HIRE PURCHASE SYSTEM

Hokitika Guardian, 26 July 1926, Page 2

HIRE PURCHASE SYSTEM

CRITICISED BY CREDITORS. AUCKLAND, July 22. Criticism of tlie hire purchase system made by the creditors of a bankrupt omnibus proprietor, was endorsed by the Official Assignee, Afr AV. S. Fisher. It was stated that the bankrupt had procured buses on this plan, and a creditor remarked that it seemed strange that a man could embark upon such a big business without capital. He deprecated the facilities afforded by the hire purchase system.

“ I quite agree with you,” said Air Fisher.

“It means.” added the creditor, that while the bankrupt is paying off bis buses one firm i.s giving tyres, and I am giving him petrol, but we get nothing at all.”

A representative of the firm that sold the bankrupt some of the vehicles, reminded the meeting that his firm was a loser ns well ns the other creditors. ‘But you seized the buses,” said one creditor.

“That is so,” was the reply, “but we now stand to lose £1000.” He added that they had to take into account that while in use the buses depriciated enormously. That was another way io which the firm v.as a loser.

Another creditor wanted to know whether he could recover the value of the tyres from the company that had .seized the buses. The tyres were new. and not those supplied when the buses were purchased. “11l that case,” said another eredi tor, “I would like to know how I stand about- a coat of paint I gave one of the buses?” (Laughter). “There is no doubt that the hire purchase is an inquitous system,” declared AH Fisher. He added that he thought the creditors were largely to blame themselves for tlie risks they took.

“That is quite true,” said one, “hut when a man drives up to your garage in a flash bus you don’t think there is any risk.” (Laughter).