MECHANIC'S FAILURE.

Auckland Star, Volume LIX, Issue 79, 3 April 1928, Page 8

MECHANIC'S FAILURE.

TRAFFIC THROUGH TAKAPUIf A DIVERTED BY NEW BRIDGE. Attributing his failure as a motor mechanic at Takapuna largely to the diverting of traffic from his plac& of business as the result of the building of the Wairau Bridge, David Keid faced a meeting of his creditors this morning. The District Official Assignee (Mr.li. N. Morris) presided. 1 -,i Bankrupt's debts totalled £532 and his assets £183 (including furniture £59 and Kurpiris from securities in the handß of creditors £111), thus leaving a deficiency of £348. Creditors were secured to the extent of £128 and unsecured to the value of £532.

Commencing business in June, 1925, with a capital of £100, bankrupt managed to meet his obligations till the end of 19*20, when he became hampered owing to the failure of customers to pay their debts. On top of this, the building ol the Wairau Bridge caused his trade to fall off considerably. Finally illness precipitated the execution of an assignment, under which he had to pay £2 a week. He managed to keep up this payment till recently, when further illness compelled him to file.

Bankrupt said that when he met his creditors in the first instance they made no complaint concerning his conduct. He admitted that he had given a second mortgage on a house property at Takapuna, which he valued at £800, to his father shortly after his assignment in March of last year.

Mr. Morris: The point is that you had assigned that property to your creditors, and I want to arrive at whether you kept faith with them by giving that mortgage to your father.

Bankrupt said that had he not given the mortgage bis father would have come in as a creditor under the assignment.

A creditor complained that while he was on the committee in connection with the assignment he knew nothing about the mortgage.

Mr. Morris: "The Assignee apparently knew." Having agreed to the assignment, he considered the creditors could not complain about that now. He explained that there was not a great deal of equity in the house, as it was mortgaged to the extent of £730. It was almost impossible to realise on property at Takapuna at the present time, and in addition the house was carrying almost as much mortgage as it could. He was quite confident that Reid. senior, was not goinjr to realise £255 out of it. Counsel for bankrupt (Mr. W. W. Meek) sugirested that bankrupt was deserving of sympathy rather than censure. He thought there was nothing to be gained by opposing his discharge. Mr. Morris agreed with, the latter contention. but the creditors passed no resolution in recrard to the matter.

The meeting was adjourned.