BORROWED MONEY

Evening Post, Volume CXVII, Issue 106, 7 May 1934, Page 11

BORROWED MONEY

DEBTQB'S BAD MEltfOltY

CREDJTQRS, DISSATISFIED

A meeting of creditors in the bank

i-iipfc. estate' of. William John Jordan, •[' foimcrly director of the Boji' Ins.tituto, Tasmau Street, Wellington, was held today at the'office of the Official i Assignee (Mr. S. Tanslcy). Mr. D. W. Virtue appeared for the bankiupt. The creditors present -were Mcssis. I. O. Brown, E. W. Oaborne, J. Harrison (represented by Mr. W. B. Kaincy), J.-A. Logan, J. F. Turnbull, Mrs. Catherine Campbell, (lopiescnted by ; , Mr. Cleve), Mis. V. C. Gicer, aud Mr. ~ T. C. Brash. ,' The statement of accounts showed: Amount owing to unsecured croditois, '••• £753 19s 8d; assets estimated at £270 f! ,, 2s Cd; deficiency, £528 17s 2d. The principal -unsecured creditors • ivero Mrs. K. C. Campbell (Eastbourne), l" S200; Turnbull and Co., grocers, £80; ~: P. Brown, grocer, £60; W. 11. Graham; ~ £55; Mrs. V. C. Grcer, widow, £53 ss; . M - Sir A. Bobin, £20; J. Lymons (Fox- • ton), £50; T. C. Brash, secretary, £39 ' Is 9d; J. Davidson, caretaker* £lo; 1i J. Harrison, motor mechanic, £40 10s iL ,\ 6d; J. A. Logan, grocer, £36; E. Osnorne, £.11 lls 6d. I ' In his sworn" statement tho bank"l rupt said that up to. Juno of last year <•-(. he was in the employ of the Welling- »,, ton Boys'■ Institute as director. He lT held the position for approximately eight years, during which time his """ salary fluctuated, but averaged approximately £.360. Up to the end of '' 1929 he had no difficulty in providing ■ ' for his wife, his daughtcx, and hiin--1 . self out of his salary, and incurred ' • substantially no debts. Abont that time, however, his wife had a serious 1.-.' illness which involved him in heavy expense, including hospital and doctors' foes. On his wife's recovery to some ." extent, they-decided to move temporarily to Mahina Bay with a view- to > i giving her every chance to recover. They were there for appioximatcly six tv> months; during which time, his house -.!. ill town was let, but the tenant failed to pay the rent, and the bankrupt lost i,! substantially the rent for tho whole of that period. CAUSES OF FAILURE. A material factor in his decision to **'' shift to Mahina Bay, said the bank- ' f mpt, -was the fact that it h:\d been s suggested to -them that if his wife's •heajlh permitted she should take over ■'[' the duties of matron at the institute, • lf combining with his .duties as director. That would mean that they would be in. receipt of a salary of approximately :l £350 per annum, with freo quarters. On their return to town his wife'« health. ' ■ was still indifferent, and he shifted to Kona Bay, where they.remained for "' about eighteen months. During that '" time the: house in town was let, and the • rent was paid more or less satisfactorily. During that time his wife's health was indifferent. On. their return to town, his own health, which 'l:' had been bad, gave way, and he was ; ' compelled more or less to take- things '-' easy for five or six months. The "' position, however, did not improve, his own .health got worse, and he was obliged to tender his resignation, to the - - management of the institute. The bankrupt said that during his period as director of the institute there were always heavy drains on his pocket, .which" he. could, not recover from the institute. He Hiad to keep more or less open, house tor bojs or their . parents, who were- visiting them. On several occasions boys coming out of hospital stayed with. them, for periods • , convalescing. In addition, the manage- , ment of "the institute suggested that he should, for his duties, acquire a. car, which, he did, the institute allowing lim 15s a week, towards its mnning ex- , penses. Since 1928 he had paid ap- ■ , prosimately £5 a month to the motor company ia reduction of'Hhe'-price of the various cars. ■ '>>i The bankrupt said that- 'he attri- -, buted his bankruptcy to the'fact that to a large estent he had to' TM'row for i the purpose of living at" 'Eastbourne , with a view to having his wife suffi-ciently!-jecpyered to take- on, the duties of-matroa"of the institute,* which job •. unfortunately did not materialise. In - addition, his, duties as director1 of the institute meant that he was more or less .- obliged on many occasions to'proviQ© - hoys with money or clothesV'aV the case might be. Ho said he lisa. not been guilty of any extravagance, nor had he spent Ms borrowings or -salary in i any direction other than was indicated in his statement. LOSS OF MEMORY. The Official Assignee said it appealed that extending o\er a certain peripd the bankrupt had borrowed about £611 • -—in fact, it looked .-is, if during that ■ ' time Jordan had lived ou loans. In reply to the Official Assignee, the bankrupt 'said that his memory was, not good attcr his illness, and he could not give details in connection -with his ' borrowings. He admitted borrowing £200 from Mis. Campbell and also having bonowed money from other , creditors, but ho could ' not leculleet ( wha,t he did with the money or the balance of the amounts still unpaid. He denied that he gambled or drank; the money was spent in the ordinary way of living. [ Keplying to further questions, the bankrupt admitted that statements made in letters written by him. to • ' creditors, read at the meeting—promises r to repay money—were in some cases ; untrue, and were only'"blinds "to put ■ the creditors off. She Official Assignee: It seems to me, I to say the least of it, that the bankrupt , has beea dishonest. After some discussion, .and close v questioning of tho bankrupt as to his • borrowings and p rom t ses of Tcpaymcnt tho following mdtion moved by Mr. Caere ana seconded by-Mr. J. F. Turn?sk' Was carried without dissent: ™?.,. at the matter of" the bankruptcy of Wslham John Jordan be placed in the J™*ros of the Crown Prosecutor."