CONTRACTOR'S FAILURE

Auckland Star, Volume LX, Issue 262, 5 November 1929, Page 7

CONTRACTOR'S FAILURE

UNSUCCESSFUL "SIDELINE." LOSSES ON CLOTHING BUSINESS. MEETING OF CREDITORS. ,• The failure of a clothing business into which he had entered was the principal cause of the failure of William Henry.' Craig, contractor, of Jersey Street, 5 Xewton, whose creditors met to-day before the Official Assignee (Mr. A. W. Wat-; ters). Mr. Glaistcr appeared for debtor and Mr. Hogben for the petitioning creditor.

Claims of unsecured creditors amounted to £402, and there was a deficiency of £255, the assets being book debts, estimated to produce £100. Debtor stated that in June, 1925, there were assets amounting to several thousand pounds in the business of Craig Bros., in which he and bis brother were partners. He drew against his share to put money into the clothing business of Pudney and Co., clothiers, which proved a complete failure. His wife lodged the title deeds of her own property to enable him to borrow £950 from the bank for a concern known as Suits, Ltd., which sold the products of Pudney and Co. The building partnership was following up two contracts. It was hoped to pay 20/ in the £, but there would be nothing for the partners. Answering the assignee, debtor said he had been in business with his brother for 40 years. There was no formal deed of the partnership, which was still in existence. He had a half interest in Pudney and Co., having entered into partnership with Mr. Pudney four years ago. The business was a sideline to him (debtor). It was for clothing manufacture, the produce being passed on to Suits, Ltd., who sold.

The assignee said there was apparently nothing in the private estate, and it remained for the partnership to be wound up. It liad been suggested that the assets would not be sufficient to pay 20/ in the £, but there should be a substantial dividend.

Mr. Glaister pointed out that the difficulty would be the realisation of the real estate.

Answering Mr.' Hogben (for the peti-, tioning creditor), debtor said he had no private debts, and he. had not paid any private debts out of the partnership funds. He had drawn £8 a week as wages from Craig Bros. Mr. Hogben: Have you any furniture? Debtor: Yes, but it is in my wife's name, and always has been. . Mr. Hogben: A good idea, too. Craig said he had received nothing out of the business of Pudney and Co.

Mr. Glaister said it was only fair, in the absence of Mrs. Craig, to point out the she had not received anything out of the business. She drew nothing from a sum of £950 which was raised from the bank on the deposit of title deeds which belonged to her. The meeting was adjourned for a meeting ol the partnership creditors to be held. '~'