HIT BY HARD TIMES.

Auckland Star, Volume LXII, Issue 262, 5 November 1931, Page 7

HIT BY HARD TIMES.

BILLIARDS SALOON FAILURE.

FALL IN PROPERTY VALUES.

ASSETS WORTH £6180 IN 1929.

The fall in property values, and a big decrease in the takings of a city billiards saloon in which he was interested, were given as the main causes ,of the bankruptcy of Timothy B. O'Connor, of Devonport, who met his creditors to day before the Official Assignee, Mr. A. W. Waiters.

Bankrupt's financial schedule showed debts totalling £1345, and a deficiency of £1040. Assets included book debts, £39, furniture, £200, and surplus from securities in the hands of creditors, £65. Claims of unsecured creditors amounted to £933 and those of secured creditors to £2659. The estimated value of securities was £2725.

■ Bankrupt submitted a written statement showing his assets and liabilities at the time of setting up business in the Olympic Sports Room, Queen Street, in March, 1929. Owing to the fall in values since that time the figures shown in the statement of assets could not be upheld. His farm property at Waitakere had been taken over by the first mortgagee, owing to bankrupt's failure to pay the interest. A house property in Auckland had been let to tenants, who failed to pay the rent. He was forced to dispose of it at a loss, the money received, £575, going tc the mortgagee. The stock and fittings of the Civic Billiard Room, his previous enterprise, had been seized under a bill of sale. The failure of that venture was due to keen competition from three, other establishments in the vicinity. Owing to his financial difficulties he was compelled to raise mortgages when he opened the Olympic Sports Room, and, shortly after commencing, lie was involved in a claim for damages to adjacent property owing to a defect in the drainage system. This cost him over £200. He was successful in raising another £500 on his house at Devonport, but as the whole of the payments, for interest, house maintenance, and repayment of loans, fell on the takings of the sports room, this business was soon overtaxed. The takings at the sports room fell heavily, and during the present year he had been obliged to raise further money to meet his obligations.

The Assignee said an adjournment of the meeting would be necessary for an examination of the books. It seemed that the failure was due* mainly to the falling-off in takings .at the billiards room, owing to bad times, and the depreciation in the value of Mr. O'Connor's properties.

In the course of examination debtor said that owing to ill-health the details of his business affairs had been managed by members of his family during the past two years.

A creditor remarked that the Olympic Sports Rooms had been started at a time when things were bad, and the venture had no chance at all.

An additional financial statement submitted by debtor showed that in March, 1929, his' assets were valued at £(>IBO and his liabilities were only £bOO.

After further discussion tlie meeting was adjourned to enable investigation to be made into bankrupt's affaire.