BORROWED CAPITAL.

Auckland Star, Volume LVII, Issue 114, 15 May 1926, Page 11

BORROWED CAPITAL.

BAKXRVFT BUS-OWNER. FILES WITHOUT ASSETS. A meeting of creditors in the estate of Frodsham Glasgow Watkinson, a motor-bus driver of Mount Albert, was held before the V"h ial Assignes. Bankrupt's schedule showed liabilities to «'"• : secure*! creditors amounting to £541 8/6, with no assets. The re were no secured creditors. : Bankrupt, in his statement, said he ! started business in July. 1024. by borrowing "£3OO. He gave as security the equity of a property at Grey Lynn and property at Point Chevalier. He also guve a collateral security over two buses. The interest on the £300 was at the rate of 10 per cent. Of the amount borrowed bankrupt said he paid J. W. Andrew and Son £240, being deposited on buses, and £25 as a deposit on a bus bought from T. B. Dunderdale. He attributed his failure to the buses being of the wrojig type, the breakdowns and heavy tyre wear, the action of i creditor in seizing the two buses during the busy period in January, the withdrawal from his H*e of a bus hired from the Auckland Bus Company, and the misfortune of losing by fire the two buses on the night of February 23, thus leaving him with only one bus. Subsequent to the fire, he called a meeting of his principal creditors, but owing to insufficient funds, he could not file. He started a new run, from Blockhouse Bay to Dominion Road, with the one bus. This run paid at the start, and he thought business would have increased so that he' would have been enabled to have gradually paid his creditors, but a second creditor took his last remaining bus off the road and left him stranded. The Official Assignee told bankrupt thaf it could not be expected that a ' favourable report would be put in when he came up for his discharge, unless bankrupt made an effort to meet his creditors in the meantime. No resolution was passed at the meeting.