RENT TOO HIGH.

Auckland Star, Volume LIX, Issue 124, 28 May 1928, Page 3

RENT TOO HIGH.

GARAGE PROPRIETOR FAILS. DOMINION ROAD BUSINESS. "HOPE OF SUCCESS" NOT AX ASSET. '"Hope of success is not a reliable asset for your creditors," remarked Mr. G. X. Morris, Official Assignee 111 Bankruptcy this morning, at a meeting of the creditors of Hector James Martin, garage proprietor, of Dominion Road (Mr. R. Matthews). Bankrupt's schedule showed there was owing to unsecured creditors £C>SV*. jml to sceu.ed ones £1.30. The value ol the security given was estimated at £200, whicli left a surplus to assets of £.30. Other assets were: Stock estimated to return £75 (over amount secured under bill of sale); book debts. £ISO, estimated to produce £l:; 0; and property, B.': total assets. £281 8/, leaving a deficiency of £408. Bankrupt stated he leased a garage in Dominion Road for live years at £15 15/ per week. He had hoped to let the shops, but only one was taken, at 35/ per week. Mr. H. D. Fleming, a retired farmer, joined him as a partner, putting in £300 cash. His share, it was agreed, was £175, represented by stock, tools, etc. Three months later Mr. Fleming retired from the partnership. He drew i £100 cash, and was given a bill of sale for £200 over the stock. He was later f repaid £50. leaving £150 still due. Later the landlord destrained for rent. ' Bankrupt said he had worked on Sundays and holidays to try and make the business a success. Under examination bankrupt stated he had about £70 of actual assets when he started. Right through he had to pay £14 rent, as he could not let the rest of the building. Mr. Morris said at the time of the dissolution of partnership bankrupt could not have paid 20/ in the £. Bankrupt said another man had agreed to join the business, but did not so do. on account of the high rent. Since Mr. Fleming retired from the business, he (bankrupt) had drawn only £4 5/ per week. Mr. Morris said the only safe way to carry on a sliaky business was with the full knowledge and consent of the creditors. No resolution was passed.