Builder’s Failure

Sun (Auckland), Volume I, Issue 295, 5 March 1928, Page 1

Builder’s Failure

4 NEVER KNEW HIS POSITION” ALLEGED PREFERENCE Another examination of Baden \vatson, bankrupt contractor, of M# mi Eden, was conducted this morning by the Official Assignee, Mr. G. N. Morris. The original meeting was held last Wednesday, but owing to a misunderstanding bankrupt had not prepared a statement of his assets and liabilities or an explanation of his failure. Bankrupt's schedule showed £ 3.1 74 owing to unsecured creditors and £3OO to secured creditors. The value of securities was given as A. 558. The assets were shown as £1,931. consisting of £BB3 book debts, money owing on a job. £394, cash £305. property £BO, arwd a surplus of assets £258. The deficiency was £1,243. Explaining his failure Watson said that he commenced building al>cut three years ago with a capital of £2OO. Six months later he borrowed £ 300. From the beginning he had enough to live on, and IS months ago • estimated that he had improved his position to the extent of £.300 or £4OO. He did not find out until last January that he was insolvent. He attributed his failure to trying to supervise too many contracts at one time, errors in estimating and unwise speculation in buying sections. During 1027 he made profits on six contracts, but lost on eight. “You found you were going back, yet you did not seem to have learned any lesson,” said Mr. Morris. ’This man has evidently failed through undertaking too much. All along he says he did not know liis position, but I do not see that he could have over £3,000 debts without knowing it,” said Mr. Morris, in summing up the position. A committee was set up to consider the practicability of recovering bankrupt's large individual payments, which creditors alleged were preferential settlements. The question of Watson’s discharge was left in the hands of the assignee.