11 January 1932, Page 9.

IN BANKRUPTCY.
MATAWAI GARAGE MAN
ESTATE OF A. L. BEETS

The Deputy Official Assignee, Mr. J. N. Nalder, presided to-day at the first meeting of creditors in the Estate of Arthur Leslie Beets, garage proprietor, of Matawai, whose petition in bankruptcy was noted recently. Those present included Messrs. H. E. Bright (representing Mr. M. Smith, of Rakauroa), D. E. Chrisp (representing the Texas Company, Mr. C. Thornton and the P.B. Herald Company), R. E. Gambrill (representing Mr. J. Peach), and P. W. Bushnell.

The bankrupt was accompanied by Mr. S. V. Beaufoy, as his solicitor. The personal statement of Beets was as under:-

"On January 14, 1931, I commenced business on my own account at Matawai. I purchased a section from the Crown Lands Department, and built a garage on it. Business was quite all right for some time. All the profits I made I put into plant, and at the time this was completed I found the depression was having a serious effect upon my business, and I had the greatest difficulty in getting my money in. In the meantime I was getting benzine from the Texas Oil Co., and found that my trading accounts were gradually mounting up. I worked in the garage until October 16. I then left my brother in charge, and commenced a transport business with a view to making more money. I purchased a truck from Mr. Peach. I did not pay a deposit, but the amount due on this was to be taken out of earnings. I have paid £9 12s, being the first instalment.

"My property at Matawai is subject to the following mortgages: First mortgage to the Crown Lands Department; second mortgage to Mr. Peach for cash advanced; third mortgage to the Texas Oil Company, for approximately £200. I gave Mr. Peach a mortgage over the chattels to secure payment for the truck, and subsequently the Texas Oil Company saw me about a chattel security over the same chattels. I was given to understand that this security was subject to Mr. Peach's security, and it was given on the understanding that I could get a limited credit each month. After it was signed this security was registered, and I found they would not accommodate me as arranged, and Mr. Peach's security is jeopardised. Mr. Peach exercised his rights over the sale of the land, I consenting to waive my rights under the Mortgagors' Relief Act. He sold the property to Mrs. Hill, of Te Karaka. I feel that in fairness to my creditors I should file and place them all on the same basis, as I am unable to pay them in full."

The assignee stated to the meeting that the amount owing to unsecured creditors totalled £260 16s 2d, and the only assets stated was an estimate of £50 from book debts.

Examined by the assignee, the bankrupt stated that when he started in business, he had capital and its equivalent to a value of £80; he could not say just what cash he had, but it was £8 or £l0. The purchase of the Crown section was effected under the D.S.S. Act, and the deposit absorbed all the cash he had at the time. The full purchase price was £60 or £70, he was not certain which. The principal and interest were to be paid yearly. He financed the buildings by buying materials and engaging labor as be went along, being rushed with work at the start. The whole of tho buildings and plant were paid for out of the earnings. He had enough tools to start a garage in a small way. He had never worked out the actual cost of the buildings, nor could he give an estimate. He had not at any time taken out a balance-sheet or statement disclosing his position.