BANKRUPT BLAMES HARBOUR BOARD

Sun (Auckland), Volume II, Issue 355, 16 May 1928, Page 18

BANKRUPT BLAMES HARBOUR BOARD

CONTRACTS NOT SIGNED “FAILED TO HONOUR AGREEMENT” (Special to THE SUN) NEW PLYMOUTH, Tuesday. “ I attribute my position to the failure on the part of the New Plymouth Harbour Board to honour an agreement made with me to supply stone and sand, on contracts entered into, but not formally signed and sealed.” This was part of the written statement by bankrupt read at the meeting of creditors of Robert Daniel Climie, quarry manager of Inglewood. “ Three years ago,” the statement continued, when the Harbour Board called for tenders in two contracts for the supply of large boulders and concrete aggregate required for harbour improvements, I located a source of supply. In December, 1926, tenders submitted by me were accepted by the Harbour Board. The tender for the supply of boulders was conditional on the tender for sand and shingle also being accepted/ and any failure by me to deliver large stone was to be made good by the supply of equal bulk shingle for block-making at a reduced rate. “In January, 1927, a beginning was made to carry out these contracts. Mr, C. A. Wilkinson joined me in forming a limited liability company, the Taranaki Stone Supplies, Limited, and a start was made to deliver rock for the breakwater. Unfortunately after about three months’ work the deposit of large rock ran out. This was only a few weeks before the date for the actual beginning of the delivery of sand and shingle for the new wharf.

POSTPONED DELIVERY ASKED “This material, according to the specifications, was to be dumped on the beach at Moturoa, and the Harbour Board’s engineer had a special railway siding constructed to take our trucks. When the members of the board found it was the intention to dump the whole 40,000 yards on the beach they immediately asked us to postpone deliveries. We met the board on numerous occasions, when the question of compensation was discussed. “Finally, finding they could disclaim all liability, they took advantage of a legal technicality and left us without redress to recover some £14,000 we had spent in preliminary expenses on their behalf. For the past 20 months the company has carried on a general quarry business, but owing to the high overhead charges we have been unable to show any profits, or to pay my arranged salary, and as some of my debts were pressing I have no option but to place myself in the hands of the official assignee. I attribute my position wholly to the New Plymouth Harbour Board not carrying out the honourable agreement entered into by me in all good faith.” DEFICIENCY OF £5,770 Bankrupt’s schedule showed a deficiency of £5,771 6s 4d, of which £358 12s 9d was owing to secured creditors and £5,000 to his bankers. Counsel for bankrupt said the board’s engineer had been met at least a dozen

times to arrange for the carrying out of the work. Then the board suddenly decided to have the contract placed on a more formal footing. Accordingly fresh tenders were advertised for once only, but the specifications were altered to such a degree that the company found it impossible to tender, and in the opinion of bankrupt no other company could have tendered. Mr. "Wilkinson said the bankrupt’s case was one of extreme hardship and he moved that his discharge be facilitated. This resolution was passed without dissent. The site of the quarry is a few miles on the south side of Waitara.