SHIP-BUILDER’S LOSS

Sun (Auckland), Volume 1, Issue 106, 26 July 1927, Page 9

SHIP-BUILDER’S LOSS

THE KETCH HIFOFUA PETITION FOR BANKRUPTCY JUDGE RESERVES DECISION | Alleging that debtor had committed an act of bankruptcy in notifying ; creditors that he had suspended or was about to suspend payment of debts, ; also that he had made a conveyance ! or assignment of his property to R. A. Spinley, of Auckland, company secretary for the benefit of all his creditors, John Burns and Co., Ltd., hardware merchants, petitioned yesterday to have Charles Bailey, jnr.. shipbuilder, of Auckland, declared a bankrupt. The petition was heard before Mr. Justice Herdman. Mr. Bagnall appeared for the petitioning creditor, Mr. Inder for the debtor, and Mr. J. B. Johnston for the trustees of any assignment.

Loss on the contract for building the ketch Hifofua was stated to be the cause of debtor’s present posi-

For the petitioning creditors, Mr. Bagnall said that debtor owed them £ll9 and £789 for ship-chandlery goods, the latter amount being balance owing in connection with the Hifofua. In respect of that sum it Was stated that petitioners held a security under the Wages Protection and Contractors Liens Act, 1908, on the purchase money payable by the Tongan Government or the Queen of Tonga, or the agents for the ketch. The security was valued at £6OO.

W. J. Hunter, secretary to the petitioning firm, said, that they had many complaints of unfair competition on the part of men whose trading operations brought them to a state of insolvency. Jt was said that firms assented too readily to assignment in such cases. He had been instructed not to consent to any assignment unless it contained the stipulation that the assignee was debarred from trading for two years.

Where the position had been brought about by neglect of business it was considered that it should be investigated by the official assignee. Mr. Johnstone said the debts involved amounted to £1,927. An offer to compromise had been made, and still held good. The firm of Charles Bailey, jnr., was one of the oldest established ship-building firms in New Zealand, and if it were to go out of existence it would be a severe blow to the industry. The object of the offer was to keep the business on under different management, and retain the skilled craftsmen employed in it. Mr. Justice Herdman reserved his decision.