A MECHANIC'S FAILURE

Evening Post, Volume CXII, Issue 54, 1 September 1926, Page 4

A MECHANIC'S FAILURE

"A BAD BUSINESS MAN."

The action of Henry William Herbert Wells in undertaking a motor mechanic's business when he had had no previous experience of such trade was commented upon by his creditors at his meeting in bankruptcy before the Official Assignee (Mr. S. Tansley) yesterday afternoon.

Unsecured debts were shown as totalling £201 Is Id, and the assets at £80, including book debts valued at £20. 16s sd. The deficiency was £121 Is Id. . -; In his eworn statement, Ihe bankrupt said that he bought a motd'r mechanic's business in July, 1925, although he had had no experience of such work. He expected to carry on by employing mechanics. After a while, the business showed a tendency to drop, but he carried on until June of this year, when he was forced to close down. The bankrupt said he had contracted malaria while with the Main Body at Gallipoli, and this, and the effect of a head wound, prevented him from looking after the business from time to time. He had a private debt of £58 19s lid to the estate of the late Donald M'Kenzie, in connection with which a judgment summons was issued against him, but he was unable to meet this by instalments as in the cases of his trading creditors.

The bankrupt explained that Mr. M'Kenzie had'lent him £50 with which to open an account. He had paid £10 off this amount, but Court costs had brought it up to £58 odd. His wife had two 6mall properties in Wellington, which were just paying enough to cover the mortgages. From the letting of apartments in his wife's rented house, there was a surplus of £2 per week.

Two of the principal creditors alleged that Wells had used his wife's properties as a lever to obtain further time when they pressed him for payment of their accounts, but the bankrupt denied that he made, any such misrepresentation. They further commented strongly on his action in going into a motor mechanic's business without sufficient capital and with no experience of the work. Mr. J. Scott (for the bankrupt): "It is not very flattering to my client to say so, but he is certainly the world's champion bad business man." The Assignee: "I think it is a pretty hopeless case." The bankrupt said he would surrender the whole of the business to his creditors. If he had good health, he could work at the hide and skin business in the country.

The meeting was adjourned sine die, the bankrupt beiug instructed to inform the Assignee when he found work.