BUILDERS BANKRUPT

Sun (Auckland), Volume IV, Issue 977, 21 May 1930, Page 9

BUILDERS BANKRUPT

CONFLICTING STATEMENTS ‘Conflicting statements regarding the construction of a bouse at Henderson were told yesterday at a meeting of the creditors qf John Worthington and Frank Vernon Woolley, builders, of New Lynn, trading under the name of Woolley and Worthington. The acting-official assignee, Air. G. W. Brown, presided.

A statement, by Worthington said that the partnership was formed in September, 1928, when Worthington was joined by Woolley, who had carried on a business as builder in the city for more than 10 years. Worthington had been a builder before the war and, since his return, had built 23 houses without a loss.

The partnership was successful for a time and, prior to their taking up the contract which resulted in their bankruptcy, there was an excess of £356 of assets over liabilities. "Worthington's private balance-sheet showed a surplus of assets of £945, on which he was offered a loan of £l5O by a solicitor. Tenders had been called for a house in Henderson, for which they put in a price of £895. The partners understood that a loan of £ 800 had been arranged with the State Advances •Department and they were later told to proceed with the building. When the house was ready for inspection, in November. they found that the loan had not been sanctioned and that their tender had not been the lowest one received.

Work was stopped at once. The builders finally decided to complete the house as this would be the best security for their creditors.

: The detailed statement of the partnership showed liabilities amounting to j£ 1.012 Ss sd. with book debts of £277 9s 3d and property, in Totara Avenue, New Lynn, valued at £BOO showing A, nominal balance of £65 0s 10d. Worthington’s private estate showed a surplus of £784. and Woolley's estate a surplus of £55. In reply to the assignee, Worthington stated that he had lost on previous building works and would not have taken this contract had he suspected trouble regarding finance. This statement was corroborated by Woolley, the other bankrupt. Air. T. C. Thomson, solicitor for the owner, said he would like further inj vestigations made as serious charges i had been levelled against his client. He j willing that both the owner and ; his wife should be asked to give evidence.

Creditors decided to employ an architect to inspect the building and to get legal advice concerning the position as a large number of contradictory statements had been made. It was also decided to ask the assignee to facilitate bankrupts’ discharge.