SLUMP IN TIMBER TRADE.

Auckland Star, Volume LVIII, Issue 68, 22 March 1927, Page 9

SLUMP IN TIMBER TRADE.

CAUSES FAILURE OF SALESMAN. MEETING OF CREDITORS. The slump in the timber trade and tho general trade depression in Taumarunui were attributed to l>e the causes of the financial failure of John Wilson, salesman, of Kingsland, whose affairs were inquired into at a meeting of creditors in his bankrupt c«Tate this morning. The Acting Official Assignee (Mr. fl. X. Morris) presided, while bankrupt was represented bv Mr. C. O. Butler. The financial statement of bankrupt revealed that his total debts were £952 9/«. and his total asset* £3572 3/5, leaving a nominal surplus of £2769 13/11. The unsecured creditors list stood at £9t>2 9/6, while creditors were secured to the extent of £13.393 4/7. Included amongst bankrupt's assets were property valued at £2SIS, book debts £327, and securities £GO6. Bankrupt Examined. In his statement bankrupt stated that he retired from business in 1911 on account of ill-health, and was fhen in a sound financial position, his assets then being between £4000 and £5000. Until 1921 ho purchased many properties in both town and country and turned them over again at a profit. After reviewing financial dealings he had had from 1921 to 1926, bankrupt said he purchased a block of shops and a boarding-house on a leasehold section at Taumarunui. The price was £9500, and he paid £1500 in cash and his wife put in an equity in a house property worth £1000; £7000 was left upon mortgage, and this was later reduced to £SSO. The gross returns from the premises at this period were £1350. He subsequently endeavoured to earn a living selling shares in a flax epmpanv. but his efforts were not attended with success. Since then he had been doing commission work, but business had been very bad. and he had met with little success. About five months ago business became very bad in Taumarunui on account of the slump in the timber trade. All the tenants vacated the shops and l>oarding-house he had purchased, but later one or two tenants were obtained for short intervals at reduced rentals. For the four months previous to February, 1927, the gross returns had only averaged £6 a month, and the total outgoings were about £100 a month. Finding that matters were not likely to improve ho had no option but to tile. Questioned concerning his assets, bankrupt said he did not think his shares in property, amounting to £2SIS, were worth anything. Tho Acting-Assignee: That is another asset gone west! I Continuing, bankrupt said that he had earned practically nothing since May oi last year. The Acting Official Assignee: How havoi you been living ?—My wife lias been keeping me. "You go in for sport a good deal don't you?" queried Mr. Morris. "I have done, for the past 20 Years.'' Bankrupt further admitted that he had played golf and bowls during the time he was going bankrupt. Mr. Morris asked bankrupt how fce squared this with tho fact that ho had not earned anything for almost a year. Bankrupt said lie had been a member of a certain golf club for fourteen years, and he had kept up his subscriptions, always expecting matters to improve. -Mr. Morris: It is not so much the nibcrriptions as ine incidental expenses about golf.—l don't know. Had I let mv subscription lapse I would have had to pay my entrance fee again. Mr. Morris: \ou don't consider vou have been unduly extravagant in these! mat ters ? —No! of years, and this was the first time he had been in business for a large number of years, and this was the fir*t time 3e had been unable to pay his way without hesitation. He was at present earning £5 a week, and would endeavour to meet his liabilities if he got anything like a good run. Mr. Morris said there was no doubt bankrupt's failure had been brougnt about through misfortune. The meeting \x.i« adjournal