TIME PAYMENT.

Press, Volume LXV, Issue 19734, 26 September 1929, Page 7

TIME PAYMENT.

SYSTEM CONDEMNED BY CREDITOR. A SALESMAN'S BANKRUPTCY. "The time payment system is no good to the country." said a creditor at, a meeting of creditors of Hector Donald Alexander Mcßae, of 211 Armagh street, salesman, held yesterday, the Official Assignee (Mr A. W. Waiters) presiding. Bankrupt wa-> represented by Mr H. W. Ataek. Bankrupt, in his statement, said that earlv in 1924 he was employed by Messrs Beath and Co., of Christchurch. It became necessary for him to enter hospital, where he underwent two oper ations. Shortly afterwards his wife was admitted"to hospital also. The expenses then incurred were again increased later owing to the illness of a child. In October, 1924, he joined the travelling staff of the New Zealand Farmers' Co-operative Association, at a salary of £7 10s a week, and 1 per cent, commission on all sales. He had to pay all travelling expenses, including the cost of petrol for a motor-car. He had expected to be able to pay his medical and hospital expenses out of commission, but it averaged only £1 per —eek, much less than he had expected. His travelling and running expenses averaged £4 per week, leaving him £4 10s per week. He incurred an account for petrol used in travelling the New Zealand Farmers' Cooperative Association, and that firm sued him and obtained judgment for £3O. He was making no headway with that firm and left to take a better position with T. Armstrong and Co. He had not been long there when he was put off owing to retrenchment. In July, 1927, he obtained employment with J. Ballantyne and Co., Ltd., at £5 a week- Further expenses were incurred by him in March through the death of a child who was an invalid for ten months. In June last he communicated with his creditors with a view to paying a weekly instalment into a fund to be distributed amongst them, but several creditors pressed him and one in August obtained judgment for rent. He had been compelled to resign his position and was now out of employment. The filing fees had been lent to him.

'' I have no assets whatever,'' concluded bankrupt, "and it is impossible for me to make any present offer to my creditors. I attribute my bankruptcy mainly to the expenses and debts incurred through illness of myself and my family. I had always anticipated that the amount of commission to be earned when employed by the New Zealand Farmers' Association would be far in excess of what I actually received, and instead of being able to save money to pay off my creditors I was unable to make any headway at all." The principal unsecured creditors were:—Tonks, Norton, and Co., £75; X.Z. Farmers' Co-op., £3O; Mr Valentine (care Henry Illingworth), £2l; and Dr. Pairman, £l6 18s. The Assignee said that the bankrupt's statement showed no assets whatever. A feature of the case was the large number of small debts incurred by him all over the City. Certain fair sums were owing to various creditors, but besides these about £9O was owing in small amounts. "After perusing your statement," said the Assignee to bankrupt, "it appears that either you were very unfortunate in your employment, or else there was something radically wrong with yourself. You were working at several different jobs in a short while."

Ijt'was not fair, said Mr J. T. Dingle, buicher, that bankrupt should go to tradesmen as he had done, and run up an account while knowing that he would be unable to pay it. The speaker had sent one of his employees to Mrs MeRae, who had told him that her husband was out of town, but would be back shortly, and would then settle the account, which was not telling the truth. If bankrupt had been doing business with the speaker for some time, in consequence of which the speaker had had an opportunity of making some profit out of him, the case would have been different. As it was, however, it was unfair to open an account with him which there was no ehance of paying. The Assignee commented that the worst feature of the case was that bankrupt had incurred debts when he was properly insolvent. Another creditor said that bankrupt had commenced his married life foolishly, with nothing in hand, so that if illness occurred he had nothing with which to meet the position. He had also continued foolishly. It was a case of young people getting married on nothing and purchasing everything on time payment. It was certain, said the Assignee, that the creditors could not , expect anything from the estate. "Where are 'you living?" he asked the bankrupt. "I am living in furnished rooms," was the reply. The meeting then adjourned.