TANGLED ACCOUNTS.

Auckland Star, Volume LIX, Issue 246, 17 October 1928, Page 10

TANGLED ACCOUNTS.

A CONTRACTOR'S BANKRUPTCY

meeting of creditors.

A SEARCHING INQUIRY.

(By Telegraph.— Own Correspondent.)"

HAMILTON, this day.

Adjourned for further inquiry, and to enable bankrupt to prepare a statement of his affairs, a meetipg of creditors in the estate of W. W. Scott, contractor, pf Hamilton, resumed to-day. The Official Assignee, Mr. J. H.' Robertson, presided. The affairs of bankrupt were stated to be in such a muddle that no schedule could be put in to-day, but the creditors tried to unravel affairs. The" Assignee read a letter, from Mr. R. English, into whose hands the estate was assigned by Scott's creditors in February last. The creditor's statement, he said,, showed liabilities totalling £7534, and assets £8405, the chief assets being £4347, claimed as due in respect of the Paeroa Theatre, £1865 in respect of the Morrinsville Hotel, £1032 in respeet of Keller's job, £1160 in respect of bankrupt's Hardley Street house and fumiiure. On into matters the writer discovered that assets had been considerably overstated. The amount shown as due on the theatre job had been. cut up by various liens and order holders. Tho writer handled nothing whatever in respect of thi3 asset. On_the hotel job he found only £1668 18/5 due. The creditor's committee had decided nothing further could bo done in Keller's matter, or in respect of the theatre job. It also agreed to the sale by the third mortgagee of the Hardley Street house, the Government valuation being'£lsss, while mortgages were approximately, £1700 plus back interest.

In view of the position disclosed it was decided it was not worth while the Assignee going to any further expense * in obtaining further signatures;'- to" the assignment.

Mr. J. C. Carroll, solicitor,-, of Te Aroha, and Mr. G. L. Burmester,' architect, Te Aroha, "were present, both being interested in the Paeroa Theatre Syndicate. Mr. Burmester sard Scott had agreed to the appointment of "Mr W. T. Osborne, builder, of Morrinsville, as arbitrator in respect of a settlement of the amounts in dispute on the whole theatre job. Scott denied'this absolutely, and asserted that Mr. Osborne was appointed only to decide a small dispute on extras berween him and a slab-con-tractor. Mr. Carroll said the arbitrator reduced Scott's claim-for extas -by £250. Had this been due it would have had to be distributed amongst various lien holders.

Mr. N. Johnsofi said credltbr-s were under the impression that Scott «ould get no information from the' theatre Company relative to the contract and the position of accounts.

Mr. Carroll said* information had always been available from the iboment Scott finished the job.- He left-him (Mr.- Carroll) to deal with the lienors, and hundreds, of ■ accounts poured in on him. j -~C

The Assignee, said it seemed to him i that in November, 19*27, Scott mast; have nothing' was comingto him from the theatre job. Mr. Carroll said he advised Scott about that time to place his affairs in th«hands of a solicitor and accountant, f Bankrupt: That's the first I hafe heard of that. ' ' ' ! : .D, Answering a creditor Mr. Carroll said that the lienors had all received 18/ na - the pound. Scott was paid a little three-quarters of the due to him promptly on the <giie :d&«^ i Bankrupt was, in fact, treated .. ... Answering the Assignee, bankrnpt-said 1 the contract price on the Momngvifie Hotel was £5491, extras bringing the ] [ price to £6123., . Questioned as to a certain cheque fop! £1000 received as progress payment oir. ; the MotrinsviHe Hotel, ■ Scott said" he' , cashed the cheque in Te Aroha, an£.pafij .£BOO in to his own account. 4'' Mr. Johnson: What- did you the balance? '• T V '• Bankrupt: T paid it to Mr. Buritfe^fcer. Mr. Burmester gave this ari enmhatie . denial. : , -

In answer to Mr. Johnson-Mr/Bur-mester said Wfi paid bankrupt March 31, £1000 on April 20, £20fyon April 26, £1000 on May 14, on July 28. He (Mr. explained that while he gave a certificate for the-first payment of £IQOO, he joiniy paid Scott £800. .Hi| reason for this w(j,s owing to • certain timber being condemned.

Bankrupt was now placed on oath. He stated in answer to the Assignee that of the two tenders he accepted one was for £5491 (which included £200 that he had arranged to pay to the architect). He paid Mr. Burmester £200 out of tlio first progress payment. The first l,.payment was £IQOO and ? £ - Mr. Thefe, Wai;- a J filiater progress*' payment of £1000' tnaon April 20, of which only £890 was banked, and a payment of £200 on ApriJ 26, of which nothing was hacked. • ("'< ' • ■ The Assignee said, according- v td "his investigations Scott was paid f-1.300 in respect of the Morrinsville Hotel, and i only £2900 had passed through tbe bank.-| Proceeding. • . I