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- - - - - - - - - -MR. MASTERMAN…

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I METAL BROKER'S i "SMASH." » i REGISTRAR AND "A SYSTEMATIC- ALLY LOSI NG CONCERN." At Swansea Bankruptcy Court, Friday. Thomas Simm, metal merchant, 2.44, ),A ansea, appeared for his atijotirned examination. Hie gross iia- i bin lies were Jul 7,1-52, and the deficiency L 14,^74 5s. 9d. Debtor, in reply to the Official Receivr (Mr. Henry Hees) said he had handed in j n profit and loss account for the period to Sept. 30th, 1913, showing a loss on trailing for practically every year, the I toial loss for the period being £10,810 19s. lOd. llie Official Receiver: Bringing it up to the date of the receiving order, with t371 bank charges and living expenses, vour total losses are something between £ 11,000 and £ 15,000? iJebior: ies. The Official Receiver read correspond- ence showing that in September last debtor wrote to Messrs Siddons, Swan- sea, pleading the Moratorium, and saying he had a lot. of money on contracts, and would send a cheque shortly. Mean- willIe the firill were as ked to cntinue supplies, You were fairly on the rocks then," observed Mr. j Debtor: I don't think to. The market changes so often and very big changes, Loo. The Registrar: Do you mean to say you did not know at the time you were XI t.000 to the bad?—I did not know at that time, but I knew it was ?1<U)M in ttiat tiiiic?, but I knew it was JLIO,f)00 in The Official Receiver: Don't quibble about a few thousands in your case. The Registrar: You led your creditors to believe, from the tone of your letter-, that but for the war and the Moratorium you would have been able to meet your liabilities, but as a matter of fact, Mora- torium or no Moratorium, you were simply staving off the evil day. Mr. Edward Harris, who represented debtor, interposed: I think what he means is that he would have been able to keep the snowball rolling a bit longer. The Registrar: Yes, and the snowball was getting bigger and bigger, but the point is that he was not entitled to go on doing this; it was his duty to explain his position. Mr. Harris agreed. The Official Receiver: Do yon think that that is honourable, apart from the losses to your creditors? Debtor: My whole desire was to pay everybody, but luck was against me. He admitted, in further cross-examina- tion, that. his profits on the running con- tracts were not sufficient to meet his liabilities. Tho trustee (Mr. J. F. Harvey) put a number of questions to debtor, tbA object of which was to show that losses on contracts were sustained within a, day or two cf being entered into. In a year and nine months losses of « £ 8,420 were shown on contracts. The Registrar pointed out there had been losses on the^businew since the year 1908. In that year he lost ?591. in JW ?H9. in 1910 J?5. in 19H ?J,lt5. in 1912 £ 206. and in 1913 the losses jumped tn X4,385. I Debtor: That was the bad contract I made at the end of 1912. The Registrar observed that debtor's business seemed to be a systematically losing concern. Debtor: Since 1913 it is serious. The Registrar: But since 1908 it has been a systematically losing concern. According to your own account it is so. The Official Receiver: Speculation to a decree. Debtor: I don't think so. I continued bl,vingand selling. The Official Receiver: You are a very optimistic man. The Registrar: It is quite clear debtor has been taking large risks with nofier people's money. In reply to Mr. Edward Harris, debtor said it was not true he had been in the habit of buying at low prices on credit in order to sell for cash. The sitting was further adjourned.



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