DISCHARGE GRANTED.

Auckland Star, Volume LIX, Issue 76, 30 March 1928, Page 5

DISCHARGE GRANTED.

BANKRUPT SHIPBUILDER. SOME CREDITORS HOSTILE. COSTLY ISLAND CONTRACT.

Despite strenuous opposition by counsel for the petitioning creditors (John Burns and Co. and Bailey and Lowe), the well-known boat builder of Auckland, Charles Bailey, junior, was granted his discharge from bankruptcy by Mr. Justice Blair at a sitting of the Bankruptcy Court this morning. It was explained by Mr. E. W. Inder, who supported the application, that Bailey's trouble was over a large contract with the Tongan Government, for which he built the steamer Hifofoa. A loss was made on the contract owing to the non-arrival of machinery and the failure of certain payments. His Honor observed that the Bailey shipbuilding yards were a landmark of Auckland. Everyone with a knowledge of Auckland knew the firm.

In concurring in this view, Mr. Inder said that the applicant had been 59 years in Auckland and for thirty years he was head of the firm. He was now 64 years of age and if he did not get his discharge here he would get it in another world, for he was fast approaching the allotted span of three score years and ten. The attitude of the community towards the man was sympathetic and ninety-nine per cent of the creditors had agreed to a deed of assignment. In view of this fact, the Court would want something very strong to go on to go beyond the wishes of the creditors and refuse the discbarge.

"Numerous Offences."

Mr. F. Haigh, acting for John Burns and Co., submitted that Bailey had committed numerous offences against section 138 (i) of the Bankruptcy Act, and the Court was not in a position to grant him a discharge. Bailey had had two compositions with his creditors and then this bankruptcy, and counsel alleged that this almost amounted to a system. He further alleged that bankrupt had squandered his money and in a period of three years he took £3000 from his business. Then, again, there was the question of the manner in which the books were kept. "They were not kept at all, as a matter of fact," he added, in drawing attention to a statement made by Bailey's accountant to the effect that the "books had been badly kept and were in an absolute muddle." In addition to this, the Official Assignee's report intimated that the business had been going back for years.

His Honor said that some of the payments to bankrupt's son which were questioned seemed to be fairly old.

Neglect of Business Alleged. Mr. Haigh: The fact remains, however, that over a period of three years bankrupt himself took £3000 from the business.

He reiterated the charge that the conduct of bankrupt showed absolute neglect of business.

Mr. Inder explained that ag the result of one composition bankrupt had paid his creditors in full after two years. In September, 1926, it v. as revealed that he had a credit of £800.

Mr. Haigh said that according to the contract Bailey had with the Tongan Government his credit amounted to £7000. Although a credit of £800 was shown at the first meeting of creditors it was stated that since then the books had been properly kept and the debts were in the vicinity of £2000. Mr. Inder: That is not correct. In also opposing the application, Mr. Wilkin alleged that the business was conducted in a very loose way indeed. Mr. Inder submitted that for the head of the firm to draw £700 a year from the business was not excessive.

"The name of Bailey is old in boating in Auckland," said his Honor, in asking for information as to the size of the business.

It was stated that thirty-five hands were employed on the contract for the building of the vessel for the Tongan Government.

His Honor said that he saw no reason for refusing the application.