TWO MUCH CREDIT

Hokitika Guardian, 30 April 1927, Page 4

TWO MUCH CREDIT

JUDGE’S OPINION. AUCKLAND, April 28. i When application was made to -Mr i Justice Stringer in the Sup! erne j Court for discharge from bankruptcy of Daniel Carline, builder. Auckland, objection was made h\ the* Official Assignee. Mr Johnstone, for the petitioner, siicl Carline was adjudicated bankrupt in 1922. He had since made restitu- ! tion. The Official Assignee said there had been a largo number of builders going j bankrupt Almost without exception j they were ver.y difficult cases to deal | with, for the assets were nearly always [ subject to second nr third mortgages. and were difficult of realisation, with j the result that dividends of pence in ; the C or nothing at all were paid, i Many builders carrying cm legitimate j business were being subjected to unI fair competition by men of little trade j experience who habitually cut prices, j With no experience of contract work j and hut. little of costing, they entered I into contracts, and. having few resources, an unsuccessful ventureI uidod them into the Bankruptcy Court. His Honor: That’s all very well, but creditors should protect themselves by being more careful. The Official Assignee: The legitimate c ! uildcr complains that ho is not get--1 ting a fair run. because there are al-

ways men prepared to under-cut prices j Carline has been convicted, of failing. t > keep proper hooks, and also ol obtaining credit without having a reasonable prospect of payment. His Honor: Yes, and he has ptirgeu himself of ihe offence hv going to prison. The Official Assignee submitted that sub. a builder shouU not he allowed to ixsume operations, particularly in view of the present state of trade in Am I.land. Carline was a good tradesman. and apparently he had earned geo.l money, for he had made restitution and had managed to live on the ’ .dance. If this discharge was granted there would he a number of other siniihir applications for discharge. His Honor; Oh, T don’t think so. .•.licit ease is dealt with separately and 'onsidcrcd on its merits. This man has been suspended from business for live years and T think he is entitled to resume. The Official Assignee: Yes. sir. but nossibly times arc harder now than'hey were five years ago. To granting discharge his Honor said Mint what the Offieal Assignee had •submitted was probably quite right, ’wit, was verv largely due to creditors who gave credit without due inquiries being made. Creditors must do some-, 'bin" to protect themselves. Alter all. Darline had boon punished tor his olfeneos and had made restitution, and Micro was no reason why his discharge should ho delayed. “In this ease. ’ added his Honor, “the creditors seem q, Pave a'ted very foolishly, allowing large credit without taking due precautions ’’