A BUILDER'S DIFFICULTIES.

Auckland Star, Volume XLVIII, Issue 36, 10 February 1917, Page 10

A BUILDER'S DIFFICULTIES.

I XOSS BY UNDSUOIi. .. A MOTOR CAR ACCIDENT. A tale of. trouble was related by a bankrupt to his creditors, when under examination at a, meeting of creditors held j'esterday afternoon in the Official Assignee's ' office. The bankrupt was Christopher Sellare, builder and contractor, who was represented by Air. McArthur, while Mr. Allan Moody apleared for the petitioning creditor. Mr. Fisher read the debtor's schedule, sh» wing £187 9/ due to unsecured creditoi s > to .secured creditors £946 5/4, estimated value of security given £998 15/', \.leaving £.52 9/8 to assets. Other ass»tf.s, including , stock in trade, left a defiii'ieiiey on liabilities given as £131 19/4. . * Mr. *W. S. Fisher read the 'bankrupt's statemo-nt that hits' started contracting in 1913 with a capital of £80. He built a worksltop, the erection of which cost £150. /Early 5n 1915 a landslip occurred, entirely demolishing the buildtig and thos -whole of the contents, mci uding the l»3oks. His total loss was £. 393. He c oiisidered lie was then finrva'iial to the c. ■stent of £250, so he decOdid to makit a fresh start, and had caxrjed on work to the value of £4,000. filing encumbered with several second mortgages, and in need of ready cash, he exchanged -one of the mortgages for a ■ motor car, thinking .to realise It better. He gent the car to be rep aired, paid £60, and had to sell it for £110, thereby losing £180. He could st til have met hie ordinary creditors in J "nil but for a claim :ior damages being given against him for £187 9/. The bankrupt stated,, in answer to the Official Assignee, thai hte made up a statement fr sm memory, and valued the properties at what each, had cost. Asked regarding the motor car, the, bankrupt explained that he invested in ii- for the purpose of raising ready mone.y. Mr.\ Clayton stated it was quite a commdLi thing to exchange second mortgages for an&tor catrs. They often saw people who owed money riding around in. motor cave. The bankrupt ' sta-ted, in answer to questioiKi, that he believed he had been threatened wivh proceedings at the time he gave the mortgage, but proceedings had not been started. With regard to the accident with his anotor car, for which judjpnent had been ,given for damages, he hid offered to sexitle for £100 previous to the date of healing, but that was not accepted. The -books handed in ■showed tlie- whole transactions since the time of. the landslide. He believed I he was fairly solvent up to the time of the accident. He held receipts for all he had paid. He passad nearly all the money iie hi.d received through the bank. j Mr. Fisber said there was no excuse or a man not' keeping a book to show eceipts and payments. Mr. Moody said where transactions :oveTed £4,000, some books should have ieen kept. Mr. Moody pointed out that the date >f the mortgagee was the 16th of Octo>er, the day before-the case was heard. Mr. McArthur-. said instructions were riven him re that mortgage some time )efore the deed was executed. I Bankrupt _■ said.- the mortgage ..waa. 'given at his ov.ni suggestion. It wie done because, in 3iis opinion, there had been a miscarriagp of justice before, and he felt he was in duty .bound to protect creditors who had supplied him with goods in case anything should go wrong with the othpr proceedings. Hβ considered tshere was .a- miscarriage of justice in the civil case also. He* sold the motor car after the accident for £110. In 1916, he received £53. He had paid it away "to creditors. Mr. Moody: Then you were preferring certain creditors after the judgment had been obtained ayainst you? Bankrupt: „ Yes, I paid it away in small sums. Bankrupt addrd that xhe furniture in his house had -been mostly sold eince the date of the judgment. He also paid that money away to different unsecured creditors. Most of - those debts were owing before the judgment. Since the judgment he had averaged about £3 a week earnings. By Mr. McVrthur: He was not sure the £53 was received since the date of the judgment. Mr. Fisher said he was much impressed with the bankrupt's openness and straightforward answering of questions, but he had been extremely foolish in the things he had done. He had apparently deliberately taken up a position of defiance to .the law. It was no use butting against a brick wall. Air Fisher inflated he would take legai opinion re arding the mortgages, and the meeting ended. i