DETAILS WANTED.

Auckland Star, Volume LXII, Issue 4, 6 January 1931, Page 5

DETAILS WANTED.

BUILDER'S BANKRUPTCY, , —_ i DISSATISFIED CREDITORS. "TOO EVASIVE," SAYS ASSIGNEE. "William Henry Lloyd, builder, .of 21, Euston Eoad, Sandringham, met his creditors to-day, before the acting-Official Assignee, Mr. G. W. Brown, and was subjected to a severe cross-examination. Debtor's financial schedule showed claims of unsecured creditors amounting to £040 10/, and those of secured creditors to £10,568 5/, l the value of securii ties being estimated at £12,990. There was a nominal surplus of £1531. Debtor (for whom Mr. B. Goldwater appeared), in a written statement, said that he commenced building on his own account six years ago. He erected three houses, building them himself, and exchanging the mortgages on them for property at Epsom. He received no cash, but made a profit of about £250 on each of these transactions. Details of later mortgages were also mentioned. Answering the acting-Assignee, bankrupt said his drawings averaged £0 a week. He had regarded that sum as wages. His wife had no separate estate, though she had assisted him from time to time. The extent of her assistance during the time he was a builder was about £200. A Creditor: His wife has money. j j Bankrupt, further questioned, said ! that although his wife had no real estate she had money of her own. She had an account in the Post Office Savings Bank. He did not think she had drawn from this bank. Mr. Brown: Would it be correct to say the money your wife lent you was saved from the household allowance? —Yes. Have you made any recent payments ! to her ? —I supose I paid her about £40 !two years ago. Bankrupt added that he thought there was about £150 still owing to his wife from him. Mr. Brown: Have you a car? —No. Has your wife a car?— No. What offer can you make? —Nothing. When was your last job?— Last May. You're sure you can make no : offer to your creditors?—No, it's no fault of mine. Speculative Building. Mr. Brown: It is generally recognised, I think, that a man who builds on speculation is on pretty dangerous ground ? . Bankrupt: In that case there would be no building in Auckland. A creditor said that a representative of his firm had called regarding payments over a house and had been told that there was no mortgage on it, whereas there was a mortgage. . Answering the acting-assignee, 'bankrupt said that a few days before the creditors' representative called and the mortgage was executed he received a letter demanding security for his debt. Another Creditor: The security was then given. Other goods were supplied by another firm after the security was given. ■, The Acting-Assignee: And did you consider, after that period, that you were in a position to pay your debts? Bankrupt: I certainly did. I raised £800 on the mortgage. Another Creditor: What were his liabilities at this time. r Yet Another Creditor? About the same as they are now. ( After further questions by the actingassignee, Mr. Brown told Lloyd that he must not be so evasive. "I must remind you that you are now on your oath, and I must have a good deal more definite information - than you have given," said Mr. Brown. "Draws" and Distributions. What did the house in Maungakiekie Avenue cost —the one there is a mortgage agreement over? the next question by the acting-assignee. "I value'it at £900," replied Lloyd. Mr. Brown: I'm not asking you what you value it at. What did you pay for it? Bankrupt: Eight hundred pounds. Further questioned, bankrupt said when he got a "draw" from any job, he used to go -round and distribute payments to his creditors. He kept no accounts, but, when he had money, he would go through his invoices and determine to whom payments should be made. When did you last make payments to your creditors in cash ? —About the first of April. (Laughter.) Debtor said he had been collecting the rents of various properties owned by him. They averaged over £3 a week more than the sum required to pay mortgage interest and rates. A Creditor: May we investigate his books? "Merely Note Books." The Acting-Assignee: Most certainly; those will have to be produced. Another Creditor: From what I know of him, those books are merely note books. The acting-Assignee said he would require a detailed and complete statement showing bankrupt's drawings for the past two years. It would also be necessary for Lloyd to produce details as to payments during the past six months. It could then be left to a committee representing the principal creditors to decide whether a further meeting should be called. By a unanimous vote this was agreed to. Messrs. Bishop, Barr, and Wallace, representing respectively the three principal firms of creditors, were appointed to act with the Official Assignee in investigating the books and accounts. "I don't think bankrupt had any wrong intentions," remarked one of the creditors towards the close of the meeting. *'He certainly failed to keep an accurate check on his incomings and outgoings." The meeting was then adjourned sine die.