“SPEC.” BUILDER FAILS

Sun (Auckland), Volume I, Issue 191, 2 November 1927, Page 13

“SPEC.” BUILDER FAILS

“HONEST, BUT A FOOL” NOMINAL SURPLUS SHOWN “I think this man is quite honest, but he has been a fool in carrying on speculation building in such times as these.” This was the opinion of the official assignee Mr. G. N. Morris, in summing up his examination of John Renford Maw ken, an elderly builder of Bayswater, now bankrupt, who was summoned this morning to account for his debts. The assignee added that he considered “spec” building should not be undertaken by any man at the present time, as it was little more than gambling. A nominal surplus of £.1,372 was disclosed in bankrupt’s financial schedule. lie owed £607 to unsecured creditors, and £4,250 to secured creditors. His securities were set down at £6,130. The assets totalled £ 1,980, including £I,BBO surplus of securities. The balance was made up of book debts and £lO worth of Stock, HAWKEN’S EXPLANATION “I attribute my bankrupty to the attitude of two or three of my creditors pressing for a settlement of their accounts at the time when it was impossible to sell property or to finance a loan,” said Haw ken in a written statement. He said further that had he been given time he could have effected an exchange which “would have been a great financial help.” Questioned a... ju t liis failure, Hawken admitted that his book-keeping had not been accurate. He had been building all his life and traded in Auckland since 1920. Ho had always been engaged in “spec” building. • Do you think you were wise to go on with speculative work, knowing that many other builders had recently failed in such operations?” asked Mr. Morris. Bankrupt replied that he thought speculation was all right. When he came to Auckland he had £1,500 cash and no liabilities. It was not until six months ago that he found himself in difficulties. Two meetings of creditors held subsequently decided that he should carry on. Since last April he had drawn nothing from his business and had been living on his son’s wages and money raised by mortgage on his wife’s property at Bayswater. Previously his drawings had averaged £6 a week. Further inquiries elicited the information that bankrupt’s various properties were heavily encumbered, there being little or no equity in any of them. Creditors vouched for bankrupt’s honesty, but agreed he had been foolish. He was advised not to apply for his discharge for some time, but this would not be opposed when application was made. The meeting was adjourned indefinitely after the setting up of a committee to dispose of the estate.