BUILDER’S FAILURE

Sun (Auckland), Volume II, Issue 437, 20 August 1928, Page 12

BUILDER’S FAILURE

CREDITORS SYMPATHETIC NOT A “MUSHROOM BUSINESS” Another huilderts and speculator’s failure was inquired into before the official assignee this morning, when Charles Benjamin Short, of Mount Roskill, appeared to meet his creditors. Bankrupt has been in business in Auckland since 1908. He accumulated £1,300 in six years, when he had a severe set-back, his joinery factory and most of his furniture being" destroyed in a fire against which he was poorly insured. The war then broke out. and this so seriously affected business that bankrupt sank his capital in a farm, which proved unprofitable, and he had to meet heavy bills for family illness. In 1917 he returned to the building trade, and business fluctuated. He gradually made headway until two years ago, when, sales being poor, he started exchanging properties. Two defective titles, causing heavy loss and delay, brought about the financial failure.. During the last few weeks a compromise with creditors was arranged, but obstacles then arose which caused the filing of the petition. The financial statement showed the following: Unsecured creditors, £847 3s: secured creditors, £5,675 Us sd; estimated value of securities, £7,380surplus, £1,704 8s 7d; nominal surplus over whole, £927 os 7d. The assets included farms at Kiokio, Stratford, Homai, Maramarua and Birklev East, and stock £SO and book debts £2O. WIFE A CREDITOR Bankrupt said he had kept no account of the money lie had received 1 from his wife, who was really a ere- ! ditor on the estate. He had a youngfamily of five children. Mr. Meek said bankrupt was not a business man of •‘mushroom growth,” and one creditor had forced the whole position. I-lad it not been for this a settlement could have been arrived at. The official assignee, Mr. G. KT. Morris, remarked that there seemed to be little prospect of the securities meeting the secured debts. He was inclined to be regretful that a compromise for 3s 6d to 4s in the pound liad not been accepted. As it was there seemed to be nothing in the estate. Bankrupt had failed more in the land transactions than in his building, and in these cases it was hard to assess the blame. The creditors passed a motion of sympathy with bankrupt. A motion to oppose discharge until there had been a payment of 5s in the pound lapsed for want of a seconder.