BANKRUPTCY.

Auckland Star, Volume XL, Issue 204, 27 August 1909, Page 4

BANKRUPTCY.

CONTRACTS THAT FAILED. John Gall, labourer, of Rotorua, and formerly of Hamilton, referring to his bankruptcy, states that about three years ago" he and Mr. R. A. Andrews, iand agent, now at Hamilton, entered into two contracts with the Hamilton Borough Council. The contracts were for drainage, and styled No. 1 and No. 2. No. 1. was for £1,000, and No. 2 about £5,000. No. 1 contract proceeded satisfactorily, but No. 2 fell through, and the Council eventually took it over. Andrew went bankrupt before the completion of No. 1 contract. Most of Gall's debts, he states, were incurred on account of the contracts, and his private liabilities amount to only £5. He has no assets. His wife advanced the filing fee, and in the interests of his creditors, and to prevent imprisonment, he had to seek the protection of the Court. Owing to affliction ■he is unable to work, and cannot make any offer to his creditors. He is of opinion that he should have received money from No. 1 contract, and thinks that the sum of £150 paid to R. O. Clark on an order from Andrew and himself, upon the Council, might be recovered. The liabilities are set clown at £165 7/7, and assets nil. The statement in bankruptcy of Jensen Bros., builders, of Te Kuiti, shows that the capital of the firm was about £75, the greater part of which went in living expenses. Their idea was to go on without employing labour. However, more contracts were taken in hand, and they put on wages men. They also took over a joinery shop, putting down £70, and agreeing to purchase at £2.700; they also took up about £1,400 acres of native leasehold. Then a sawmill was purchased for £150, payment being mace by instalments, and other moneys were spent in this connection, including £90 for timber. Finding themselves in difficulties with the lease, for want of money to pay expenses, they were obliged to sell the mill and plant for £500, and a large portion of this money went to pay costs of surveys, etc., and general expenses and living expenses for the firm- The brothers, who number four, attribute their position to the fact that they took on too many big contracts with too small a capital. A rough statement shows that the losses on contracts amounted to about £930 10/-. MEETING OF CREDITORS. A meeting of creditors in the estate of Donald Hugh Aloysius Bourke, formerly trading with Charles Nicholson under the style of "Kinos" at Auckland and Hamilton, was held at the office of the Official Assignee (Mr. E. Gerard) this morning. The Assignee reported that he was carrying on the business of the firm, and did not know that he should dispose of it. The bankrupt, whose statement was published in yesterday's issue, told the creditors that, as he could not make the business pay, he had no offer to make to the creditors. It was decided to leave the disposal of the business in the Assignee's hands, and a motion urging the Assignee to facilitate the bankrupt's discharge was also adopted. It was stated that Charles Nicholson, the other member of the firm, was now in Australia. The As-' signee said the creditors would no doubt like to secure Nicholson's presence at the next meeting, but owing to the expense this might entail, the matter was allowed to drop.