IN BANKRUPTCY

Manawatu Standard, Volume LII, Issue 50, 29 January 1932, Page 3

IN BANKRUPTCY

HAIRDRESSER’S FAILURE

Walter James Johnson, hairdresser, of Palmerston North, was examined in bankruptcy before tne Deputy Official Assignee. (Mr C. E. Dempsv) yesterday, afternoon. Creditors present were Messrs R. Waghorn, W. Black, Gordon, and Mclver (Tanngamutu Sawmill Co.). _ -‘ ■■ Bankrupt’s schedule showed debts amounting to £294 6s lid to be owing to unsecured creditors, and £1125 to secured creditors. The estimated value of the securities was -£IOSO, leaving a total deficiency of £369 6s lid.. The-principal- unsecured creditors are: —Bing Harris and Coy, Ltd. (Wellington). £45; Fairburn Wright and'Co ~ (Wellington) £2O 12s; Mutual Finance Coy.. Ltd (Palmerston North) £4O; J. Nathan and Coy., Ltd. (Palmerston. North) £52; R. Waghorn (Palmerston North) £2B; Palmerston North City Council £lO. “I-have been a hairdresser for. about twelve years and worked on wages until about seven years - ago, when I commenced business on my own account in the saloon at present occupied by me,” said bankrupt in a- sworn written statement. “I carried on for three years, but the venture was not a success, and in 1927 I was compelled to give' up, principally on account of illhealth. I then obtained a position as a hairdresser until June, 1930, when I again arranged to take over the saloon. Business was quiet almost from the commencement, and in an endeavour to increase my turnover I lowered prices about five months ago. This had the desired :effect for a short time, but necessitated employing extra hands, and the additional wages, coupled with a fairly heavy rent, did not enable me to improve my position. I. wroto my creditors offering £5 per month pro rnta among them, but found I could not pay, and one or two who hnd previous judgments against mo have been following these up. During the past four months I have drawn no more than £2 10s per week from the business on which to keep my home going, and have accordingly fallen in nrrear with the interest on my mortgages. One creditor issued a warrant of . commitment against me and this forced mo to file. My health has not been good and this, together with the present trade depression,-has been the cause of my fnilure. I am a married man with one child and regret that I cannot make an offer to my creditors.” Examined by the D.O.A. bankrupt stated that ail his takings, apart from wages, went into his bank. He had paid £3 10s weekly for rent and employed two assistants. His furniture was subject to a hire- purchase agreement and some -of it had been taken away. Interest payments on his house were more than twelve montlis in-arrears. Bankrupt said he had taken away a hairdressing machine .which was - held on hire, purBankrupt denied to Mr Waghorn that he had spent a considerable part of liis time away from the business and that customers had lrad to be turned away On that account. Mr . Waghorn alleged that bankrupt had. “hot played the game,” and had taken away goods under security to him.

Bankrupt said he Ijad ■ taken only tools of trade to which he considered he was entitled. He said he ; : was under the impression that he was to pay Mr Waghorn £l a week for stock which had .been retained through Mr Waghorn paying the bailiff. Mr Waghorn contended that the arrangement was'' for himself to be paid as the stock was sold, and he alleged that this lrad not been carried out. Bankrupt said lie had not yet paid in about £l2 due to the promoters of an art union for tickets sold on commission. Replying to Mr Gordon, bankrupt said liis two men had worked for £2 a week and. commission, though there was very little of the latter. The value of the goods seized by the bailiff was about £2O. Mr Waghorn said the bailiff’s valuation was £ll. No resolution was passed and the meeting was adjourned sine die. 1