UNPROFITABLE DEAL

Sun (Auckland), Volume III, Issue 716, 16 July 1929, Page 8

UNPROFITABLE DEAL

BUILDER LOSES CAPITAL To allow second mortgages to determine the value of tHeir securities, the bankruptcy meeting concerning Clarence W. Bruce, a builder, of Bdendale, was adjourned this morning for a month. The deficiency shown in Bruce’s statement of finances was onlv £45. While he owed £28,230 to secured creditors, the securities were estimated at £28,160, and bankrupt's assets were given as £25. The increased difficulty of finances when Bruce was building on ten sections was blamed for the loss of capital which brought on his bankruptcy. Bruce said that he began business in 1925 with a capital of about £3OO and executed a number of mortgages. About March this year, after meeting all his liabilities, he had £7OO to his credit. Then he bought sections and started building ten houses. Owing to financial difficulty, he was obliged to accept, on an average, only £550 for each. He lost all the capital he previously had. "Under examination by Mr. V. R. Crowhurst, the acting official assignee, Bruce said that he speculated in and sold properties. He had sold everything uDtil he became involved in the present properties. Mr. Crowhurst said that, until the second mortgagees could determine their position, he did not see that the case could be carried much further. He instructed the bankrupt to supply complete details of his receipts and expenditure.