BANKRUPT CONTRACTOR.

Manawatu Herald, Volume XLVIII, Issue 3641, 21 May 1927, Page 4

BANKRUPT CONTRACTOR.

LARGE NUMBER OF CREDITORS. WELLINGTON, May 19. “You’ve been in nineteen different towns, and left debts in every one of them,” said the Official Assignee, Mr S. Tansley, to a bankrupt dealer and contractor at a meeting of creditors called for yesterday morning, but which lapsed for want of a quorum. Although the proved creditors numbered about 120, which Mr Tansley described as the largest list he had ever seen for the particular line of business, only one creditor was represented at tno meeting. Mr Tansley remarked that bankrupt might have filed in a more central position, such as at 1 almerslon North or Wanganui, where some of his creditors would be able to get hold of him, for out of over £4OO that was owing to unsecured creditors only £29 was owing in Wellington. You have,” added Mr Tansley, addressing bankrupt, “neglected to pay butchers, bakers, doctors, motor garage proprietors, and, in fact, everybody everywhere that you went. Apparently you have made a system of it, and I almost think that the bankruptcy should be transferred wheio some of your creditors could examine you. You call yourself a contractor, but I think you are a contractor of debts. You have six Palmerston North doctors among your creditors, and it seems that you went to one town and when you could not get credit there you moved on to another.” Mr Tansley pointed out that bankrupt must have known that he was in a bad way some eighteen months ago. “The position,” he went on to say, “is most unsatisfactory, and it looks as _if the case should go before the Crown Prosecutor. Bankrupt apparently did not intend to pay his debts, but simply incurred liabilities when lie had no reasonable chance of paying them. Bankrupt has been living on his creditors all along, and in every town that he wont to.” • The statement of accounts showed the total debts to be £428 16s 5d owing to unsecured creditors. The assets were set down at an acetylene welding plant valued at £2O, leaving a deficiency of £4OB 16s sd. The creditors are domiciled in Wellington, Wanganui, Palmerston North, Napier, Shannon, Kimboltoa, Milson, Feilding, Eltham, Hastings, Gisborne, New Plymouth, Hawera, Midhnrst, Inglewood, Opunakvj, Dannevirke, WaipTikurau, Stratford, Waitara, Okaiawa. Bankrupt incurred debts with carriers, a bootmaker, motor engineers, merchants, garage proprietors, surgeons, settlers, outfitters, a land agent, draper, furnisher, ironmonger, wine merchant, publican, chemist, blacksmith, milkman, grocers, and a hairdresser. Bankrupt, in his sworn statement, said that he was a married man with three young children. About three and a-half years ago he was living at Hawera and labouring there and paying his way. He commenced the busi-ness-of dealing in scrap metal, aud sometimes did well and sometimes badly. Bankrupt added that he had to do a good deal of travelling and bought a motor car for £45, paying a cash deposit of £lO and one instalment of £lO. As it cost him 100 much for repairs he hired a car, but later bought one for £l4O, paying £3O in all. Being unable to keep up the payments to let the car go. “I had a lot of illness in my family,” bankrupt continued, “and 1 kept a bank account, since last June, paying in about £673. I paid in most of my takings with the exception of wages and current expenses. I worked at my business at Palmerston North, New Plymouth and Wanganui, and went in for splitting firewood at Palmerston North and Kimbolton, but lost on these jobs. I bought three locomotives from the Railway Department at Napier, and an acetone plant with which to do the job, but lost money on it. I also purchased three other locomotives from the department at Wanganui, but was unable to finish the job as the Government took away the jacks which I believed were part of the purchase.” in June last bankrupt said that he came to Wellington and carried on the scrap metal business, which did not pay him very well. “I kept no books,” he added, “as I had no knowledge of accountancy. Some time ago I recognised that my financial ' position was bad, but I hoped that my locomotive jobs would pull me through. About six weeks ago I got behind with my rent and quitted the house in which I was living, selling the little furniture I had for about £4 or £5. I have no property except an acetylene welding plant, on which I owe. money, and which is valued at about £20.” Mr Ewart, of the Railway Department, the only creditor represented, said that the jacks were not sold with the locomotives. Tn answer to the Official Assignee, bankrupt said that he had come to Wellington on account of his wife’s health, and that he was now working for his brother, who was dealing. The meeting was adjourned sine die.