A BUILDING FIRM'S BANKRUPTCY.

Auckland Star, Volume XLVI, Issue 62, 13 March 1915, Page 8

A BUILDING FIRM'S BANKRUPTCY.

START WITH £80 CAPITAL.

Some interesting sideiiglits were thrown on /building by contract at a meeting of creditors held yesterday ai teraoou iv the Official Assignee's.office. The debtors were Messrs. VVilliani, Morgan .and Herbert MeLieod, trading 'as McLcod and Morgan, builders and contractors. There was a large attendance of creditors. Mr. R. Matthews represented - the debtors.

Mr. W. S. Fisher, presided, and read the debtor's statement to the effect that failure was -due to insufficient capital, accentuated by war conditions. Mr. Fisher explained that work was c topped on the -contract a,t .the time ■ of. bankruptcy, and the £101 in hand, had been paid over to him. He had seen the foreman of works; on the uncompleted contract, who wae of opinion that it would take the whole of the money to come from the Government to complete. the job. W. Morgan explained with regard to a Kawau property that he had.only paid £30 down on the sections, and had built a house upon it. . Mr. Fieher. said as there was £506 mortgage against. that property, there wae email chance of any surplus for creditors. . Arthur Herbert Stanley McLeod said h e had practically no capital when he started in business, and no liabilities./ Mr. Morgan practically put £80 to come into , the business: They had been in "business close on \ three" years. ' He did not realise their position until recently. The main- loss had been on the la,et contracts. They never drew but any balance sheet. He conducted the business, and Mr. Morgan kept the books. Each contract usually showed a i margin to the good, as far as the absolute expenditure was concerned. There were, however, about three .exceptions, .That surplus referred to did not account I for living expenses. There were ■• not large deficiencies on any of the three jobs'seferred to.' 'During; the whole time they'did-not make out any statement showing ■ their position. With' very' few exceptions ,all earnings were passed through the bank. All personal drawings were shown 'in the books. would "average about'- £5 a week, and Mγ. Morgan about- £3. They did realise they .were insolvent until a short time ago. Creditors did not press until about a'fortnight ago. About six months' ago they were summoned for £40. He did not think that was sufficient to take steps to ascertain the firm's financial position, at that time, ■ When • times improved they intended to pay 20/ in the ~£. Mr. -Fisher pointed out that while Morgan had put'in. the capital.McLeod' had drawn out £100 % year more than Morgan did. During the whole time they had been, in business .they, had been receiving pressing notices to pay.