‘RAFFERTY” SERVICE CARS

Sun (Auckland), Volume II, Issue 363, 25 May 1928, Page 13

‘RAFFERTY” SERVICE CARS

late city

OWNER’S BANKRUPTCY YOUNG MAORI DRIVERS Creditors of Albert Edward Magon, ban icrupt motor service proprietor, of Kuiti. assembled in force in the office of the Official Assignee thi3 morning, but at the appointed hour tJIO bankrupt had not made his apexplained that Magon’s trother had seen him about town and h bad understood the meeting was called for 2 p.m., instead of 11 a.m. After a good deal of formal busineSji had been transacted it was resolved to adjourn until 2.30 p.m. and then to examine the debtor. Bankrupt’s schedule showed £3,962 owing to unsecured creditors and £793 to ■Arured creditors. Securities were valued at £3,775. Other liabilities totalled £1,125. His assets totalled £3 269, consisting of stock worth £616, hook debts £1,453, surplus of assets £3 981, cash £lO4, furniture, etc., £ll3. A nomlna surplus of £IBO was revealed. * In a statement Magon said he began a motor service in To Kuiti about eight ,nd a-half years ago with £1,300 cash. He built a house and latterly a garage and until the latter venture he was sound financially. To build the garage he incurred a bank overdraft of £I,OOO, with the house as security. As the businp*i was expanding rapidly he disposed of a farm property for £1,500 and placed the money in the concern. About the beginning of the year he found himself in difficulties. Ho then called a meeting of creditors and everything was transferred to a committee of trustees. Since February the trustees had carried on. He attributed his failure to a falling off of business during the last holiday season; to the termination of an agreement with a rival motor service on the Te Kulti-New Plymouth run, which meant a renewal of unprofitable competition; to the cutting of fares by rivals: to an extended service to Rotorua which never paid, and to loss on the garage venture. ‘This statement is raoro remarkable for what it does not say than for what it does say,” declared the deputyansignee, Mr. J. N. Robertson. SLOVENLY SERVICE An accountant who had gone exhaustively into Magon’s business reported that it hnd been run on most inefficient lines. Seven cars were on the road, but they had become dilapidated through speeding to make up for late running. Frequently Maori youths had been driving and the machines were badly knocked about. The drivers were slovenly and their personal appearance did not invite patronage of the services. A creditor described the debtor as a man who signed contracts that were unnecessary and omitted to sign agreements that were vital. BANKRUPT EXAMINED Bankrupt arrived this afternoon for examination and was reproved by Mr. Robertson for mistaking the time of the meeting. Questioned regarding a debt of £I,OOO owing to his brother on account of the purchase of a bus and not shown in his schedule of assets and liabilities, Magon said he did not know the amount had been omitted because he did not make out the statement. He admitted receiving £23 cash, since bankruptcy, which he still held, although the whale of his estate had been placed in tho hands of trustees. Asked why he had not paid the amount into the estate, bankrupt said he had the money intact. ‘I can tell you this,” said the deputyassignee, “that if tho £23 is not in ray hands within 48 hours the matter will be placed in the hands of my solicitor or possibly in the hands of the police.” Debtor denied removing stock and fittings from the garage since he filed. Regarding the erection of the garage Magon said he was not sure what it cost, but he believed between £2,000 and £3,000. “You seem to have a very hazy idea of your affairs,” said the d putyassignee. Bankrupt admitted he had not taken out yearly balance sheets or investigated his affairs. “You have simply muddled along, then?” asked Mr. Robertson. "That is what I have done,” agreed Mngon. (Proceeding.)