BANKRUPT BUILDER

Evening Star, Issue 19791, 15 February 1928, Page 13

BANKRUPT BUILDER

UNDERESTIMATES CONSTRUCTION COSTS A was field yesterday of the creditors of Thomas* John Butler, builder, of Dunedin, who recently filed in bankruptcy. The official assignee (Mr W. D. Vallaco) presided, Mr A. G. Neill appearing for the bankrupt. The statement of assets and liabilities showed:—Unsecured creditors, £749 Is Id; cash in hand or in bank, 5s 7d; surplus from securities, in the hands of secured creditors, £320 ISs 2d; secured creditors, £569 Is lOd; value of securities, £900; leaving a surplus credit to his estate of £330 18s 2d; net deficiency, £H7 17s Id. The principal unsecured creditors were:—J. F, Taniblyn. £l7; John Edmond, Ltd., £76; Robert Robertson, £7O; J. Scott and Co., Ltd., £146; M. Silverstono, £l4; W. Watson and Son, £44; Charles Sonutag and Co., £65; Homo Heating Supplies Company, ! Ltd.. £l2; the Southland Sawmilling Company, £219; and A. Sykes, £SO. The secured creditors were F. Smith, who was secured to the extent of £450, Mrs Gill £79, and Jessie Brewer £4O. In a written statement bankrupt said lie completed his apprenticeship to the building trade in 1917, and worked as a journeyman carpenter until May 11, 1924, when he commenced business as a builder on his own account. The capital ho had when ho commenced business was £IOO, and in addition he had an’equity in his property in Leith street. The deposit on this property had been paid by his wile, who obtained the amount from her father. On the first house lie built ho made a loss, due mainly to the State Advances Department holding hack the granting of a loan. Uo made a small profit on the following house, and out of the next four jobs lie made a j?mall profit on three. In June, 1927, ho commenced building an hotel in Miller’s Flat. In the first place he underestimated the labor ior the job, then various causes delayed the completion, with the result that he lost approximately £4OO on the contract. He attributed his failure largely to the loss made on the Miller’s Flat job. He was a married man with one child. During the whole time he had been in business his own drawings did not exceed £4 IDs a week. The Assignee said the statement seemed to give a reasonable explanation of the failure. Mr Neill said it was with regard to the Miller’s Flat job that, bankrupt made a mistake. He originally tenclercd lor :i wooden house, but the landlord decided to change to brick. Mr Butler probably allowed himself to he forced down m his price. The Assignee said the bankrupt seemed to have gone into the building trade with more experience than most other bankrupt builders had. Several of his contracts seemed to have turned out all right In a sworn statement bankrupt said lie lost about £l5O on a contract at Anderson's Bay. He made a mistake with the foundations, and some timber was stolen from the job. He reported that to the police. It was chiefly owing to Ids underestimating the labor that ho lost on the Miller's 1' hit job. Ho also underestimated the cost ol railage. The furniture in Hie house was bought by Ins wile with mono.) given to her by her lather. A creditor said that he was convinced the .Miller's Flat hotel job was worth £2whereas Butler’s eontract price was £I,7UD. Bankrupt said lie could not_ mate an offer. He tv as out ol a job at present, and would have to look lor one. . ~ It was decided, on the motion ol a creditor, in leave the estate in the hands of the official assignee. The Assignee said he would put the property in the hands of to endeavour to soil it lor £9OO. M lieu interest on, mortgages and commission on the sale had been paid there would ho about £BSO. The mortgages womd take about £569, and, alter the assignee’s commission came off, there would lie about £2BO in the estate ior the creditors.