The bankruptcy of Hartle & Gray Ltd.

RADIO DEALERS' LOSSES

MEETING OF CREDITORS,

INQUIRIES TO BE MADE.

With total debts of £1680 17/6, Herbert Schack Mackworth Hartle, radio dealer, met his creditors, before the Official Assignee, Mr. A. W. Walters, yesterday. Edward Gray was also named on the petition.
At the beginning of the meeting, counsel for Hartle explained that a partnership between Hartle and Gray had been dissolved on February 29 last and that the business had been carried on since then by Hartle. Gray was not present at the meeting.
The. Official Assignee read a short statement by Gray, in which he said he entered into a partnership with Hartle in 1921. The business was started with a capital of £500, which was supplied by Gray. This money was lost, and later Gray loaned the firm £2100, which was also lost. The business had been paying until about 18 months ago when the slump set in, and in February of last year, Gray sold his portion of the business for £60, of which he received £15. Gray said the slump had been the direct cause of the bankruptcy. Hartle had been in complete control of the business since it started. Bankrupt's financial statement showed that the total debts were £1680 17/2: money owed to secured debtors, £ 150 14/1: surplus. £48 5/1; stock-in-trade, £13 14/10; book debts £138 11/10: estimated to produce £200; total assets, £1879 19/11.

The business was started in 1921, said Hartle in a statement. There were very heavy losses the first year due to falling prices, and it was necessary for Gray to advance further loans. The business gradually pulled up. They catered for the small buyers, as they were the most profitable. As unemployment increased, the business decreased. As the business continued to decline, Gray decided to drop out. The position became worse, and Hartle decided to call his creditors together. A meeting decided that he should assign the estate, and that was done. It was found impossible to sell the stock at anything like the stock-sheet value, and it was resolved that the estate should be made bankrupt.

Under cross-examination, bankrupt said he had regularly drawn £5 a week out of the business. "Reading your statement, we gathered that you were, an up-to-date businessman," said Mr. Walters, "but when we go into matters, we find in what a lax way the business has been conducted”. A creditor: How long have things been going on like that?
Bankrupt: Ever since the business started 10 years ago. I take the whole blame. Further examination revealed that there had been heavy losses during the past three years, and a creditor asked why bankruptcy had not been filed three years ago".
Two supervisors, Messrs. E. Grimwade and A. W. Parker were appointed by the meeting to assist the assignee in making further inquiries. The supervisors are to be paid a commission of 2½ percent.

 Auckland Star 15 Jul 1932, Page 3.

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