Tui Bus Service Ends in Bankruptcy

Sun (Auckland), Volume II, Issue 351, 11 May 1928, Page 13

Tui Bus Service Ends in Bankruptcy

“MOST HOPELESS MAN”

£4,000 DEBTS IN THREE MONTHS

"This is the most hopeless man I have seen here for many a long day. He is absolutely incompetent an d started in debt and without any training. He appears to have cut fares an unwarranted extent and what harm he has done to his competitors I do not know. In three or four months he has gone through somewhere about £4.000. I am not sure it is not a case for the Crown Solicitor.” Such was the pronouncement of the Official Assignee, Mr. G. N. Morris, in summing up his examination of Lawrence Edward Dwyer, bankrupt motorbus proprietor, who faced a large number of his creditors this morning. Dwyer formerly carried on the “Tui Motors” bus and service-car run from Auckland to Hamilton. Bankrupt was subject to a penetrating fire of questions by the assignee and by several counsel for creditors. At the conclusion of the examination Dwyer was informed that he would probably be required to undergo a further examination, and in the meantime was ordered to prepare a full statement of his receipts and expenditure from last July to the date of liis failure. A resolution regarding his conduct was left, pending further investigations. Bankrupt’s schedule showed a deficiency of £3,218. Tie owed £4,062 to unsecured creditors and £4OO to secured creditors. He estimated his securities to be worth £1,200. The assets consisted of £44, book debts, and £BOO surplus of securities. In a statement debtor said he was 24 years of age and was married, with one child. Since leaving school he had been a fireman, engine driver and butter factory hand. In November, 1927, ho decided to start a service car business and was financed for the deposit of a car by his father-in-law. lie started a run between Auckland and Hamilton. At first there were few passengers, but an advertisement under the style of "Tui Motors” brought so many passengers that he had to hire cars.

Me went on to detail several exchanges and purchases of various cars. In December he exchanged one of his two service cars for the equity in a "sightseeing bus. At this time he employed a driver at £3 10s a double trip. He then believed himself quite solvent. Debtor said he was still making his payments on the Buick car and bus until the latter dOWn ' w D , wyer cailed a meeting of cieditors .m February, and was allowed* to carry on for three months. Another rSwS? 8 , Wi t £ V bailed and his father-in-law a ? ! f5 ed creditors 5s in the £l, but this used and he was made a bankrupt. He had tried to carry on as a boolcUt as last as money came in him “ warrants issued against bankrupt examined WaS subJect to a long and searching cross-examination by the assignee. y tiJJ 0 h f < ! '<cen a car driver for some ho ar ! d kl jew.little about service cars, he said. Neither had he any previous tnlYi'Y®, o£ service conditions It with a no assets and started with a liability of £SO. He was the* 2oit,Y r ? Prie l tor ’ and although posnoS no bU£ aness experience he had b^hTtrmirclr^ 111 “ wfs~ hi'mse f y th r °» riet ° r the future and himself the managing director.” hft & had tl hir ft l er the Etart of operations so thJt h, d seven seven-seater ears ad ,o f h ." Ti aS carryill e 50 passengers a “ay for the period. The bus, suba<?«tiirca,. carried 20 passenond i? e parsed 10s single at first bus Jo return. So long as the the £uU 14 pa id Its way but f - cars never showed, a Profit. In fixing his scale of fares !'d allowe d for benzine, wages and “a little for depreciation.” “A very little ” commented the assignee. He was advised that he should be able to make the service pay at 10s. His competi--1 w,! Ver t makln S a profit of 9 per cent When he called his creditors together in February he owed about £7OO, not including £9OO to his father-in-law. Questioned as to the accuracy of the figures Dwyer said when he made the computation he had forgotten some creditors. He admitted that he had not disclosed debts amounting to an additional £I,OOO. That was the position at his first meeting. “That explains why creditors allowed you to carry on for another three months.” said Mr. Morris. COSTLY UNIFORMS Dwyer was next examined about his pui chase ot uniforms for his drivers He ordered 10 uniforms to be made ° f about * 6 °. although he ' uo men to wear them. What sort of a way of doing business do you call that?" asked the assignee. “You never had capital, experience, or a ghost of a chance of making a success of the concern,” continued Mr. Morris. “Yet you have ruthlessly incurred debts all round ” Looking through bankrupt’s books he remarked, “You have brought a lot of useless truck, but what Is of any use is not here.” He added that it was obvious that several had been ■written up since the bankruptcy. Dwyer said that his average drawings had been £4 a week and he had not been guilty of extravagance. Mr. Mackay spent some time questioning the debtor about the business relationship with his father-in-law and the person for whose bus he had exchanged the car. Finally Mr. Morris said that the question would be fully investigated. A committee of three was set up to assist the assignee in making his inquiries.