PAYING THE PIPER

Dominion, Volume 23, Issue 75, 21 December 1929, Page 13

PAYING THE PIPER

AN EXPENSIVE TUNE FAILURE OF PROPERTY DEALER LACK OF CAPITAL AND BAD SELLING TIMES “I have paid the piper gladly and danced heavily to Uic tune, although very often inappropriately clad for the dance,” said Wilhelm Farquhar Eggers, agent, of Wellington, to a meeting of his creditors yesterday, in referring to the fact that in financing he had often to pay big bonuses to secure money for loans. Bankrupt’s debts to secured creditors total £29,272, and to unsecured creditors £4022/11/9. The principal secured creditors are: —J. E. Miles, £7500; W. J. McEldowney (solicitor), £3600; Equitable Building Company, £2050; Sir Kenneth Douglas (solicitor), £4350; Samuel Roberts, £2OOO. The principal unsecured creditors are: —Marsh and Sons (painters), £49; McGregor (plumber), £l-0; J. W. Asbridge (land agent), £190; Parkinson (surveyor), £6O; City Council (rates), £74/2/7; G. J. Arkinstall (painter), £80; M. A. Traynor, Wnllaee Street, £350; A. H. Wood, £500; J. S. Tennant, £1000; J. Niqol, £144; A. Loasby, £100; E. H. Davis, £100; Geo. Castle (chemist),, £260. Surplus of assets over liabilities was estimated to produce £3843/18/9. The bankrupt was represented by' his solicitor, Mr. A. M. Dunkley \ Bad Selling Times. In his sworn statement bankrupt said his position in 1912 was: Liabilities, £47,000; secured creditors, £39,000; unsecured, £7000; assets (real property), £41,000; other assets, £5OOO. Since 1912 he. had paid off all those creditors with interest added excepting approximately £6OO, in full, and brought up his family of seven . children. Since 1912. he had had periodical meetings of his creditors, and on all occasions they had seen fit to help him. The causes of his present position were, firstly, speculations hampered by lack of capital, and, secondly, bad selling times. “In the first place 1 had very little money of my own to work with,” said bankrupt. “My system of working was to buy a house or land suitable for subdivision at a figure I knew must realise a profit. My buying has always been sound, and I do not think anyone will deny that my sense of value is equalled by very few speculators in Wellington. Having signed up to buy a property I then would set about financing it. My valuations by reputable valuers were always considerably above the figures I contracted to pay for properties. This often enabled me to finance purchases without any cash of my own. Often houses wanted improving and much of the finance went into improvements, adding further to the value of the properties bought by me. In financing I had often to pay big bonuses for securing money for loans. Some gentlemen in this city have made considerable sums of money out of my dealings in this way alone. I have paid the piper gladly and danced heavily to the tune although very often inapnropriately clad for the dance. During the last twelve months it has been difficult to do much selling. Occasionally I have been able to turn over a deal quickly. I have made as much as £3OO in a week, but the profit has always been applied in wiping off liabilities. x " Prospective Rent Roll. “In June, 1928, I assigned my estate to Messrs. Arcus, Dunkley and Egley ns trustees for my creditors. These gentlemen, with my assistance, did their utmost to convert my estate to advantage, but it was practically impossible to do much as selling was a difficult matter. They realised that it was a question of waiting until times improved. My position has not materially changed since this assignment. My main asset is the Daniel Street block, comprising 14 houses, valued on a conservative basis at £13,600. The rentals for the next three years and six months sro to the original owner, Mrs. Smith. Then the rent roll of some £1350 will come to me. There is a surplus here of £694 pgr. annum if this property ean be held until the balance owing, to Mrs. Smith is paid, as it will be paid in the three and a half years. The interest on the first mortgage of £6ooo'was paid in advance for seven years. My other properties show an increase of £1940/18/-, and outgoing of £1656/14/-, leaving a total of £lB4/14/- per annum for my estate. My assets, valued on a conservative basis, show equities amounting to approximately £7OOO, over liabilities. You must realise that it is in my best interests as well as in the interests of my creditors that my estate shrill pay 20/- in the £l, as then there will be a good surplus for myself. To this end I am determined to work, and I will spare no effort to assist in the clearing up of the task facing the Official Assignee. Messrs. Arcus and Dunkley have the whole of my affairs in hand, and have signified their willingness to assist in supervising my estate if any creditors wish. Bankrupt Arrested. “I was forced to file by one of my creditors obtaining a default order on a judgment summons, and I regret being unable to meet the amount, but my recent illness prevented me from completing finances I had arranged to pay him and the Wellington corporation for. rates. This creditor’s hasty action of having me arrested after my going to Court to explain ray position on further judgment summonses pending for rates, forced my hand, and I bad no option but. to file. I could have avoided this by taking advantage of a friend’s offer of .assistance, but considered that in so doing I was

not going to help anyone, in view of the fact that twenty-six charging orders to endeavour to press me to give preference had been taken out by another creditor and were going to prejudice fair treatment of all those who had given me tune and were still, and are still, willing to extend their lenience and eomjjdertition lo me.” . , ~ , After a short discussion it was decided that as little could be done in the meantime, the meeting adjourn until a date in January. Messrs. H: Jowett and W. 1. Pringle were appointed a committee to work with the Official Assignee.