpatrick (Piram and Coy.), J. Lucas (Tolley and Son and Amalgamated Wireless, Ltd.), J • Campbell, Feilding. Mr D. C. Cullinane was present on behalf of banK rupt. In his sworn statement or affairs bankrupt submitted the following:—“I came to Feilding m August, 1925, and* worked for .McLeod and Svcndsen, electricians, of Feuding, was quite solvent then. In March, 1927, I left McLeod and Svendsen and commenced business on my own account on April 2 of the same Y ea J' only capital I had was the sum "IoU advanced to me by my wife. About four months after I commenced business I repaid £2O and I still owe lie £l3O. I raid a deposit on a secondhand car and purchased tools, stock and equipment. Business went wei until I took a number of contracts at Ohingaiti in September, 1927. Owmg to the inability of the Power Board to supply all the equipment necessary for the Ohingaiti Block, I had to go to most of the jobs as many as tour times, and the work was not completed till January, 1928. This made travelling and other expenses considerably higher 'and the Ohingaiti contracts did not pay. I estimate that I lost approximately £l3O on these contracts. The town busine.is 'mproved and work was fairly plentiful at Christmas, 1927. In February, 1928. I took a lease of a shop in Fergusson Street at a rental of £2 2s 6d per week for the first year, and I had to pay the cost o the fittings: Business was fair y quiet in the winter of 1928. After my Ohingaiti losses I wa3 unable to pay my creditors promptly enough to save my discounts, and this made it harder for me to improve my position. Not only did I lose my discounts, but I also had to pay in " terest on overdue accounts. About four months ago, I began to pay oasn for all I wanted in order to get discounts and save further interest charges. Since last Christmas work has been less plentiful and it has been very difficult to collect my accounts. During the wdnter months the position has gradually become worse. About six months ago, one of my creditors, Messrs Lawrence and Hansen, took judgment against me for about £lO2 and issued a distress warrant immediately. I found the amount required to settle their claim. I went into my position, then, and found that if I could collect my accounts I could carry on successfully. Ever since I have endeavoured to collect my accounts, but there is still a large amount of debts outstanding. Lately, other creditors have pressed me and taken judgment and issued distress warrants, and I was forced to file to protect my creditors. If my creditors had given me time I still think I could have carried on successfully and paid evefyone 20 shillings in the £l. I have drawn about an average of £5 10s per week out of the business since I commenced, and out of this I have paid travelling expenses and some other expenses in con. nection with the business, amounting to about £1 per week. Shortly after I commenced business a new award came into force and restricted the number of apprentices that might be employed to one for every three journeymen. This had the 'effect- of increasing my wages bill much more than I had anticipated. In December last, owing to my wifo’s ill-health, I was compelled to lose a good deal of time from the business and since then my own health has been failing, and I have to undergo a serious operation at an early date. My poor state of health has contributed to the failure of my business and my business cares have prevented me from going into hospital to have a necessary operation. I am a married man with four children, the eldest of whom is 12 years of ago and dependent on me.” THE EXAMINATION. In answer to the D.0.A., bankrupt said he thought his book debts would produce the full amount shown. He attributed his present position to want of capital. Mr Lucas said that his firm had received a great surprise at the news of Mr Jackson’s failure, and he proceeded to recount an interview he had had last year with bankrupt, in which the latter’s position had been shown as quite satisfactory. As a result of the interview his firm had continued to supply bankrupt. Ini reply to Mr Hindmarsh, bankrupt said that the pianola he had cost somewhere about £132. The instalments on it were spread over two years. Mr Hindmarsh said he could verify Mr Lucas’s remarks that Mr Jackson’s filing came as a complete surprise, and he would like to have the books examined. i The D.O.A. said that the hooks were in Palmerston North, but that they would certainly be examined. Mr Lucas submitted to the D.O.A. a record of interviews he had held with bankrupt on his financial position showing that, m December, 1928, bankrupt had given his position after stocktaking as stock valued at £609 7s 4d; tools and plant, £lB9 10s 6d; book debts, £423 Is 4d, while the liabilities were under £6OO. Bankrupt said that he thought the figures were correct and he agreed with the D.O.A. that they showed a considerable margin. It had not been his intention in any way to mislead his creditors. To Mr Lucas, bankrupt said he had given his financial position to him in July of this year as well as he had been able to do so from memory. To Mr Thompson, bankrupt said that he had never had an accountant to go through his books. In reply to another question, bankrupt said he had some uncompleted jobs at Kimbolton and also on Halcombe Road. To Mr Thompson, bankrupt said he had borrowed sufficient money to pay Lawrence and Henson and had paid it back out of .the business takings. To the D.0.A., the bankrupt said that the house and furniture belonged to his wife. He had no assets and could not make any offer to his creditors. Mr E. Goodbehere, Feilding, was appointed to act with the D.O.A. After bankrupt had answered further questions, the meeting was adjourned sine die.