SPECULATIVE BUILDERS

Dominion, Volume 20, Issue 54, 27 November 1926, Page 9

SPECULATIVE BUILDERS

BEFORE BANKRUPTCY COURT PROTECTING THE PUBLIC Dominion Special, Auckland, November 26. The affairs of two different speculative builders occupied the Supreme Court for some time at its sitting in Bankruptcy to-day. An application for discharge was made by Victor Reginald Thom, for whom Mr. Finlay appeared. The application was opposed by creditors, and also by the Official Assignee (Mr, G. N. Morris). Mr. Finlay said Thora was neither a fool nor a rogue. He was a tradesman who had turned speculative builder. “I do not know what Your Honour’s experience has been in the south,” added counsel, “but so far as Auckland is concerned, this class of venture. . nearly always proves disastrous. The "man becomes involved in mortgage finance, and if the houses fail to sell at once, he comes to grief. Mr. Justice Adams: I understand the result is failure in 19 out of 20 cases. . . Mr. Finlay said the creditors in such cases were largely to blame. So long as a builder bought their goods they raised no difficulties. ’they w T ere really partners in the gamble. However, when the crash came they were verv’ apt to complain, and later to oppose the debtor’s discharge. His Honour remarked that creditors were entitled to protection. Mr. Morris said the meeting of creditors had unanimously resolved to oppose the discharge. Thom had adeficiency of £2500. and, according to hJs own statement, £3OO had disappeared in the second year of his ven tnre. He was regarded as irrespon sible. . „ . . His Honour said the Court ought not to assist the bankrupt to recommence business, even m a small way, since to do 'so might lead to a repetition of the trouble Bankrupt had begun witrh capital inadequate for anything but a small business, and he had failed to keep books The creditc s' were not the only persons concerned in ' such failures, for their losses expressed them-selves in higher priced to the general public. The application would be dismissed. No fewer than three creditors petitioned for adjudication of. Allan Laing Petherick, builder Mr Jordan, who appeared for a fourth creditor, asked that adjudication should be suspended to allow of an assignment to private assignees Evidence was ' given that creditors representing a majority of the total liabilities of £4571 had approved the assignment Mr. Jordan pointed out that the Official Assignee would be oblised to sell the properties bv public auction, which was not advisable in the present state of the propertv market. Private assignees could dispose of them by private The debtor, examined, said he had 25 unsold properties on his hands They were mostly new and vacant, as it had not been his policy, to let them pending sale. If half his assets had been realised in the. past twelve months he could have paid Ill's debts His Honour said be considered an order for adjudication ought to be made, and he proposed to do so.