CREDITORS MEET

Press, Volume LXXXI, Issue 24748, 13 December 1945, Page 3

CREDITORS MEET

BANKRUPT CONTRACTOR A meeting of creditors in the bankruptcy of Noel Duncan Wallis, a contractor, was held yesterday, the Official Assignee, Mr G. W. Brown, presiding. After bankrupt's statement had been read and Wallis cross-examined by Mr Brown, the meeting was adjourned. The total debts amounted to £3948 19s 2d, of which amount £3032 Is 6d was owing to unsecured creditors and £916 7s 8d to secured creditors. The assets were valued at £2Ol 10s. In bankrupt's statement he said in 1944 his financial position was sound, for though he owed about £4OO he had some cash in hand and had assets totalling £BOO, including equity in a house. In October, 1944, he had become interested in a coal' mine at Milton, Otago, although he knew nothing about coalmining. He had listened to the advice of a man whom he considered an expert. He thought the prospects were really good, and he took a lease of a property to mine coal on a royalty basis. He was paying wages amounting to £32 a week. In April of this year 10 or" 15 tons of coal were coming forward each week. The roads became flooded and blocked and he had to keep the road to the mine in order. By June he had put nearly £2OOO into the mine and had extracted between 200 and 300 tons of coal at £1 5s a ton. The mine looked a "sitting shot" for opencast mining. He had been compelled to employ two bulldozers at £6 a week. In October he-had a round-the-table talk with his creditors, and it was suggested that he make a private assignment. He did as suggested, and was immediately put out of business.

Cross-examined by the Official Assignee, bankrupt said that about November, 1944, he had paid £BOO for. a house to which he had made £3OO worth of improvements. He had started borrowing money when the mine got him into trouble. He had been quite confident that he would be able to return the money, as the mine at one stage was developing very favourably. He had paid £3OOO in wages, development of the mine, and material, and when he sold the mine he still expected to pay his way. on .royalties from the mine. He had drawn from £lO to £ls a week out of the business. When keeping his own books he found he could not keep accurate details and he had handed them over to another man to whom he paid £6 10s a week. There was a considerable amount owing to the Commissioner* of Taxes. The I Official Assignee said he was not altogether satisfied with some of the answers given by bankrupt. He suggested that «the meeting be adjourned until late in January or early in February. This was agreed to.