PAID NO DIVIDEND

Sun (Auckland), Volume IV, Issue 1033, 25 July 1930, Page 12

PAID NO DIVIDEND

TAXI-DRIVER’S “THRIFT SERVICE” FAILS DISCHARGE ADJOURNED “The unsatisfactory feature of the bankruptcy is that he paid no dividend, and the assets, when realised, only returned £1 0s Cd; traders who conduct their business operations in this way should not be treated with the utmost leniency of the Court.” This comment was made by Mr. Justice Smith in the Supreme Court today, in adjourning for nine months the application of Edwin Walter Brinsden. an Auckland taxi-driver, for discharge from bankruptcy. The discharge was opposed by the Official Assignee. On behalf of the applicant. Mr. Ziman stated that the bankrupt had returned from Sydney with £ 400 and had started a “Thrift Service.” He enrolled as many members as possible at an annual subscription of £2, undertaking to supply them with tyres and petroi at cost. He had been assured by an oil company that petrol would bo supplied to him, but as a result of complaints by other traders the company cut off his supplies, with the result that, saddled with heavy liabilities, he was forced into bankruptcy. A rubber company to which he handed over his business, disposed of it and then charged him with the balance of his account. The real cause for the opposition to the discharge was that he had given his wife a second mortgage sometime before the bankruptcy. The Official Assignee stated be would agree to the granting of the discharge if the bankrupt would make an offer. His Honour adjourned the application for nine months.