NOT SATISFIED.

Auckland Star, Volume LIII, Issue 120, 23 May 1922, Page 3

NOT SATISFIED.

A HAMILTON BANKRUPTCY. CREDITORS WAXT TO KNOW MORE. iß.v Telegraph.—Own Correspondent.* HAMILTON, this day. Dissatisfaction was expressed both by creditors and the Deputy - Official Assignee (Mr. H. V. Sanson), at the state of affairs as disclosed in the bankrupt statement of Messrs. C D. and C. r. Molesworth (trading as Molesw r orth Bros.), timber millers, of Hamilton, during an examination in bankruptcy at Hamilton yesterday. Bankrupts' statement merely showed £645 due to unsecured creditors, with no assets, except a little furniture, in the name of C. D. Molesworth, set down at £40. A written statement, signed 'by both partners, stated that in company with one W. M. Howe they started business in October, 1919, C. E*. Molesworth having £72 of his own money and £300 granted by the Repatriation Department. C. D. Molesworth had no capital, while Howe guaranteed £300. Howe left the firm in February. 1920, claiming £150 a s his clearance. They gave him £50, but when they got tlie> books they found he had drawn £100 from the firm. They therefore decided to pay him no more. In January of this year Howe sued the firm for £100, and obtained judgment for £67. After Howe left they ran the mill with good results. In September,.lP2o, the mill was burnt down, but the prospects in timber being good, they decided to rebuild with the insurance of £280. They arranged an overdraft of £200, Mr. F. Jones, of Hamilton, guaranteeing the amount. During January, 19*21, a slump in timber caused them to reduce their hands, when Speight, Pierce, Nichol and Davis, of Cambridge, made them a tempting offer to mill their bush at Te Miro. They sold their engine at Hamilton and bought a new one. They started cutting in July with 'bad results, the engine not doing what it was supposed to do. In September, S.P.N.D. and Co. decided to take the mill over. Bankrupts owed them £1100 so they decided to file, but Mr. Xichol advieed them not to do so. He said his firm would give them £1350 for the plant, £250 of which was paid to the Repatriation Department. S.P.N.D. and Co. then offered them a new contract which would give them a chance to square their debts. They could, however, barely cut enough timber to pay wages. In December, 1921, S.P.N.D. and Co, let the contract to somebody else, and as there was nothing in writing they simply had to walk out. Cyril Dover Molesworth, at present working as a labourer, said that all the debts included in the schedule were incurred since Howe left the firm. Mr. T. Walshe said that at the time Howe left the firm was in a very fair position. At the time of the fire there wis a big fall in the price of timber. A creditor: Then it was a good job the fire occurred. Ml. Walshe: I would not like to say that. Bankrupt said the firm's loss over and above the insurance as a result of the fire wa3 about £400. He did not blame the fire for their present position, as they built again afterwards. He blamed the' Te Miro contract for the whole trouble. In answer to the Assignee, bankrupt said they were keeping a ledger, wages and monthly account book after rebuilding. At the time of the fire they had cleared off their debt 3 and owned the building and plant. They were about £000 to the good as a result of their operations us millers at this time. When they started the Te Miro job, they were about £150 or £200 ahead, apart from £100 book debts. The Assignee said there had been two items mentioned—some property in the North and a gum collection, each valued at £400. which now appeared to have disappeared, bankrupts suddenly discovering that these belonged to their mother. Bankrupt was cross-examined regarding these items, and declared that he could not lay a definite claim to either, although hi* brother claimed half interest in the Northern property. Both the Assisrnee and creditors commented adversely upon the non-appear-ance of C. E. Molesworth, Mr. A. E. Webb (for bankrupts) saying that C. E. Molesworth had no money to pay his farp from Auckland in order to be present. Bankrupt ?aid the Northern property was of 400 acres, occupied by his mother. It was in the district, and wa* worth about £SOO. It ran a dozen The Assignee said there was a deficiency of something like £900 without a penny ?tamp to show for it. The books disclosed liotTiine. and he thought, unless some further statement was forthcoming, the creditors should pass a resolution expressing their dissatisfaction. TTiere was aopareiitlv £1000 owine to old creditors when T>niikrupts allowed new creditors to come in and seize £1100. On two of the creditors guaranteeing the payment of C. E. Molqpworth's fare nnd expense?, the Assignee decided to issue a subpoena.