Bankruptcy of Telerad

ID: 562292
This article refers to the manufacturer: To the manufacturer

Bankruptcy of Telerad 
21.Dec.21 00:53
484

Gary Cowans (AUS)
Editor
Articles: 106
Gary Cowans

IN BANKRUPTCY

RADIO SALESMAN.

DEFICIENCY OF £1254.

A meeting of creditors in the bankrupt estate of Arthur Douglas Wylie, a salesman, of Palmerston North, was held in the office of the Deputy Official Assignee (Mr F. C. Litchfield) yesterday, the Deputy Official Assignee presiding.

In addition to bankrupt and his solicitor (Mr G. E. Rowe) there were present Messrs V. A. Stanley (Stanley Clarke Radio Company and Francis Franklin and Company, Wellington), C. R. Clarke (Stanley Clarke Radio Company), C. Clow (Yates’s Cash Stores), A. H. Northover (Railway Department), F. G. Opie (Allied Publications), J. H. Sharman (Joseph Nathan and Co. and A. Turton), J. Barnao (Wellington Publishing Cp.), H. W. Mullaney and F. W. Coombs (Coombs’ estate).

Bankrupt showed, in his statement, a total owing to unsecured creditors of £I300 7s 4d. The total assets were given as £46 1s 6d. The deficiency was shown as £1254 5s 10d.

The main creditors in a list of 50 were: Stanley-Clarke Co. (radio manufacturers, Wellington), £160; Turnbull and Jones (electricians, Wellington), £59; Joseph Nathan and Co. Ltd., £76; International Traders, Ltd. (Auckland), £61; Mrs. E. B. Wylie (Palmerston North), £131; E. Greenhow, (Levin), £149; E. Robertson (Wanganui), £68; Railway Department, £151.

Bankrupt set out in his sworn statement that he had been carrying on business as the Telerad Manufacturing Co. From the commencement until the end of October 1937, his books had been kept by Mr Mullaney, a public accountant. From then on he did not wish to keep the books as bankrupt could not pay the fee for the work entailed. From then on bankrupt had done his own bookkeeping. Bankrupt had been pressed by his creditors and had been put to extra expense by their taking action against him. The cause of his present failure was an inability to obtain the necessary supplies of radio sets. Bankrupt had incurred much expense in having to go to Wellington on that account. When there had been a proper supply of radio sets matters had gone better, but bankrupt was incurring much expense in obtaining the sales of the machines, which were ultimately not supplied. He had been hampered ill this way for the greater part of the time. Bankrupt had to borrow money to pay pressing creditors. His wife had lent him money and friends had also lent him a lot of money. He had never incurred credit without disclosing his position and his status in the eyes of the law. No creditor could truthfully say he had omitted to do so. Bankrupt had broken health and. his wife was at present in the hospital. He had done his best to treat his creditors fairly and had not preferred one to another.

Replying to Mr. Stanley, bankrupt said he had never at any time failed to account for sets supplied on consignment. He had never concealed radio sets in his house. He had never at any time given misleading statements as to the location and disposing of sets.

Mr. Stanley asked if a certain set was sold to a person at Hikurangi in December, and bankrupt said in reply to a further question, that that set had never been notified to the company as being at Foxton.

Mr. Stanley; Did you sell a set to a man at Levin? - Yes.

Mr. Stanley: And that set was shown to be at various places for some months. Did you advise us when you sold a particular set? - I did not have to.

Mr. Stanley: That is the whole position. Did you disclose to us that you were an undischarged bankrupt?  Most decidedly so. I discussed it with you.

Mr. Clarke: You know that all the documents had written on them “on consignment.’’ You said you knew what that meant.

Mr. Clarke: How do you account for the fact that when we went to get sets you said were on demonstration, we found they were sold? - They were sold.

The Deputy-Official Assignee: Did you understand what “on consignment” means? - No. I thought it was all on the concurrent account and the police refused to take action because of that when they investigated my affairs.

In reply to Mr. Sharman, the bankrupt said he had received an order for a £24 set from Mr. Turton and a receipt had been issued. The machine had not been delivered. Bankrupt did not have the machine when it was sold. It was to come from the Stanley-Clarke Company. The money had been used in the usual course of the business. Bankrupt said he had kept proper books of account. His living expenses would have been about £4 a week and his business expenses £7 or £8. The gross takings for the first six months had been about £52 a week. The profit in radio was 100 to 300 percent and about half of the takings for that six months would be profit.

Mr. Sharman: Then there would be about £14 clear profit per week? There could not have been, because I was always up against it, paying five shillings here and five shillings there.

Mr. Sharman questioned the bankrupt further as to refrigerators received from Joseph Nathan and Co. To Mr. Opie, bankrupt said he remembered Allied Publications, Ltd., putting the bailiff in, in March. The bailiff had not taken more than a trailer and some wire because he considered the radio sets were on consignment.

Mr. Opie: The bailiff went to your house and found sets there?  - Only one set, the one we were using.

Mr. Crawford: When were you in trouble, when did you know? - About three months ago.

Mr. Crawford: What was your position 12 months ago? - About £250 or £3OO to the bad.

Mr. Crawford: About 18 a week, on average, for the last 12 months. - A lot of that was loan money.

Bankrupt said he had been in a position to sell 20 to 30 sets a month.

Mr. Crawford: Were you as careful as you might have been in regard to your personal expenses? - I would not say I was.

Mr. Crawford: You might have been a little more careful. - l was expecting things to improve, I realise the folly of that now.

When examined by the Deputy Official Assignee bankrupt said he intended to pay Mr. Turton the money he had received.
Bankrupt had been in Hawera in 1926. He would not say that he had paid all his debts there. He had been bankrupt in Auckland in 1920.

“You can rely on it that the whole matter will be submitted to the Crown Prosecutor and if he considers there are grounds for the department intervening that will be done,” said the Deputy-Official Assignee, subsequently, to the meeting.

A motion to that effect was carried. Mr. Stanley is the mover and Mr. Sharman is the seconder.

Manuwatu Standard 26 Aug 1938, Page 12.

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