BANKRUPT BUILDERS.

Dominion, Volume 2, Issue 320, 6 October 1908, Page 2

BANKRUPT BUILDERS.

YOUNG FIRM COMES TO GRIEF. AN INVOLVED CASE. The first-meeting of creditors in the bankrupt estate of Frederick Norman Eade and Harold. Venn Eade, builders, of Kilbirnie, in which there were 44 creditors, was conducted by the Official Assignee (Mr. A. Simpson) yesterday moriiirig. Mr. Von llaast represented H. V. Eade. Tho creditors present or represented werej—Messrs. Robert Isbister and Co., Wilson and Wilson, F. W. Venn, Arthur Hulmo, P. Lynch, Macey and Castle, D. Rowell, A. 13. Duff, Mainland and Co., L. C. Burke, Cooper Bros., A. C. Fry, Prouso Bros., and G. Winder. The principal unsecured creditors were Messrs. Isbister and Co., timber merchants, £4G; Wilson and Wilson, ironmongers, £55; ,T. Macey. painter, £165; Gas Company, £32; Bank of Australasia, £200; G. Winder, ironmonger, £104; J. Tanner, bricklayer, £57; J. Jackson, plumber, £71 175.; F. W. Venn (advances), £456; Cooper Bros., bricklayors, £83; Prouse Bros., timber merchants, £791 10s. (£517 of this is secured by lien); Evans Bay Timber Company, £296 155.; Masters and Barncrs, plasterers, £82 155.; Mainland and Co., roofing, .£76: Cederliolm and Tolley, electric lighting, £50; New Zealand Investment and. Mortgage Company, £021; Cattell's trustees, care of Bolton and Organ, £580; total, £2839 lis. sd. The amount owing unsecured creditors was stated at £2839 lis. od.; secured, £1224; estimated valuo of securities, £1700; stock-in-trade, £20; balances to come from contracts, £870;. furniture, £50; total assets, £1416; deiicioncy, £1423 lis. sd. ' The sccured creditors were the New Zealand Investment Company, Limited, £624, and J. Cattell's trustees, £600. In a written statement, Harold Venn Eade declared that his brother was at present a patient in the Wellington Hospital. Ho had been ill off and .on ever since his return from tho South African war, suffering from the effects of enteric, and he was about to a serious operation. 'F. N. Eade began business in 1905 with £300. He bought a section of land in Duncan Terrace, Kilbirnie, for £275, and built a house on it for £580. This property \ was mortgaged for £650, and ultimately sold for £233 above the mortgage after paying legal expenses. He then contracted to build a house for Mr. Norman for £770, but owing to unforseen circumstances he lost £180 on the contract. The writer (H. V. Eade) joined the business about May, 1906, having a capital of £300. Their first venture was-in Hamilton Road, Kilbirnie. They bought for £580 a piece of land with a cottage thereon. The cottage was moved to one side of the land, repaired and enlarged, and another cottage was built on the Balance of the land at a cost of £520. The new houso was mortgaged, and they still owned the equity. The old house was mortgaged for £350, and afterwards sold for £220 above tho mortgage. They next bought laiid at Bourke Street, Kilbirnie, for £336, and erected a house at a cost of £535. They mortgaged the property for £600, "'and still owned, the equity. Since then they had contracted for and built thirteen houses. Recently, finding themselves unable to complete contracts in hand, their position was laid before- the creditors, and, attempts to compromise having failed, they were advised by them to ,file. They had drawn nothing from the business except bare living expenses. The writer was 24 years of age, but only 22 when he joined his. brother in business. ' He ascribed their present position to losses on contracts, due partly 'to keenness of competition, partly to "inexperience, and partly to his brother's illness. The assignee remarked that it was a question whether he should sell the properties or let the mortgagors do it. He thought it advisable to adopt the latter course, and let them pay over any surplus :to him. . This was decided upon. ■ The assignee pointed out that there were a large number of liens against the contracts, totalling £1195 7s. sd. Mr. Von Haast: I understand there are two to come in yet, representing.. about £80. , Mr. Simpson: I quite believe it. The bailiff tells me that there are more summonses in this case' than in any during his experience. . I am afraid that those who have riot liens in will have a poor chance. The assignee (to debtor): You kept no books except the bankbook, and I cannot say on what contracts you have been losing. Why was this? Debtor: I left the matter to my brother'. It was unanimously decided, on the motion of Mr. Macey, seconded by A. B. Duff, that Frederick Norman Eade's furniture be. given to Mrs. Eade over and above the £25 allowed by law. It was decided that the lien-holders meet and discuss the advisability of finishing the contracts now on hand, and distributing the proceeds pro rata among such lien-holders; any balance remaining after 20s in the £ has been paid, to go to the general creditors. The meeting was adjourned sine die.