BUILDER'S BANKRUPTCY.

Auckland Star, Volume LIX, Issue 227, 25 September 1928, Page 10

BUILDER'S BANKRUPTCY.

PROPERTY SLUMP BLAMED

NOMINAL CREDIT SUBPIAJS

"NO MONEY IN IT," SAYS CREDITOR

Bad health, the slump in the property market, and the cutting of prices in the building trade, were stated by Mannaduke Robert Souster, contractor, of Birkenhead, whose creditors met to-day, to have been the principal causes of his failure. Bankrupt's statement of affairs showed a nominal surplus of £1128 18/9. Total debts (the claims of unsecured creditors), were £1945 5/3, and the value of securities was returned at £7050. The claims of secured creditors amounted to £5490 10/11. On the credit side, the value of stock in trade was given as £74 4/3, book debts £539 15/11, value of furniture £34 8/6, and value of real estate £866 6/3, making the total of assets £3074. Souster said he had been in business as a builder and contractor in Auckland and the district for 23 years. He started with a small capital and worked the business up to a sound position, the peak being reached in 1921 and 1922. Since 1922 his health had been bad, and he had had heavy medical expenses, several serious operations being performed. During the last two years business had gone back. He had relied on the realisation of his property to pull him through, but he had been unable to realise owing to the slump. Answering the Official Assignee (Mr. G. N. Morris), debtor said his books had always been kept by an accountant, and all his receipts and outgoings went through the bank. He thought the book debts would realise about £250. Some years ago his wife received a legacy and she put the money into the business. It had not been taken out. The Official Assignee intimated that he would like the creditors to appoint a committee to assist in investigating the value of debtor's properties. A nominal surplus had been shown, but it was clear that a real surplus did not exist, nor could one have been shown at any time during the last year or two. One of the creditors who was asked if he would care to join the committee of investigation replied: "I really dont feel justified in putting in the time. I don't wish to appear a pessimist but I really don't think there is any money in it." The Official Assignee* pointed out that there was interest outstanding on some of the properties, and investigation was certainly desirable. The committee was duly appointed and the assets were left in the hands of the Official Assignee for realisation.