MOTOR-PAINTERS FAIL

Sun (Auckland), Volume II, Issue 479, 8 October 1928, Page 16

MOTOR-PAINTERS FAIL

SPRAY SYSTEM AFFECTS BUSINESS Thomas Joeeph Muldoon and Rupert John Muldoon, bankrupt motor painters, of St. Paul Street, told thejr creditors this morning that their position was due chiefly to the introduction of the spray system of painting vehicles. When the two bankrupts started business in June, 1925, in Khyber Pass Road, they had good prospects, and ordered several indents for paint and varnishes. Soon after, the introduction of the spray system made competition in car painting very keen, and their position was seriously affected. The meeting decided that bankrupts’ discharge should be opposed until a dividend of 10s in the pound had been paid. “There is this much to be said for these two—they have not waited until • their position became hopeless,” Mr. G. N. Morris, the Official Assignee, remarked. Bankrupts’, total debts, amounting to £214, were unsecured. Their assets w r ere £159, and the deficiency was £55. Although the two started business with only £3O capital, they were developing a promising business. Trade slump affected them and, by th# end of 1926, they had lost the best of their garage connection and shifted from Khyber Pass Road. Another trouble was the effect of the new motor regulations in curtailing the building of passenger vehicles. The brothers decided to file in bankruptcy after consulting their largest creditors.