IN BANKRUPTCY.

Dominion, Volume 1, Issue 73, 19 December 1907, Page 4

IN BANKRUPTCY.

DISCHARGE GPoANTED. His Honour Mr'.. Justice Button hold a sitting in Bankruptcy yestorday ■ morning. William Wilson, building contractor, Constable "Street, applied for his discharge. In reply to the Official Assignee, applicant stated that he had been in business in Wellington for ten or twelve years. He had never been in serious financial trouble beforo. At the time of his bankruptcy he owed £453 to unsecured creditors and £1245 to secured creditors. Tho latter were: David . Andrews, £1050; and Sir Kenneth Douglas, £195. He attributed his bankruptcy to losses on a Lowry Bay contract, and on Hudson's contract. At present ho was in tho employ of Andrews, who paid him £2. Bs. per week. Ho had a wife and four children. His wife had no separate moans. She was practically an invalid.

The Official Assignee submitted that applicant was very much to blame for giving security to two of his creditors without consulting his other creditors. Had funds been available, tho securities would have come before tho Court. He (the Official Assignee) had been placed in a very unfair position.

His Honour: It would appear that bankrupt gave; security over his property in tho hope of getting help, which wouljl enahlo him to finish his contracts, and leave him with a balance' for his- creditors. It seems to me- to he a case not so much of dishonesty or fraud as of muddling. ' ■ The Official Assignee considered that the case was one in which the Court should not grant the discharge for a certain period, in order to mark the sonso of its disapproval of the action of the applicant in not consulting his creditors bofore ho gave security over his property. i

Sir Konhoth Douglas, who appeared for applicant, stated that Andrews had helped applicant to .such an extpnt that ho was bound to protect himself. If applicant' had enjoyed good health at the timo his losses would certainly not havo been so groat. If tho discharge wero applicant would still havo to go on working for Andrews.

His Honour: That is perhaps -the best ;hing for him to do. •

Tho Official Assignee asserted that there were a groat many contractors who wore not competent to carry on. They might bo very good tradesmen, but they wero very bad financiers. ' .-.:...

His Honour: The applicant is,'no doubt, a good tradesman. ''His .present positjon iieomsto be duo to mismanagement. Ho has four children ;tp maintain,. and is earning only £2 Bs.; therefore, it would be no use making an order compelling .'him to pay so much per week to ■ his creditors. I • don't think he intended to give tho creditors who obtained security .an, undue advantage over his other creditors. If I wero of opinion that he did, I would mark ray sense of his misconduct by susp'oridiiig" the order for discharge. It appears to me, however, that ho. hoped to be able to carry .out. his contracts with'bettor results; Under tho circumstances, the discharge will be'granted;