“PAIR OF BUNGLERS”

Sun (Auckland), Volume I, Issue 288, 25 February 1928, Page 13

“PAIR OF BUNGLERS”

BANKRUPT BUILDERS “CREDIT GIVEN TOO FREELY” “These men are a pair of bunglers. They started building without capital, and all along it has been a case of heads they win and tails somebody else loses.” That was how a creditor summed up t • the bankruptcy of two builders, j Horace Sagar and Cyril Barnabas ) Busty, who early last year embarked ! . upon a disastrous partnership as con- j I tractors, starting virtually without j j capital, and after nine months’ trading j ! finishing up with debts amounting to ! •more than £2,000. They faced a meeting of some 20 of ! J their 40 creditors yesterday in the , i office of the official assignee, Mr. G. X. ! Morris. After a searching examina- j : tion both by the assignee and creditors ' a resolution was passed instructing j Mr. Morris to oppose the discharge of both. The combined financial statement showed £2,760 owing to unsecured I creditors. The assets consisted of j £558 owing by the Eduction Board, i and book debts said to be worth £4 10s. ■ Sagar’s private schedule showed £153 owing to unsecured creditors, and assets £ 25. Lusty’s private statement revealed £73 owing to unsecured creditors, £l9O to secured creditors and securities valued at £440. His assets consisted of tools worth £25, building society shares £l2 12s, and surplus of securities £250. BANKRUPTS’ STATEMENT In a statement the bankrupts said they began operations in March, 1927, having previously done one or two jobs on a partnership basis. Then followed details of several building contracts with the Auckland Education Board for the erection of schools at Te Papapa, Riverhead, Papakura, Ivaikohe, Papatoetoe and Point Chevalier. Several of these jobs were undertaken concurrently, and as a result they could not give adequate time to their books. Subsequently it was realised that too many contracts were being carried out simultaneously. However, they believed that everything was all right and had tjiey known they were losing they would have discontinued building. Briefly, the partners attributed their failure to inexperience in contracting on a large scale. Under cross-examination, Sagar, who had kept the accounts, said that all their losses were mainly the result of underestimating wages and costs. They lost £125 on their first venture, the Te Papapa job. On the Point Chevalier contract they lost a further £4OO, and so on in all works undertaken. There was no means of ascertaining whether a particular contract was paying, as all jobs were put through the same accounts. The only venture that was profitable was a small contract on which they cleared £lO. Commenting upon the bankrupts’ underestimating, Mr. Morris said that experienced builders might have carried out contracts at such low figures, but “I cannot see how you people could manage it.” Their average drawings had been about £6 a week, said Sagar. Several creditors asserted that Sagar had assured them last October and November that the firm was financially sound. On that assurance further credit had been allowed. Sagar was criticised for paying a cheque of £l5O to a relation to whom he owed £ 420 to the exclusion of other creditors. “When I told creditors that we were sound ! thought we were paying our way. I had gone into things rather roughly ” “Very roughly. seeing that you were over £4OO down at the time,” said Mr. M orris. Lusty was then examined. “I left all the bookkeeping to Sagar,” he explained. “I was only a carpenter, and it was not until Christmas Day that I realised how we stood.” “RECKLESS CREDIT” “It is no use whitewashing the position,” said Mr. W. W. Meek, counsel for the bankrupts. “But I do think credit has been given recklessly by some creditors without taking the trouble to ascertain something of the debtors’ financial standing.” “It must be admitted that credit is given too freely in some cases, but to throw all the blame for this bankruptcy upon creditors is a bit too strong,” was the assignee’s view. “These men have done honest builders out of a job,” said a creditor, in moving that their discharge be opposed. “They have traded upon capital supplied by merchants of this city." He also moved that the bankruptcy be put in the hands of the Crown Prosecutor. After some discussion the former motion was agreed to and the other shelved. It was also agreed to write to the Education Board pointing out that it had given contracts to men having no financial standing, and to show that in this case several creditors had lost heavily. crouching man which is carried along at a quick march pace at 200yds. There is no defined aiming mark, but the invisible “bull” and “four” rings are only 6in and 12in in diameter, respectively, a hit on the balance of the target counting three points. PASSED OVER BY SELECTORS It is remarkable that the selectors have not included Devore in the eight men to compete against the Victorians and New South Welshmen in the Gordon Highlander Shield contest, which is fired under service conditions On paper, the New Zealand team looks certain to win, but why the Aucklander should be dropped is a mystery. A selector’s job is always a difficult and thankless one, but in this case it certainly looks as though an injustice has been done to the Auckland representative. The rest of the Aucklanders failed to shoot up to form, which is surprising, as several have been putting in solid practice at Penrose. The general opinion is that elevation proved their downfall, as the light was dazzling at times, and the targets blended with the background. The Dominion match was opened in the afternoon with 15 shots at 600yds, leaving 10 shots at 900 to go. Although Hunt is out on his own with 72, the Auckland contingent is well up the list, the best scores registered being 66, put on by A. T. Patrick, and R. C. Russell (City and Suburbs), 65 by P. J. Pring (City and Suburbs), and A. G. Devore 64 (Akarana). The wind was a light “fish-tail” and the light very bright, which kept the scores moderate. There are very few above 66, so some of the local men have a chance of being •prominent at the finish, provided they &o reasonably well at 900yds tomorrow. Conditions here seem to be puzzling I tlu3 Australians so far, but they may J do better as the meeting proceeds, as the- Trentham wind cannot be mastered in a day. Unless the wind steadies, however, or they are lucky in striking good patches, one cannot see many of them being prominent in the belt series, even admitting that they are the pick erf the country.