MOTOR SERVICE FAILS.

Auckland Star, Volume LIX, Issue 122, 25 May 1928, Page 3

MOTOR SERVICE FAILS.

MISMANAGEMENT ALLEGED.

CREDITORS' INVESTIGATION.

BANKRUPT NOT PRESENT.

Although he was in Auckland, Albert Edward Magon. motor service proprietor, of Te Kuiti. failed to put in an appearance the meeting of creditors in his estate this morning. It was said 011 his behalf that he was under the impression that the meeting was set down for 2 o'clock this afternoon, but some of the creditors were inclined to the view that he had absented himself intentionally. Any comment concerning his conduct, however, was reserved till he had an opportunity to explain his affairs at the adjourned meeting later in the day.

Mr. J. H. Robertson, District Official Assignee, of Hamilton, presided, and said the regrettable feature of the matter was that the banrkrupt was not present. He had been assured by Magon's solicitor that sufficient money would be given him to enable him to come to Auckland.

Bankrupt's schedule disclosed that £3962 was owing to unsecured creditors, while others were secured to the extent of £793. Securities were valued at £3775, while other liabilities totalled £1125. Assets aggregated £5269, and included stock £616, book debts £1453, surplus of assets £2981, cash £104 and furniture, etc., £113. A Remarkable Statement. Bankrupt's statement, which, according to the D.O.A. was "remarkable not for what it said, but for what it did not say, explained that he began his service in Te Kuiti about eight and a-half years ago. He then had £1300 in cash. He built a house and later a garage. The latter necessitated his securing an overdraft of £1000, but he was in a sound financial position. As the business was expanding rapidly, he disposed of a farm property for £1500, and placed the money in the concern. At the beginning of the present year he found himself in difficulties, and since February, trustees, consisting of his creditors, had carried on his business. He attributed his failure to a falling off in business during the last holiday season; to the termination of an agreement with a rival on the Te Kuiti-New Plymouth run, which resulted in unprofitable competition; to the cutting of fares by his rivals; to an extended service to Rotorua, and to loss on the garage venture. " Insane Competition." "The business had lost heavily through insane competition and general mismanagement," commented Mr. JR. A. Spinley, in his report traversing the business carried out by the trustees. Investigations, lie added, showed lack of system of issuing and collecting tickets, and the faulty dispatch of cars, which necessitated driving them at high speed and their consequent greater depreciation. In addition to this, bankrupt's cars were not regularly repaired or washed, and there was a lack of uniformity in the business. The drivers were unkempt and decidedly slack.

"Limousine cars demand uniformed drivers and clean habits," commented Mr. Spinley. "Tourists do not expect to see cars costing £1400 driven by unshaven chauffeurs, with rolled up sleeves and without waist-coats, showing third-rate braces, -suspending slop-made trousers." The office control, he said, was weak and the book-keeping not up-to-daie.