IN BANKRUPTCY.

Stratford Evening Post, Volume XXXIX, Issue 87, 3 August 1914, Page 3

IN BANKRUPTCY.

C/iARLES WEBSTER'S EoTATE. A'lAeeting of creditors in the estate of Charles Webster, contractor, was held on Friday in the office, of the .Deputy Official Assignee (-Mr A. Coleman). Creditors present were: Messrs W. Hannah, 1). Smith, il. Kdgar, Hutj/r, H. A. .jnlian, -i. C. .Neilson, PUbrkleson, Kmikin, Counsel present WMV: Messrs .1. R. L. Stanford (repfre.seutiag the 0.0. A.). H. C. Wright Lion Mr H. A. Wunseh), H. L. Spratt |(for Air W. Hannah), P. Thomson (for several creditors), and H. 1C Lawrence fcfor most of the wages men). SjjPankrnpt made the following written Jliteinent regarding Ids affairs:—l. eMne to the Taranaki district about mao years ago and leased from Air falter Edwards a farm of 80 acres at \whakamara with a purchasing clause. 1 warned on this farm Tor three years aial then sold out to Air \V . (I. White, Tills venture did ndl prove a success,

iiinVjss amounting to about £l5O. i tbeinuumenecd business ns a general contractor at Hawera. To enable do this. A!r "William Hannah, Stratford, purchased a team of horses for mo. 1 carried on this business fairly successfully for six years, increasing the number of teams to three.» When I left Hawera 1 could have paid 20s in the pound.. In January, 191 I, I took a sub-contract from H. A. Julian to crush 8000 yards ol metal and to deliver same on railway trucks at Tariki for the Whangamomona County Council. Tim contract price was os 8d per yard clear ol royalty. .Before signing the contract I had gone into the matter carefully, and on a low estimate considered that 1 would make a profit of £4OO. irrespective of the screenings from the crusher. which would yield about £l5O, The contract was taken from .Mr .Julian in the names of myself and ol -Mr Billiard. This was done at the instance of Mr Julian. My arrangement with Mr Billiard was that he was to receive 14s a day and a bonus (the amount cl which was not fixed) if the contract was successful. After signing the contract I interviewed Mr Hannah, who inspected the proposed working area and recommended me to go on with the work and lie agreed to assist me financially. I commenced work on January 2-1 th and employed three teams of my own and two other teams —on an average I had twenty-one men employed on the works. For the first week the work progressed very satisfactorily. the Railway Department supplying five or six trucks daily. At the end of that period the Department, owing to shortage of trucks, was only able to supply three trucks daily and on no account would or could supply more; This shortage ol trucks represented a very considerable loss to me. '.Strong representations were made to the Department by the chairman and Engineer'of - the Whangamomona County Council, by Mr Hine, ALP., and by Air Hannah to supply' more trucks, resulting in a promise by the Department to comply in the near future. Alter consultation with Mr Hannah from time to time and in expectation of the promise being fulfilled !, kept the majority of the men at work and dumped the metal at the railway station in anticipation of the trucks coming forward. This involved extra expense, probably Is per yard, for rehandling, hut 1 expected that with a regular supply of trucks the .contract would turn out successfully at the lifiish. I attribute my present position to the trucks not being available regularly and in sufficient numbers to make the contract a payable concern, and to holding on to the contract 'in the hope of .procuring trucks at a later date. T. crushed about 2700 yards of metal, all of which has been delivered on trucks at the railway station and forwarded to its destination. There are, still about 250 yards of unbroken -.tone at the crusher site worth about , 2s (id per yard. I have received progress payments on account of the contract amounting to £433 5s 3d and ! there is a balance still due to me. The whole of these moneys have been paid into my banking account. 1 sold SO ■cards of screenings to the Hawera Borough Council, and out of this 1 kept £B, the balance having been paid I into my hank account. I also sold a ■ further 73 yards to the Hawera Borough Council, for which I received £25 Gs 9d. My wife and eight children, ranging from 12 to a month, are dependent upon me. The financial statement showed as follows; —Unsecured creditors £lO2l 2s 3d, value of securities £I9OO, secured creditors £1503 7s Id. balance of securities £390 12s Bd. 'I he principal unsecured creditors were: Estate Smith Pollock £2B, R. J. Hughes (coal merchant, Hawera) £214 hs (id, J. .1 Thcrklcson £OO 4s Id. Rudkin £77. I Jones £7B, T. Thcrklcson £35. Cross* j ma n £l4 lls (id, J. Butler £OO Is, F. How £OB 5s (all of Tariki), H. A. Wunch (Midhirst) £BO, Masters and Son (Stratford) £25 ss, N. King (Stratford) £2OO 17s 2d. - Wages claims totalled £lOl 5s 9d. s Counsel went into figures in - the statement of unsecured liabilities, cud it was found that when starting at Tariki bankrupt was .about £9OO behind. Mr Wright held that at that time ■- Webster was really insolvent, ii in reply t<> AB' Stanford bankrupt

said Unit wlion lio started at lanki j lu' thought la l t■<mul pick up. He .start- j ('ll at tin 1 beginning of February, but j did no good ironi the start. By AprJ | he knew lie was insolvent. Hannah! know bankrupt’s position hut eontinn-i od co lend him money. ‘ 'dr Hannah said bankrupt ]>ni tiio • good side of the position to him and he. lent him money on bankrupt suggest- j mg that the whole of the indebtedness j might be wiped oil' as a result ol the j payment for the contract. Bankrupt distinctly led him to understand that j his indebtedness in Hawcra was noth-1 inn like it had-been proved to he. H lie (Mr Hannah) had known bankrupt’s) indebtedness in ihuvera he would never have lent him money. In repl yto'Mr .Stanford bankrupt) stated that Hannah was not interested | in the i outraet beyond linaneing him. j To Mr Wright: Hilliard was in sole charge of the men on tile Tank! contract'. lie had been forced to file his j petition and he took no steps to hie until compelled to. To Mr Stanford: Hillard was only a working ' partner—ho did not put in any money or assets. .Mr Wright: Yon had no control ol the' contract 'i .Bankrupt: Hillard was in solo charge of the men, but I could direct Hillard. Hillard received 1 Is per day and was promised a bonus if the contract came out satisfactorily. To Mr Spratt: He had no interest in the ■nucrushed stone ripped on the crusher site. Under the contract ho could dispose of the screenings as he pleased, provided the haagamomona Council did not want them. .Julian was to pay all royally on stone. .Mr Coleman stated that Mr McCarthy, of Hayvora, had telephoned that lie know, bankrupt’s statement (doth oral and written) would not bo satisfactory, but if ho (Mr McCarthy) were present he could make satisfac-, tory explanations, having been in charge of bankrupt’s affairs. Ho (Mi Coleman) thought it was out of the question to continue the contract, bur whoever took it up would be faced with the same trouble as bankrupt—shortage of trucks. On the motion ol Mr Thomson it was decided that the Assignee lie authorised to disppse of the plant (and the contract if possible) in the manner most advantageous to the The meeting was adjourned sine die. the Assignee to call the creditors together again as early as possible after the necessary data is procured.